Left deposit for a car, dealer sold the car and refusing refund

Luz1 on 23/08/2015 - 16:35

Hi,

I placed a $1000 deposit for a used vehicle 2014 Hyundai, with the understanding I would finance the remaining amount.
The dealer advised the finance manager would take a few days to return with their best finance package.
The dealers finance rates were above market rate so I choose to fund the car via my bank. During the process of financing the vehicle the dealer sold the vehicle (informing me by voice mail) and advising that my that my deposit will not be refunded. As I had not paid in full within the week.

Now that my finances are available (2weeks after deposit) to purchase the original vehicle for which I signed a contract. The dealer has offered 2 options

  1. Purchase another vehicle. (Which I do not want and is greater amount)
  2. Lose deposit

Could you please assist in helping me understand my legal position, and any referencing to NSW consumer law would be great.

Automotive

Comments

  • [Deactivated] on 23/08/2015 - 16:45
    +42

    When you made the deposit of $1000, was there some clause mentioned (in writing) of having to pay the remainder in full within the next week?

    If there was a clause and you didn't pay in time, I'd say the dealer has an appropriate claim

    If there was no such clause or condition, the dealer should refund your deposit. Failure on the dealer's behalf to refund the deposit can be readily followed up in a tribunal or court of law.

    Nonetheless, I do wish you every success in resolving this issue. There are countless dodgy dealers out there in the wild, and sooner or later they will be brought to justice.

  • [Deactivated] on 23/08/2015 - 16:52
    +27

    2014 Hyundai? Dodged a bullet there, count your lucky stars.

    • extract on 23/08/2015 - 19:59
      +3

      Even Alec Baldwin knows that Hyundai's are rubbish, https://www.youtube.com/watch?v=v9XW6P0tiVc

        • rapoot6 on 24/08/2015 - 19:26
          +35

          Says Mr Jeep Cherokee man; At least the hyundia will not breakdown every 2 millimetres

        • aggregate on 24/08/2015 - 21:59
          +14

          @Hotkolbas:

          But I don't need a jeep with a road

        • rapoot6 on 24/08/2015 - 22:25
          +63

          @Hotkolbas: Yes you do. How else will the tow truck get there?

        • tomleonhart on 26/08/2015 - 15:11
          +2

          @rapoot6: lol. Owning !

        • apey2000 on 26/08/2015 - 21:52
          +1

          Does your BMW come with a drivers side window still attached?

        • giventofly on 28/08/2015 - 21:21
          +1

          @rapoot6:

          Lol!!!

      • spackbace on 25/08/2015 - 09:10
        +41

        Wait so an i30 buyer should buy a brand new xr8?

        Wow that's interesting advice!

      • badarz on 25/08/2015 - 09:14

        To be fair none of the things you've mentioned are deal breakers. OP might not want a powerful car with excellent handling and steering feel.

        • soaringphoenix on 25/08/2015 - 13:43
          -3

          Sure, perhaps he might not want as much power as the coyote offers, but the i30 doesn't even have sufficient power to serve as a passable shopping trolley vehicle (which it is primarily intended as).

        • spackbace on 25/08/2015 - 13:47
          +3

          @soaringphoenix:

          Ok so under $22k for a brand new car, what would you recommend?

        • spackbace on 25/08/2015 - 16:30
          +12

          @soaringphoenix:

          So clearly you can't stick to my original question.

          Ok so under $22k for a brand new car, what would you recommend?

          Do you have an answer, or just more bs?

        • spackbace on 25/08/2015 - 16:58
          +3

          @soaringphoenix:

          81TSI is a Polo, not a Golf. Last I checked, saying "lower-spec golf' means you're referring to a golf, not a different model.

          Sorry, I didn't realise that what you interpret as one car, could be another one.

          Maybe you should've just said Jetta, just to confuse the issue even more.

        • soaringphoenix on 25/08/2015 - 17:05
          -5

          @Spackbace:

          During the six minutes you took to respond, I corrected the error (i.e., <30 seconds following my submission). Further, that has no bearing on the initial issue.

          If you have any further queries, please refer to the above posts, where you'll find all the information you need to delve into a false economy of purchasing a brand new vehicle for $22k.

        • spackbace on 25/08/2015 - 17:10
          +7

          @soaringphoenix:

          It's OK, you can feel reassured that 1 person thinks the OP shouldn't buy a cheap Hyundai and instead should spend $60k on a new Falcon. You know, the one that will be worth about $45k a year from now?
          Hell, for the lousy resale value the Falcon will have, OP could just throw away their Hyundai after 12 months, not even sell it for scrap! And it still would've cost the same.

