Cars & Co Pty Ltd's licence has been suspended

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https://www.watoday.com.au/national/...11-p526ay.html

"dodgy" car dealer and broker has allegedly stolen about $1.5 million of their clients’ hard-earned money after being entrusted to buy dream cars for them.

Cars & Co Pty Ltd's licence has been suspended and is currently being investigated by New South Wales Fair Trading for allegedly causing “substantial financial detriment” to consumers in Western Australia and NSW.
Karen has been left out-of-pocket almost $60,000 after enlisting Cars & Co as a broker to help purchase her dream car.

Karen has been left out-of-pocket almost $60,000 after enlisting Cars & Co as a broker to help purchase her dream car. Credit:Lauren Pilat

WAtoday understands the company ripped off about 20 clients, four from WA, who lost about $1.5 million in total.

Perth retiree and mother of two Karen* enlisted Cars & Co as a broker in February to purchase her first new car in 40 years and ended up losing the $58,250 set aside after her husband passed away to purchase her dream car – a Volvo XC40.

Karen, whose sister had previously enlisted eastern states brokers to help buy several cars through dealerships for a good price, said she didn’t make the decision to go with the Sydney-based company lightly.

"We did an [Australian Securities and Investments Commission] and Fair Trading search in February and nothing came up; no warnings at all about Cars & Co," she said.

"But if we had waited another two or three weeks there would have been an ASIC warning.

"By March 25 he had a notice of a winding order from In-Vogue Rentals, and a hearing a month later, but a month after that it was rescinded."

Karen was only made aware of the winding order in May when she did a second ASIC search.

By this stage she had already transferred the $58,250 to Cars & Co on February 14 after dealing with national sales associate Shervin Kalimi.

She said Mr Kalimi had told her they needed the money by the weekend to process the car and payment with a Perth dealer by the end of the month.

Unbeknown to Karen, the nominated dealer listed on the contract from Cars & Co – Volvo Cars Perth – was unaware of any such deal or contract.

Karen said Mr Kalimi had told her to deal directly with him to make the process smoother, so it wasn’t until she rang Volvo Cars Perth in late February that she became aware something “very dodgy” was going on.

“Volvo Cars Perth said they had never heard of Cars & Co or Shervin,” she said.
Karen's dream car, a 2019 XC40 R series.

Karen's dream car, a 2019 XC40 R series. Credit:Volvo Cars Perth

“Then he said the car was actually coming from Sydney but Volvo was going to do the handover – red flags.

“Obviously something wasn’t right so I began to correspond with him via email and text rather than over the phone.”

At this stage, Karen wasn’t holding her breath. She said on three occasions she was told the car was coming from Sydney, but it never showed up.

On March 19, Cars & Co signed a contract with Volvo Cars Perth for a 2019 model worth $66,500 and Karen was told Mr Kalimi would pay the difference to make up for the runaround.

He never paid the Perth dealership and the car was sold to another customer.

Yet another contract was signed between the two parties on March 30. This time, with the help of Volvo Cars Perth, the car arrived in Perth on April 30 and was licensed to Karen.

But once again, Cars & Co failed to pay the local dealership and Karen was left without her dream car and out of pocket almost $60,000.

“He [Mr Kalimi] apparently paid Volvo and sent the transaction receipt from Commonwealth Bank but he doesn’t even have an account with them,” Karen said.

“I had asked for the money back but I said I don’t believe you’ve even got the money to pay me back and he sent a screenshot of a Cars & Co account with money in it but it was fake with no dates.
NSW Fair Trading suspended Cars & Co's car dealer's licence in June.

NSW Fair Trading suspended Cars & Co's car dealer's licence in June. Credit:Facebook

“I knew things weren’t right and that’s why I was in touch with a lawyer. Buying my dream car was meant to be something nice to do for myself after losing my husband but instead it caused me stress and sleepless nights.”

Karen said while she was without her car, she could now sleep easier knowing she could possibly get compensation of up to $40,000 by taking the matter to the NSW Civil and Administrative Tribunal.

NSW Fair Trading Commissioner Rose Webb issued a public warning urging consumers not to deal with Cars & Co, with Fair Trading suspending the motor dealer’s licence.

Ms Webb said Cars & Co allegedly caused substantial financial detriment to several consumers and at June 7 owed consumers more than $600,000.

“Fair Trading has received a total of 28 complaints and 14 enquiries about the trader between November 26, 2016 and June 7, 2019, with 16 complaints under current investigation,” she said.

“The majority of these complaints relate to Cars & Co Pty Ltd accepting money for the purchase of vehicles and either not passing that money on to the supplying dealer, or not supplying the consignor with the requested vehicle.

“Complaints also relate to consignees not being informed of the sale of their vehicle, Cars & Co Pty Ltd not paying finance companies after a consigned vehicle has been sold as per the consignment agreement, and Cars & Co Pty Ltd selling vehicles without clear title.”

Fair Trading alleges the company operates two bank accounts, however neither are trust accounts.

Traders that conduct consignment sales without holding a trust account are in breach of section 90 of the Motor Dealers and Repairers Act 2013 (NSW).

It is alleged that the trader has failed to account to consignees the full amount received on the sale of vehicles and may have misappropriated money received on behalf of consignees to satisfy debts of the business – both of which are in breach of the Motor Dealers and Repairers Act 2013 (NSW).

Customers who have dealt with Cars & Co and not satisfied with their interaction, should contact NSW Fair Trading on 13 32 20 or fairtrading.nsw.gov.au.

WAtoday has contacted Mr Kalimi for comment.

Volvo Cars Perth did not wish to comment.