Recent MVDT decisions – March 2026
In this article we highlight 2 recent Motor Vehicle Disputes Tribunal (MVDT) decisions show how the Consumer Guarantees Act 1993 (CGA) is applied to disputes about vehicle quality, durability, and remedies.
Decision summary: Hills v Turners Group NZ Limited ([2025] NZMVDT 500)
Vehicle: 2010 Mitsubishi RVR
Purchase price: $8,990
Summary of the issues
The purchaser bought a second-hand vehicle from a trader. About 10 months later, engine noise and mechanical problems emerged. A timing chain replacement did not resolve the issue, and further investigation indicated underlying engine wear. The purchaser rejected the vehicle and sought a refund and payment of repair costs.
Tribunal decision
The Tribunal found the vehicle was not of acceptable quality under section 6 of the CGA, as the evidence supported a pre-existing mechanical issue. The failure was of substantial character, entitling the purchaser to reject the vehicle under section 21. The trader was ordered to refund the purchase price and pay the outstanding repair invoice.
Decision summary: Pasturan & Bantilan v New Century Autos Limited ([2025] NZMVDT 380)
Vehicle: 2022 Toyota RAV4 Hybrid
Purchase price: $42,000
Summary of the issues
The purchasers bought a near-new vehicle from a trader, knowing it was a statutory write-off. Ongoing issues included a persistent collision warning system fault from purchase, and later air-conditioning noise and window wiper/windscreen water leaks. They rejected the vehicle and sought a refund.
Tribunal decision
The Tribunal found breaches of section 6 of the CGA due to an unresolved minor defect and durability failures. However, the issues were repairable and not of substantial character. Rejection was declined, and the trader was ordered to uplift, repair, and return the vehicle at its expense.