No protection for bargain-seeker

When you choose to spurn reputable dealers in search of a cheap deal, you have to accept a certain degree of risk.
That was the message from the Motor Vehicle Disputes Tribunal to a purchaser who had a car imported via a friend of a friend, because it was promised for considerably less than what his local dealers could offer.
The vehicle in question was a 1995 BMW 740i.
The purchaser was introduced to the trader by a friend, on the understanding that the trader could import a 7-Series BMW for well under the amount a local yard might charge.
The vehicle had to be mid-to-late 1990s, the new shape and around 100,000kms.
Some time after this, purchaser received the spec sheet of an appropriate vehicle available in Japan, saying it could be on the road in New Zealand for between $16,000 and $17,000.
The purchaser agreed to the sale, for an unspecified price. However, when the vehicle arrived it could not be complied without having repairs performed.
By the time the car was roadworthy, the cost had reached almost $22,000.
Furthermore, on taking delivery of the car, the purchaser found there was no remote locking key.
Over the next six weeks it also became apparent the car's suspension was 'not performing as it should'.
The purchaser claimed the compliance and suspension faults entitled him to a refund of the purchase price under the Consumer Guarantees Act.
He backed up his request with a claim that the trader had misled him by saying the vehicle was Grade 4 when it was in fact Grade 3.5.
The trader's evidence was that he had sought an appropriate vehicle in Japan after being unable to locate one via his usual sources.
This was to be the trader's first experience importing a vehicle from Japan - a fact known by purchaser.
The trader admitted that he had told the purchaser the vehicle was 'probably nearer 4' than 3.5, but claimed the actual grade was listed on the spec sheet, sent before the purchaser agreed to the sale.
The purchaser responded that, apart from the figures, this sheet was written in Japanese.
Continuing with his evidence, the trader told the Tribunal that some of the additional importing expenses were incurred as a result of requests by the purchaser.
In addition, he added that he received warnings at his financial planning job and was eventually forced to leave because the purchaser had been calling his office instead of his home.
The misrepresentation claim was dismissed by the Tribunal because of a lack of evidence.
According to the Tribunal case notes: "Both parties had the opportunity of inspecting the vehicle and making their own judgement as to its condition, and [the purchaser], with full knowledge of the state of the vehicle, declined an offer by [the trader] to take it back."
The Tribunal continued to the claim under the Consumer Guarantees Act, and found in favour of the trader.
"Of particular importance in this case, in the Tribunal's opinion, is the direction [in the Consumer Guarantees Act, section 7.1] to have regard to 'all other relevant circumstances of the supply of the goods'.
"[the purchaser] was not buying from a recognised car dealership, although he had been in touch with such businesses.
"He chose in fact to deal with a young man referred by a friend.
"In these circumstances, in the Tribunal's opinion, [the purchaser] was taking a certain degree of risk in buying from an inexperienced seller with no history of the importation of vehicles from Japan, nor, as far as the Tribunal is aware, of experience with larger BMW models.
"[the purchaser] had chosen to enter into an open ended purchase agreement with no specific price agreed, and as is normal when a vehicle is imported from Japan work was required arising out of the compliance process.
"This would not normally be a specific cost… but [the purchaser] had chosen to accept liability for these costs in the expectation that the net result would be a cheaper vehicle.
"[the purchaser], at the conclusion of the written statement, recorded, 'I believe I could have purchased a similar vehicle from a reputable dealer with full warranty support for around the same price, with immediate possession'.
"This Tribunal's role is confined to ruling on the legal obligations of the parties, and cannot - of course -provide relief for what a purchaser may consider to have been an error of judgement."

(Article source: AutoFile)



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