Misleading advertising claims such as "must liquidate" and "84 per cent off" and their use of "warranty waiver" documents got 2CheapCars in the firing line.
Between September 30 and October 1, 2017, 2CheapCars advertised it was going into liquidation with statements like "2CheapCars is in hot water, it must liquidate immediately" and "A massive price drop this weekend!"
Not only was it found 2CheapCars weren't in or going into liquidation, most of the 710 cars they were selling had not been discounted.
Together with the phrase "Massive Stock Liquidation: This Weekend Only" an impression was created the discount was off the price of cars.
The Commission also estimates over 20,000 customers signed warranty waivers during the charge period and 2CheapCars stopped using them in December 2017, after being told of the investigation.
The waiver included phrases like "the vehicle you are purchasing does not include a warranty of any kind" and "[If] you choose not to purchase the indicated warranty at this time, you must sign this waiver."
• Under the CGA consumers have rights of remedy against suppliers whether or not the goods are covered by any other warranty
• Remedies under the CGA must be done within a "reasonable time", not at the convenience of the supplier, and consumers can recover from the supplier costs which are reasonably foreseeable as a result of the failure. They may include the cost of hiring a rental car while a repair is being undertaken
2CheapCars operates 14 car yards throughout New Zealand and because the matter is before the court the Commission will make no further comments.
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