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Home / New Zealand

Damaged ute should have been written off, not sold to another customer for $45k

Jeremy Wilkinson
By Jeremy Wilkinson
Open Justice multimedia journalist, Palmerston North·NZ Herald·
25 Jul, 2022 05:00 AM3 mins to read

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The Hilux (similar to this one) needed extensive repairs after being involved in a head-on collision. Photo / File

The Hilux (similar to this one) needed extensive repairs after being involved in a head-on collision. Photo / File

A ute that was involved in a head-on collision should have been written-off - but was instead sold to another customer for $45,000.

The 2018 Toyota Hilux was sold to a customer who found out after numerous faults that it had been in a serious crash and had been poorly repaired.

The new owner was given the crash scene photographs from Waka Kotahi (Formerly NZTA) and a decision released by the Motor Vehicle Disputes Tribunal said that if the vehicle had been insured at the time the insurer would have written it off.

Instead, it was repaired and sold for nearly $45,000.

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The customer, Dynamic Interiors NZ, took the seller, ALM Group to court to get their money back after they found out about the vehicle's history and its Warrant of Fitness was revoked because of safety concerns.

Within days of buying the vehicle the customer noticed the right front tyre was rubbing on the mudguard and took the vehicle to a local mechanic who told him it had been in a serious accident and had undergone extensive repairs.

The customer said he has had to replace the tyres twice since purchase and that he has had two wheel alignments done on the vehicle, neither of which was able to fix the issue.

However, the customer continued to use the vehicle for about a year before being contacted by one of Waka Kotahi's investigators who was concerned the vehicle had not been correctly repaired after the collision.

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The investigator found that the vehicle's repairer, Harvey Collision Repairs, hadn't kept any files on the work that was done and so couldn't be sure that the repairs were done to a safe standard.

Following an extensive inspection Waka Kotahi found that there had been significant damage to the chassis, filler had been applied to the crumple zone, multiple bare un-primed welds that resulted in rust spreading and leaks inside the car and airbags having been replaced from an unknown source.

They recommend completely replacing the vehicle's chassis, air bags and seat belts and to remove the paint where required to check the quality of the welding that had been done.

There was some dispute about who actually sold the customer the vehicle as ALM Group delivered the vehicle to Vehicle Imports Direct Ltd who then sold it from their premises and claim they merely sold it on behalf and retained a commission.

The Tribunal found that the customer had not been misled about the fact the vehicle had been damaged and then repaired, nor that the seller knew those repairs had been done poorly.

It ordered that the seller, Vehicle Imports Direct Ltd, repair the damage properly and have a Waka Kotahi certifier witness them in order to bring the vehicle back up to a safe standard before being returned to the customer.

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