A Tauranga motor vehicle trader agreed to buy back a car sold by his company after being convicted of tampering with its odometer in the first successful prosecution of its kind.
Sachinthaka Nagasinghe, sole director of Sachis Holdings Ltd, trading as Carporium, was ordered by the Tauranga District Court this week to pay $1000 reparation for emotional harm. His company was fined $5000.
The case centred on a Toyota RAV4 that Carporium bought at an Auckland car auction in December 2023, where its odometer read 150,031km.
By the time the company sold the car three months later, the odometer showed 119,244km, a discrepancy of more than 30,000km.
When the car's new owner took it for a scheduled service in May 2026, technicians noticed the odometer reading didn't match the vehicle's service history and referred the concern to the Registrar of Motor Vehicle Traders through NZTA.
This triggered an investigation by the Ministry of Business, Innovation and Employment which confirmed the odometer had been tampered with.
Nagasinghe faced two charges under the Motor Vehicle Sales Act 2003: One for tampering with an odometer without reasonable excuse, and another for aiding and abetting his company in the offending.
Ahead of sentencing, he agreed to buy back the vehicle for $24,000, matching its original sale price.
Ministry of Business, Innovation and Employment national manager of occupational regulation Bevan Yee said the prosecution sent a clear signal to the industry that deceptive practices would 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," he said.
"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,"
Under the Motor Vehicle Sales Act 2003, the maximum penalty for the most serious offences is $200,000 for a company and $50,000 for an individual. The Registrar can also issue infringement notices carrying an instant $500 fine for lesser breaches.
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