Welshpool car dealership banned from consignment sales pending legal action

Stock image.
Stock image.

A WELSHPOOL used car dealership has been banned from selling vehicles on consignment as it awaits the verdict on 16 allegations it breached the Motor Vehicle Dealers Act.

PAG (WA) Pty Ltd, trading as Xoticar of Welshpool, sole Director Ms Myhung Nguyen and salesperson/manager Mr Zeljko Grujin are each facing sixteen charges.

It’s alleged the dealership did not comply with consignment laws by accepting a vehicle on consignment without a written agreement.

It’s also alleged the dealership failed to deposit the proceeds of consignment sales into a trust account no later than the next business day and failed to pay the net proceeds of the sale to the owner within two business days of receiving payment.

The Commissioner for Consumer Protection David Hillyard further alleged the law was breached when false or misleading representations were made to four vehicle owners regarding the sale price, enabling the dealership to gain a higher profit.

PAG took action in the State Administrative Tribunal (SAT) to put a hold on the Commissioner’s decision to restrict their licence to prevent them from engaging in consignment sales.

On June 28 the SAT decided to uphold the Commissioner’s decision to restrict PAG’s licence, pending the outcome of the current charges and a final determination by SAT.

Despite this SAT outcome, Mr Grujin obtained his own dealer’s licence and sought to continue the consignment sales’ activities of the business under a new business name that he established, Xoticar Auction House.

On September 14 the SAT decided to uphold the Commissioner’s decision to also restrict Mr Grujin’s licence, pending the outcome of the current charges and a final determination by SAT.

Mr Hillyard said all vehicles currently on sale under consignment agreements with PAG (WA) Pty Ltd, Xoticar or Xoticar Auction House will be returned to their owners September 28.

“While the motor vehicle dealers’ licences of PAG, Xoticar and Mr Grujin remain in place, they will be unable to engage in any consignment sale arrangements until the SAT and Magistrate Court matters are finalised,” Mr Hillyard said.

“Despite the condition imposed on their licences not to engage in consignment sales, Xoticar can continue to sell used vehicles that they have purchased.

“However, the future of these licences will be reviewed upon conclusion of the prosecution actions.

“Customers who have any issues with this dealership should contact Consumer Protection.”

For more information regarding the laws covering the selling of vehicles on consignment, go to the Consumer Protection website www.consumerprotection.wa.gov.au or enquiries can be made by email consumer@dmirs.wa.gov.au or by calling 1300 30 40 54.