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MTA calls for full review of damaged vehicle sales

MTA applauds TradeMe’s recent announcement that it will require vehicle traders to disclose if a vehicle is an Australian statutory write-off.

Similarly, MTA welcomes Minister of Commerce Paul Goldsmith’s suggestion of a review of CIN (Consumer Information Notice) card information.

Acting MTA CEO Craig Pomare said, “MTA raised this issue with government in 2015 and we are happy to see movement, but the industry can do better.”

“This disclosure will add to the existing protections consumers have when purchasing a vehicle from a reputable trader. As long as the customer receives full transparency around the history of the vehicle, they will not be disadvantaged in making their purchase decision.” Said Mr Pomare

However there is a lack of data about damaged vehicles coming from countries other than Australia. MTA believes that there needs to be a review of the treatment of damaged vehicles across the board – not just recent Australian imports.

Problems relating to damaged imports are not just an issue at the time of delivery. Some of the damage is hidden and may take time to manifest (such as corrosion in wiring and electronic components). While a reputable trader may be open with a customer at the first sale, there is little guarantee that this transparency will continue with any subsequent sale. There is no clear tracking on the motor vehicle register of this damage.

MTA calls for a full review of the sale, repair, and re-registration of all damaged vehicles in New Zealand, regardless of origin. The move by TradeMe and the Minister’s proposal are good first steps.