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ACTION MOTORS WEBSITE

SALE & PURCHASE OF VEHICLES – TERMS & CONDITIONS

INTRODUCTION:

Action Motors via this website (www.actionmotors.jp) provides access to selected Japanese car auctions which allows authorized Dealers to select and purchase motor vehicles.

Action Motors will place bids on the Dealers’ instructions and purchase vehicles accordingly. Action Motors will also, if requested, arrange shipping for the vehicle(s) to New Zealand.

Action Motors will then resell to the Dealer, and the Dealer is obliged to purchase the selected vehicle(s) from Action Motors, upon the Terms and Conditions outlined in this Agreement.

CONDITIONS OF USE:

Use of this website is restricted to New Zealand Registered Motor Vehicle Traders, or other parties expressly authorized by Action Motors

By registering and using the Action Motors Japan (“AMJ”) internet auction purchasing site you accept and agree to the Terms and Conditions of this Agreement in relation to any vehicles purchased from or through Action Motors Japan using the Action Motors website. You are also authorising AML and AMJ to act on behalf of yourself and your Dealership in executing these transactions. You also acknowledge that both you and your Dealership will be bound by and held liable for any obligations imposed on you by this Agreement.

If you do not accept these Terms and Conditions you must not use, or purchase vehicles through this Website.

DEFINITIONS: Where used in these Terms and Conditions:

  • “Action Motors”, “AM” “our”, “us” and “we” means the Action Motors Group collectively.
  • “AMJ”, “AML”, means respectively Action Motors Japan and Action Motors Limited.
  • “Purchaser”, “the Dealer” “you” and “your” means the Dealer using the AMJ website for purchasing vehicles.
  • “Vehicle” and “goods” means any motor vehicle or vehicle parts purchased from AMJ and described in any invoice issued to a purchaser by either Action Motors Limited or Action Motors Japan.
  • “Website” means this Action Motors Website provided and managed by Action Motors.

BIDDING PROCESS:

As a Dealer it is your responsibility to research and review all information available from the Website on the vehicles you wish to purchase through the Website. You will then request Action Motors to bid for and purchase the selected vehicles on your behalf.

All bidding is carried out by Action Motors at your request through the auction site. Prior to Auction, Action Motors will notify you of any issues that we become aware of which could involve excessive expense to remedy, to allow you to decide whether to continue with, or amend your bid accordingly. It is your responsibility to confirm that you wish to continue with your original bid or with an amended bid. Action Motors will not continue with any bid until you have done so.

Following this, Action Motors will confirm receipt of all final bids and the updated details of each selected vehicle (if any), and then bid for the vehicle(s) through Action Motors Japan (‘AMJ’).

On completion of the auction process, Action Motors will inform you whether or not your bid(s) have been successful. In the case of unsuccessful bids, no further action will be taken.

Where a bid is successful it will be confirmed to you by Action Motors, and you are then obliged to purchase the vehicle. An invoice in either Japanese Yen (“JPY”) or New Zealand Dollars (“NZD”) will be generated and sent to you within two business days of the auction date.

ACTION MOTORS OBLIGATIONS:

Action Motors will on your instructions, and at its own discretion, bid for, and if successful, purchase vehicles you have selected from Japanese used vehicle auctions. AM may also offer you vehicles that it has already purchased, and currently holds in stock. Where you have requested AM to either purchase on your behalf at auction and AM is successful in purchasing the vehicle, or, AM has accepted an offer from you to purchase a stock vehicle, those vehicles will then be sold to you, and you will be obliged to purchase them. All Dealers’ instructions to Action Motors concerning the purchase and pricing of such vehicles must be in writing or email to Action Motors or through the Action Motors website.

Dealers should carefully check all information provided by the auction house, or on the AM stock page, including all descriptions, auction gradings (where available) and diagrams. Because of the number of vehicles being purchased on any day, the range of auctions being covered in any one day, and the number of bids required to be made to successfully purchase each vehicle, it is not possible for Action Motors to physically check all the vehicles prior to bidding. Action Motors will therefore be relying solely on the information and grading provided by the auction house.

Action Motors will not accept any liability for faults or grading issues with any vehicle where the dealer or a dealer employee has personally inspected that vehicle prior to auction.

Except as in the paragraph below, Action Motors will not accept any liability to the dealer if the vehicle does not comply with any of the information or the grading provided by the auction house.

