Buying hail damage car (QLD)

Lviki8702 on 22/04/2015 - 16:51

Hi everyone ,please give me some advice.

I went to buy an hail damage car, which i looked on gumtree, seller has mentioned it was written off previously ,but now it has passed through the safety inspection from transport and has 4 months rego going on. so we made the deal, also he said he can't get road worthy certificate today, have to be tomorrow and asked me to pay some funds upfront for security and i gave him $400 advanced deposit, which was 5% of the total value. but when i back i called my insurance company, they said i can' get comprehensive insurance on this vehicle due to written off previously, but can have only third party, as i was not aware of this situation ,so i called the seller back about this , he just completely denied to refund the money and came with all silly excuses, he's blaming me now saying it's your fault and now he's not answering my calls. but i have text msg as evidence says $400 deposit, which he did to me when i hand out the money to him. so please advice me what can be done? Thanks.

Automotive

Comments

  • dylanando on 22/04/2015 - 16:59
    +6

    You're first mistake is buying a hail damaged car.. Second is handing over money without writing a receipt with his signature. Do you know where he lives?

  • viki8702 on 22/04/2015 - 17:02

    Yeah, I know his address and name. But no receipt, he just Text me that.

  • ozhunter on 22/04/2015 - 17:05
    +10

    as i was not aware of this situation

    That really isn't the seller's problem. You made a deal and gave $400 as deposit.

  • sempro on 22/04/2015 - 17:05
    +2

    personally, I wouldn't have given him ANY money especially if the car didn't have a safety certificate. In QLD, a car without a safety certificate can not be displayed for sale.

    http://www.tmr.qld.gov.au/registration/buying-or-selling-a-u…

    Maybe you can complain to TMR?

    But that aside, why would you get comprehensive insurance for a car that is hail damaged, and is worth 2k? Consider 3rd party with fire and theft insurance. Chances are the insurance policy is worth more then the car.

    Best of luck.

    • viki8702 on 22/04/2015 - 17:07

      It's nothing to do with safety certificate, because it has passed the inspection. Anyway Thanks for that.

      • sempro on 22/04/2015 - 17:13

        in QLD, we dont have 'road worthy certificate'.

        What is the 'road worth certificate' that you speak of?

        • viki8702 on 22/04/2015 - 17:51

          I think, Their is an difference between Safety certificate and RWC.

    • ozhunter on 22/04/2015 - 17:08
      +1

      is worth 2k?

      The car will cost him $8,000.

    • Paul Atreides on 22/04/2015 - 17:09
      +1

      $400 / 0.05 = $8K

    • sempro on 22/04/2015 - 17:10

      OK OK, my maths is wrong…..

  • extract on 22/04/2015 - 17:28
    +7

    What's wrong with 3rd party insurance?. Don't think it's worth paying for comprehensive on an 8k car. Just drive safely and you should be fine.

    • viki8702 on 22/04/2015 - 17:36

      Yeah, I know, but I want comprehensive just to be on safe side.

    • ferguscan on 24/04/2015 - 13:43

      What happens when some broke-ass person rear-ends you, and has no insurance themselves? It has happened to me.

      • modsec802 on 24/04/2015 - 13:48

        you sue them

        • Ughhh on 24/04/2015 - 13:51

          And because he's a broke-ass, the judge will probably only order him to pay you $10 a week. Hopefully you have other means of transport because of the write-off and its not a brand new expensive car.

  • PVA on 22/04/2015 - 17:43
    +3

    $8000 for a hail damaged vehicle, I am guessing it was an almost new car then ?

    you can't get insurance and you have to let who ever buys it from you next , know that it was hail damaged (even if it looks perfect) the car will be registered as a hail damaged car.

    I would right off the $400 and start looking again for a car (and not hail damaged)

  • viki8702 on 22/04/2015 - 17:49
    +1

    yeah it was totally new.
    definitely not again hail damaged.

    • PVA on 22/04/2015 - 17:55
      +1

      It always sounds cheap, but I dont think its worth buying a hail damaged car, look for a decent $8k car, it wont be new but it will be better value.

  • t_c on 22/04/2015 - 18:13
    +1

    NRMA will comprehensively insure hail damaged write offs, RACQ will not, not sure about the others.

    • viki8702 on 22/04/2015 - 18:27

      they do if you have existing policy with them, not for written off vehicles.

      • t_c on 22/04/2015 - 18:33

        Is that what they told you?

        • viki8702 on 22/04/2015 - 18:45

          yea i called them.

  • modsec802 on 22/04/2015 - 18:40
    +1

    You should pay max of 20% of market value for a hail damaged vehicle, so I am guessing it's a 40k car?

    • viki8702 on 22/04/2015 - 18:45
      +1

      naa, i think it's around 32k.

  • Chrotzo on 22/04/2015 - 19:12

    How can some people be so heartless. So this seller can rightfully keep the deposit?

    • ozhunter on 22/04/2015 - 19:23
      +6

      viki8702 agreed to buy the car. He/she should fulfill the contract with the seller.

      It's similar to stores accepting returns for change of mind. They aren't obligated to, but it would be nice if they did.

    • bbqwer on 22/04/2015 - 19:55
      +4

      It is the buyer pull off from the deal. Seller can keep the deposit. SO SIMPLE !!!

      • dojomojo on 24/04/2015 - 11:56

        Exactly, that's what the deposit is for. If the seller was obliged to refund the deposit through no fault of his/her own, then what's the point of it?

