VCAT cancels Motor Finance Wizard lease

Motor Finance Wizard has had a lease cancelled by the Victorian Civil and Administrative Tribunal, with the tribunal ruling that the financier's sales practices led to a disabled woman, living on Centrelink benefits, being preyed upon.

DGTV1 Pty Ltd, a subsidiary of Motor Finance Wizard, was the defendant in the case.

The woman agreed to a lease on a 13-year old Mazda 626, with 189,000km on the clock, after spending around five hours at the company's sale yard. The tribunal ruled she was fatigued and pressured by the sales process and that MFW's agents did not explain the finance proposal well.

The tribunal also found that MFW did not tell the woman the cash price of the car, did not explain the contract arrangements until very late in the sales process and did not properly assess her ability to make the lease payments.

The tribunal also concluded that Motor Finance Wizard used similar sales practices in other circumstances.