However, as a dealer you do have the right to make claims under the Action Motors Claim Policy in respect of vehicle faults, and non-compliance of the vehicle with the grade provided by the auction house, to the extent those faults fall within the limits and restrictions of that Policy. It is essential that you read and understand the Terms and Limitations of that Claims Policy prior to purchasing any vehicles through the Action Motors Website. It is also essential that you re-read the Terms and Limitations of that Claims Policy on a regular basis as this Policy will be updated on a regular basis.

Any vehicles purchased by AM at the request of the Dealer shall be at the risk of AM as to damage, destruction or deterioration from the time that AM purchases the car at auction or otherwise until AM delivers the car to the wharf in Japan for shipment to the Dealer at which time the car shall be at the risk of the Dealer as to damage, destruction or deterioration.

DEALERS OBLIGATIONS:

You agree you will use your knowledge and experience as a Dealer to carefully select which of the vehicles displayed by the AMJ Website you wish to purchase, and to make your purchasing decisions accordingly.

You must ensure that the vehicles you purchase comply with all NZ compliance and legal requirements.

You agree you will pay for all motor vehicles purchased by AMJ and then resold to and invoiced to you by either AMJ or AML under the terms of this Agreement. You will also pay all costs incurred in relation to those purchases. In particular you agree you will pay:

  • The cost of vehicles purchased for you by AMJ at auction, or purchased by you from Action Motors stock, including Japanese auction fees (if any), and
  • Local freight and transportation charges, all international shipping charges, including all vehicle inspection fees, biosecurity fees, odometer checks and documentation fees, if required, and
  • All other costs incurred or legally required to be paid in arranging to ship vehicles from Japan to New Zealand, including any costs incurred at your request, and
  • The AMJ ‘Agents’ fee (which, despite its name, does NOT create an agency relationship between your dealership and AM), and
  • Any costs or expenses incurred by AM in recovering any monies outstanding and payable by the Dealer under this agreement.

At your request AMJ may arrange shipping on vehicles purchased through AMJ. Unless a vehicle is paid for prior to its departure from Japan, all vehicle shipping arrangements will be made by AMJ or AML with its/their chosen shipper. In this case all freight and other charges shall be paid by the Dealer to the shipper upon arrival of the vehicle(s) in New Zealand, unless previously agreed in writing with AM.

Where it is agreed by both parties you will arrange your own shipping, the vehicle will be released to your chosen shipper on receipt by AMJ or AML of payment in full for the vehicle and all costs incurred to date.

Unless otherwise arranged, Payment must be made in full to the nominated account, either in Japanese Yen (‘JPY’) for JPY invoices, or in New Zealand Dollars (‘NZD’) for NZD invoices. within 7 days of receiving an invoice(s) from AML or AMJ.

You agree that all vehicles supplied by AML or AMJ shall remain the property of the that Vendor until payment is made in full for all amounts owed to AM on any account. Should the Dealer come into possession of vehicles supplied by AM, which have not already been paid for in full, the relationship between AM and the Dealer, in respect of those vehicles, is one of bailor and bailee and without prejudice to the provisions of the Personal Property Securities Act 1999 and the security interests contained herein, the Dealer holds all proceeds of sale of such vehicles in accordance with the provisions of section 19 of the Motor Vehicle Sales Act 2003.

The Dealer shall at all times upon request confirm in writing to AM the physical location of any vehicles purchased pursuant to this Agreement in respect of which AM considers there is money owing.

SECURITY INTEREST

As the Dealer you acknowledge that this Agreement creates a security interest within the meaning of the Personal Property Securities Act 1999 in all vehicles purchased through Action Motors for:

  • (a) the payment by you of all Secured Debt, and
  • (b) the performance by you of all your other obligations to AML and/or AMJ from time to time under this Agreement, and
  • (c) you grant to AML a charge in and over the Secured Property

Further assurance:

As the Dealer, if requested by AML you agree to deliver to AML any transfer, assignment, security, instrument, or other document, and you will do any other thing, which AM requires to enable it to:

  • (d) ensure that the Secured Property is subject to effective security having the priority which AM requires (including, but not limited to, providing serial numbers and other details of any personal property);
  • (e) exercise any of AM’s rights under this Agreement, whether on enforcement (including, but not limited to, the sale of any of the Secured Property) or otherwise; or
  • (f) perfect your title to or rights to or in any Secured Property; or
  • (g) perfect the security intended to be created by this Agreement; or
  • (h) more satisfactorily secure to AM the Secured Debt; or
  • (i) transfer to, or vest in, AML (or any purchaser from AM or a Receiver) any Secured Property; or
  • (j) fund (in whole or part) the purchase the realisation of any Secured Property; or
  • (k) exercise all or any of the rights conferred on AM or a Receiver by this Agreement or by law; or
  • (l) secure to the AM the full benefit of the provisions of this Agreement.

