was looking at a car and they have stated that they don't sell to individuals
"We only sell to businesses or self employed individuals or trading as companies so please check under our profile and by bidding you are deemed to be in business purchasing for business use. We DO NOT SELL TO PRIVATE INDIVIDUALS."
To me it seems they don't want to get involved in the CGA
Just curious what folks in the trade thought of this approach
stevo2,
Aug 3, 6:49am
Got an auction no?
westwyn,
Aug 3, 6:49am
I think they are within their rights to state what they have- and yes, it will almost certainly be to avoid any CGA obligations. They're being up-front about it, you could not purchase as a private individual and NOT know what you were agreeing to. Without knowing the details of the listing, I assume it's a trader who is offering stock primarily for trade wholesale (yes, a lot of dealers DO buy via TradeMe) with a price reflecting this, since the reality is most dealers selling now price a CGA what-if factor into their listings, no matter the value.
I brought this exact scenario up with TradeMe last year, and the response was that in theory, they had no issue with it- as long as it's clearly stated to the buyer that their purchase as a company voids the Dealer's CGA obligations. It doesn't change the Fair Trading Act- but then for most, that's not a problem anyway.
Interesting- it's the first time I've heard of someone actually DOING it.
jimkahu1,
Aug 3, 6:58am
Not sure i'm allowed to post the auction number, but that was a quote from their listing. This is their first auction, they have TM in trade flag, and it was a $1 reserve.
They are being very upfront about it and have given a description that has information that they have about the car.
Just felt a bit to blatant in avoiding the CGA, but if by making it clear they're only dealing with businesses then it probably won't come into play
mojo49,
Aug 3, 7:12am
Don't quote the listing number. I did that last night and the thread got removed after a complaint and TM told me it was "not cool". They still have to become RMVT whether or not they are selling to the public, but it seems that what they are wanting to do in terms of limiting their client base and the impact of the CGA on that is legit in terms of the CGA.
noswalg,
Aug 3, 7:17am
can't see a business buying a 17yo turbo vehicle with 280k on the clock for business purposes. Makes for a pretty limited market really.
mojo49,
Aug 3, 7:31am
OP. If you think it is suspect raise it with Trademe. If you are not happy with their response you will find a remedy on the RMVT website. The post by noswaig suggests he found the auction you are talking about and the vehicle alluded to does not look like a car a company would want to buy for business use if that is the case. Decide for yourself if you think it is legit or just another cynical attempt to avoid the requirements of the CGA via Trademe and act accordingly but exercise caution on this message board.
tony9,
Aug 3, 7:55am
Their comments are totally irrelevant as for the CGA is concerned. An individual can buy the vehicle and say they are in business, for the purpose of buying it.
But you cannot contract out of the CGA. If that individual has a problem, and can show that they were not in business then the CGA will apply.
The statement "by bidding you are deemed to be in business purchasing for business use." is a crock as far at the act is concerned.
99% of the buyers on TradeMe will be private users, that they are listing here (instead of at a Turners dealers auction) makes it pretty clear they are trying to fiddle with the CGA.
charlie4561,
Aug 3, 8:03am
If a buyer claims they are a business when not then the CGA might apply. However, by doing that they have intentionally mislead the seller, which is a crime. I doubt the buyer will pursue their CGA rights in this case when the seller reports them to the Police.
seadubya,
Aug 3, 9:05am
By doing a search for the "" words in the first post, I found a car that I am struggling to imagine would be purchased for business use, can anyone think of a business that would benefit from the addition of such a vehicle?
curlcrown,
Aug 3, 9:08am
Dealers sell trade in vehicles to wholesalers and other dealers at wholesale prices with no CGA every day of the week at wholesale prices. You as Jo Bloggs can't just walk onto a car yard and buy the trades at wholesale prices.
franc123,
Aug 3, 9:27am
Whilst it is butt covering and avoidance of the CGA the primary intention is to sell to a business for onsale or for parts or repair, not to a business to be used for business purposes. Some vehicles it would be simply unwise to sell to the public as they are, fix up and sell on maybe, but as they are, no way. At a particular level they might be doing potential buyers a favour.
seadubya,
Aug 3, 9:33am
If it is to be sold to a business to on sell, which business? How many dealers are prepared to invest money into a 17yo 280thou km vehicle to get it to the point where they can cover it within the terms of the CGA? What's it worth on a yard? $2500 - $3000? It doesn't make fiscal sense to take such a risk for such a small potential for profit.
franc123,
Aug 3, 10:21am
Apparently some businesses work on under $500 net profit per unit.
seadubya,
Aug 3, 10:31am
True, but surely the CGA comebacks from selling 50 $10k cars at $10,500 is less than the CGA comebacks from selling 50 $3k cars at $3500. A $500 net profit per unit selling quality, reliable vehicles is a viable proposition. Taking the same risks with end of life vehicles would put too much strain on any margins. imho.
robotnik,
Aug 3, 10:39am
I know of one tradie, a plumber, who used a 1990s Mitsi Legnum VR-4 turbo wagon as his work car. He removed the backseats entirely and had the rear kitted out as a dedicated load space. This was actually in the UK and he got some sort of tax rebate which only applied when the rear seats were removed.
westwyn,
Aug 3, 10:54am
Correct. In this case, the vendor apparently is being quite specific about the T's and C's of who they will accept as a buyer- as long as that is clearly stated, is it really an issue? Is anyone actually missing out on anything here? Is anyone being "intentionally misled?"
I can't find the listing in question- but it's likely the vendor is using TM as a marketing tool to reach a specific audience, which they would be unable to do by any other means. Viewing the listing, I'd imagine you'd clearly know whether you are the audience, or not. If you're not, and you buy it anyway, you have misled the vendor on your true intentions.
It's the first time I've heard of someone actually listing this way, but my only surprise is that it has taken this long for a trader to do it.
kazbanz,
Aug 3, 12:20pm
You are wrong Im sorry. I can tell you 100% for fact that if someone tried to take that scenario to MVDT they WOULD be thrown out. The reason being that the buyer has to complete a two step confirmation process. 1) they saw the T and C of the auction clearly spelled out 2) The initialled the box on the VOSA specifically agreeing the vehicle was for business purposes.
So you are saying "what if they lie?" What do you think a judges response would be " Ohh yes your honour I lied when I agreed to purchase the vehicle and when I signed the VOSA but I still expect cover under the CGA even though I lied."
edbabynz,
Aug 3, 1:45pm
Well no, your net profit is what is left after all those costs have been incurred. All those bits and pieces come out of your gross profit to bring you down to your net profit.
Saying you gear your business to make $500 net profit on each vehicle doesn't actually mean anything.
msigg,
Aug 3, 1:53pm
kazbanz has it in one. sign the dotted line, there ya go. read the fine print before signing if you are trying it on, at the end of the day two wrongs don't make a right.
seadubya,
Nov 26, 7:28pm
My point is that for the specific auction mentioned, I could think of no business that would buy it. I have no objection to trade sales, I just wonder which trade this particular vehicle would suit. Since future breakdowns are an unknown, surely newer lower mileage vehicles present fewer claims than high km 17 year old ones.
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