A former licensed motor car dealer has been convicted and fined $50,000 for selling cars with tampered odometers.
Maidstone business Simon’s Car Sales Pty Ltd pleaded guilty in Melbourne Magistrates Court to five charges of odometer tampering under the Motor Car Traders Act 1986. In addition, the company agreed to pay five consumers a total of $34,750 compensation.
Consumer Affairs Victoria investigated the dealer and found that the odometers had been wound back between 40,000 and 120,000 kilometres.
The affected consumers, who bought cars from Simon’s Car Sales Pty Ltd between October 2009 and August 2010, will get between $3000 and $15,000 compensation each. They will also be able to keep their cars.
In one case, a buyer had several problems with the car and rather than paying for repairs, took it to an auction house. The auction house refused to sell the car because its odometer reading was significantly lower than when they had sold it the previous year.
The clocked cars and consumer compensation are as follows:
- 2003 Holden Rodeo 4WD, sold for $13,000, had its odometer wound back by about 100,000 kilometres. The consumer will receive $15,000 compensation
- 2002 Toyota Prado Landcruiser Wagon, sold for $16,000, had its odometer wound back by about 120,000 kilometres. The consumer will receive $9750 compensation
- 2003 Ford Falcon XT, sold for $8000, had its odometer wound back by about 120,000 kilometres. The consumer will receive $4000 compensation
- 2000 Honda CRV Wagon, sold for $8000, had its odometer wound back by about 40,000 kilometres. The consumer will receive $3000 compensation
- 1995 Mitsubishi Pajero GLS, sold for $7303, had its odometer wound back by about 100,000 kilometres. The consumer will receive $3000 compensation.
Simon’s Car Sales Pty Ltd is no longer operating, having voluntarily surrendered its licence to the Business Licensing Authority in May 2011.