Agreement with Car Finance - Can I Cancel and Get Full Refund?

rmamila on 21/05/2023 - 17:08
Last edited 21/05/2023 - 20:32 by 1 other user

Hi Fellow OzBargainers.. looking for some advice here..

I have paid a deposit for a car which is $132k with Dealer finance last Friday. However I want to cancel my order and go for a different option than doing their finance. Is there any way to get the full refund back as it hasn't even completed one day yet given it's still the weekend. What are my options?

The agreement says that they charge $400 or 2% of the purchase price (whichever is greater) if the order is cancelled within cooling-off period. So that means it's not possible to cancel during cooling-off period without losing close to $2600. Do I have any options to cancel and is there anything in ACCC that helps customers to cancel the order within cooling-off period without losing significant amount?

Deposit was $2000

It has a condition that if finance failed then they refund the full deposit.

Automotive BMW Finance

Comments

  • Hybroid on 21/05/2023 - 17:10
    +57

    It appears you have no idea how contractual agreements work.

    The agreement says that they charge $400 or 2% of the purchase price (whichever is greater) if the order is cancelled within cooling-off period.

    Read this another few times.

    Hint: The answer is no. You agreed to the contractual terms. They are now in effect.

    • djsweet on 23/05/2023 - 14:05
      +22

      Doesn't sound like a real cooling off period if there is a heavy penalty applied to it though? More like a warming off period?

      • truetypezk on 23/05/2023 - 16:08
        +5

        Can they actually do that? I thought it is obligatory to have "real" cooling off periods rather than this nonsense.

      • jayzee on 23/05/2023 - 22:01
        +2

        Buying a house in NSW, cancel during the cooling off period, you would have to pay 0.15% of the agreed price.

        • akashra on 24/05/2023 - 16:20
          +1

          Sure, but is that what's stipulated by law? You can't just stick something in a contract that circumvents what's actually written in to law.

      • Munki on 24/05/2023 - 09:49
        +2

        God damn climate change.

    • CalmLemons on 25/05/2023 - 01:45

      Actually what is the deal with new car purchases, if you pay $1000 deposit and decide you don’t want the car anymore, what’s the maximum the dealer can come after you for?

      • Hybroid on 25/05/2023 - 05:47

        Depends on the T&Cs you sign up with them. Some will refund the $1,000 deposit, others will take it.

    • johnfuller on 25/05/2023 - 11:11
      +1

      love this, said so nicely "They are now in effect." should add bish at the end "They are now in effect, bish"

  • Muzeeb on 21/05/2023 - 17:21
    +11

    When you signed the contract you agreed that you read and understood the contract and any consequences of breaking it.

    FFS.

    Is it a 4 series? G26?

    It has a condition that if finance failed then they refund the full deposit.

    Is that your addition to the contract?

    While it's wise to include that surely if you're shopping for a $100k + car you have almost 100% idea of your borrowing capacity.

    • Kangal on 22/05/2023 - 18:36
      +48

      Muzeeb, it's a High Yield Investment.
      You wouldn't understand, you don't have an OzBargain Platinum Membership.

      • kaleidoscope on 22/05/2023 - 23:43
        +6

        You wouldn't understand, you don't have an OzBargain Platinum Membership

        he sounded like he does

  • randomusername2017 on 21/05/2023 - 17:27
    +31

    losing close to $2600

    Looks like like you still intend financing the badge… just drop the $2600, it'll be a good introduction to ownership. Potentially save that amount on blinker fluid top ups throughout the course of the contract.

  • bobbified on 21/05/2023 - 17:48
    +12

    However I want to cancel my order and go for a different option than doing their finance.

    Since you're still buying the car, they might be willing to negotiate on that finance cancellation fee. But the only way to find out would be to ask them.

    • GordonD on 21/05/2023 - 18:21
      +2

      Yep, that's the OP's only chance. Tell them if they are willing to negotiate on the fee you'll still buy a BMW. If they aren't, you'll take that as what BMW ownership is going to be like, and buy something else.

  • JimmyF on 21/05/2023 - 17:55

    The agreement says that they charge $400 or 2% of the purchase price (whichever is greater) if the order is cancelled within cooling-off period. So that means it's not possible to cancel during cooling-off period without losing close to $2600.

