Legal help required!

[javajoe]

I just bought a brand new car on wednesday and put down a $1k deposit. Delivery is in about 2-3 weeks. I no longer want the car, as it seems I paid way too much for it (stupid me). Am I able to cancel the order and get a refund on the deposit? Because on the back of the order form, it says:

If the Purchaser so notifies the Trader that the Purcahser no longer wishes to be bound by this agreement the Purchaser will no longer be bound by this agreement UNLESS not more than three days after such notification the Trader notifies the Purchaser that the Trader requires the Purchaser to purchase the motor vehicle for the total price shown on the front page of this agreement exclusive of the price increase and additional duty.

Does this mean I can just tell the Dealer that I no longer want the car, get my deposit refunded and also be free from this Order form? Thanks in advance!

[whitels1ss]

Hi,
the best thing would be to check with Consumer Affairs, they are there to give advice on such things. They will explain it over the phone.
Good Luck!

[Zombie]

whitels1ss is right, you need to check with Consumer Affairs - and do it straight away. Contracts are usually subject to cooling off periods where you may cancel without penalty.

Interestingly, we just bought a new car on Saturday, and the contract states very explicitly that there is no cooling off period for that purchase.

[Pilbara SSV]

I would go and see the dealer tell them you can't afford the car and would like to cancel it. Don't say you don't want the car. He would have to be a complete shit to hold you to it. Even if you get half your deposit back he might do that. If you have kids take them with you and eat some humble pie and he/she is only human, plus they have had to order it anyway, as long as you didn't order it in purple with red stripes etc they could probably just put it into stock, you didn't say what you ordered but if it is a high volume item they shouldn't be to bad. Better to go and talk to them before you go straight to consumer affairs etc. If they want to depending on the wording your deposit could be gone, if you cancel. Is it a big dealer or a bunky dealer, this could make a difference, you could also make a big scene in the front reception while other potential customers are listening, this seems to work in service departments all the time!!!!!! Good luck with it.

[XLR8 V8]

If the Purchaser so notifies the Trader that the Purcahser no longer wishes to be bound by this agreement the Purchaser will no longer be bound by this agreement UNLESS not more than three days after such notification the Trader notifies the Purchaser that the Trader requires the Purchaser to purchase the motor vehicle for the total price shown on the front page of this agreement exclusive of the price increase and additional duty.

If that is word for word what is on the agreement, then it is saying that you can go ahead and tell them you no longer want to go ahead with it, but they then have up to 72hrs to tell you that you still have to pay for the car in full. :werd:

If they don't contact you back within 72hrs then you are free of the agreement.
Unless they are feeling generous and have another buyer lined up for the car, it looks like you're stuck with it

[vyssls1]

is it a brand new car.

u can get out of it a few different ways. But it is a legal contract.

By saying, u want ur mechanic to do a inspection on the vehicle, and if it passes then u cant use that one......u can no longer afford the vechile as ur work status has changed, or ur going through a divorse

[Scud]

is it a brand new car.

u can get out of it a few different ways. But it is a legal contract.

By saying, u want ur mechanic to do a inspection on the vehicle, and if it passes then u cant use that one......u can no longer afford the vechile as ur work status has changed, or ur going through a divorse

Usually those conditions need to be on the contract at the time of signing. The mechanical inspection and finance conditions are the normal.

The last contract I looked at on behalf of someone wanting to pull out had a 20% penalty for not going ahead, it took some work to get some of his deposit back - he lost half I think (not bad as they wanted the lot).

I think the cooling off period would be over (unless you mean yesterday Wednesday rather than last week Wednesday).

[T_Kiwi]

correct me if im wrong but what you have written suggests you can pull out of the contract. If you tell him today you dont want the car then thats fine but if he rings you bynext tuesday and says you have to buy the car then he must sell it you at market value and pay the stamp duty. Did i read it wrong?

[planetdavo]

If that is word for word what is on the agreement, then it is saying that you can go ahead and tell them you no longer want to go ahead with it, but they then have up to 72hrs to tell you that you still have to pay for the car in full. :werd:

If they don't contact you back within 72hrs then you are free of the agreement.
Unless they are feeling generous and have another buyer lined up for the car, it looks like you're stuck with it
This is how I read it as well.
It's not that rare for a sale to fall through, but be prepared to lose your deposit, as the wheels will already be in motion behind the scenes sourcing that car. They MAY be generous if it's an easily re-sellable model choice.
You don't mention how much "extra" you believe you have payed. Unless, it's a lot, is it really worth the stress trying to get out of it???
Might be better being left as one of life's experiences to learn from....