PAYMENTS

All amounts to be paid by the Dealer under this Agreement:

Must be paid to AM’s nominated bank account in full and in cleared funds immediately when due (and free of any set off, withholding or deduction) and,

Application of payments:

AM may (notwithstanding any stipulation by the payer to the contrary) apply or allocate any payment received from or on behalf of the Dealer to any Debt owed by the Dealer to either AMJ or AML as AM determines in its sole discretion.

On the occurrence of a payment default, AM may, at its’s sole discretion, re-allocate any payments previously applied and allocated by AM in order to minimize any potential financial loss to AM, resulting from any default by the Dealer.

Default Interest:

If you do not make any Payment when payable, then (without prejudice to any other right exercisable by AM) you will be liable to pay to AM interest at the Default Interest Rate of 18.75% per annum on that unpaid amount from the date on which it becomes payable to the date of its receipt by AM (after as well as before any judgment). This interest will accrue on that unpaid amount (without the need for any demand) on a daily basis and must be paid on demand by AM.

Retention of Vehicles and Documents:

AM, without prejudice to any of the other rights or remedies available to it under this agreement or at law, reserves the right at its sole discretion to retain in its, or its agent’s possession any vehicles, Bills of Lading, Japanese de-registration and MR2a documents until all vehicles sold by AM to you have been paid for in full.

LEGAL JURISDICTION

AML and the Dealer agree that the law applicable to this Agreement shall be the law of New Zealand and any proceedings to enforce this Agreement shall be filed in the Courts of New Zealand and in no other jurisdiction.

Claims Exclusion and Limitation Policy of Action Motors Japan & Action Motors NZ

INTRODUCTION:

Each warranty claim from the client will be reviewed individually based on quantity of purchased cars. Customers buying over 20 cars per month will get more privileges.

A number of vehicle models available at Japanese Used Vehicle Auctions have problems which are common to their manufacturer and/or model. We have listed many of these vehicles and models and the faults commonly associated with them on the attached Schedule of Claim Exclusions.

Action Motors will endeavour to ensure that any vehicle purchased on behalf of a New Zealand Dealer will be checked for these known problems listed in the Schedule, to the best of its ability. However, Action Motors cannot guarantee that such faults are not present, and therefore cannot accept any liability for such problems. The problems for which Action Motors will not accept liability are listed in the attached Schedule to allow Dealers to avoid these vehicles should they wish to do so. If a Dealer chooses to purchase one of the listed vehicles, they should do so in the knowledge that they are prone to such problems, and Action Motors will not accept any liability for the faults listed.

It is important that Dealers check the Schedule of Claim Exclusions on a regular basis to see any updates or changes.

In addition to the Schedule of Claim Exclusions, Action Motors cannot accept liability on any vehicle, make or models for:

  • Any claims made after a vehicle has been sold to a retail customer.
  • Any claims or repair certificates relating to commercial vehicles. This includes all panel replacements required, and all underbody corrosion.
  • Any claims for vehicles where the Auction price is less than ¥200,000. Any claims for vehicles lower than Grade 3.5
  • Any claims for vehicles aged more than 10 years old.
  • Any claims for vehicles with more than 140,000km on the odometer.
  • Any claims relating to specific faults notified to you at time of purchase either by Action Motors in writing, verbally or noted on the (Auction Confirmation Form).
  • Any claims on an intermittent fault.
  • Any claims on problems only apparent after driving or extended use (more than 1,000 km from purchase.
  • Any claims on faults with a repair value of less than $500 + GST.
  • Any claims for theft of items or parts occurring in transit or compliance.
  • Any claims on a vehicle physically inspected and confirmed by the Dealer in Japan.
  • Any claims for expenses that are not directly related to the claim itself.
  • Any claims relating to errors in the information recorded on the de-registration.
  • Any claims related to general wear and tear, vehicle servicing or maintenance required which would be normal for a vehicle of that age and mileage.

