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Hi there,

I was sold what seems like a dodgy mechanical warranty when I bought my car from a dealer. I had a mechanical problem which I used the warranty to fix, which the dealer agreed to.

However now the repair is done, the dealer is refusing to pay the workshop's invoice - saying things like "I've posted a cheque" (which never arrives).

Obviously the workshop won't release the car until the bill is settled, to until it's sorted I'm without a car. Worst case I may have to pick up the tab myself, and try chase up the dealer for reimbursement, but I somehow imagine if I did this he may just 'disappear'.

I was just wondering what my options were, if there was any regulation of used car dealers, or at worst, some sort of review process where I can recommend other consumers to stay away from this dealership?

Regards
Jason

You say that the dealer is refusing to pay the invoice, but if the repair is covered by a mechanical warranty insurance policy, are you just talking about the policy excess that remains unpaid?
Depending on how long ago you bought the car and what the fault is, the dealer may have obligations under the Consumer Guarantees Act, so it may be that the mechanical warranty doesn't apply at this stage, in which case the dealer will be paying the entire bill.
Either way, if the dealer has agreed to pay, he cannot walk away from his responsibility.
If the dealer defaults on his agreement to pay, you may have no option other than to pay the account yourself and then take the matter to dispute. The Tribunal can be contacted on 0800 367 6838.

The dealer told me that it was a warranty insurance policy through Driveright. But after I discovered that Driveright had no reference to either me or the car - the dealer told me it was instead a mechanical warranty offered direct from the dealership.

In simpler terms, in retrospect I believe the dealer may have just added $1000 to the purchase price and told me this was a warranty - and never had any intention of fulfilling it.

This was a well-known and reputable dealership (as far as used-car dealerships go...)

I chased up the dealer further and he agreed to pay for the repair (which cost less than the price of the 'warranty') - but now that the garage needs the bill settled, he is proving to be rather evasive.

I feel like my hands are tied - and if I decide to settle the bill myself, I'll never be able to get the dealer to reimburse me.
A sticky situation indeed - one which does not do the reputation of used-car salesmen any favors at all!

This now sounds like a case of misrepresentation. If you were sold a mechanical insurance policy with a third party warranty insurance provider, that is what you need to get - not something the dealer is now telling you he is underwriting himself. The $1,000 paid for the warranty should be detailed on the Consumer Information Notice (CIN) that you would have signed at time of purchase.
The dealer has obligations under the CGA for faults that occur within a reasonable time after purchase, but he can't charge you for this - it is his legal obligation.
If the dealer is struggling to pay a repair bill that he is legally obligated to do, it sounds like his business is not in great shape.
If the facts are as you have described, these are not the actions of a "reputable" dealer and should be brought to the attention of the MTA (0508 682 633).