    This is what the contract says…. So do you want to cancel within the cooling off period? If so, this is what you pay.

    Do I have any options to cancel and is there anything in ACCC that helps customers to cancel the order within cooling-off period without losing significant amount?

    LOL Yes… It is called the cooling off period terms, see comment above. ACCC won't help you.

    If you want to change, it will cost you $2640. They MIGHT waive this if you are buying the car through them with different options etc, but honestly I doubt it.

  • 7ekn00 on 21/05/2023 - 18:05
    +20

    Haha, it's BMW, treat the $2640 as a learning experience as to what is to come with Euros ;)

    • ev3nfl0w on 23/05/2023 - 12:07
      +4

      BMW = BRING MONEY WEEKLY

      • AMelbournian on 23/05/2023 - 12:37
        +10

        Nah,
        BMW = BURN MONEY WEEKLY

        • CocaKoala on 23/05/2023 - 21:26
          +3

          Na-uh,

          BMW = BAVARIAN MONEY WASTER

          • blitz on 23/05/2023 - 23:49
            +1

            @CocaKoala: Nah, it's
            BIG MONEY WASTED

            • chillwok on 24/05/2023 - 17:44

              @blitz: i call my friends wife who drives a BMW - broke mans wife

    • ContinuousCustomer on 23/05/2023 - 12:54
      -1

      Repeat after me, BMW is a stupid man’s car.

  • AustriaBargain on 21/05/2023 - 18:28
    +1

    They might be willing to eat their fee if you still buy from them, worth a shot. The profit from you buying from them is probably worth more than $2600. Though why would they believe you if you're going to reneg on this original deal..

  • mbck on 21/05/2023 - 18:28
    +3

    Woweee that's a lot of moolah. For me anyways. Hope it's worth it 👍

  • bloom on 21/05/2023 - 18:30
    +37

    Just skip insurance for a year and you’ll be ahead 👍

    • Peter Enis on 21/05/2023 - 19:23
      +7

      Also don't forget to skip indicating and save a bomb on bulbs and blinker fluid.

    • alxr0101 on 22/05/2023 - 08:12
      -6

      That won't work. Most finance arrangements mandate comprehensive insurance….which is legal…however the lender cannot specify who provides coverage.

      • Domingo on 23/05/2023 - 07:30
        +4

        whoosh

    • lilyesp on 23/05/2023 - 09:55

      Also avoid driving in the sun to protect the plastic bulk in the bonnet

  • SBOB on 21/05/2023 - 18:33
    +2

    However I want to cancel my order and go for a different option than doing their finance

    Are you wanting to cancel the order or just fund the order using your own $ instead of bwm sourced finance.
    The end result will differ and you're question is unclear

    Either way, congrats on the future depreciation and running costs, or contextual penalty lesson.

  • Typical16-bitEnjoyer on 21/05/2023 - 18:36
    +1

    lmao

  • SydStrand on 21/05/2023 - 18:43
    +1

    Ignoring the 'BMW' aspect, you signed a contract which quite explicitly addresses what you're trying to get out of, so no.

  • redfox1200 on 21/05/2023 - 19:13
    +19

    just tell the finance company you just lost your job

    • bobbified on 21/05/2023 - 22:57

      Smart!

    • voo123 on 22/05/2023 - 16:05
      +3

      This is the way. You would have to lie but it gets the job done.

    • serpserpserp on 23/05/2023 - 08:04

      OP should just quit his job and then say that.

      It is the OZB way of getting out of fees.

  • elgrande on 21/05/2023 - 19:37
    +1

    Not sure about Vic, but pretty sure any finance related car contract in NSW has a 24 hour cooling off period.. once used this to negotiate a better price.

    This is not legal advice btw..

    • juki on 22/05/2023 - 23:46

      i also thought so, also not legal advice

  • Brian McGee on 21/05/2023 - 19:51

    If you can't come to an agreement just kiss the $2K goodbye and move on. Are they really going to chase you through courts for $400 (and all the bad press you'll give them)?

    • derrida derider on 24/05/2023 - 21:06

      It's $2640, not $400. And most businesses will chase for that much.

