Car buying platform enters administration, leaving 200 customers without vehicles
Car sales platform Car Connect has collapsed into voluntary administration, impacting hundreds of customers who have paid either partly or in full for cars which are yet to be delivered.
The Sydney-based company has appointed RSM Australia Partners Jonathon Colbran and Brett Lord as joint administrators on February 26.
Car Connect has been in operation since the early 2000s and linked car buyers to dealers through a "tailored" experience.
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Car Connect has appointed administrators. carconnect.com.au
Investigations into the sales platform has found around 200 customers have either paid in full or paid deposits for undelivered cars.
A total of 181 people have paid deposits and 23 buyers have paid in full and are still awaiting delivery, Colbran and Lord said.
"We've today issued the first Creditors Report and while it's early in our investigation we know that there around 200 people who are impacted, as well as automotive dealers and other stakeholders," Colbran said in a statement.
"Where people have made payments and orders cannot be filled, these orders will convert to creditor claims as the company is no longer trading and is not in a position to pay refunds."
The administrators have now begun the process of finding a buyer.
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Car Connect has been described as an "attractive" business opportunity to potential buyers.
"In seeking a buyer, our priority is to facilitate the best outcome for all stakeholders which involves realising the maximum return for Carconnect's valuable intellectual property," Colbran added.
Impacted customers will be contacted as a "matter of urgency".
"We understand this will be very distressing news for customers in particular," Colbran said.
Eligible customers can submit a claim through the motor dealers and repairers' compensation fund.
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