BUY­ING AND SELL­ING A SEC­OND HAND MO­TOR VE­HI­CLE (PART 1)

Fiji Sun - - Business - Next Week: Part II on this Is­sue For more in­for­ma­tion/de­tails on price reg­u­la­tion in Fiji, visit web­site at www. comm­comm.gov.fj or join Face­book page un­der Fiji Com­merce Com­mis­sion.

prom­i­nent place on the ve­hi­cle a list show­ing for the in­for­ma­tion of the pub­lic, at least the fol­low­ing:

ˆPrice (VIP)

Any other fees and charges payable sep­a­rately by the con­sumer (e.g. Reg­is­tra­tion Fees, In­sur­ance, Third Party etc) Year of Man­u­fac­ture; Make and Model; True Mileage;

War­ranty pe­riod/ kilo­me­ters cov­ered; Chas­sis num­ber; En­gine num­ber; and De­fects, if any.

Con­sumer Re­spon­si­bil­i­ties be­fore buy­ing a sec­ond hand mo­tor ve­hi­cle?

Check that the dealer he/she is go­ing to deal with is prop­erly li­censed to act as such (A cus­tomer can get this in­for­ma­tion from LTA);

Needs to dis­cuss with the trader the fol­low­ing in re­gards to the mo­tor ve­hi­cle he/she is plan­ning to buy: i. Age of the ve­hi­cle; ii. His­tory of the ve­hi­cle (the pre­vi­ous owner or use, ac­ci­dent record (if any), how it was ac­quired, ex­ist­ing de­fects –etc);

iii. True mileage (Ver­i­fied by sight­ing doc­u­men­ta­tions e.g. Dereg­is­tra­tion or Ex­port Cer­tifi­cate);

iv. In­tended us­age of the ve­hi­cle (in light of the con­sumers in­tended use); v. Make/Model (con­sult an ex­pert in such is­sues); vi. Safety fea­tures; and vii. Mo­tor ve­hi­cle spec­i­fi­ca­tions (ver­ify with LTA through their record of ex­port cer­tifi­cate, if the need arises);

Check for the ve­hi­cle’s pre­vi­ous reg­is­tra­tion with LTA;

Check on the avail­abil­ity of spare parts and af­ter sales ser­vices;

Test drive the ve­hi­cle to gauge per­for­mance;

Ob­tain a sec­ond opin­ion on the ve­hi­cle if need be (e.g. from LTA Etc)

En­quire on all costs payable in­clud­ing all ap­pli­ca­ble fees and charges.

Trader’s re­spon­si­bil­i­ties is sell­ing or of­fer­ing for sale a sec­ond hand mo­tor ve­hi­cle?

• Dis­close all rel­e­vant in­for­ma­tion about the ve­hi­cle that in­cludes but not lim­ited to the fol­low­ing: i. Age of the ve­hi­cle; ii. His­tory of the ve­hi­cle (the pre­vi­ous owner or use, ac­ci­dent record (if any), how it was ac­quired, ex­ist­ing de­fects –etc);

iii. True mileage (as in ex­port cer­tifi­cate); iv. Suit­abil­ity of use; v. Make/Model; vi. Safety fea­tures; vii. Mo­tor ve­hi­cle spec­i­fi­ca­tions;

viii. Avail­abil­ity of spare parts and af­ter sales ser­vices in­clud­ing cen­ters/lo­ca­tions where they are pro­vided; ix. Terms and con­di­tions of sale;

x. All payable costs to be borne by the con­sumer in­clud­ing any con­sid­er­a­tion of tax or le­gal charges. xi. Adopted mode of pay­ment or op­tions thereof.

Pro­vide a copy of the ex­port cer­tifi­cate to the buy­erthis cer­tifi­cate in­cludes crit­i­cal in­for­ma­tion such as year, make, model, mileage etc.

