A motorcycle dealership was forced to pay $13,000 in compensation after advertising a two-year-old motorcycle ‘as new.’
The bike was advertised as new
Christchurch’s Euromarque Holdings Ltd, trading as CMG Motorcycles, sold a two-year-old Triumph motorcycle to Johnson back in 2019. The bike was advertised as a new machine, and it was sold at a heavily discounted price. The dealership had advertised the motorcycle as an ex-demonstration model.
Shortly after purchasing, Johnson made a formal complaint to the Motor Vehicle Disputes Tribunal stating that the dealership had deliberately misled him. He believed the dealership had deliberately led him to believe that his new bike was, in fact, two-years older than advertised.
After buying the biker Johnson later found the exact same motorcycle listed on another site as an “ex-demo 2018 Street Twin”. Johnson argued that had he known the actual age of the bike, he would not have considered purchasing it.
The Tribunal Ruled in Johnsons Favour
Triumph confirmed that the model was in fact built in March 2017 and then sold to the dealership in 2018 at a discounted price. The Tribunal ruled that Johnson had specifically enquired into the age of the model, and the dealership had deliberately misled him by not answering honestly.
While it is usually the responsibility of a consumer to perform such checks before purchasing a vehicle, it was held that this did not apply in Johnson’s case.
Tribunal rules Dealership mis-sold the bike
In his decision, McHerron, who led the Tribunal, said he believed Johnson asked the dealership a question about the age of the motorcycle and was incorrectly informed.
“Once he had asked that question, Euromarque was obliged to tell Johnson that this bike was a 2017 model.”
As a result, the dealership was forced to give a full refund, and the bike was returned to the dealership.