Warning after car dealer sold debt-ridden vehicle

KELLY HODEL/Waikato Times

BUYER BURNED: Giovanni Di Maio is unhappy that back finances are owing on a vehicle he bought from Mega Motors.

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Embattled car yard owner Api Hemi is in the gun again after taking out finance on a Toyota Landcruiser and then selling it to a Cambridge couple.

The debt was not disclosed to Giovanni and Helen Di Maio when they bought the vehicle in 2007.

Now they are warning other Mega Motors customers to check for hidden debts after discovering Mr Hemi owed UDC Finance $8000 on the car they bought, when they tried to trade it in last month.

Because UDC held a registered security over the Landcruiser they could not complete the deal.

When Mr Di Maio rang UDC, he was told payments had stopped and UDC wanted to repossess the car.

"It wasn't until pushed that she said how much was owning and ... Mr Hemi had taken the finance out," Mr Di Maio said.

They had no idea that because the car was bought from a registered dealer, who had not told them of the debt, they were not liable for it. UDC later told the Di Maios that Mr Hemi would pay the debt within two months.

"A very nervous couple of days passed with us frantically ringing everyone from the police to Citizen's Advice Bureau," Mrs Di Maio said.

When contacted yesterday, UDC said the company did not extend loans to car companies – only customers. A vehicle history report lists Mr Hemi's debt to UDC.

The Ministry of Consumer Affairs said the law clearly protected the Di Maios from repossession. People had a right to time to find out what was happening and recommended people seek advice from community law centres.

They could also look online at www.consumeraffairs.govt.nz and car buyers could also use the txtb4ubuy service to see if there was a debt on a vehicle.

- © Fairfax NZ News