Used vehicle dealer 2 Cheap Cars fined more than $400k

A car dealership has been fined more than $400,000 for its sales tactics and illegal attempts to void customer warranties.

The Commerce Commission started investigating 2 Cheap Cars Limited in November 2017 after it received several complaints.

The used motor vehicle dealer told customers it "must liquidate immediately" and promised a "massive price drop".

However, not only was the company not in liquidation, most vehicles weren't actually discounted at all, or only had discounts of $5.

Another advertisement promised "84 percent off" - but this referred to the price of a $300 GrabOne voucher, not the price of a vehicle.

2 Cheap Cars also tried to get customers to sign away their warranty rights with a document stating that if they chose not to buy an extended warranty they would be responsible for any repair bills.

The commission says as many as 20,000 forms may have been signed by customers between January 2014 and December 2017.

2 Cheap Cars Limited has been fined $438,000 in total.

Newshub.