MDCBCNEWS

For Immediate Release

Motor Dealer Council of British Columbia


Dealer licenses cancelled

BURNABY, B.C. (3 November, 2005) - The Registrar of Motor Dealers has cancelled the licenses of Mirage Auto Sales Ltd. of Burnaby and New Westminster, citing that this company has "persistently" operated in an improper fashion, and that "this dealer has little or no respect for the laws in British Columbia as they apply to selling motor vehicles to the general public."

In his ruling, the Registrar, Ken Smith, stated that Mirage principals have been uncooperative with MDC investigators and failed to heed numerous warnings. Named in the Mirage ruling were the owner, Alireza Ghavami and his son Amir Reza Ghavami, (Tony).

The Motor Dealer Council is an administrative authority established pursuant to the laws of British Columbia and has been delegated the responsibility of administering the Motor Dealer Act and related regulations. The legislation requires that all businesses selling motor vehicles to the public in British Columbia, and all salespersons working for those businesses, be properly licensed. The Registrar of Motor Dealers issues and oversees the administration of these licenses.

The Registrar said:

MDC staff have issued innumerable warnings and tickets for breaches of the legislation. Not withstanding this, Mirage Auto Sales Ltd. has continued (amongst other things) to sell unsafe vehicles; to sell vehicles without title first being properly transferred into their name; to regularly employ unlicensed sales staff; to improperly document sale transactions, to mismanage and misappropriate customer deposits and warranty monies, and most importantly, to offer little or no explanation for this type of ongoing conduct.

It is the fourth license cancellation this year. The others were:

  • Casanova Motors of Vancouver for failing to reimburse $4,154.00 to the Motor Dealer Customer Compensation Fund, a sum awarded to a customer who had lodged a claim. The dealer principal Rui Alberto Ramos Lourenco failed to attend a hearing on the matter and, on May 10, the Registrar cancelled the license. The Customer Compensation Fund receives claims from buyers who feel they were wronged by a registered motor dealer and suffered an eligible financial loss. An independent five-member board hears the claims.
     

  • L.A Auto Brokers Inc. - On July 5, 2005, the license of this firm, also doing business as Kamloops Motor Products, was suspended as a result of consignment sales behaviour and repeated complaints from consumers that they had not been paid for their vehicles. An earlier suspension and promises by dealer [principal Kim Terrance Lewis had failed to correct this inappropriate behaviour.
     

  • Good Deal Auto Sales Ltd. For dishonestly and improperly entering into consignment contracts with members of the public without a license. The dealership was taking deposits from members of the public on the pretense that the monies would be returned, and then failing to make the agreed repayment. This company ignored the Registrarís ruling, and subsequently found itself before the Supreme Court of BC, which ordered it to cease and desist.

License cancellation is viewed by the Registrar, Ken Smith, as a last resort. It invariably follows investigations, discussions, warnings, tickets and a formal hearing, a process in which the offending dealer is given every opportunity to be worthy of the license. The goal of MDC is a respected motor dealer industry serving an informed and confident public

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FOR MORE INFORMATION, PLEASE CONTACT:
Judy McRae
Motor Dealer Council of BC
#150 - 6400 Roberts Street
Burnaby, B.C.V5G 4C9
Phone: 604-293-3521 Fax: 604-294-9313

www.mdcbc.com

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