Car dealer fined over a misleading offer

An Auckland car dealership has been fined $18,000 over a misleading finance offer.

Tristram European Limited today pleaded guilty in North Shore District Court to five charges of breaching the Fair Trading Act.

The Commerce Commission, which brought the prosecution, said the dealership ran a campaign in newspapers, on its website and on auction site TradeMe offering interest-free financing on both new and used financed vehicles.

Two customers who inquired about the offer were told the interest-free deal was only available on the full retail price of the vehicles and a lesser price could be negotiated for cash or sale on interest-bearing terms.

The commission's fair trading manager, Greg Allan, said interest-free prices should be the same as the cash price.

"When a company advertises an interest free deal but has a lower price for cash, there is an inference that the difference between the two prices is the cost of finance," he said.

"While businesses are able to set their own prices for goods and services, when they advertise that something is interest free it must be exactly that. They cannot build the cost of any interest in to the price charged to consumers."

The dealership also failed to disclose a $350 establishment fee payable for vehicles purchased on interest-free terms.

- NZPA