Last updated 14:01, June 10 2018
GEORGE HEARD/STUFF
Tama Skipper is left with a dodgy car after the car yard he bought it from closed.
Tama Skipper is left with a dodgy car after the car yard he bought it from closed.
Make sure the dealer supplying your car has been around for a while and has a good local reputation.
So says the Motor Trade Association (MTA) after a large Christchurch car yard closed its doors after only about a year in business.
The closure in March of Cars Under $7990 Ltd, which traded in Christchurch's golden mile of car yards, has left car buyers and industry suppliers in the lurch.
The company is owned by Christchurch business mentor and adviser Peter George Benden, originally from South Africa, who is also treasurer of the Port Hills branch of the National Party.
Panelbeater Andrews and Gilmore Collision Centre have filed papers over a debt of $14,000 to put the company into liquidation. Other creditors are owed at least $50,000.
The yard was managed day-to-day by New Zealand motor racing representative Hamish Cross. He had no comment on the closure.
Tony Everett, MTA dealer services manager, said the yard was not a member of the association but customers would not have had many options even if it had been.
"Buying from a registered trader provides the customer with coverage under consumer law provisions, but only as long as the trader remains in business.
"Businesses do fail for any number of reasons, and there is not a lot that a consumer can do to predict those occurrences."
Motor racing personality Hamish Cross managed a car yard which left customers in the lurch.
He said buyers should ensure dealerships had a good name and had operated for a reasonable period.
The closure means buyers like Tama Skipper have been left with nobody to honour their consumer guarantees and warranties.
The flooring supplies warehouseman bought a 2006 Mazda RX8 for $8000 in October last year and said it had given him nothing but grief.
"First it started cutting out and after that was fixed the battery died. It's been the biggest pain and and there's always something wrong with it."
Skipper has two young children and another on the way and cannot afford to be forking out for car repairs.
When he called at the yard with his latest fault and to get warranty papers, he found it had gone, with another operator in its place. His father and partner had gone to Benden's home address but he was not accommodating.
When approached Benden hung up. He did not answer emailed questions.
Benden has a small interest in Rangiora car sales business Cars Under $19990 Ltd and a half share of Nelson dealership Car Under $14990 Richmond Ltd.
The co-owner of the Nelson dealership, Steve Collier, said he was trying to get Benden to relinquish his shares in the business as they were in dispute over Benden's obligations under the venture.
Legal action was pending, he said.
Everett said the industry overall was reasonably stable but very competitive and "participants do come and go".
An extended warranty policy from an independent body might protect buyers needing repairs of recently purchased cars.