Trader buys back car with tampered odometer, company fined $5,000

This week, the Tauranga District Court also ordered Sachinthaka Nagasinghe, the sole director of Sachis Holdings Ltd, trading as Carporium, to pay $1,000 reparation for emotional harm, and his company was fined $5,000.

In February 2024, Carporium sold a Toyota RAV4 after purchasing it at an Auckland car auction in December 2023.

When the car’s new owner took it for a scheduled service in May 2025, technicians noticed the odometer reading did not match the vehicle’s recorded service history. The concern was referred to the Registrar of Motor Vehicle Traders through NZ Transport Agency Waka Kotahi.

An MBIE investigation confirmed the odometer had been tampered with.

The car’s odometer reading was 150,031 kilometres when it was sold at the car auction. However, when it was subsequently sold three months later, the reading showed 119,244 kilometres – a difference of more than 30,000 kilometres.

Prior to sentencing, Mr Nagasinghe agreed to buy back the vehicle for $24,000, matching its original sale price.

The company was charged with tampering with a vehicle's odometer without lawful excuse, and Mr Nagasinghe was charged as a party to the company’s offending. Although he pleaded guilty, the Court discharged him without conviction after taking into account factors such as buying the vehicle back from the customer.

Bevan Yee, National Manager of Occupational Regulation, a business in MBIE, says this first successful prosecution demonstrates our commitment to upholding the law and maintaining fair standards across the motor vehicle sales sector.

“This case sends a clear message that odometer tampering and other deceptive practices will not be tolerated."

“Accurate vehicle information is fundamental to fair trading. When odometer readings are altered, consumers can end up paying more for a vehicle than it is worth and may be misled about its safety, reliability and maintenance needs."

“Most traders do the right thing and deserve to operate in a marketplace where unlawful behaviour is identified and addressed. MBIE will continue to take enforcement action where conduct undermines consumer confidence and damages the reputation of the industry,” Mr Yee said.

The Motor Vehicle Sales Act 2003 is aimed at promoting and protecting the interests of consumers in the area of motor vehicle sales. Motor vehicle traders must comply with the Motor Vehicle Sales Act 2003 as well as other consumer laws such as the Fair Trading Act 1986. These outline the rules for motor vehicle trading in New Zealand and ensure that people engage in reasonable and fair trade.

The Motor Vehicle Sales Act 2003(external link) — New Zealand Legislation

Fair Trading Act 1986(external link) — New Zealand Legislation