Backyard dealer busted

A Perth man selling cars from his backyard has been shut down by Consumer Protection.

John Salehi sold 12 of the 13 vehicles he purchased, from his Rivervale backyard in central Perth.

Salehi has been fined $8000 and forced to pay $756 in legal costs after pleading guilty in the Perth Magistrates Court to buying and selling cars without a licence, The Sydney Morning Herald reports.

“The activities of backyard operators create an uneven playing field and undermine the integrity of the regulation of the industry,” says Consumer Protection commissioner David Hillyard.

“Unlicensed dealers don’t offer warranties on their second-hand vehicles that are required by law, the vehicles may also be sub-standard in quality and pose a safety risk to the occupants,” he explains.

“Consumers who have mechanical issues after their purchase from these illegal operators may find it difficult to get any redress,” Hillyard says.

The outcome adds to the four other significant cases of backyard dealers busted in Western Australia this year, including the three Yas brothers fined $12,500 each (plus legal costs), for buying over 1200 cars and on-selling over 280, between March 2016 and November 2017.

It was described by Hillyard at the time as “by far the most extensive illegal motor vehicle dealing investigation in the history of Consumer Protection”.