Running on empty: Major used car dealer OzCar under fire over claims of ‘vanishing’ MG

When Melbourne couple Shaz and Daz bought a used MG as an engagement present, they believed they were dealing with one of Australia’s most reputable national used car networks.

Instead, they found themselves locked in a multi-year nightmare involving a malfunctioning vehicle, aggressive debt collection, and a car that vanished altogether after being towed by the dealer.

OzCar markets itself heavily on TV as a trusted supplier of "quality used cars that are as good as new". 

Company co-owner Brett Dale frequently stars in advertisements promising customer satisfaction, roadside assistance, and money-back guarantees.

However, a growing trail of aggrieved buyers, consumer regulators, and financial advocates tells a starkly different story.

For Shaz and Daz, the engagement present quickly soured. 

After obtaining $22,990 in finance through OzCar, the MG went into “limp mode” on the freeway shortly after purchase, failing to accelerate.

"We had the car for about 18 months, but in that total time... we had it in the driveway for four days," Shaz said.

When the vehicle broke down a second time, OzCar towed the car away for repairs — and the couple never saw it again.

"They were trying to tell us that nothing was wrong with it," Shaz recalled. 

"But we never saw the car again."

When the couple later checked the OzCar dealership in Melbourne's Cranbourne, the yard sat completely empty. 

Following advice from the Australian Competition and Consumer Commission (ACCC) and the Australian Financial Complaints Authority (AFCA), the couple paused their loan repayments while the vehicle was unaccounted for.

That decision triggered relentless pressure from debt collection agencies.

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"The debt collectors were ringing daily — some days two, three, four phone calls, a couple of days up to eight phone calls," Shaz said. 

"Absolutely harassing us for money that we haven't got for them."

The missing MG was eventually sold at auction by the financier for just $5000 following the defaulted loan payments. 

Daz says the compound stress severely impacted his health.

"It's affecting my mental health, my wife's mental health," Daz said. 

"I think the stress really caused the stroke. I can't keep down a full-time job, I can't concentrate, I can't work, I can't sleep."

Shaz and Daz are not an isolated case. 

In Sydney's south-west, mother-of-two Natasha paid $30,000 for a Hyundai SUV from OzCar's Campbelltown dealership, only to experience ongoing mechanical faults.

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"I honestly was scared to drive my car to be honest, especially having young kids," Natasha said. 

"They keep giving us the car back saying it's fixed, but then there's another issue."

The issue has drawn the attention of consumer protection authorities. 

A NSW Fair Trading investigation revealed that OzCar engaged in illegal sales practices, including pressuring vulnerable buyers into contracts and selling vehicles that failed basic quality standards.

NSW Fair Trading Commissioner Natasha Mann confirmed enforcement action was taken against the dealership and its leadership.

"We hit them with the maximum fines that are available to us under the law," Mann said. 

"We hit the corporation with a $50,000 fine and the directors with $11,000 fines. 

"Combined with strict licence conditions, we expect better behaviour. We will be monitoring them closely."

Mann warned that further non-compliance could lead to suspension, license disqualification, or prosecution.

When confronted outside his $30 million waterfront property in Sydney's Vaucluse, OzCar co-owner Dale rejected claims that his company was selling defective vehicles.

"We sell great cars to great people," Dale said. 

"24,000 cars over 28 years... If we weren't doing something right, we wouldn't be here."

When asked about the NSW Fair Trading fines for selling sub-standard vehicles, Dale initially denied the claims before walking away from further questioning.

Subsequently, OzCar took corrective steps for upset customers. 

It accepted the return of Natasha's Hyundai SUV and issued a refund.

OzCar also cleared the remaining $22,990 balance on Shaz and Daz's car loan and provided an additional $5000 in direct compensation.

“You guys were like angels to us,” Daz told A Current Affair following the resolution. 

"We had nowhere to go. We didn't know where to turn."