They can sell them but not with those strings attached.
tgray,
Feb 2, 8:00am
Cannot sell as is where is. Against the law and the CGA applies whether they like it or not.
msigg,
Feb 2, 8:09am
They will sell this car no matter what laws are out there. This is an older car and a very reliable car, so chances are they won't see it again. End of story.
grangies,
Feb 2, 8:15am
yeah. But they may have a new owner picking up on pedantic nonsense things.
msigg,
Feb 2, 8:35am
No grangies, you have to remember it is an old car, so long as its functional and driving like its supposed too then all good, they are a basic car, not much to go wrong, The problems will be in a few years time when all the more modern electronic type vehicles are being sold cheap, the complicated euro cars will have to be sold for parts, or private, I can see that happening.
motorboy2011,
Feb 2, 8:54am
I've seen a few cars listed now that are reg and wof but sold as a "parts car"
mrfxit,
Feb 2, 9:09am
Yep & thats happening because it's one of the few ways you can legally get out of the new CGA rules. Catch 22 is it often lowers the top price
tgray,
Feb 2, 10:01pm
If it's obviously not a parts car but advertised as such to circumvent current laws, it won't hold up at the Disputes tribunal.
rob_man,
Feb 2, 11:12pm
I think that for the "parts car" story to hold water the car would need to be de-reg.
kazbanz,
Feb 3, 1:42am
Nope I don't agree mate. if there are sufficient mechanical faults then it can be sold as is where is and responsibility for deregistration falls on the new owner. BUT you must clearly state it is sold for parts only. From MY pov if the cost of KNOWN repairs will exheed the retail value of the vehicle then its a parts doner
mrfxit,
Feb 3, 3:04am
Definition of a "parts car"
A vehicle that on it's own merits is uneconomical or nonviable to repair.
This vehicle could be used as a "donor" for another vehicle of the same model or parts from another "donor" vehicle could be used to repair this vehicle
noswalg,
Feb 3, 4:00am
Can a finance company opt out of the CGA when selling repossessed cars? How many cars can a finance company sell in 1 year before they would have to become a dealer?
tigertim20,
Feb 3, 6:11am
great question!
anyone know?
tony9,
Feb 3, 6:21am
The law is not stupid, but it is exposing a lot of people who are.
One is the person trying to sell the above vehicle. He has blown his stupid attempt to avoid the CGA with words like "a very good condition 1992 Honda Civic". Any major failure (apart from wear and tear) that happens in the first few months, or maybe up to a year, the seller will have to sort it.
The CGA simply confirms what a fair and reasonable person would expect.
tony9,
Feb 3, 6:23am
No one can opt out of the CGA. But if the finance company gets an independent vehicle report and makes it available before sale they would likely cover their back end.
callum.irvine,
Feb 3, 6:28am
Its more likely simply fee avoidance. They pay minimum $39 to list it as a car, nada in the parts category. Has been going on since Trade Me was in nappies.
callum.irvine,
Feb 3, 7:00am
Don't imagine it would be different to anyone else? So 6 per 12 months.
russell.s.c,
Feb 3, 7:11am
Did a search on the Motor Vehicle Traders Register for the trader number in the OP's auction link and got this - "The Trader Number entered is not valid"
kazbanz,
Feb 3, 9:26am
Heck dude you got me. A finance company is in a rather unique position They aren't a private individual but it isn't their business to sell cars either. MMMM-That would be why they use normal dealers to sell their repo's
kazbanz,
Feb 3, 9:29am
Im sorry matey but that's a big ol urban legend. If you are selling even ONE car with the intention of making a profit then you (by law) have to be a dealer.
supernova2,
Feb 3, 9:38am
Turners say on most of their repo auctions the vendor is "In Trade". As a finance coy is not selling for profit I guess then don't need to be RMVT.
kazbanz,
Feb 3, 9:50am
cor blimey 20 od years in the bizzo and someone asks a question I don't know the answer to-I'll ghet the legal definition tomorrow
westwyn,
Feb 3, 9:59am
The legal opinion is that finance companies are indeed required to comply with the Consumer Guarantees Act. At the time legislation was pending, most (if not all) had their legal teams research their position, and it was accepted (begrudgingly) that even if the purpose was NOT to derive a profit from the sale, the spirit of trading in vehicles still applies (in part due to the finance company deriving a profit from the initial sale, and lending on, a car, thus the sale of said car, even in a default recovery position, is a natural extension of the profit-aimed portion of the business).
Kind of ridiculous really- it placed them in a double-jeopardy situation. To sell a repossessed car, the law requires the financier to provide a full statement of account within a set period of days post-sale (I think it's 14) and either refund any surplus balance, or set out legal action / recovery of the deficit. However- the CGA doesn't play by 14-day rules, so the finance company would, in theory, have to withhold a portion of the proceeds until the CGA obligation assumed period had expired. But that then is in breach of the repossession settlement terms!
The major auction company circumvented this by offering the finance companies an insurance scheme- effectively, a premium paid by the finance company on every sale to a non-RMVT buyer that then passed financial obligation on to the auction company, thus allowing the financier to settle the account.
It's far from ideal, since the client (whose car was repossessed) ends up paying for a premium they technically shouldn't be liable for. But then, the law is an ass anyway.
Disclosure: I do contract work part-time for a major finance company.
tigra,
Feb 3, 7:43pm
OP. Why are the new CGA laws stupid?
mrfxit,
Feb 3, 7:56pm
Mostly ok but some parts go way to far. Fantastic for the buyers but very tricky for the s/h market & sellers. I can see a few more cars going straight to scrap metal that would have normally been fine for a few more years of usage.
Since the public registrations are closed, you must have an invite from a current member to be able to register and post in this thread.
Have an account? Login here.