Amount of Liability:

Mechanical Issues:

  • All mechanical repairs on any vehicle are subject to an Excess of $500 + GST, to be covered by the purchaser.
  • Action Motors will only be liable for 50% of all repair cost that exceed the amount of the Excess.
  • No claims can be accepted for issues listed in the attached Schedule of Claim exclusions.

Body Condition:

  • Action Motors will only contribute to eligible costs required to bring any covered Vehicle to the condition originally quoted.
  • All repairs on any vehicle are subject to an Excess of $500 + GST, to be covered by the purchaser.
  • Action Motors will only be liable for 60% of all repair cost that exceed the amount of the Excess.
  • Action Motors will be responsible for all repair costs where it has failed to notify a Dealer of body or rust issues which are stated on the Auction Confirmation sheet, but it will NOT be liable for such repairs where it has notified the Dealer the vehicle has such issues before the time of bidding, and the Dealer has elected to continue with the bid.

General:

The maximum Liability amount that will be covered by Action Motors for the total amount of the repairs on any vehicle is $2,500.00 plus GST.

In all cases, Action Motors reserves the right to carry out repairs itself, or refund against the purchase price in cases of accepted claims, at its sole discretion.

Action Motors will make every effort to settle claims in a mutually fair and expedient manner.

Claim Procedure:

To be valid, all Claims must:

  • Be made directly to Action Motors Auckland Office within 10 business days of the earlier of delivery of the vehicle to the Dealer’s yard, or to the Dealer’s nominated Compliance Shop.
  • Be accompanied by a detailed description of the fault and photographs of the relevant area or parts.
  • Be made on the Claim Form available from Action Motors Auckland Office.
  • Be made prior to starting any repairs. Action Motors must agree in advance to any repair work before work is started.

Schedule of Claim Exclusions

Many vehicle models are known to have common faults. Action Motors endeavour to check for these known problems but cannot guarantee to avoid them. If any Dealer still wishes to purchase such vehicles, the Dealer must do so in the knowledge that there is a risk that these known faults and problems with that model may exist in any vehicle they purchase. Action Motors will not cover the costs of remedying such previously identified issues.

We urge you to check this Schedule regularly for updates.

Claims on the Following Makes of Vehicle will not be accepted by Action Motors Limited:

  • Alfa Romeo
  • Bentley
  • Chevrolet
  • Citroen
  • Ferrari
  • Fiat
  • Hummer
  • Jaguar
  • Land Rover
  • Opel
  • Peugeot
  • Pontiac
  • Porsche
  • Range Rover
  • Renault

Action Motors reserves the right to reject claims for the following known Issues with other Vehicle Makes:

Audi

DSG type gear boxes on VW and Audi vehicles manufactured between 2005 and 2010 are prone to transmission valve-body failure. This fault frequently requires replacement with a later version. Repair costs can range up to $4,000 plus GST.

Audi vehicles with Air Suspension are prone to height-control leaks. Replacement cost can be up to $1500 plus GST per shock absorber.

Because such faults are common and often difficult to diagnose, partly because of their intermittent nature, Action Motors cannot cover any claims relating to these problems. Please bear this in mind when/if purchasing these models.

BMW

3 Series are prone to a tappet like engine noise problem and differential whines.

Mercedes Benz

In A Class, B Class, and C Class models it is common for the lining of the torque converter to come away inside the transmission. This can often be remedied by servicing the vehicle, but Action Motors reserves the right to reject or limit any claim if further remediation work is required for this problem.

As performance vehicles, AMG models carry no guarantee from Action Motors.

Volkswagen

DSG type gear boxes on VW and Audi vehicles manufactured between 2005 and 2010 have are prone to transmission valve-body failure. This frequently requires replacement with a later version. Repair costs can range up to $4,000 plus GST.

Because such faults are common and often difficult to diagnose because of their intermittent nature, Action Motors cannot cover any claims relating to these problems. Please bear this in mind when/if purchasing these models.

General Issues relating to European Vehicles:

Action Motors reserves the right to reject or limit claims for common faults on European vehicles. These include:

Requiring brake rotors and rubber bushes to be replaced due to manufacturers minimum standards.

Issues where ABS and SRS warning lights light up after extended periods of not running, or due to a period where the battery has been left flat, or at low voltage, or due to incorrect jump starting.

Window regulators and air-con compressors can also be problematic.

