Carworks Ballarat takes own loan car from customer before demanding insurance excess

Exclusive: A Victorian car yard has been caught demanding a customer pay an insurance excess for a "missing" loan car, despite security cameras capturing dealership staff taking the vehicle.

Dharminder Singh had been given a loan car by Carworks Ballarat after the father-of-two returned a Toyota Corolla he had purchased because it was shuddering and had a broken reverse camera.

Amid a dispute between Carworks and Singh over whether the Toyota was fixed or not, Singh's home security cameras captured a daylight "heist" involving the hire car.

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A ute was captured on video on October 15 pulling up outside Singh's home, before a man who appeared to work for Carworks emerged from the passenger door, opening the loan car and driving off in it.

Carworks co-owner Ric De Ruiter then repeatedly demanded Singh pay the insurance excess for the missing loan car.

When A Current Affair asked De Ruiter why, Carworks issued a complete denial.

"Mr Singh asserted that the vehicle was stolen," Carworks said in a statement.

"After it was clarified that the vehicle was not stolen, rather collected by our staff, no further action was taken."

But according to multiple pieces of evidence and correspondence obtained by A Current Affair, De Ruiter claimed more than once that Singh was liable to pay the excess, meaning the car yard's statement to A Current Affair was effectively a lie.

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Singh described the situation as a "scam".

"I don't know why he was threatening like this," he said.

"We are like in stress."

Carworks has threatened to sue Singh personally for defamation.

He has since picked up his vehicle but claims it is still shuddering.

Carworks said it did not knowingly sell the car with faults.

"The faults were not present at the time of sale and were not present during the test drive of the vehicle by Mr Singh," a statement read.

It is not being suggested that any criminal investigation has begun into Carworks' conduct and it is unclear whether the car yard lodged a claim with its insurer.

"Be careful when you (are) dealing with Carworks," Singh said.

Have you had dealings with Carworks? Email reporter Sam Cucchiara at scucchiara@nine.com.au.