A Tauranga car dealer has been fined after selling a Toyota RAV4 with a tampered odometer, leaving the buyer unaware the vehicle had travelled more than 30,000 kilometres further than displayed.
According to a report by the New Zealand Herald, the issue only came to light more than a year after the vehicle was purchased, when it was taken in for routine servicing and technicians noticed the odometer reading did not match the vehicle's service records.
The Toyota had recorded 150,031km when it was purchased at an Auckland auction by Tauranga trader Sachinthaka Nagasinghe, sole director of Sachis Holdings Ltd, trading as Carporium, in December 2023.
However, when the vehicle was sold to a customer in February 2024, the odometer displayed 119,244km.
The discrepancy prompted service technicians to alert the Registrar of Motor Vehicle Traders through NZ Transport Agency Waka Kotahi. An investigation by the Ministry of Business, Innovation and Employment (MBIE) later confirmed the odometer had been tampered with, as reported by the New Zealand Herald.
Nagasinghe and his company faced charges under the Motor Vehicle Sales Act 2003 for tampering with an odometer without reasonable excuse and aiding and abetting the offending.
At sentencing in the Tauranga District Court, Nagasinghe was ordered to pay $1,000 in emotional harm reparation, while Carporium was fined $5,000, the New Zealand Herald has reported.
Before sentencing, the dealer agreed to repurchase the Toyota for $24,000, reimbursing the buyer the full purchase price.
MBIE National Manager of Occupational Regulation Bevan Yee said the prosecution reinforced the importance of honesty in the used vehicle industry, as reported by the New Zealand Herald.
“This case sends a clear message that odometer tampering and other deceptive practices will not be tolerated, Stuff has quoted.
“Accurate vehicle information is fundamental to fair trading. When odometer readings are altered, consumers can end up paying more for a vehicle than it is worth and may be misled about its safety, reliability and maintenance needs.
“Most traders do the right thing and deserve to operate in a marketplace where unlawful behaviour is identified and addressed. MBIE will continue to take enforcement action where conduct undermines consumer confidence and damages the reputation of the industry,” Yee said, as quoted by the New Zealand Herald.