      • Brian McGee on 24/05/2023 - 22:30

        Nope, closer to $600 since they’ve put down a $2000 deposit.
        Are they really gonna invest time and effort for that much?

  • burningrage on 21/05/2023 - 19:58
    +11

    I was thinking of the right of cooling off period without fees but the law states they may keep $400 or 2% of Purchase Price.

    https://www.consumer.vic.gov.au/cars/buying-a-new-car/coolin…

    So it's not a BMW thing, it's the L.A.W.

    • johndoh89 on 23/05/2023 - 17:56

      Yeah the only way they were getting out, other than the dealer saying no to money, was if the law happened to conflict with the contract voiding it. But nope, right there on the government website.

  • Worf on 21/05/2023 - 20:06
    +4

    The $2,600 break fee sounds like pocket change compared to the purchase price. Must be a nice ride, enjoy.

  • Muzeeb on 21/05/2023 - 20:13
    +74

    This thread contains all the hallmark ozbargain ingredients for a troll post:

    • High yield investment vehicle ✅
    • BMW ✅
    • Using finance to purchase a car ✅
    • Didn't read the terms and conditions ✅
    • Trying to get out of a fine / contract ✅
    • Banking on ACCC to save the day ✅
    • No mention of insurance ✅
    • Mods have to edit title for clarity ✅
    • Post and ghost ✅
    • ContinuousCustomer on 23/05/2023 - 12:55

      Trolololol

    • Herbse on 23/05/2023 - 16:18

      This is why we even bother to read the forums section

  • rmamila on 21/05/2023 - 20:41
    +2

    Thanks for the responses guys. Looks like it's a no and have to let them keep the deposit.

    • Ciderfizz44 on 24/05/2023 - 08:36
      +1

      Call finance company tell em you've been made redundant.

  • Wiadro on 21/05/2023 - 21:14
    +30

    132k car loan? wtf

  • hanzyman on 21/05/2023 - 21:48
    +2

    Are you still going to buy the car and just finance it elsewhere or buy it with cash or cancel it all together? If you’re still going to purchase the car then you MIGHT be able to get away with paying the 2%.

    If not, then I guess talk to them and if they’re having a good day they might just let you cancel it altogether without taking the 2% fee, but don’t feel bad if they don’t since it’s within their rights to take it.

  • USER DC on 21/05/2023 - 23:47

    The one way i see that you could get away with this is,

    if car value gets jacked up
    and then dealer offers you another car or to rescind contract (unless you pay them extra $$$ for jacked up car payment instead of $132K agreed)

  • ThithLord on 22/05/2023 - 08:10
    +1

    Yeah mate there are tonnes of ways to get out of the legally binding contract that you signed, fully cognisant of the terms and conditions. They are just tricking you!

  • Fredorishi on 22/05/2023 - 08:57
    +1

    Mate, just buy the car yard and then you won't have to worry about the contract. Duhhhhh.

  • Bilby s on 22/05/2023 - 09:48
    +1

    You need to immediately check the cooling off period. Cooling off applies to all financial contracts in Au and you can cancel with no penalty within the period.

    • Jolakot on 22/05/2023 - 18:57

      Not necessarily, I believe they can legally keep 2% of purchase price as a cooling off fee

  • 2esc on 22/05/2023 - 09:52
    +2

    You need finance to purchase this car maybe you need to look at a cheaper car.

    • juzza87 on 22/05/2023 - 09:59
      +3

      No no you don't understand, with that car it will be a surefire sign that they're successful and therefore more people will trust them in business, then they will get more money. This strategy surely can't fail /s

      • kiitos on 22/05/2023 - 10:51

        Yes, as they say, "you gotta spend money to make money!"

  • AryaTheExplorer on 22/05/2023 - 15:40

    Some dealers are better than other, but if you are still wanting to purchase a vehicle from the dealer (just change finance options), they'll be more keen to renegotiate and still let you keep the deposit and use it towards a different car (dealer profit from a new car is way more than 2k, and it's always better to make the sale than to cancel)
    If you want to cancel the deal all together and buy elsewhere that's a different story and I'd say you are unlikely to get your deposit back (since dealer has already put work into you?