        • [Deactivated] on 26/08/2015 - 09:39
          +21

          @soaringphoenix:

          lol I can tell you as someone who works in the auto industry (doing finance) and a former car salesman that you have no idea what you're talking about.

          The i30 is one of the best, if not the best value car on the market. VW's are notorious for their mechanical problems and horrid re-sale value. How do I know this? My company (the largest insurer in Australia) does the warranty claims for the majority of Melbourne's car market.

          Simply amazes me how many people are completely clueless giving out car advice.

          Anyway to the OP, this dealer is full of shit. Where do you live?
          Is it in Melbourne? Tell him you're taking him to the ombudsmen and he'll cough up the cash immediately. Scumbag dealers like this should be named and shamed. If he still won't give the money back then tell him you're contacting Hyundai and you'll be fine.
          If Hyundai found out about this they'd be super pissed. In fact you could use it to your advantage and get the car for even cheaper when they try to make you happy.

        • McFly on 26/08/2015 - 11:30
          -1

          @Spackbace: I know! OP can buy three i30's for about the same price and power output (because everyone needs 300+kW don't they?) Makes about as much sense…

        • abacus on 30/08/2015 - 11:43

          Wow, finally some useful advice. Thanks.

      • me35 on 25/08/2015 - 09:49
        +3

        I agree with soaringphoenix, i30s aren't as fuel efficient as XR8's and they don't have any power at all. Excellent future resale value also.

        • holdenmg on 25/08/2015 - 10:24
          +8

          Q. What's the difference between an i30 and an XR8?

          A. If an XR8 broke down you would call a Tow Truck.
          When an i30 breaks down, you just walk away.

    • seedy on 30/08/2015 - 06:14

      I am on my sixth Hyundai at the moment. Currently driving a 2015 Sante Fe and love it. Cannot recommend Hyundai too highly. They introduced the 5 year warranty and aside from servicing I never needed to do major repairs. IMHO they are the best combination of value and quality on the market today.

  • what on 23/08/2015 - 16:59
    +23

    This seems so unfair. You would think that the dealer could have given you a call, letting you know that someone else was interested in the car and warning you that, you would lose your deposit if you didn't come in to pay up. What a crook.

    If you paid the deposit via credit card or through your bank account, you can call your bank and dispute the amount as goods were partially paid for but not provided.

    Shady dealers need to be brought to justice as 'KaptnKaos' has said.

    • onlyletters on 26/08/2015 - 08:12
      +2

      If he placed a deposit on the car, it would have been for X amount of days then it expires, he can't just go and sell it to someone else.

    • SeVeN11 on 30/08/2015 - 11:45
      +1

      I bet the car is hidden on the lot out the back somewhere. Dealer most probably just want the 1k deposit.

  • altomic on 23/08/2015 - 17:00
    +41

    Name and shame

    • whooah1979 on 23/08/2015 - 17:07
      +7

      op should reread the contract before naming the dealer on a public forum.

      • Wampus on 23/08/2015 - 21:19
        +63

        Actually whether or not it's in the contract, I would like to know the dealership that won't refund a deposit for a car that was sold from underneath the OP's nose. Because there's no way in hell I'd touch them with a barge pole, contract or no contract. Name and shame.

        • sobes on 24/08/2015 - 23:45

          If you make an agreement with someone, should they be accountable for keeping their end of the deal?

        • hypie on 25/08/2015 - 07:14
          +3

          @sobes:

          No, but I think returning the money would come under the flag of "good customer service". Do they think they deserve the $1000? Easy $1000 profit, instead of a potentially lifetime loyal customer?

        • ozhunter on 25/08/2015 - 07:44
          +10

          @hypie:

          I agree that they should give the money back, but LOL at the potential lifetime loyal customer.

        • hypie on 25/08/2015 - 21:22
          +1

          @ozhunter:

          Maybe a little outrageous these days, but I would go back to my previous dealer, because the only other dealers gouged me for price for the exact same thing.

        • ozhunter on 25/08/2015 - 21:25

          @hypie:

          I doub't you'd just go back to them on the basis of good customer service. What if they didn't have the car/color/price you're after? There are times when good customer service makes a difference, but in this instance it would be more profitable for the dealership to keep the money(whether rightfully or not) than to give it back.

        • hypie on 25/08/2015 - 21:27
          +1

          @ozhunter:

          Initially, until the dealers name gets leaked on a public site visited by thousands. That might even things a little.

