The security of vehicle orders was thrust into doubt yesterday when it was revealed top Sydney dealership Damelian Automobile Limited had been placed into receivership, with secured creditors owed approximately $80 million.
CarAdvice learned overnight that customers who have placed a deposit on a new car at any of the seven new Damelian showrooms – Alfa Romeo, Citroen, Fiat, Honda, Renault, Skoda and Suzuki – will have their contracts honoured and receive their new cars.
Receivers Ferrier Hodgson said new vehicle warranties – including extended new warranties issued by the manufacturer – should be secure.
“[We are] not aware of any basis upon which manufacturers might contend that they are not obliged to continue to honour the three-year warranty provided following the sale of a new vehicle.”
Unfortunately, however, extended warranties purchased from the Group will not be honoured. Ferrier Hodgson said customers should check the terms of their extended warranties and contact a relevant third-party warranty provider to assess whether a claim can be made.
The Group can no longer honour statutory three-month used vehicle warranties either. The receivers are currently investigating options available to customers of used vehicles purchased from Rick Damelian Group.
As vehicle servicing has been suspended until further notice, customers are encouraged not to take their vehicles to Rick Damelian Group for scheduled services.
Read CarAdvice's editorial on the Rick Damelian downfall.