http://www.bayofplentytimes.co.nz/local/news/repossessions-spark-car-buying-warning/3932667/

Repossessions spark car buying warning
Julia Proverbs | 4th December 2010

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New Zealanders generally purchase a new second-hand car every three years. Photo / File. Up to a third of cars being sold privately in the Western Bay could have securities lodged against them, statistics provided by vehicle history check provider MotorWeb show.

And with tough economic times, that is likely to increase.

Wayne Smith of Tauranga didn't think twice when he bought a 4x4 off a "friend of a friend" to tow his boat with. But several months later the vehicle, which cost him $3000, was repossessed, when debts by the previous owner were not honoured. "They used the vehicle to get a loan," Mr Smith said. It had cost him $1500 to get it back, which he had eventually managed to recoup. "It took about a year. Luckily it was only a small amount."

Pam Lang, of Apata, has a similar story. Her teenage son, Ethan, was stung when he bought his first car from a man in Hamilton.

Having paid $3600 hard-earned cash for the car, it was taken away just a month later. "We got a phone call from this guy saying, 'Where is the car because we're coming to repossess it'? He turned up a week later and took it away," Mrs Lang said.

After further investigations they had traced the debt back to a previous Auckland owner, but were able to take action only against the man who sold it to them through the Small Claims Tribunal.

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"They ruled in our favour and the guy in Hamilton had to pay us back the money. I felt very sorry for him."

Of the 2850 checks done by MotorWeb on vehicles in the Western Bay between August and October this year, 946 (33 per cent) had securities registered against them, two were stolen and 266 (9 per cent) had inconsistent odometer readings. In 375 cases (13 per cent) there had been a recent ownership change, which could also be an indicator that not all is as it seems.

Managing director Chris Knight said many car buyers focused on a mechanical inspection when they bought a car.

"But if you buy a car without getting a vehicle history check, you run the risk of it being repossessed or being worth far less than you paid for it.

"As New Zealanders generally purchase a new car every three years and with a sharp increase in second-hand car sales over the summer months, we encourage second-hand car buyers to be more vigilant and conduct a detailed check on the vehicle before any money changes hands."