New South Wales Fair Trading has suspended and is investigating Cars & Co Pty Ltd’s licence for allegedly stealing deposits and full payments from their clients.
The trader business, which AutoTalk published editorial on in September 2018, sources new and demonstrator vehicles from new car dealers for both fleet and private buyers, plus the buy/sell of used cars, including through consignment.
About $1.5 million has been stolen according to WAtoday, from around 20 consumers in both Western Australia and New South Wales.
Fair Trading has confirmed Cars & Co “may owe more than $600,000 to consumers”.
A woman, who wished to remain anonymous, lost $58,250 to Cars & Co after being scammed.
Having done her research, but finding no prior warnings about Cars & Co, she engaged the purchase and transferred the $58,250 to Cars & Co after dealing with national sales associate Shervin Kalimi.
Kalimi told her the money was needed to process the car and payment with a Perth dealer, but the dealer was unaware of such a deal or contract.
The woman realised something dodgy was going on when she rang Volvo Cars Perth, who said they had never heard of Cars & Co or Kalimi.
One three occasions, the woman was told the car was coming from Sydney, but it never showed up.
Cars & Co signed a contract with Volvo Cars Perth for a Volvo XC40 worth $66,500. The woman was told Kalimi would pay the difference to make up for the lost time, but he never did, and the car was sold to another customer.
She tried asking for her money back and got in touch with a lawyer to try and retrieve it.
She is eligible for compensation of up to $40,000 with the NSW Civil and Administrative Tribunal.
NSW Fair Trading commissioner Rose Webb issued a public warning about Cars & Co, suspending the dealer’s licence and advising people not to deal with the company.
“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,” Webb says.
On the Cars & Co Facebook page a series of reviews corroborate similar encounters with the business.
One client, Nicole Williams, said in June 2018: “Potential buyers beware!”
“Cars and Co will source your car and get you an amazing deal, then they will take your deposit and not deliver your car,” she said.
“Our experience was so stressful and very unpleasant and even though for whatever reason they could not deliver our vehicle, they still have not returned our deposit,” she explains.
“Every day there was a new excuse until eventually phone calls and messages are not returned,” she adds, describing “several others in the same boat”.
Ringwood Hocking Stuart real estate agent Lee Fenech bought an AMG Mercedes through Cars & Co in mid-2017 but did not describe the same experience.
“He [Kalimi] was absolutely fantastic.
He sent me photos promptly and described the car in detail … organised delivery to Melbourne and organised a great [deal] on my trade-in,” Fenech says.
“When the car arrived it was better than described and he even followed up with a courtesy call to see how I was enjoying it,” he added.
Pakenham, Victorian customer Craig Thom has made repeated posts of the NSW Fair Trading Public Warning against dealing with Cars & Co.
The Cars & Co Facebook page last posted on June 24 but remains active, however, despite office hours being 9am-6pm, the 1300 number dialled by AutoTalk during business hours was unanswered and directed to a messaging service.
The Cars & Co website has been deactivated.
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