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Source: Fair Go -
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Reporter: Ruwani Perera
The problem with buying a car in an online auction is that the
Consumer Guarantees Act - which is there to protect consumers - was
written before online auctions were really thought about; the term
"auction" isn't defined in it:. So the general consensus is that
online auctions are probably also exempt.
If an item is bought through an online auction site by "fixed price
offer" or "buy now" it should be covered, but it's less clear if
the item is bought by bidding.
This is because the 'buy now' purchase method is similar to
selecting an item from the shelf in a shop and paying the price
offered by the seller - there is no negotiation or competition with
others as to the price.
Traders who operate on internet auction sites must comply with the
Fair Trading Act. The Fair Trading Act prohibits people in trade
from making misleading claims or false representations about goods
or services for sale.
In online auctions it can be difficult to determine whether someone
is a private seller or a trader. If you are unsure, you should
check the seller's past and present listings. A trader will
generally be someone that frequently sells large amounts of goods
online, but it doesn't need to be their main source of
income.
Trademe require as part of their Code of Conduct that all sellers
describe items fully and accurately and that professional sellers
honour the obligations they would normally have under the
CGA.
So before you buy a used car it's important to get a pre-purchase
inspection done on the vehicle.
The
Automobile Association (AA) do these checks, as do other
private outfits and
Vehicle Testing NZ
(VTNZ).
Trademe
Help site
Consumer Affairs site
