Latest news with #cardealerships
Daily Mail
7 days ago
- Automotive
- Daily Mail
Mechanic exposes huge rip-off at car dealerships - and it's perfectly legal in most of Australia
A mechanic has questioned how many car dealerships are ripping off customers by selling them 'repairable write-offs'. Townsville-based repairman Dean Dalgleish claimed in a TikTok video in April he could 'get into trouble' for speaking out on the practice. A repairable write-off refers to a vehicle that is so badly damaged it is considered too expensive to repair and regarded as a total loss by an insurance company. The car, however, is not deemed to be a statutory write-off, meaning the vehicle can still be repaired and re-registered after passing safety inspections. Used car dealerships across most Australian states and territories are allowed to sell repairable write-offs, however sellers are legally obligated to inform their customers. NSW has stricter rules and the vehicles cannot be sold for road use due to safety concerns. Mr Dalgleigh asked how many customers were 'paying full price for bad cars' as he questioned the tactics used by car salesmen. 'I don't know, do you reckon they're getting away with it?' he said. Mr Dalgleigh said he was tempted to conduct inspections throughout the car yards just to see how prevalent the practice was. His video has been viewed almost 150,000 times and drew outrage from social media users. 'People spend hard earned money to buy a car, maybe to help their grandkids out, later to find they bought problems,' one wrote. 'Older couple I know just brought one from a car yard in Brisbane. I just did a service on it,' another said. 'When I put it on the hoist I could see where it had been picked up with a forklift.' A third added: 'Any car written off should never be back on the road.' Just last year the Queensland government proposed changes to the state's written-off vehicle scheme after concerns that substandard repairs were going undetected. The government suggested a more rigorous inspection process before repairable written-off vehicles could be re-registered. Since 2015, more than 417,000 vehicles were written off in Queensland, with about two thirds deemed repairable. Queensland is the only Australian state without a quality of repair process, which sparked concerns from the Department of Transport and Main Roads (TMR) that substandard repairs were going undetected. TMR is keen to mandate that mechanics keep a repair diary with photographic evidence, or ensuring the vehicle had multiple inspections while it was being repaired. The Royal Automobile Club of Queensland (RACQ) backed the proposal to add a quality of repair saying it would ensure written-off vehicles were repaired to an industry standard. 'Poor quality repairs can lower the structural integrity and effectiveness of safety systems, including airbags and seatbelt pretensioners,' a TMR spokesperson said. The RACQ was also worried that written-off vehicles from interstate were being taken to Queensland where the cost of repairs was 'more economical' because of the lack of a quality of repair process. A TMR spokesman said it was hard to know how long it would take to implement its proposed changes.
Free Malaysia Today
23-05-2025
- Automotive
- Free Malaysia Today
BYD dealership closures reveal financial pain in China's auto market
Adjustments in BYD's dealer policy over the past years, combined with tightened bank lending, have put pressure on dealership cash flow. (EPA Images pic) SHANGHAI : Car dealership groups in two provinces have gone out of business since last month in China, both of them BYD Co retailers, evidence of the tough competition in the nation's auto market and proof that not even selling the country's No 1 brand can shield businesses from financial difficulties. Xingqi Group outlets in Liaoning province have stopped delivering new cars or providing service for more than 60 customers, according to Liaoning Radio and Television Station, while more than 500 people have formed online consumer rights groups to demand action from Qiancheng Holdings, which operated about 20 showrooms in Shandong province. Its stores also appear to have now closed, Chinese media outlet Autodealer reported May 6. Car dealerships in China are facing a profound shift brought about by the transition to electric vehicles and a slowdown in consumer spending that's left yards stuffed with stock. Most EV manufacturers now have a direct-to-consumer model, while the reduced servicing required by EVs and hybrids is also hitting dealerships' bottom lines. Stock levels in April reached 3.5 million cars, or 57 inventory days, the highest since December 2023, according to data shared earlier this week by Cui Dongshu, the secretary general for the China Passenger Car Association. Qiancheng Holdings said that adjustments in BYD's dealer policy over the past two years has put tremendous pressure on its cash flow. And due to other dealerships in Shandong province going under, local banks have tightened lending, adding to the pain, it said in an April 17 letter circulating on social media. Calls to Qiancheng Holdings and Xingqi Group weren't answered. Representatives for BYD didn't respond to requests for comment. One customer based in Jinan, the capital city of Shandong, told Bloomberg that she purchased a BYD Seagull hatchback at one of Qiancheng's stores last June. The dealer gave her lifetime servicing and also sold her an insurance package for 10,500 yuan (US$1,500). When she went back to the showroom earlier this year to renew her insurance, she found it had shut. She called BYD's official hotline but wasn't offered any solution, she said, declining to be identified for privacy reasons. Many BYD dealerships have excess stock after the company launched a new advanced driver assistance technology called God's Eye in February that will be installed in most of its models. That meant BYD dealers had to get rid of older stock quickly. Inventory levels at its outlets were the third highest of all brands in January, according to a China Automobile Dealers Association analysis. Under pressure to sell the cars, many dealerships resorted to slashing prices by thousands of yuan.
