Inside OzCar’s collapse: Whistleblower claims predatory culture and worthless warranties before the fall of dealership empire

Exclusive: For nearly three decades, OzCar positioned itself as one of Australia’s premier used car destinations.

Promoting "fully serviced" vehicles backed by three-year warranties and money-back guarantees, the dealership network grew to span 16 locations across the nation under co-owner and prominent face Brett Dale.

Today, the company’s flagship headquarters in Lansvale, in Sydney’s south-west, stands idle.

Following an investigation by A Current Affair exposing systemic predatory sales tactics, regulatory fines, and a deluge of customer complaints, OzCar’s parent operation has entered voluntary administration.

At the centre of the revelations is Ahmad Michman, a former sales representative who worked at OzCar between 2020 and 2022.

After blowing the whistle on his former employer, Ahmad described an environment built on high-pressure sales, intimidation, and the deliberate exploitation of vulnerable buyers.

"It just seemed like, 'Wow, I'm working at a very good place and a great establishment'," Micha told A Current Affair in an exclusive interview.

“Little did I know ... it’s a rip-off.” 

According to Michman, the sales floor operated on strict metrics backed by an aggressive management style where underperformers were routinely threatened with termination.

He claims three strategies used to drive profits were:

• Selling far above market value: Sales staff were encouraged to mark up vehicles significantly. "If you were to sell at 10 grand gross – meaning you've technically sold the car for like 10 grand or slightly more above market – it was like a pride thing," Michman explained. "There was no shame in it."
• Targeting financially vulnerable buyers: Staff actively targeted customers perceived as lacking financial literacy, relying on systemic cultural profiling to push deals through.
• Pushing high-interest finance: Salespeople pushed financing over cash purchases to justify higher prices. "If you're gonna get them financed, there's no need to discount," Michman said. "You can jack up the price a little, get more gross out of the car, and then get them through the finance team."

Michman says the company culture encouraged a ruthless focus on closing deals regardless of the buyer's circumstances.

"It was a culture of go out there and get it done," he said. 

“And if you felt bad, you’d be told, ‘See you later’.”

The culture described by Ahmad mirrors internal communications dating back more than a decade.

A 2011 email sent by Brett Dale to dealership managers highlighted an uncompromising approach to staff performance:

"My business is reliant on the salesperson's attitude... I'm over it. I need every salesperson to do their job, every week without fail. If they are not excited and happy to be at work, they can f--- off," it read.

While OzCar advertised three-year warranties and money-back guarantees, Ahmad characterised these promises as sales tools rather than consumer protection mechanisms.

"The guarantee is just there to sell you on the vehicle, make sure you buy the vehicle," Ahmad said.

"And then after you've bought it, just bring it back. 'We'll give you a loan car.' Out of all the deals that I did when I was working there, I would say maybe 10 per cent I didn't get a complaint about."

NSW Fair Trading has fined OzCar and its directors for illegal sales practices, including pressuring vulnerable consumers into contracts and selling vehicles that failed to meet acceptable quality standards.

When approached on camera in September, Dale denied the allegations, maintaining that the dealership had successfully served "24,000 cars over 28 years".

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Used car giant OzCar plunges into administration, 90 workers sacked

However, following A Current Affair’s investigation, Japanese automotive investment firm Optimus Group – which held a 30 per cent stake in the business – withdrew its support and OzCar moved to shut down operations.

Last Friday, Dale closed the doors on OzCar's main operations, handing the keys of four corporate-owned dealerships over to voluntary administrators.

Approximately 90 employees have lost their jobs as a result. Twelve independently franchised locations operated by other people remain open.

For Ahmad Michman, leaving the company after two years was the only option left.

"I hated myself," Ahmad reflected.

"I'm ripping people off. I don't like doing that."