Caravan trader loses licence

Press, 27 August 1980, Page 4

Caravan trader loses licence

PA Wellington A Levin caravan trader has had its motor dealer’s licence cancelled after an investigation into the sale of a motorised caravan called Sheezrite. Mercer’s Caravan Court, Ltd, had its licence cancelled by the Motor Vehicle Dealers Licensing Board. The board also ordered the company to pay costs 'of $l6OO to the institute.

The institute had sought the cancellation after investigating the circumstances of the sale of a $12,000 motor-home.

The board had earlier been told that the company had agreed to sell the vehicle on behalf of its owner and eventually found a buyer.

The buyer secured a loan against the chattels of his property, with the company acting as a guarantor for the loan. When the cheque for the $7OOO loan came from N.Z.I. Finance, Mr John Mercer, of the caravan company, did not pass the money on to .the- vehicle’s original owner. He claimed the original

owner owed his company $5OOO for another vehicle. There was also costs of $l2OO for the sale of the vehicle leaving a balance of only $BOO.

Motor vehicle trading laws require dealers who sell vehicles on “a behalf” basis to pass on any money received immediately, giving a full accounting breakdown of monies received.

Counsel for the company, Mr J. McLinden, said his client had tried to help the buyer out. The caravan company had given a guarantee on the loan.

Counsel for the Motor Vehicle Dealers’ Institute, Mr M. Reed, said an application to the District Court at Palmerston North to determine ownership of the vehicle was “tantamount to a device to delay matters even further.” “The board must be conscious of setting an example,” he said.. “The situation (there had already been two adjournments earlier in this case) is becoming almost a farce;”... ..