Industry News from Yes Insurance
07 September 2006 Car dealer fined for clocking
A car dealer has been fined £25,000 for selling nine vans which had their mileages reduced.Michael McGrogan was brought to court in Northern Ireland after an investigation by the Trading Standards Service of the Department for Enterprise.
The investigation revealed that Mr McGrogan had reduced the mileages on a number of vehicles, before selling them on at increased prices.
The vans were being sold from the premises of Mr McGrogan's company Mick McGrogan Commercials.
In total, nine vans had their mileages reduced adding up to a sum amount of 548,350 miles which were lost.
The act of reducing the mileage of a vehicle, commonly known as 'clocking', can have serious consequences not only on van insurance premiums but also on the price of a vehicle.
On average, Mr McGoran is said to have made a profit of £1,700 on each van that he sold on.
"The department views clocking and the sale of clocked vehicles as a very serious matter," said Alison Gilchrist of the Trading Standards Service.
"The evidence in this case pointed to a systematic clocking operation, as was reflected in the penalties set by the court."
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