Fine for unlicensed car sales and wound-back odometers (Mohammad Farhad Momand)

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ConsumerMotor industry

A Maddington man has been fined a total of $13,000 by the Perth Magistrates Court on 20 April 2016 for buying and selling vehicles without a dealer’s licence and for selling four vehicles that had their odometers wound-back.

Mohammad Farhad Momand was fined $5,000 for unlicensed dealing between April 2013 and August 2014 and $2,000 for each of the four vehicles sold with altered odometers. He was also ordered to pay costs of $9,187.

Mr Momand, who has a motor vehicle salesperson’s licence, had purchased 15 vehicles and sold 14 of them on Gumtree without a dealer’s licence, in breach of the Motor Vehicle Dealers Act. His licence only allows him to sell vehicles as an employee of a licensed dealer.

Buyers of four of the vehicles had been misled with the odometer readings showing fewer kilometres travelled than was the case:

  • A Holden Commodore that had travelled 214,304 kilometres had a reading of 135,000 kilometres when sold in June 2013;
  • A Ford Falcon that had travelled 199,898 kilometres had a reading of 78,000 kilometres when sold in August 2013;
  • A Holden Rodeo that had travelled 284,068 kilometres had a reading of 145,000 kilometres when sold in November 2013; and
  • A Ford Escape that had travelled 218,104 kilometres had a reading of 159,050 when sold in February 2014.

Acting Commissioner for Consumer Protection David Hillyard said these were serious violations from someone who was well aware of his obligations under the law.

“As a licensed salesperson, Mr Momand was familiar with the licensing requirements when buying and selling vehicles for profit, but he chose to ignore the rules,” Mr Hillyard said.

“Buying and selling vehicles without a licence is a serious offence in itself, but to also sell vehicles that have false odometer readings is totally unacceptable.

“Selling cars with odometer readings showing less than the actual kilometres travelled makes the sale more attractive at the expense of the unsuspecting consumer.

“There are now many methods by which the true odometer reading of a vehicle can be established, so it’s only a matter of time before any deception is discovered and offenders will face prosecution action by Consumer Protection.”

Car buyers who believe they have been misled can contact Consumer Protection by emailing or by calling 1300 30 40 54.


Media contact (Consumer Protection)

Consumer Protection
Media release
21 Apr 2016

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