Cooling Off Period/Buyers Rights?

[bouka]

Signed a contract late Saturday for a new car for the wife. Signed subject to finance. From my understanding, i can just say that finance fell through and get the deposit back and that is the end. What is your knowledge of the following:

-Does cooling off period still apply (I heard it doesn't)?
-Do i get my deposit ($900.00 on eftpos) back in full if finance doesn't go through?
-Do i have to show proof that finance failed?
-Any other advice?

[markone2]

Did you find another car ;) .....Personal experience suggests you will not find this easy….if you say the finance has fallen over the dealership will then offer to get you set….refuse and its goodbye $900..yes they will do this and yes I have seen it done…

[wrexed03]

I beleive if you put "subject to finance" and you pull out from the deal the dealer may get you finance instead to close the deal even at a higher rate. It may not be a way out. You may loose your deposit or a % of what the vehicle is worth. Re read your contract of sale there is something in there about the deposit or the %.

[GM-IRON]

You could try saying that you were told by a friend, finance adviser that you could get the loan at with a interest rate that you know is near impossible to get, but it fell through. This way if the dealer offers to get you finance, it will be hard for them to get you that rate and it might be a way out of it.
Just look at the cheapest rate going and go lower.

Thats just a thought.

Cheers,
GM-IRON

[kabal999]

When i signed my contract on the weekend the dealer told me i had a cooling off period of 24 hours, during that time i believe you can back out and get your deposit back, but after that i think it will be tough.

K.

[K31000]

If they offer to find you finance tell them you have zero assets and you have had legal procedings put against you in the past. No finance company will touch you.

[markone2]

If they offer to find you finance tell them you have zero assets and you have had legal procedings put against you in the past. No finance company will touch you.


CRA tells all

[Devil CV8]

CRA tells all
Baycorp Advantage you mean...CRA is long gone.


Doesn't matter what's on your file, if I was able to get finance many moons ago, then anyone can.......

[Drewie]

I copied the following from the RACV site might be of some help:

By this stage you should already know how you are going to pay for your new vehicle. If you haven't had your finance approved, make sure you amend any contracts so that the sale is subject to finance approval from your preferred credit provider.

Doing the deal on a new car
Don't sign a contract until you are absolutely ready, because there is no cooling off period on a new car contract. You can ask that one is added to the contract but it is rare for dealers to agree. If the dealer does agree, ask them to add to the contract the wording ‘Deposit fully refundable if buyer cancels sale’.

It's important to remember that a new car contract (sometimes referred to as the Order Form) is legally binding so do not sign it before you are ready. If you sign it then change your mind, the trader can sue you. If you sign a new car contract with more than one trader, you could pay a high penalty or even be forced to buy more than one car.

The Motoring Advisory Line on (03) 9790 2190 can provide advice in the event that you want to get out of a new car contract, but avoid this situation.

[markone2]

Baycorp Advantage you mean...CRA is long gone.


....

There be more than one credit reporting agency mr Devil :) ..cra being the reference used by us old farts :D

Drewie..your post finding is correct....there is an good chance the dealership will threaten to sue...for loss of profit....not all actually will follow the threat through in my experince ,but the bigger the dealership the bigger the risk they will

[VYSSBlack]

Sounds like how I got sucked in. I was told many things about the car which were not true. I was also told that i had a cooling off period. Untill I tried to get out of it. Unfortunately I was stupid enough to take a car sales mans word for it and not read properly before I signed.

[Devil CV8]

There be more than one credit reporting agency mr Devil :) ..cra being the reference used by us old farts :D

I know all about the cra, had a few dealings with them, but my understanding was Baycorp Advantage was now "THE" credit worthiness mob.


correction... Baycorp used to be CRA
http://www.legalco.com.au/html/credit_reports.html


of Baycorp Advantage (previously the Credit Reference Association of Australia)

[Scud]

You should always make sure that any clause that is subject to finance reads " Subject to finance on terms satisfactory to the purchaser". The standard clause allows the dealer to arrange you finance at 40% interest from the local loan shark and still satisfy the condition of the contract :eek:

[Mongy]

I thought you still had a 48 hour cooling off period, as long as the dealership has had no financial outlay? It would be worth making a few phonecalls to find out. If you've found a better car this is not really fair on the dealer but if it is for a genuine reason you might be able to get your money back. Golden rule number 1 = DON'T SIGN UP OR PAY ANY MONEY UNTIL YOU ARE 100% SURE THIS IS WHAT YOU WANT TO DO! A phonecall to tell a dealer you have "thought about it" and changed your mind is easier than getting a $900 deposit back, and if they say "sorry sir, we cannot hold the car for you if you don't put a deposit on it" just tell them tough, if it sells you'll find another one.

[HSVMAN]

I didnt pick up why you decided against it? And what did you (or what are you going to) tell them?
In most cases the dealer has a right to keep the deposit unless you specified the clause in signing...
Unless the dealer has suffered some way financially from your "change of heart" they should return it and move on. Unfortunately they dont have to so those lacking integrity dont.

[bouka]

Thanks for the feedback, much appreciated. The reason for the rethink or change of mind is complicated but it has nothing to do with a better deal elsewhere (the deal is unbeatable, really). I will not be purchasing for the next couple of months. Hope it works out. Thanks again.

[HSVMAN]

Thanks for the feedback, much appreciated. The reason for the rethink or change of mind is complicated but it has nothing to do with a better deal elsewhere (the deal is unbeatable, really). I will not be purchasing for the next couple of months. Hope it works out. Thanks again.
Tell them exactly that and you shouldnt have a problem. If they are accommodating and comply with your request you will want to return to them :)

[bouka]

Just called them (right on opening time so they didn't move the car of the yard and they know i am not shopping the car around). Told them i was going to get finance from family and that hasn't worked so i can't do deal for a couple of months. Wife didn't want to tell them real reason. They are calling me back. Your spot on HSVMAN, if they are accomodating then i will definately go back.

