If a new (used) truck breaks down on the way home, who pays?

Fair Go investigates: Can a dealership legally side-step responsibility for a vehicle that broke down the same day it was bought? Andrew Peck, director of Universal Imports in Auckland, would argue yes. Plumber Che Jones of Gisborne felt differently. Gill Higgins reports.

Watch this Fair Go investigation on our new home for news, consumer and in-depth stories TVNZ+

Life was looking good for Che Jones in early 2022. Having moved from Australia to Gisborne, he'd got his plumbing business up and running, he was starting to build a new home for his wife and three kids, and he had an idea that could take his business to the next level.

It was a gamble but he'd done his homework, having seen new pipe-lining technology work well overseas. He invested $100,000 in high-tech equipment and had contracts lined up with the government. The final piece of the puzzle was to purchase a truck and have it specially kitted out to transport the new equipment. Having forked out $100K on the technology, he decided to save some money by buying the truck second hand.

But it turned out that a $20,000 truck would be his downfall. "If you had asked me two years ago when we bought that truck, would I be selling a property because of this truck? I would have just laughed," he says. "How's that possible?"

Jones bought a truck from Universal Imports in Auckland. After making his payment, he drove the truck away, but before he'd reached Taupo, he began to notice clutch problems. He thought Universal Imports would take responsibility. The dealership had other ideas.

Andrew Peck is the director of Universal Imports in Auckland. He mostly lives in Japan and describes himself as a champion kickboxer, earning him the title Andrew "Powerhouse" Peck. He has featured in numerous competitions. He has also featured previously on Fair Go.

That was back in 2022, when a customer, Siobhan Kelly, asked Fair Go for help. It was after she'd won a Motor Vehicle Disputes Tribunal about a faulty vehicle. The judge ruled that Universal Imports had to settle with her finance company and give her back the $3300 she'd paid. She complained that Peck was disrespectful and wouldn't pay. Peck disputed her claims and eventually paid – after Fair Go got involved.

It was around the same time as this drama was playing out that he sold the truck to Che Jones. Peck says the dealership's contract with Jones' business states his company doesn't have to comply with the Consumer Guarantees Act (CGA) for business-to-business sales, which is correct. He says it also says the company accepts no liability relating to any other regulation.

Peck wasn't present when Jones bought his truck, but says his salesman made these points clear, and explained that's why they could sell at a low price. He says Jones knew he was buying the vehicle on an "as is, where is" basis.

He also says the vehicle had passed its Certificate of Fitness, was in good condition and had been driven to Hawke's Bay and back with no problem. So when Jones drove away after signing the contract, any breakdown was for him to deal with.

Keith Tester has been a truck mechanic for years, now working at TPS in Gisborne. He would argue a dealership should always take some responsibility regardless of its contract. "If you buy a vehicle and you travel 400km, is it fair for it to break down? It's not. There's a human element or fairness to it."

He took charge when Che Jones limped his truck into his workshop in 2022. His guys diagnosed an internal fault but wanted to send the gearbox away to a specialist for a second opinion. He got in touch with Universal Imports. "He gave me the go ahead to pull the gearbox and send it away to see what was going on." There was good communication at first. Universal Imports recommended trying a replacement transmission and reprogramming it, but nothing worked.

Tester was then asked to return the vehicle but said that wasn't going to happen until he was paid. He was now owed $10,000 for parts and repairs. At this point, communications dried up. "We deal with a lot of people, and this is one of the first people I dealt with that walked away from their responsibility."

Tester felt bad for Jones. As well as the cost of repairs, there were now storage fees as the truck had been in their garage for over a year. He wanted to take Universal Imports to court to get these costs back, but encouraged Jones to go to the Disputes Tribunal first. (The truck is still with Tester and his issues are yet to be resolved).

The Disputes Tribunal judge ruled in Jones' favour. He said the truck wasn't in good working order when purchased.

Under a standard business-to-business contract, it would be the responsibility of the dealer to put this right, due to a little-known clause in the Contract and Commercial Law Act (CCLA) which which says goods must be of "good merchantable quality".

The Judge was aware that Universal Imports claimed its contract stipulated it had opted out of the CCLA by stating the company had no liability. But the Judge said this was such a significant departure from normal practice it would have to be crystal clear, meaning the CCLA clause itself would have to be specifically mentioned. It wasn't.

The Judge allowed Peck to appeal the decision, which meant more delays, adding another three months to Jones' wait to be refunded.

We're back to Che Jones. During the two years of waiting for a resolution, he'd had to put the new family home he was building on the market. Instead of making money, as was his plan, he'd been losing it. "The equipment's sitting in storage, costing about $300 a week, and it's been sitting there for 22 months... and our main client, which was government, has now backed away from us delivering the work because of the failure of delivering this on time." He's distraught.

He was also worried Peck might somehow win the appeal. He felt there'd been tactical delays all along, and that Peck would try every trick in the book. It's why he came to Fair Go, and why Fair Go followed up with Peck.

The Appeal decision took place on July 1, over two years after the truck had been purchased. Peck didn't appear, instead sending his son who is a salesman for the company. He seemed to be ill-prepared for the case, and the judge quickly made a decision in Jones' favour.

It meant Universal Imports owed Jones $19,999 to refund the cost of the vehicle, plus costs. Fair Go contacted Peck to see if he wanted to comment after losing the Appeal, He said he didn't, but when asked if he intended to pay Jones, he messaged saying, "you are a looser [sic]. I'm very busy now, so please run along and get a new job cos you're terrible at this one as you're fake news and now yesterday's news".

Following this interaction, it was a pleasant surprise to find out he had paid Jones, despite not yet having received the final court order for costs. So Jones is relieved to at least have $19,999 back in his account, and is hoping the payment of the costs will be with him soon too. It doesn't make up for the other losses if the past two years, but it's a start to getting back on track.

Watch this Fair Go investigation on our new home for news, consumer and in-depth stories TVNZ+