NSW Fair Trading Commissioner Rose Webb has issued a public warning urging consumers not to deal with Cars & Co Pty Ltd located at 71 Victoria Road, Rozelle NSW. Fair Trading has immediately suspended the motor dealers licence held by Cars & Co Pty Ltd.
The trader's business includes sourcing new and demonstrator vehicles from new car dealerships for fleet and private customers, as well as purchasing and selling second hand vehicles, including on consignment.
"The trader conducts consignment sales and is alleged to have caused substantial financial detriment to a number of consumers. As at 7 June 2019, the information available to Fair Trading indicates that the trader may owe over $600,000 to consumers," Ms Webb said.
"Fair Trading has received a total of 28 complaints and 14 enquiries about the trader between 26 November 2016 and 7 June 2019, with 16 complaints under current investigation.
"The majority of these complaints relate to Cars & Co Pty Ltd accepting money for the purchase of vehicles and either not passing that money on to the supplying dealer, or not supplying the consignor with the requested vehicle.
"Complaints also relate to consignees not being informed of the sale of their vehicle, Cars & Co Pty Ltd not paying finance companies after a consigned vehicle has been sold as per the consignment agreement, and Cars & Co Pty Ltd selling vehicles without clear title," Ms Webb said.
Fair Trading alleges the trader operates two bank accounts, however neither are trust accounts. Traders who conduct consignment sales without holding a trust account are in breach of section 90 of the Motor Dealers and Repairers Act 2013 (NSW).
It is alleged that the trader has failed to account to consignees the full amount received on the sale of vehicles and may have misappropriated money received on behalf of consignees to satisfy debts of the business - both of which are in breach of the Motor Dealers and Repairers Act 2013 (NSW).
Customers who have dealt with Cars & Co Pty Ltd and are not satisfied with their interaction, are urged to contact NSW Fair Trading on 13 32 20 or visit www.fairtrading.nsw.gov.au.