    Regardless you are still better off buy something from the dealer, you are unlikely to be 2k better off unless dealer finance has insane interest rates.

  • Shiq1 on 22/05/2023 - 18:08

    Question:

    Did the purchase terms on the contract specifically stipulate that you have to through their finance in order to “achieve” this price?

    What was the price if finance is not taken? How much was the discount that you negotiated (if any…?)

    I’d go in and talk to them, circumstances have changed, you recently did a mortgage refinance and now will not have capacity to borrow for car and if you can pay for vehicle outright. Assuming they still want to sell you a car and you have these funds in offset, I think they might play ball.

    Also what is the reasoning you don’t want to finance through BMW (terrible finance company and rates aside)? Did you find a better rate elsewhere?

  • payless69 on 22/05/2023 - 18:14
    +1

    Controlling ones emmotions should be part of growing up: Large decissions like partner, house and show off cars should be a case of having trysty friends who can share from past experiences.
    I tested Mercedes: They secretly admit that they make more money on the finance. Say you want an EV that is a low profit vehicle for them they just don't let you have it without a finance agreement. To me that is TFB for them. I am the customer they are the supplier.
    Bloody Kevin Wilson thaught me the most important lesson: If it fits the FFF rule, it is cheaper to rent!

    • chickenchipsgravy on 22/05/2023 - 22:19
      +1

      Since when was it a secret that dealers make greater margin from finance, insurance and other accessories than the sale of the actual car?

      • payless69 on 23/05/2023 - 10:14

        Since Covid their profit margins have shifted. Stealer$hips MUST push old models or require inhouse finance. Merc owns their rust buckets until they drop into their victims hands….
        Dealers have become sham contractors after Uber corrupted our feds!

  • berry580 on 22/05/2023 - 22:23
    +1

    You need to fail your finance. Declare a credit card to really high credit limit and declare really high living expense to show you cannot afford the loan

  • kaleidoscope on 22/05/2023 - 23:51

    It has a condition that if finance failed then they refund the full deposit.

    This is the only way you're getting out of this without a penalty. If I were you, I'd talk to them about the offer you have in hand for other financing option and they
    'might' do something or tell you will be cancelling the order all together :P.

    When I first came here, I put a $500 deposit for 2nd hand mazda 2 hb and it was to be ready for pick up in 2 weeks time. couple of days later we happened to come across a corolla hatchback for about the same price with slightly better financing option which I went ahead with. Lost $500 deposit for mazda as it was in the contract and never looked back on that decision as the Corolla was much better drive and spacious.

  • Dreamcast on 23/05/2023 - 05:23
    +7

    forums.whirlpool.net.au <—— I think you were supposed to post this here.

  • DiscoJango on 23/05/2023 - 08:04
    +1

    I borrowed a car to pay for my loan.

  • serpserpserp on 23/05/2023 - 08:08

    132k? Did you buy a model 3 with autopilot and a custom paint job?

  • j4ck on 23/05/2023 - 09:53
    +2

    I love this website.

  • twotwotwo on 23/05/2023 - 10:29
    +1

    I am interested in what type of car is 130k+ and how much are you financing. I hope you learn this lesson because when you buy a house it's going to hurt. If you do not understand anything in the contract, do not sign anything. Not legal advice, just life advice.

  • Poor Ass on 23/05/2023 - 10:33

    I'm sure if you don't provide them with any documentation you can fail the finance

  • Cluster on 23/05/2023 - 10:50

    I wonder what the interest rate on the $132k loan is, now that the OP is keen to cancel the loan.

  • cashless on 23/05/2023 - 12:07

    Shee…it! You could have bought 6 Kia Picanto's for the same price

  • ass3ts on 23/05/2023 - 13:14

    132K for a car? Meh…but a 132K private car loan? LOL. For a personal car, either you can afford it very comfortably or get a cheaper one outright.

    • Brick Tamland on 23/05/2023 - 17:54

      Yeah. For a car this value most people are paying cash.

  • Herbse on 23/05/2023 - 16:16

    Can afford to being in debt for $130,000 but can't afford the $2,600 cancellation fee?

    Me thinks someone has over borrowed.

    Hope you've also looked into the cost of services for that pricey car. Most likely about the same price as the cancellation fee you don't want to pay for.

