When a motor dealer signs a contract that has a trade in as part of the consideration the dealer is bound to purchase the trade, as the customer is likewise bound to their purchase.
There have been instances where a dealer has signed a contract including a trade in only to discover later that the vehicle is listed on REVs as a previous repairable write-off.
|
   |
I don’t need to go into the mathematics of this only to say that a vehicle that has been written off is generally of substantially lesser value than an equivalent that has not been. Unfortunately, once a deal is done it can be very difficult to make it undone.
Typically, a vehicle is presented late in the day for valuation and completion of paperwork when someone may be a little less likely to ensure all is well. The potential customer may wave around a wad of cash and say that they are keen to do a deal immediately.
The Motor Traders’ Association Contracts have a provision that the customer signs declaring (amongst other things) that the vehicle “has not been subject of insurance write off”, (to the knowledge of the owner).
At this stage a couple of things can occur, one being that this can provide grounds for a termination of the contract by the dealer. If the vehicle has not been delivered then there may be little harm done and the provisions relating to the termination of the contract by the dealer can be applied.
There have been instances though, where the deal has been completed and the “customer” is driving around in their new purchase and the dealer is now in possession of a vehicle that has been written off. It is not hard to determine how each party may be feeling at this time.
To stop there, quite correctly, all vehicles should be checked with the REVs database prior to the contract being signed. All vehicles should certainly be checked prior to delivery taking place.
There are several reasons why the dealer may not be aware the trade vehicle has been written off. These range from new staff; staff not performing the right checks, the REVs data-base not being assessable for whatever reason, people being in a rush and so on.
Even if you realise the status of the trade vehicle before the exchange you may still have to honour you commitment to purchase the vehicle at the agreed price. The other party to the contract may apply to the Tribunal or the Courts for an order that the contract be enforced. In an instance where a contract does not have a provision relating to insurance write off or if the customer can prove they were genuinely not aware of the status of the car then the application may be successful.
If the deal has been completed and the car delivered to the customer then it makes action very difficult and usually time consuming. In the time that any action takes the vehicle is driven, possibly been transferred with stamp duty paid and most likely insured.
It has been said that possession is nine tenths of the law, and in a circumstance such as the above it can certainly make a difference to who is in possession of what vehicle.
Without going into detailed what ifs and legal options I would like to emphasise the importance of checking a vehicles status on REVS before signing any-thing!!
It may sound silly and unlikely but people have managed to trade previously written off vehicles and the dealer has not noticed until it’s too late, or too difficult to do anything about. Thankfully this is very rare and most are detected before the paperwork is completed.
The REVS check may take a few minutes but when you see the alternative it is a few minutes well spent. There is nothing worse than being stuck with a vehicle that is worth perhaps half what you paid for it simply because it is flagged on REVS.
The NSW REVS does not report on vehicles that have been written off in other States. The reasons behind this are another story but to surmise the NSW Government has failed to include the Interstate data to users of the REVS system. In effect, a check on the NSW REVS system will only show vehicles that have been written off in NSW.
If a dealer wants to be sure that the vehicle is not listed as a write off in another State then a V-Check must be conducted. A V-Check is essentially using an information broker that accesses the National Database through Queensland Transport.
There are several providers of this service and they can readily be found on the Internet. If anyone would like contacts for these businesses please contact me.
Please please be aware that there are now more and more permanently flagged written off vehicles on our roads and this increases the chances of being caught out. Yes, there are legal remedies and in many instances you may come out OK, but the cost in terms of dollars and time can be quite astronomical and it is not a happy experience.
