$14,000 car ‘lemon’ claim

Press, 20 October 1981, Page 4

$14,000 car ‘lemon’ claim

A metallic silver Mercedes Benz 280SL sports car with power steering, sold by a used car dealer for $14,000 in February, 1978, was a “lemon"' with a partially “cooked" motor and a bent crankshaft through overheating. it has been alleged in the High Court. Mr Justice Roper has reserved his. decision on a claim by Elizabeth May Bellis, married, on a claim for" damages of $2929 and costs against Allan Boyd Motors, Ltd, of 42 Manchester Street, trading under the name of Quality Cars for breach of contract and warranty. Mr P. H. B. Hall appeared for Mrs Bellis, and Mr P. F. Whiteside for Alan Boyd

Motors which denied liability. The company contends that the vehicle sale complied with all the requirements,of the Licensed Motor Vehicle Dealers Act, and that if repairs were required the amount claimed was excessive and work had been done which was outside the warranty. Mrs Bellis and her husband. Bruce William Bellis, a restaurant and hotel proprietor, gave evidence that the Mercedes sports had a mileage of 46.080 when it was purchased for $14,000 on February 10, 1978. Within 13 days there was an engine failure and major repairs costing $2740 were required.

The Mercedes sports had been described by Mr Boyd as an excellent Car in excellent order, Mrs Bellis said, but it was a 1969 model and not 1971 and it was not "exoverseas" as had been stated. It had been imported into New Zealand as a new vehicle and registered with 24 miles on the clock. The car had been off the road for 49 days and Mrs Bellis said that she had to use a rental vehicle for nine days at a cost of $lB9. . Allan Wayne Boyd, managing director of the defendant company, said that Mr Bellis had taken the Mercedes sports car for two test drives before it was sold to his wife.

Mr Boyd said that he was. not responsible for the yellow ' card which had been displayed on the vehicle in the yard. Phillip Mills did those. Mr Mills operated his own company, Phillip Mills, Ltd, and both companies traded under the name of Quality Cars.

When the vehicle was sold he did not have the ownership papers which were still

with the previous owner, Mr Forrester. He only learned that it was a 1969 model and not a 1971 when he took the log book from the car to complete the documents. He had believed that it was an “ex overseas" vehicle until he saw the log book. His firm gave, a 50-50 warranty on the car which he felt was a lot better warranty than the Government category which would have been D. The Bellises were getting a better deal than was required by law. said Mr Boyd.

To Mr Hall Mr Boyd said that his company was a licensed motor vehicle dealer and he had been in the used car business for about 14 years. He was aware of the provisions of the Motor Vehicle Dealers Act, 1975, but it was a very hard Act to follow.

The car had been purchased from Mr Forrester about two days before it was sold to Mrs Bellis. He thought that he paid $12,000 for it. He had not seen the ownership papers before he purchased it and the year, 1971, came into it somewhere otherwise he would not have written it on the yellow sheet in the window of the car.

Mr Hall: But surely as an experienced dealer if you are going to buy a Mercedes for $12,000 you would want to know the genuine mileage and the year of manufacture or first registration? — That is correct, but we don't always get the papers when we first purchase the car and can only accept the word of the seller.

Asked why he did not check the log book by Mr Hall, Mr Boyd said that there was no need to. When he did see .the ownership papers after the car had

been sold he discovered that it was a 1969 vehicle.

Are you in the habit of advertising cars without ascertaining the year of registration? — Yes. we have done.

That of course is a breach of the Act? — Only if the date is wrong. We put the year on we are told.

Mr Boyd admitted that he might have advertised the vehicle as 1971. Shown a photostat of “The Press” for February 11, 1978, Mr Boyd agreed that the Mercedes sports had been advertised as 1971. The advertisement for Quality Cars. 42 Manchester Street, read:“Mercedes Benz 280SL sports 1971, power steering, genuine low mileage, metallic silver, as new. $13,995.”

Before February 10, 1978, when he sold the car he knew that it was not “exoverseas," Mr Boyd admitted, because of the pre-deliv-ery inspection and the 1000 miles check marked in the log book. The duplicate copy of the L.M.V.D. notice did not have the “ex-overseas" sticker on it as it wa's only put on the top copy. That category was an advantage to the seller because there was no warranty under that classification but his firm always gave one. Mr Boyd said.

To his Honour Mr Boyd said that he was not aware that for some reason the car had three changes of ownership in 1976, Quality Cars was not a licensed motor vehicle dealer. It was only a trade name.

Mr Hall: Isn’t it true that you didn't want to give a warranty and only did so because the sale would have fallen through without one? — They would have bought the car without one.