[IIV8II]

Golden rule number 1 = DON'T SIGN UP OR PAY ANY MONEY UNTIL YOU ARE 100% SURE THIS IS WHAT YOU WANT TO DO!

Golden rule number 2 = DON'T SIGN UP OR PAY ANY MONEY UNTIL YOU ARE 100% SURE THIS IS WHAT YOU WANT TO DO!

Golden rule number 3 = DON'T SIGN UP OR PAY ANY MONEY UNTIL YOU ARE 100% SURE THIS IS WHAT YOU WANT TO DO!

etc

and always read - and understand - the fine print!

[bouka]

IIV8II:

On your Golden Rules i have this to say, I couldn't agree more. I remember when i bought the Clubbie i couldn't wait for the finance to be approved. The finance in this matter isn't the issue. For the sake of any of this making sense and not sounding rediculous (or more so than it is) the reason we have changed our minds is as follows:

We lost a baby a couple of months ago (and the wife wasn't well). We have tried again and she is now in the first trimester and being heavily monitored. We were rapped after the purchase but she wasn't well last night and didn't want the car because she feared something going wrong again and having a car that reminded her of everything. She wants to wait a couple of months. May not make sense but life sometimes doesn't. Deos not excuse what we have done, we just didn't think they would understand (and she didn't want to have to explain) so we used the finance route.

Thanks again for all the feedback.

[Action300hp]

Its going to be difficult if the contract is a new car contract. You should go down to the dealer and have a friendly chat with the sales person.. faxing a letter of cancellation is the best way to start a legal battle.

Used cars are much easier as in Vic there is a 3 day cooling off period.

Good luck with it mate

BTW - the dodgy way is to stall the dealer by saying you are waiting for the finance company to come back to you - stall them for 5 working days then say the finance broker says you have a $7,500 unpaid default and you didn’t know about it with ANZ. The dealer will know then that its a waste of their time trying to get the finance for you as you have a banking related default.

[Mongy]

IIV8II:

On your Golden Rules i have this to say, I couldn't agree more. I remember when i bought the Clubbie i couldn't wait for the finance to be approved. The finance in this matter isn't the issue. For the sake of any of this making sense and not sounding rediculous (or more so than it is) the reason we have changed our minds is as follows:

We lost a baby a couple of months ago (and the wife wasn't well). We have tried again and she is now in the first trimester and being heavily monitored. We were rapped after the purchase but she wasn't well last night and didn't want the car because she feared something going wrong again and having a car that reminded her of everything. She wants to wait a couple of months. May not make sense but life sometimes doesn't. Deos not excuse what we have done, we just didn't think they would understand (and she didn't want to have to explain) so we used the finance route.

Thanks again for all the feedback.In this case, if you took some proof in to the dealer, sat down with the dealer principle and explained it all I think you would find you were walking out with your $900 in your pocket. Car dealers are sharks, but not completely heartless, and you have a genuine family reason for the decision. I would be more than surprised if the dealer said "tough luck" under these circumstances. If they give you are hard time after explaining it, ring consumer affairs and let them fight it for you. Under the conditions you have described I am sure they would gladly help out.

[ssvyredute]

NEXT time leave a 50 dollar deposit.

[VooDoo]

Why not ask them to "hold" some of the deposit for when you are ready. You do want a car and were happy with their service. This will show them your not just trying to buy elseware but unforseen things can happen. If they are a decent dealer then you should have a problem.

[bouka]

Outcome:

-Apology for the inconvenience.
-Bottle of Midori for the sales person.
-Slab of beer for the sales manager and other salesperson who stayed back on Saturday night (i had one of theirs-one bottle that is).
-Chat with dealer principal to let him know how happy i was with his staff.
-$900.00 refund (full refund).

Lessons learnt:

-Do not try and move on when things haven't been emotionally resolved.
-Never had to go backwards on a sale before (have bought 4 new cars) so did not know legal implications. Circumstances where different and not forseable but should have known the facts.
-How great it is to be a part of such a fantastic community (yes guys and gals, i mean all of you).
-Stop writing emotional crap on a car forum.

Hope this bubs sticks around. All going well they have my business.
Thanks again for the feedback.

[markone2]

Good stuff :) ..you scored one of the better dealers in the trade.

[Starky]

same thing happened 2 me, signed a contract that the sales rep crossed out most of the crap on the back of each copy and left the "cooling off period" section still uncrossed. paid a 400 dollar deposit.

signed on a saterday so technically i had until 5 oclock monday to cancel, which i wanted to do, however he did not let me out of the contract, reason bein in QLD any used car sales dealer can put up a small sign in their office sayin "no cooling off period on any vehicles" and that legally gets them out of anything. so after a few weeks talking to lawyers and contemplaiting filing a claim we called it quits because it was getting too costly.
after all that he ended up keeping me 400, i caould have filled for bankruptcy but then the bank would have backed out on finance

ohh wat fun

[HSVMAN]

Awesome outcome Bouka!
Hope everthing else works out for you now - I'm sure it will.

Moral of this thread.....
Cars are just cars...... Family is everything! :)

[Mongy]

Awesome outcome Bouka!
Hope everthing else works out for you now - I'm sure it will.

Moral of this thread.....
Cars are just cars...... Family is everything! :)
As above, never were truer words spoken. :)