Rogue car dealer fined $48,000

An Auckland car dealer who claimed his customers were not protected by the law because they had bought their vehicles on a "tender" basis has been fined $48,000 for misleading them about their rights.

Quinton Marchione was also ordered to pay $4160 in costs at the Auckland District Court.

Judge Josephine Bouchier found Marchione guilty of 32 charges of breaching the Fair Trading Act by misleading consumers about their rights and remedies available to them.

The charges related to more than 20 customers who bought cars between August 2001 and November 2003.

Marchione had made his customers sign a form waiving their rights under the Consumer Guarantees Act or Fair Trading Act as they were buying on an "as is where is" and "tender" basis.

When buyers returned to Marchione with problems with their cars he said the form they had signed meant he could not be held responsible.

The father of the initial complainant to the Commerce Commission, Barry Kernot, said he was disappointed the process had taken so long and Marchione had since left the country, so the sentence could not be enforced unless he re-entered New Zealand.

He said his daughter, Amy, had bought a 1995 Nissan for $7700 from Marchione in 2004. After 20 minutes, she returned to complain it was not running properly. Marchione refused to help, claiming he was not responsible and Amy later discovered it had transmission problems.

Mr Kernot - a mechanic - took up the cudgels on his daughter's behalf.

"Somebody, somewhere along the line has to stand up to these people. My daughter was about 18 and wanted to show she was a grown-up and could go out and buy a car by herself.

"I had to go into bat for her because she had scrimped and saved to get that money at 18 years of age. Then to have this man do this to her and not give her the time of day? I figured it was time to do something."

Commission director of fair trading Deborah Battell said car dealers could not "contract out" of their legal obligations.

"Mr Marchione may have thought he had found a legal loophole by selling cars through a so-called 'tender' process," she said.

"Such a loophole does not exist. Consumers have rights under the Consumer Guarantees Act and Fair Trading Act and traders can not deprive them of those rights."

Ms Battell said the commission was aware car dealers were using sham "auctions" and "tender" processes to try to avoid their legal obligations. "The practice has become widespread so the commission is pleased that a substantial fine has been imposed to let other dealers know that they cannot deny consumers their legal rights."

Marchione entered not guilty pleas to the charges, but did not appear in court for the hearing or sentencing. It is understood he lives in Australia.

- Additional reporting by NZPA