Ministry of Business, Innovation and Employment cracks down on rogue private car sellers

MBIE is cautioning Kiwis about engaging in unregistered motor vehicle trading. Photo / 123RF

The Ministry of Business, Innovation and Employment is warning it is cracking down on private vehicle sellers operating in breach of the law.

A recent court ruling confirmed that advertising vehicles for sale online – known as “display for sale” – counts as a sale under the Motor Vehicle Sales Act 2003.

The ruling reinforces that anyone selling more than six vehicles in a year, whether online or in person, must register as a motor vehicle trader.

Registrar of Motor Vehicle Traders Duncan Connor said buyers are at greater risk purchasing from unregistered traders.

“If issues arise, they cannot seek resolution through the Motor Vehicle Disputes Tribunal unless the seller meets the criteria as a registered trader.”

“If you break the law, we will act – and we now have stronger legal backing to do so thanks to the recent ‘display for sale’ decision.

“Our priority is consumer protection and maintaining trust in the motor vehicle sales industry.”

In recent enforcement action, Kahn Ratcliffe was fined $29,700 for selling 88 vehicles while unregistered, despite a previous conviction.

Kenneth Cumming received a $10,000 fine for selling 40 vehicles while banned.

And the District Court has banned Richard Wallace from participating in the business of motor vehicle trading for a further period of five years, following a previous five-year ban.

“These enforcement actions show our commitment to cracking down on unlawful trading,” Connor said.

“We’re using smarter tools, including NZTA data-sharing, to identify and stop unlawful trading before it harms consumers.”