Odometer misrepresentations drive unlicensed motor dealer to court

The Office of Fair Trading (OFT) has taken an Upper Mount Gravatt man to court for unlicensed motor dealing and for misrepresenting the history of a number of vehicles, including the vehicles’ odometer readings, when selling them to unsuspecting consumers.

Ahmed Khalil was fined $15,000 in the Beenleigh Magistrates Court (2 February 2022) for making false and misleading representations about the history of motor vehicles and acting as a motor dealer without the appropriate licence.

The court heard that between January and March 2019, Mr Khalil acquired 23 vehicles from auctions while pretending to be a licenced motor dealer, after failing to notify the auction house that his motor dealer’s license had in fact expired.

Mr Khalil’s motor dealer licence had expired in November 2015.

The court heard Mr Khalil sold four vehicles which had their odometers wound back by a total of 839,660 kilometres. He made a profit of between $2,000 and $5,400 on each vehicle.

Magistrate Michael O’Driscoll took into consideration Mr Khalil’s personal circumstances and history. No conviction was recorded but the magistrate warned Mr Khalil that these are serious offences and if he re-offends, the court may not be as lenient.

Affected consumers were compensated through the Agents Financial Administration Act 2014 claim fund.

Commissioner for Fair Trading Victoria Thomson said this is a timely reminder for anyone selling motor vehicles to act honestly when dealing with members of the community.

“Motor dealers suspected of selling cars in this manner will be pursued by the OFT as this type of trading is not tolerated,” Ms Thomson said.

“It’s not just the financial impact on purchasers that is an issue, vehicles sold with tampered odometer readings are a safety risk and can lead to fatalities.

“The number of kilometres travelled indicate when certain mechanical and electrical checks are due and when some parts need replacing.”

“When the new owner of a vehicle with a wound-back odometer takes their car in for a service the mechanic may not perform the necessary checks, putting that new owner and the entire road-using public at risk.”

There are a number of checks that consumers are advised to do before they purchase a used vehicle:

• a free licence check on the OFT website to see if the person they are buying a vehicle from is licensed
• obtain the vehicles history with a Personal Properties Securities Register (PPSR) search
• check the service manual to see if odometer readings are consistent, and have a qualified mechanic inspect the vehicle
• visit the Department of Transport and Main Roads website to conduct a free check of a vehicle’s registration number or VIN to confirm its make, model and year of manufacture.

Consumers are encouraged to report unlawful practices in the motor industry by making a complaint at www.fairtrading.qld.gov.au or calling 13 QGOV (13 74 68).