May 16, 2010

Consumer win: $10,000 fine for backyard motor dealer Alexander Francis Hodgins

http://www.mysunshinecoast.com.au


A man has been fined $10,000 in the Pine Rivers Magistrates Court today after being caught selling vehicles without the appropriate licence.

Alexander Francis Hodgins pleaded guilty to 18 counts of unlicensed motor dealing between 30 December 2008 and 12 February 2010.

Minister for Fair Trading Peter Lawlor said this was the second prosecution as a result of Operation Turner.

"Operation Turner is an Office of Fair Trading (OFT) investigation targeting backyard motor dealers and people selling vehicles with replaced or altered odometers," Mr Lawlor said.

He said OFT investigators began an investigation against Mr Hodgins after receiving information vehicles were being offered for sale from his private residence. Inspectors visited the Kallangur address and saw vehicles on the footpath and inside the yard that belong to Mr Hodgins.

Mr Hodgins had previously come to the attention of OFT officers and had been issued with an infringement notice for selling vehicles without a licence.

"These backyard motor dealers do not pay licensing fees, have no overheads and can cause licensed motor dealers, who do the right thing, to lose business," Mr Lawlor said.

"More importantly, the types of vehicles sold are often of a lower quality and may be repairable write-off vehicles that have been significantly damaged in accidents, that are then repaired and on-sold to consumers.

"It is important that consumers make all the appropriate checks on vehicles they are considering purchasing to avoid being caught out.

"Consumers who are unaware of a vehicle's background put themselves at risk of expensive repair costs in the future or much worse."

The ways consumers can check second hand motor vehicles include:

•    A register of encumbered vehicles (REVS) check will show if there is a debt owing on a vehicle. Motor dealers normally do the checks for the consumer and provide a REVS certificate. However, if you buy privately you need to do your own REVS check

•    A Queensland Transport Vehicle Check (Vcheck). A Vcheck can be purchased for a vehicle, including a caravan or trailer, which has been manufactured since 1 January 1989. It provides the latest information recorded on Queensland Transport systems. Vcheck reports show any odometer discrepancy and will also give the consumer information about the vehicle's history; including if it has been in a substantial accident.

"There is a small cost for these types of checks but it is money well spent," Mr Lawlor said.

"If you are buying a second hand vehicle you are also encouraged to get it checked out by a mechanic or someone you trust. Safety certificates will show if the vehicle is road worthy or not, but the comfort of a full vehicle inspection by an independent mechanic may save you money on repairs in the long term.

"Importantly, these checks arm consumers with knowledge which will allow them to make an informed choice before they buy a second hand vehicle."