    • [Deactivated] on 25/08/2015 - 11:21
      +2

      And castrate

    • uz1 on 25/08/2015 - 20:27
      +3

      Choosing not to name and shame just yet, call me naive and good faithed….hoping the dealer will do the right thing and return the $

      • Dumax on 26/08/2015 - 08:58
        +6

        Considering that they have threatened you with trying to charge you 25% of the contract - I think the chances of them doing the right thing are pretty slim now.

        Either way, considering that this is for a used car - I highly doubt that could prove that they had been inconvenienced to the tune of $1K, let alone 25%. They are essentially trying to extort you.

      • kywst on 27/08/2015 - 17:25
        +1

        Might be worth checking with a lawyer - my understanding is that many of these contracts are drafted in direct conflict with established laws. As a result, the contract may look official and claim you don't stand a chance but many sections are effectively voided when interpreted in the courts.

        Also, name and shame for sure.

      • Serapis on 30/08/2015 - 13:07
        -1

        Probably not the wisest thing to name and shame, they can sue you for defamation.

        Seek legal advice about what you paid the deposit for and whether there was an obligation to do something by a certain deadline, read more here (explains a bit clearer than the NSW fair trading site):

        http://www.consumer.tas.gov.au/fair_trading/motor_vehicles

        Normally this type of deposit is a holding deposit which normally goes towards the vehicle's purchase price. If you never negotiated how long it will hold the vehicle for, then up to a magistrate to determine what is reasonable in the circumstances.

        *** Edit: Just read below, sounds like a purchase deposit with 1 week expiry…

  • oscargamer on 23/08/2015 - 17:29
    +9

    RTFC

    read the … contract

    then tell us what it says

  • oscargamer on 23/08/2015 - 17:34

    fun ?

  • spackbace on 23/08/2015 - 17:43
    +67

    Car salesman here, WA so might be differing rules for differing states…

    100% that's a dodgy business practice. Get deposit back, threaten legal action, whatever. Any contract you signed is subject to finance, but there is nothing that says you have to use their finance. Only way they can prove this contract has ended is to prove you were not financable, and still then they have to give you your deposit back.

    Unfortunately it's dealers like this that give us all a bad name. I couldn't go to work every day if I worked for anyone that did that sort of stuff! Given the amount of laws we're governed by, I'm surprised that could even happen, or a dealer would even try it!

  • eqv on 23/08/2015 - 18:41
    +4

    From the Car buyers guide in the fair trading NSW website (http://www.fairtrading.nsw.gov.au/biz_res/ftweb/pdfs/About_u…), section 2, Contracts and deposit:

    "If you have decided to buy a car but you need to have a loan approved first, make sure that it is written into the contract that completing the purchase is conditional on you obtaining the loan.
    .
    .
    Under the Australian Consumer Law, there are protections against unfair terms in a consumer contract.
    .
    .
    If you are unable to resolve the matter you can lodge an official complaint with Fair Trading."

    Check your contract, and if you think that the contract is unfair, you can lodge a complaint with Fair Trading.

    "Unfair" in this instance is defined within Motor Dealers and Repairers Act 2013 No 107, Part 6, section 142 (http://www.legislation.nsw.gov.au/fragview/inforce/act+107+2…)

    Hope that helps a little bit, you can consult Fair Trading NSW to see whether they think there is a legitimate case here.

  • [Deactivated] on 23/08/2015 - 20:14
    +7

    dealer name please?

  • uz1 on 23/08/2015 - 20:31

    Thanks for all your input, the dealership manager will be calling me Tuesday to advise me of my options.
    The keys points of concern in the contract are as below.

    The main point highlighted in bold
    "The Customer / Purchasers agrees to buy from the dealer and the dealer agrees to sell the customer/purchaser the motor vehicle and accessories described in pages below and the terms and conditions on the adjacent pages."

    T&C
    1. The customer shall take delivery of the motor vehicle at the dealer premises within seven days of the dealer notifying the customer that the motor vehicle is available for delivery.

    1. Where the customer refuses or fails to take delivery of the motor vehicle other than under the cooling off right under section 29CA of the motors dealer act 1974 (NSW) applicable to this contract (Cooling off right) or is otherwise in breach of his obligations under the contract, the dealer may terminate this contract by written notice to the customer. If that occurs any deposit paid or payable by the customer to any amount not exceeding 25% of the total purchase price of the vehicle shall be forfeited to the dealer.

