Acting as an agent
We have recently had several complaints about registered motor vehicle traders breaching their obligations while acting as an agent and selling a car on another person’s behalf.
The Motor Vehicle Sales Act places certain obligations on motor vehicle traders who act as agents for another person in the sale of a used motor vehicle. Of note:
- The motor vehicle trader must pay to the principal all money received by the motor vehicle trader for the sale on consignment of the motor vehicle immediately on demand by the principal. If no demand is made, this payment must be made within 5 working days after the receipt of the money. This sum required to be paid is less any fee or commission that the motor vehicle trader may lawfully charge for the sale.
- The motor vehicle trader must also on demand by the principal, or, if no demand is made, within 5 working days after the completion of the sale, provide to the principal a written account setting out the particulars of all money received by the motor vehicle trader on the principal’s behalf in respect of that sale; and the manner in which the motor vehicle trader has applied the money.
- Any funds received by the trader cannot be used for payment of debts of the trader.
Motor Vehicle Sales Act 2003 — Section 19(external link) — New Zealand Legislation
Report unregistered trading to us by making a complaint on our website: