MVDT annual report: key lessons for traders

Tribunal report

You can read the latest Tribunal report here:

MVDT Annual Report 2024–2025(external link)[PDF 483KB]

The summary of applications closed shows that many disputes can be settled or withdrawn before the Tribunal needs to decide the claim. Where possible, traders should engage early and seek to resolve the dispute directly with the buyer. If an application is filed with the Tribunal, the trader must discuss it with the applicant and provide the Tribunal with a written report on the outcome.

Key learnings

Not every extra cost will be recoverable

Even where a buyer is allowed to reject a vehicle, the Tribunal may refuse some additional costs if they are not a reasonably expected result of the problem. This is relevant when a buyer claims a long list of expenses on top of rejection.

Earthnet NZ Ltd v Mynex Car Ltd MVD 385/2024 [2024] NZMVDT 186.

Keep contract paperwork clear and consistent

Where there is more than one signed sale agreement, disputes can shift to which document applies and how it was signed. Traders should manage document versions, record any changes, and provide the buyer with the final signed copy.

Abdullatif v Mosscar Services Ltd t/a Genuine Vehicle Imports MVD 021/2025 [2025] NZMVDT 126.

Repairs should follow a clear process

When a vehicle has several faults and repairs take place over months, the Tribunal will look closely at each fault, each repair. It will also consider whether the buyer has kept or lost the right to reject. Traders should keep a clear timeline of reports, inspections, repairs, and communications.

Peter J Stiffe Ltd v Auckland Auto Collection Ltd t/a North Harbour Ford MVD 506/2024 [2025] NZMVDT 038.

Rust disputes often come down to expert evidence

The key question is often whether rust is only on the surface or is structural. Traders can reduce disputes by documenting condition at sale. This includes photos and, where the risk of rust is higher, considering an independent assessment.

Hornblow v NZ4X4S Ltd MVD 320/2024 [2024] NZMVDT 190.

Campervans can lead to high-impact claims

Many campervan buyers purchase for travel. If the vehicle fails early, the impact on the buyer can be significant. The Tribunal may still order a refund even if the buyer has left New Zealand by the time of the hearing.

Bauer v Elements World Ltd MVD 086/2025 [2025] NZMVDT 120.

Do not overstate warranties or special offers

If a vehicle is advertised with a warranty, a buy-back option, or other protections, the sale terms must support those statements. Where a trader tries to rely on conditions that are not in the contract, the Tribunal may find misrepresentation. It may also find a failure of acceptable quality.

Mertes v Travel Cars New Zealand Ltd MVD 621/2024 [2025] NZMVDT 068.

Rejection can be lost if notice is late

A buyer may lose the right to reject if they do not clearly tell the trader they are rejecting, and then keep using the vehicle. Traders should ask early, in writing, which remedy the buyer is seeking. They should also record any agreement about vehicle use while the matter is being assessed.

Rivin v NZ Motors 4WDS Ltd MVD 573/2024 [2025] NZMVDT 063.

Damage after sale can prevent rejection (even if the buyer is not to blame)

The Tribunal has confirmed that a buyer may lose the right to reject a vehicle if it is damaged after the sale. This includes in a hit-and-run or other event that was not the buyer’s fault. In those cases, the Tribunal may instead order repairs or compensation.

David v Portage Cars Ltd MVD 350/2024 [2024] NZMVDT 204; Hruby and Hruby v Travel Cars New Zealand Limited MVD 098/2025 [2025] NZMVDT 141.

Claims often need proof the problem existed at sale

Where serious failure happens months later, the Tribunal may not accept a rejection claim unless the buyer can show, on the balance of probabilities, that the defect existed at the time of sale. Continued driving after warning signs, without proper inspection or servicing, can weaken a buyer’s case. Traders should keep records of inspections, the advice they gave, and whether the buyer chose to keep driving.

Perenara-O’Connell v Car Supermarket Limited MVD 577/2024 [2025] NZMVDT 73.

Conclusion

These cases all reinforce that traders are in a stronger position when they do the basics well. That includes accurate advertising, clear sale documents, thorough pre-sale checks, and prompt, well-recorded responses to faults and complaints. These steps will not remove all risk, but they can reduce escalation and help resolve issues on a fair and practical basis.