Japanese Makes and other Vehicles

Action Motors reserves the right to reject or limit any claims for these common faults on the following vehicle makes and models:

Ford

On Explorer models, Gearbox, Differential, ABS, air-conditioning and power steering systems are prone to problems or failure.

Honda

CVT transmissions on Civic and Fit’s are prone to clutch problems. Costs to repair can be up to $1,400 plus GST for an overhaul kit.

Odyssey RB1 models are prone to similar problems at higher kms.

Accord Euros are susceptible to under-body rust around the rear of the vehicle. Repair costs can range up to $1,000 plus GST.

Some Accords are prone to under body rust.

Hyundai

Some Hyundai models do not have a TDN No. on the de-reg. This means the vehicle may require a statement of compliance and incur extra compliance costs.

Mazda

No claims will be accepted for rotary engines.

Mazda MPV Turbo models are prone to turbo charger problems on vehicles over 70,000kms. Turbo replacement can cost up to $2,500 plus GST.

The Atenza 4WD has a common Valve Body fault. The repair cost is typically around $1200 plus GST.

As both these problems are often intermittent, they are difficult to diagnose at auction. Valve Actuator VVT unit issues: Atenza MPS / Axela MPS / MPV Turbo and CX-7 Turbo engines can develop a short rattle on start up when they reach around 100,000km. This is mainly caused by wear in the Valve Actuator VVT unit. In such cases the noise normally disappears once oil pressure builds. The repair cost can be up to $1,000 plus GST.

Atenza models are susceptible to rust in the suspension towers. This area is not possible to diagnose in an auction environment. Repair costs can range anywhere between $400 and $1,000 plus GST.

Mazda Note, March and Tiida models commonly suffer from rust issues on the fire wall. Repair costs can be up to $750 plus GST.

Mazda Tribute and Escape models are susceptible to rust in the spare wheel housing.

Mitsubishi

SUV models are prone to underbody and chassis rust problems.

Nissan

Bluebirds commonly have faults with bubbling on the surface of the dashboard.

Elgrand and Presage models are prone to rust problems, often in areas which it is not reasonable to check in the vehicle auction environment eg, in the inner wheel arches and/or front crossmembers. Rust in these areas can often only be found by removing wheels or inner guards.

A number of SUV models are prone to underbody and chassis rust problems. Nissan models are prone to problems with engine air-flow meters and engine coil packs.

Dualis models frequently suffer from transmission noise issues, under deceleration.

Teana models commonly suffer from rust problems.

Because all the above listed faults are reasonably well known, quite common to their various makes & models, and in some cases they are intermittent, Action Motors reserves the right to exclude or limit claims for these faults on these models. Please be aware of this policy when selecting any of these models for purchase.

General Issues Common to many Vehicles:

Commercial Vehicles

Action Motors is unable to properly assess any commercial vehicles, including Vans,Trucks, Buses, Cranes. Action Motors is therefore unable to accept any claim relating to such vehicles unless arranged with Action Motors in advance.

Convertible vehicles

Convertible roof mechanisms are often mechanically complex and prone to damage due to incorrect use and general wear and tear. Action Motors will attempt check roof operation but cannot give any warranty on the reliability of such mechanisms. Action Motors reserves the right to reject or limit any claims for faults with convertible roofs.

Spare Keys and Remotes

Vehicles sold at auction in Japan will have at least one key or remote. Vendors will often supply other keys or remotes following the sale of the vehicle. Action Motors has no way of knowing whether more than one key or remote is available and is unable to guarantee more than one will be provided with the vehicle.

Diagnostic Scans

Modern vehicles often require diagnostic scans and resets to turn off warning lights. These problems are typically caused by low battery voltage, incorrect jump start or recharging procedures, battery age and just general wear and tear. In such cases Action Motors reserves the right to reject or limit any claim.

Claims Relating to Transmission & Drive-train Faults

It is not possible to test drive vehicles at Japanese vehicle auctions and therefore to identify Drive Train faults. Action Motors Reserves the right to reject or limit any claim for faults that may only be evident when the vehicle is driven.

Modified Vehicles

Action Motors will not accept any claims for modified vehicles.

Performance Vehicles

Action Motors will not accept any claims for the clutch and associated parts, or for transmission faults on any Performance Vehicles.

Third Party Sales

No claim will be entertained by Action Motors once a vehicle is sold to a retail customer or other third party.