Car buyers left tens of thousands out of pocket as platform Carconnect enters administration

Car buyers have been left without the vehicles they paid for after the collapse of an online buying platform.

Carconnect has entered voluntary administration, leaving some customers up to tens of thousands of dollars out of pocket and unable to collect their vehicles.

The business, which started in the early 2000s, was one of the first online car platforms in the Australian market, connecting buyers with dealers.

Customers could use the platform to compare models and have Carconnect negotiate on their behalf.

On February 26, the Sydney-based platform entered voluntary administration, appointing RSM Australia, with the first creditors’ report released on Monday.

“The Company has ceased trading and processing orders. The Voluntary Administrators are currently undertaking an urgent review of the Company’s affairs and will provide updates to stakeholders as soon as practicable,” read a statement on Carconnect’s website.

Customer left without $40,000 car

Darrin Martorana used Carconnect to buy a Hyundai Kona Hybrid after reading some positive reviews about the car-buying platform online.

“We got a quote from the dealership near us and thought we’d go through Carconnect and maybe save a little bit of money,” he told the ABC.