  • modsec802 on 22/04/2015 - 19:37
    +1

    An 8k car is where it starts to get questionable around comprehensive insurance anyway, if it costs you $1k per year for insureance, is it really worth it?
    I'd see if you could get third party property, fire and theft. That's probably enough and much cheaper.

  • Mad Max on 22/04/2015 - 20:21
    +6

    You are getting a "totally new" $32,000 car for $8000. Don't you think that there has to be a catch? Hail damage if fixed correctly is not so bad. And if you are keeping the car for 8-10 years, the car's value at that time would be very similar as if it was not hail damaged. In the meantime you have enjoyed a "totally new" low Km car for 1/4 of the price. Good value if you ask me.

    • viki8702 on 22/04/2015 - 20:36

      Thanks for motivation, but i am still double minded.

      • Mad Max on 22/04/2015 - 21:15

        Then buy a new one!
        And loose the $400!

    • xsacha on 22/04/2015 - 21:24
      +2

      The catch is that it was written off, which means insurance paid out and the car is essentially claimed to be worth nothing anymore.

  • Kempe on 22/04/2015 - 22:03
    +3

    You gave him a $400 deposit as security to hold the vehicle for you so what is the point of a deposit if you can just ask for it back?

  • Charity on 22/04/2015 - 22:08
    +3

    So you are trying to insure X for $32,000… when you paid $8000… and are wondering why the insurance companies aren't going along with it??

  • Charity on 22/04/2015 - 22:15
    +2

    A bit off topic… but isn't it a horrible reflection on society when blemishes in the cosmetic appearance, of a otherwise perfect car, can wipe off 75% of its value… just sayin'

    also, is this the same ratio of someone with pimples vs flawless skin?

    • ozhunter on 22/04/2015 - 22:37
      +1

      also, is this the same ratio of someone with pimples vs flawless skin?

      Complete different. Hail damage are indentations; pimples are bumps.

    • This Guy on 23/04/2015 - 01:08
      +1

      The problem is how do you tell if a car that has had most of its bodywork replaced is still perfect? An unnoticed seal could be broken from either the hail or the repair, causing problems years later.

      If it was only minor blemishes I am sure the dealer would take a hit and use a guy he knows instead of increasing their premiums for next year.

    • [Deactivated] on 23/04/2015 - 08:09

      It's not just the surface that you need to consider with hail damage. We had one of our cars written off because the front and rear screen were smashed and water got into the inside of the car. They wrote it off because there could be major problems later. It was an $80K car and I am sure someone will buy it and put it back on the road.

  • andyken on 22/04/2015 - 22:49

    that is the point of the deposit, you lost your deposit if you change your mind.

  • viki8702 on 22/04/2015 - 23:05
    +3

    update:-
    Thanks everyone for their suggestions.
    i am getting my money back, but minus $100.

    • [Deactivated] on 23/04/2015 - 08:10
      +1

      Sounds like a good result.

    • dylanando on 23/04/2015 - 10:16
      -6

      Why not the full amount? I wouldnt be happy with that. Its your money!

      • MementoMori on 24/04/2015 - 11:33
        +4

        Because the seller has lived up to his side of the deal and is still offering the car at the agreed price. He didn't hide the fact it was hail damaged and it's the buyers responsibility to understand what that entails…

  • MementoMori on 24/04/2015 - 11:33
    +2

    My take is it would be reasonable if the seller kept the $400 (otherwise what is the point of a deposit)? Strictly speaking it's not his fault you didn't do your due diligence on the insurance (although not common knowledge you'd be in this situation and if the seller brought it up the whole deal would have been better off and perhaps still alive).

    If you're getting a 32k car for 8k even with no comprehensive insurance I'd still go ahead with it, it's a steal! (esp if the damage is livable / can be made better). Honestly, what is the point in paying an 1/8th of the cars value in insurance each year (assuming $1k insurance which is what good insurance would cost).

    Consider if the real issue is that you can't 'trick the system' and get your 8k car and insure it for a higher value…

    • viki8702 on 24/04/2015 - 12:07

      It's not $1000 for insurance, I got quoted for $426 for decent one.

      • andyken on 24/04/2015 - 17:13

        may i know the link of the hail car you are looking for? maybe one of us want it :)

        • viki8702 on 24/04/2015 - 17:21

          i think it's sold now, could't find.

  • Danger on 24/04/2015 - 15:01

    I was going to buy one of the hail damaged car but found out there is 4 months waiting period on WOVI inspection (back in February). Finally, bought non hail damaged car.

    • dontask on 24/04/2015 - 16:15

      Yes, this was originally true. However, they started doing out of hours insepctions (eg: working till 10pm every night, and also working on weekends) and have largely cleared their backlog. I originally booked in Feb and they called me back with an August date! But then they called me back for a April inspection and now most cars have been inspected.

      Some insurers will comprehensively insure cars, but only at market value. For example, I'm with NRMA and hail damage is fine.

      Good luck!

  • doctordv8 on 02/05/2015 - 12:38
    -2

    Please, you need expert legal advise after ALL the facts have been examined. There are so many unanswered questions here, who said what where and when and how to everything else. I can't stop thinking of all the possible scenarios to answer this one but no real answer is possible without ALL the exact facts. Either do your homework and put it all down in writing, in order, add pics, copies evidence etc, and then ask again, or pay the balance, or loose the deposit.
    I am not a lawyer, but I play with cars. But please, look at how many different responses there are here. There is only ONE definitive legal answer, and 3 options I listed for you. At least you will have closure and be able to move on. If nothing else, learn your rights and obligations before you spend a penny. Cheers.

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