[SSV8pilot]

I'd suggest that time is of the essence here.

1) Contact the salesman today and advise him you are unable to proceed (change in personal circumstances or whatever) - follow up in writing/email.

2) Check with consumer affaires/legal advice

3) Depending on dealer reaction - if negative - start to engage with the dealer principal - -the salesman has a personal interest on commissions and emotion can get in the way of good business sense.

4) I have found that if you work with salesmen/suppliers you can usually end up with a long term win win situation. EG - they may lose this sale - but you may buy another car or get servicing done by them if they help you out on this occassion.

[HARMSY]

Take some advie from above, only one way your gonna find out whether you can get it back.........most dealers i have dealt wih have been fairly accomodating, when i out down a deposit i always put it down "subject to something", like finance etc i even put subject to my old mans approval once.....doesn't help much now but something to think about for the future...

good luck

wazza

[brentonsav]

what about trying the old, 'i cant get the finance i'm after' trick if you've said you'll find your own finance? change in personal circumstances is also something worth trying and hope the people are half decent humans about it...
it shouldnt be a problem assuming you dont tell them that you simply don't want it anymore?

[javajoe]

Thanks for the advice so far guys. I actually bought it on Tuesday :p (Was tired when I posted). So that was two days ago from today. The car is brand new, and yes, that section of the contract is WORD FOR WORD. According to the consumer affairs, there is no cooling off period for brand new cars, but I'll give them a call.

[seldo]

Just an interesting little philosophical question - Would you think it was fair if the dealer felt he'd made a mistake and hadn't charged enough and wanted to cancel.....It is a contract after all...

As for your clause mentioned about the right to cancel, that reads as if there is something that came before it - like what happens if there was a a factory price-rise before delivery. Just check.

And finally - if you are serious about this whole thing - don't ask for advice from an internet forum - seek expert qualified advice. Forums will give you plenty of free opinions but they're generally worth exactly what you paid for them....

[clubbieboy]

Java Joe,
The section you are referring to on the contract is with regard to Section 3 - Purchase Price of Motor Vehicle, all it simply means is that if there is a manufacturers price rise between purchase and delivery the dealer is entitled to pass this onto the customer. If you as the customer do not want to pay the price rise you have to notify the dealer in writing not more than three days from being notified of the price rise that you do not want to be bound by the contract. The dealer then has three days to notify you that it requires the purchaser to purchase the motor vehicle for the total price agreed on exclusive of the price increase and additional duty.
This has nothing to do with simply changing your mind or getting cold feet.

Section 13 - Subject to Finance may be an option, IF the contract was conditional to you obtaining finance, bearing in mind that part (2) states The purchaser agrees to take all reasonable steps toward obtaining finance approval.

Is it the dealers fault that you have simply changed your mind all of a sudden, obviously you were happy enough with what was offered at the time of purchase to leave a deposit, so YOU must have thought it a reasonable deal, what's changed? If you went price shopping after the fact then perhaps it's a lesson well learned - DO YOUR HOMEWORK FIRST and it will save everyone involved a lot of unneccesary stress.
Other than that mate it is a new car contract so there is no cooling off period, perhaps Seldo's post is most relevant, get some Expert Advice!!

My 2c worth,
Cluubieboy

[Stealthy TT]

Just an interesting little philosophical question - Would you think it was fair if the dealer felt he'd made a mistake and hadn't charged enough and wanted to cancel.....It is a contract after all...

As for your clause mentioned about the right to cancel, that reads as if there is something that came before it - like what happens if there was a a factory price-rise before delivery. Just check.

And finally - if you are serious about this whole thing - don't ask for advice from an internet forum - seek expert qualified advice. Forums will give you plenty of free opinions but they're generally worth exactly what you paid for them....

Well thats not really comparing apples with apples. The impact on a dealer of a lost sale is not the same as the impact in an individual being forced to take a car they don't want.
I do think the dealer would be justified in taking the $1K deposit to cover thier time & effort though, espcially if they have ordered it in from Holden.

