Car dealer able to contract out of part of the CGA?

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MurrayM

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#312627 2-May-2024 14:56

I'm buying a new car and the dealer has provided me with a list of their terms and conditions. One section says:

7. Consumer Guarantees Act 1993:
7.1. I acknowledge that the Dealer has explained to me that the importer of the Vehicle does not guarantee that repair facilities and spare parts will be available for the Vehicle and that the importer expressly contracts out of the guarantee contained in section 12 of the Consumer Guarantees Act 1993.
7.2. I agree if acquiring the Vehicle for purposes in terms of sections 2 and 43 of the Consumer Guarantees Act 1993 that the provisions of that Act will not apply accordingly.

I'm not buying the car for business purposes.

Is a car dealer allowed to contract out of part of the CGA like this? They seem to be saying that if I buy the car then I agree that they don't have to have spare parts for it.

wellygary

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#3225524 2-May-2024 15:03

Its a legal opt out, - not a very nice one, but legal (its section 42)

S 42 Exception in respect of repairs and parts
(1) Section 12 does not apply where reasonable action is taken to notify the consumer who first acquires the goods from a supplier in New Zealand, at or before the time the goods are supplied, that the manufacturer does not undertake that repair facilities and parts will be available for those goods.
(2) Where reasonable action is taken to notify the consumer who first acquires the goods from a supplier in New Zealand, at or before the time the goods are supplied, that the manufacturer does not undertake that repair facilities and parts will be available for those goods after the expiration of a specified period, section 12 shall not apply in relation to those goods after the expiration of that period.

MurrayM

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#3225525 2-May-2024 15:06

Ah, ok. Thanks for that. I guess there's nothing much I can do about that, I guess it's pretty standard for car dealers to opt out of as much as they legally can.

tweake

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#3225527 2-May-2024 15:08

thats always the issue with 2nd hand imports. because there is odd jdm models, there is not always parts here. tho the parts crowds are pretty good.

if it was a brand new car i would not touch that with a 20ft barge pole.

Jase2985

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#3225528 2-May-2024 15:17

tweake:

thats always the issue with 2nd hand imports. because there is odd jdm models, there is not always parts here. tho the parts crowds are pretty good.

if it was a brand new car i would not touch that with a 20ft barge pole.

"I'm buying a new car"

MurrayM

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#3225530 2-May-2024 15:19

tweake:

thats always the issue with 2nd hand imports. because there is odd jdm models, there is not always parts here. tho the parts crowds are pretty good.

if it was a brand new car i would not touch that with a 20ft barge pole.

It's a brand new car. Kia. Buying from Giltrap Motors who have been around for years so not someone that I would have thought would be doing dodgy things.

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#3225534 2-May-2024 15:29

MurrayM:

tweake:

thats always the issue with 2nd hand imports. because there is odd jdm models, there is not always parts here. tho the parts crowds are pretty good.

if it was a brand new car i would not touch that with a 20ft barge pole.

It's a brand new car. Kia. Buying from Giltrap Motors who have been around for years so not someone that I would have thought would be doing dodgy things.

are you going to keep the car longer than the 5 year warranty period? if so, then you could be concerned a little.

even then i doubt if your car has a transmission or engine fault at 6 years that Kia can't supply a new engine or gearbox.

unless it's an electric car and magically after 7 years (that's the battery warranty) they don't have a new lithium battery because people have moved on from lithium, but i don't expect to keep my electric car for longer than i keep my laptop or mobile phone.

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alasta

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#3225537 2-May-2024 15:31

I've just checked the sale and purchase agreement for the Mazda that I purchased late last year, and I can confirm that it has the same clause in it. So, it seems like it's common practice.

In reality I can't imagine a manufacturer like Mazda or Kia pulling out of the NZ market so I guess it's just a safeguard from the dealer's perspective.

Handle9

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#3225539 2-May-2024 15:38

alasta:
I've just checked the sale and purchase agreement for the Mazda that I purchased late last year, and I can confirm that it has the same clause in it. So, it seems like it's common practice.

In reality I can't imagine a manufacturer like Mazda or Kia pulling out of the NZ market so I guess it's just a safeguard from the dealer's perspective.

They said the same thing about Holden. Nek minute…

MurrayM

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#3225540 2-May-2024 15:40

Thanks guys! Looks like it's standard for car dealers to do things like this, even though it looks a bit dodgy. Probably something the lawyers added.

Kia being a widely sold brand in NZ, and Giltrap Motors being around for years and years, I guess I should be ok.

alasta

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#3225541 2-May-2024 15:40

Handle9:
alasta:

In reality I can't imagine a manufacturer like Mazda or Kia pulling out of the NZ market so I guess it's just a safeguard from the dealer's perspective.

They said the same thing about Holden. Nek minute…

GM had been haemorrhaging market share for a long time and, to be fair, they have continued to offer parts and service after exiting the market.

Wheelbarrow01

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#3225721 2-May-2024 23:02

alasta:

I've just checked the sale and purchase agreement for the Mazda that I purchased late last year, and I can confirm that it has the same clause in it. So, it seems like it's common practice.

In reality I can't imagine a manufacturer like Mazda or Kia pulling out of the NZ market so I guess it's just a safeguard from the dealer's perspective.

They might not pull out of NZ, but getting parts after just a few years could easily be problematic. My wife used to have a 2014 Hyundai Accent (Hyundai being Kia's stable-mate). In 2020 we decided to sell the car and I called Hyundai to get a replacement power window switch for the driver's door. I was told they cannot source them anymore - for a 6 year old car!!! I did find what I was told was the last one in Australia but they wanted around $500 + freight for it. In the end I disassembled the old switch and repaired it myself (it just needed a good clean of the contacts as it turned out).

Ours is not an isolated experience. A few weeks ago, Fair Go showcased the plight of a family with the exact same model Hyundai Accent that we had. The electric boot/trunk release mechanism had failed and they had to climb into the boot from the rear seat to use the emergency release to open it. Same story - Hyundai advised them they needed a new body control module - a part that is no longer made. After Fair Go got involved, Hyundai magically managed to acquire one (I imagine it was from a wrecker).

Don't get me wrong - I actually love Hyundais/Kias but if you want longevity of parts supply, buy a Toyota. I have a 1988 Hilux and an 1991 Sprinter Trueno, and I can still get some of the most obscure OEM parts for these brand new direct from Japan... Just don't talk to me about '91 Trueno RHS tail lights - rare as rockinghorse sh1t those are LOL.