Monday, October 19, 2009

An unlicensed car motor car trader who sold around 180 cars worth more than $2.6million, was given a two month jail sentence, suspended for 18 months and ordered to pay nearly $25,000 in fines, court costs and compensation in Melbourne Magistrates’ Court on Thursday 15 October.

Michael Kingston, 75, of Parkdale, admitted to unlicensed motor car trading and criminal charges of tampering with an odometer and making a false representation about an odometer when he appeared before Magistrate Felicity Broughton.

Consumer Affairs Victoria (CAV) Director, Dr Claire Noone said the court outcome serves as a warning to unlicensed motor car traders.

“CAV employs sophisticated means of detecting dodgy operators. If you are breaking the law, you run the risk of being caught,” she said.

Dr Noone also said CAV issued a warrant for Mr Kingston’s arrest in 2004 following an investigation.

“Mr Kingston evaded arrest until he was caught trying to sell a car to an undercover Consumer Affairs inspector in Parkdale in January.

“Between March 2001 and June 2003, Mr Kingston sold 177 cars from three different addresses using seven different phone numbers and changed his name twice by deed poll in different states. In the previous year, he advertised at least four cars for sale,” she said.

Under the MCTA, a person in the business of trading in motor cars must be licensed, and a person who offers to buy, sell or exchange four or more cars in 12 months is seen to be acting as a motor car trader, and must be licensed.

Mr Kingston’s odometer charges relate to a car he sold in 2002 where the odometer had been wound back by more than 100,000 kilometres.

Mr Kingston advertised cars for sale in a daily newspaper, car sales publication and on websites, using multiple phone numbers for addresses in Brighton, Hampton and Cheltenham.

Dr Noone said it was a timely reminder for consumers of the benefits of buying a car from a Licensed Motor Car Trader (LMCT), which include:

• A three-day cooling-off period for most sales
• A three-month/5,000 km statutory warranty for cars less than 10 years old that have travelled less than 160,000 km (commercial vehicles, motorcycles and vehicles bought by owners corporations are exempt) and
• The obligation to provide a clear title, certifying the car had not been stolen, written off or had money owing on it.

“Unlicensed trading robs consumers of protections such as access to the Motor Car Traders Guarantee Fund which can compensate consumers who have been victims of breaches of the specific provisions of the Act,” she said.

Consumers with concerns about buying a used car should contact Consumer Affairs Victoria on 1300 55 81 81 or visit the Consumer Affairs Victoria website.