Pre­pare a check list of all dis­clo­sures made dur­ing ne­go­ti­a­tions with con­sumer and get it prop­erly en­dorsed with copies made avail­able to each party;

Pre­pare a writ­ten con­tract(Terms and Con­di­tions of Trade) that ad­e­quately cap­tures all is­sues agreed to by both par­ties on the terms and con­di­tions of sale;

Is­sue proper quo­ta­tions for fi­nanc­ing pur­poses- this should in­clude the true ve­hi­cle iden­ti­fi­ca­tion in terms of year, ,make, model, en­gine ca­pac­ity, colour etc;

Re­ceive pay­ment of de­posit (if needed un­der the terms and con­di­tions of trade) and is­sue proper tax in­voices and re­ceipts;

Get all trans­fer doc­u­ments in­clud­ing war­ranties in or­der for the han­dover process;

Is a Sec­ond Hand Mo­tor Ve­hi­cle Dealer Re­quired to Give War­ranty?

Un­der Sec­tion 31 of the Land Trans­port (Ve­hi­cle Reg­is­tra­tion and Con­struc­tion) Reg­u­la­tions 2000, the op­er­a­tor of a ve­hi­cle deal­ing busi­ness MUST PRO­VIDE on all ve­hi­cles sold, in­clud­ing by auction or ten­der a me­chan­i­cal war­ranty of not less than 3 months or 6,000 kilo­me­ters, which­ever oc­curs first, com­ply­ing with the ap­pro­pri­ate code of prac­tice. Mo­tor ve­hi­cles not cov­ered un­der the me­chan­i­cal war­ranty are:

Ve­hi­cle sold to or bought by a holder of a ve­hi­cle deal­ing cer­tifi­cate;

Mo­tor Ve­hi­cles which are no more than 10 years old be­fore be­ing sold to its first reg­is­tered owner;

Mo­tor Ve­hi­cle which were sold for less than $8,000.00; and

Mo­tor Ve­hi­cles dis­posed, dis­man­tled for scrap or ad­vised as cease to ex­ist. What does a Me­chan­i­cal War­ranty Cover?

Me­chan­i­cal com­po­nents in­clud­ing: En­gine; Trans­mis­sion or Gear

Box;

Dif­fer­en­tial or the fi­nal

drive; Transaxle; 4*4 front dif­fer­en­tial unit and hub/dif­fer­en­tial car­rier; Pro­pel­ler shaft Brak­ing Sys­tem ; Steer­ing; Fuel Sys­tem ; Cool­ing Sys­tem ; Full de­tails of each of these com­po­nents will be pro­vided in Next Week’s ar­ti­cle.

War­ranty should be in Writ­ing

Con­di­tions of war­ranties in the con­sumer trans­ac­tion must in­clude in writ­ing the fol­low­ing:

De­tails of what is cov­ered and what is not cov­ered;

Con­di­tions that need to be fol­lowed for the war­ranty to re­main valid;

The ge­o­graph­i­cal scope of the war­ranty;

War­ranty pe­riod/ kilo­me­ters.

A con­sumer must be ad­vised about the type of war­ranty be­ing pro­vided, for ex­am­ple, man­u­fac­tur­ers, free ex­tended man­u­fac­tur­ers/trader’s, in­sur­ance backed or trader’s own war­ranty.

A con­sumer must be in­formed of the iden­tity of the war­ranty provider and the ad­dress to which claims may be di­rected.

A trader should also give ad­vice to con­sumers about who they should ad­dress their claim to if they have a prob­lem re­gard­ing de­fec­tive parts and ac­ces­sories not cov­ered un­der the war­ranty.

A trader should en­sure that war­ranty work is car­ried out promptly.

A trader must dis­close to the cus­tomer the na­ture of work to be car­ried out and ex­pected time of com­ple­tion be­fore any work com­mences.

What should the par­ties do dur­ing the han­dover process?

The trader should hand over a signed copy of the doc­u­ments, stamped copy of trans­fer doc­u­ments and all rel­e­vant keys and op­er­at­ing gad­gets of the ve­hi­cle to the con­sumer and re­quire him/ her to sign off their dis­patch book;

The con­sumer should ac­knowl­edge re­ceipt of all the above and re­move the ve­hi­cle from the trad­ing premises im­me­di­ately or as agreed oth­er­wise.

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