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Hi there,

I've been looking around for a new car lately and Ive been seeing a lot of dealers selling cars on trademe auctions stating "Trade-In Special, We Have not inspected the car. Hence, WIll be sold as is where is"
Does this mean that should the vehicle have a fault in a few months of substantial nature (Headgasket, timing chain stretch, transmission failure etc) that they will not be liable for the faults under the consumer guarantees act?

I've also been looking around on the motor vehicle disputes tribunal rulings and seen one where the dealer has stated the above and has failed.

"The trader’s attempt to avoid liability for the vehicle’s condition by inserting the clause “VEHICLE IS SOLD AS IS WHERE IS WITH NO WARRANTY IMPLIED OR STATED” in the VOSA breaches s43(1) of the Act is illegal and of no affect because it purports to contract out of the provisions of the Act."

This is information from the citizens advise bureau.

When the sale of a vehicle has been arranged by a motor vehicle trader, even if the trader is selling it to on behalf of a private individual, you have the same rights as you would if the trader is selling a vehicle they own. (Visit our Buying from a dealer page for more information). The trader can’t refer you on to the previous owner and tell you it was a private sale.

This means that if the car turns out to have faults soon after you have bought it, and the trader had not disclosed them to you before the sale, you are entitled to have the problem remedied (see the previous question) – and it is the trader who is responsible for fixing problem, not the individual on whose behalf they are selling it.

What does it mean when a licenced motor vehicle dealer says the car is for sale ‘as is, where is?’

When this term is used by a licenced dealer it generally means that the car’s warrant of fitness (WOF) is more than one month old. If you go ahead and buy the vehicle, you have to give the dealer written confirmation that you accept this. If the WOF is not current, you’ll also have to confirm that you will not drive the vehicle except to get a WOF for the car.

When a dealer advertises a vehicle “as is, where is” it does not mean that they no longer have obligations under the Consumer Guarantees Act or the Fair Trading Act (see the previous question). You should still expect the vehicle to be in a condition fit for driving. If the dealer advises you that the CFA and FTA don’t apply because you bought the vehicle “as is, where is”, they would be in breach of the FTA for misleading you about your rights.

Thanks Cade,
Another seller as stated "Due to the age and milage of this car we can make no accurate mechanical representation of the vehicle and MAY require unplanned repairs and maintenance that we are unaware of upon sale. "

Does this mean that should there be any significant problem say a week later, they won't be liable? Or do I still hold my rights under the CGA?

From a dealer you are still covered by the CGA. I guess that statement is just keeping the buyer informed that the vehicle is far from new, and may still require work after you purchase.