Cheers,
Stealthy

[Ryzz]

Well thats not really comparing apples with apples. The impact on a dealer of a lost sale is not the same as the impact in an individual being forced to take a car they don't want.
I do think the dealer would be justified in taking the $1K deposit to cover thier time & effort though, espcially if they have ordered it in from Holden.

Cheers,
Stealthy

Dont forget, this isnt a case of he doesn't want the car, he has just found one cheaper, thats all.

[Toddler78]

my understanding is that there is no cooling off period if you activly persue the company ie if you walk into a business and buy a product from them then no cooling off period, but if they came knocking on your door offering you the car or any other product then there is a cooling off period.

I would be seeking expert advise however but dont hold your breath on a favourable outcome.

at the end of the day you have purchased something and they have ordered it under good faith now you pull out and they could be stuck with a car, regardless of whether it is a optioned up hard to sell one off or the most popular selling vehicle the company is still out of pocket until they sell it.

I work in sales and I dont class a sale sold until I have the deposit in my hand after that I go able doing all of the paperwork to get the product to the customer by the promised time. If they change their mind then stiff shit we wont make them go through with the purchase but we wont refund their deposit either because 9 times out of 10 regardless of the excuss they have found a cheeper price else where and they want to save some money DO YOUR HOMEWORK FIRST I think they may let you out of your agreement but dont expect your deposit back, if you get any or all of it back you are extremy lucky and they are extremly generous. Businesses arnt in business to willfully give money away though.

my 2c

[nang3]

Whenever you sign for a car you should always have a Subject To clause that enables you to backout if need be.
"Subject To Finance" on its own is not enough as the dealer will say "well just use our inhouse finance" which he will make sure is approved and will almost always be more becuase the dealership takes their little kickback from the Finance Co..
I always add subject to finance through my personal bank at the time..

[SSBarney]

Edit: .........................

[planetdavo]

One very important bit of advice to people.
If you put down "subject to finance" on a contract, and can't get it, or attempt to use that line to back out of the contract, the business (doesn't matter if it's cars, a house, furniture or whatever) is legally able to find a company that WILL loan the money to you, and you are still legally bound to buy the product.
Just because you couldn't get YOUR finance means very little.....It's all in the fine print!

[nang3]

One very important bit of advice to people.
If you put down "subject to finance" on a contract, and can't get it, or attempt to use that line to back out of the contract, the business (doesn't matter if it's cars, a house, furniture or whatever) is legally able to find a company that WILL loan the money to you, and you are still legally bound to buy the product.
Just because you couldn't get YOUR finance means very little.....It's all in the fine print!

thats exactly right, you need to stipulate more than a generic 'Subject to Finance' ...

[Ako]

So Javajoe how did you get on? Are you stuck with the vehicle?

[seldo]

thats exactly right, you need to stipulate more than a generic 'Subject to Finance' ...
Very true. What is required is something along the lines of:
"This contract is subject to and conditional upon the buyer, within 10 days of the date hereof, being able to arrange finance from a lender of the buyer's choice which is satisfactory to the buyer to complete the purchase . Should the buyer be unable to arrange finance ,which in his sole opinion is satisfactory, he will so notify the vendor/dealer in writing following which this contract will be at an end and all monies paid by the buyer by way of deposit will be refunded in full to the buyer without deduction."

[mac06]

Very true. What is required is something along the lines of:
"This contract is subject to and conditional upon the buyer, within 10 days of the date hereof, being able to arrange finance from a lender of the buyer's choice which is satisfactory to the buyer to complete the purchase . Should the buyer be unable to arrange finance ,which in his sole opinion is satisfactory, he will so notify the vendor/dealer in writing following which this contract will be at an end and all monies paid by the buyer by way of deposit will be refunded in full to the buyer without deduction."

The dealer would probably then tell you he won't start sourcing the vehicle for you until such time as the finance has been approved and the clause deleted off the contract. That is fair enough as it takes time and money to get a vehicle in for a customer, only to have it cancelled for no real reason.

In WA the dealer legally can charge 15% fee for canceling an order, and there is no cooling off period at all.

[BadMac]

Easy, if you have found one cheaper elsewhere, simply cancel and lose the grand. Your saving will now be the lower price less a grand plus a small lesson in life. If the saving is less than a grand, then you are wasting your (and our) time). Buy the car. By the way what was the car (model, specs and colour)?