  • zathras on 23/05/2023 - 16:45
    +3

    $132,000 car. FML. It's because of people like this that we can't have low interest rates…

  • yamahamoto on 23/05/2023 - 16:46

    Not BMW as they don’t have this stupid agreement in the contract. We cancelled a contract with bmw recently and got our deposit back.

  • cnrmlj on 23/05/2023 - 17:05
    +2

    LOL. Who pays $132,000 for a new car. Pay the fee, break the contract and buy a decent car for around $75,000 maximum and you are still $50,000 in front. You're welcome.

    • Naigrabzo on 24/05/2023 - 09:44

      Nah get it for $45 and pocket much more than that. Who pays 75k for a car that will be worth half that in 3 years.

      • CocaKoala on 26/05/2023 - 18:30

        Who pays 75k for a car that will be worth half that in 3 years.

        The answer might surprise you!

        • Naigrabzo on 30/05/2023 - 09:00
          +1

          yeah true. For most, they want to show off in their car and live in a cardboard box.

  • Brick Tamland on 23/05/2023 - 17:53
    +1

    Hot damn. 132k car loan! And I thought i made some questionable financial decisions. Me sweating on a $30k loan and then chickening out.

  • The Wololo Wombat on 23/05/2023 - 17:59

    No way is this legit. 132k for a car loan and also uses Ozbargain? This guy is a troll or so internally incongruent he's a like a landlord who votes for the Greens.

    • lltravel on 23/05/2023 - 18:26
      +3

      I own 2 cars, over 100k and i still use ozbargain. It doesn't matter if you're rich, people always love a bargain.

      Whats your point? People with money just buy whatever?

      • Poor Ass on 23/05/2023 - 22:11

        What cars do you have?

      • The Wololo Wombat on 24/05/2023 - 08:27

        A 132k car loan is never a good idea no matter how much you earn.

        • Peanut money on 24/05/2023 - 14:37
          +1

          Ok if Business expense or asset rich without current cashflow

    • TimeWaster on 24/05/2023 - 11:35
      +1

      When I started here I was a student looking to optimise my groceries and save money, now I’ve got way more money than I know what to do with, so I stay to find deals on things I never actually needed.

      Besides, I think we’ve ‘proven’ from multiple polls that we have a pretty high median income here.

  • lltravel on 23/05/2023 - 18:25
    +1

    people here think everyone just buys camrys or old cars

    some people buy cars 100k, 200k, 300k

    Whats it matter to you? Who cares? Its his money!

    You could also say you got laid off your job and can no longer afford the car. If you cant get finance then you cant buy the car right? A slight trick :)

    • aliam on 23/05/2023 - 22:29

      Would he have to declare that he has failed a finance check if he buys a different car next week and wants finance? ie is there any implication to credit rating in doing what you said?

      • lltravel on 24/05/2023 - 09:39

        not really, just say he got another job or they kept him at his job.

  • xeornet on 23/05/2023 - 18:29

    Many here would do well to focus less on penny pinching and more on increasing income. $130k on a car won't seem like such a big deal and can stop some jealousy from creeping into your comments hehe.

    You will still need to pay the 2%: https://www.consumer.vic.gov.au/cars/buying-a-new-car/coolin…

    If you really want to save the money, you could fail the finance - but that involves lying.

  • samcro on 23/05/2023 - 18:42
    +1

    $132k? Is it gold plated??

  • Eeples on 23/05/2023 - 20:09

    If you decide to cancel you need to give notice in writing to the dealership within 3 days.

    As others have mentioned honouring the contract but not the financing might be possible. Talk to them.

    I think you will actually lose $2000? Or, do you really think they will bill you for $600?

  • [Deactivated] on 23/05/2023 - 20:21
    +1

    Is it jealousy or ignorance about the value of the car? 132k is a bit of money if you found in the street, but not that much for a brand new euro high performance car. Thats m2 money which is matchbox car in reality.

    Some people have made life choices. ie wife and children coupled with low income job. Whilst others hate the thought of being stuck with whinging wife and ungrateful kids and like to buy toys instead. Everyone makes their life choices.

    I choose various cars, a motorbike, a jetski and the thought of wife and kids make me violently ill.

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