    Both parties acknowledge that the dealer shall be entitled to the claim by way of pre-estimating liquidated damages from the customer an amount equal to 25% of cash amount payable contained on the front page of this contract.

    1. Where the contract is lawfully rescinded (other than by cooling off right), the dealer shall refund any monies paid by the customer and where possible return the trade in vehicle PROVIDED THAT the dealer shall retain from any monies due to the customer the actual cost of repairs and any improvements, including gst, to the trade in vehicle and any payouts made or to be made by the dealer to clear any encumbrances. Where the dealer has disposed of the trade in vehicle the customer shall accept.
    • ozhunter on 23/08/2015 - 20:41

      It kind of seems like the dealer would have a case.

      • Geewhizz on 24/08/2015 - 06:21
        +31

        Except that the dealer didn't terminate the contract by written notice to the customer.

        • SlickMick on 24/08/2015 - 08:03
          +2

          Dealer didn't terminate the contract. The OP did by not returning with $$$ within 7 days.
          A phone call from dealer would have been courteous, but he seems to have done everything by the book.

        • [Deactivated] on 24/08/2015 - 21:37
          +6

          @SlickMick: I'm pretty sure that neither of us are lawyers, I know I'm not, but to me it sounds like the way it is written (ignoring the question of whether these terms are even legal, and also ignoring the lack of commas that could make it interpretable that "or is otherwise in breach of his obligations under the contract" could be still considered as part of the "other than" exceptions) is that if the CUSTOMER "fails" their obligations that is not necessarily an automatic termination of contract for failing them, but merely a reason that it is the DEALER who "may" be the one to Terminate it - as long as they do so with a "WRITTEN NOTICE" to the customer.

          /armchair lawyer. Obviously not to be taken as legal advice. Something to run past a real lawyer at best.

        • TheBird on 24/08/2015 - 23:09

          @The Land of Smeg:

          By the sounds of it, the contract wasn't rescinded. It was executed.

          If the dealer sold the car to another buyer within the 7 days, it would need to be rescinded and the deposit refunded.

          But just as you, I'm not a lawyer. What would I know?

        • Uncle Chop Chop on 26/08/2015 - 21:57
          +6

          @SlickMick:

          I'm not a solicitor, but I have worked with legislation all my adult life (15+ years). The interpretation of those conditions is pretty clear. Not collecting the car within 7 days is a breach of contract. Where a breach of contract occurs, the dealer MAY (i.e. if they choose) terminate the contract, by WRITTEN notice. Only then are they entitled to keep the deposit.

          Terminating the contract verbally does not automatically entitle them to keep the deposit.

          Also not to be overlooked is that the 7 days begins from the time the dealer notified you the vehicle was ready for collection, not from the time you paid the deposit (although this may in fact be the same time depending on what occurred).

        • SlickMick on 27/08/2015 - 20:15

          @Uncle Chop Chop:
          So the issue is that he didn't get his notification that the contract was terminated and deposit lost in writing?
          I don't think the OP is concerned about a piece of paper. He wishes he didn't lose his deposit, but clearly that was never going to be the case.

        • Uncle Chop Chop on 28/08/2015 - 10:20
          +1

          @SlickMick:

          Yep, exactly. The dealer is relying on the contract, aka a piece of paper, as justification for keeping the $1000 deposit. However the dealer didn't terminate the contract in writing, which is clearly a requirement of said contract.

          So the OP should be very concerned about a piece of paper in this case, given it absence is in my opinion the easiest way to rebut the dealer's claim to the deposit. You could also argue that the dealer technically breached the contract by selling the vehicle while it was still under contract to the OP.

          Also relevant would be site any absence in communications from the dealer towards the end of the 7 day period… i.e. did the dealer make any attempt at all to contact the OP and warn him that their intention was to terminate the contract if he was unable to pay for and collect the vehicle within the given time frame.

      • dfr on 24/08/2015 - 16:37
        +6

        The T&C's of any and every contract must be considered 'fair' for both parties to be enforceable. The definition of 'fair' is dependent on many factors but I am pretty certain the dealer cannot keep your deposit without showing that it was a legitimate expense as part of your incomplete transaction.

        You should contact consumer affairs as well as download and read this document, http://www.consumerlaw.gov.au/content/the_acl/downloads/unfa…

        There is a section in the document that says:
        "A term may also be considered unfair if it threatens sanctions over and above those that can be imposed at law. A penalty imposed by a contract should bear a reasonable relationship to the loss likely to be suffered by the business as a result of the breach or early termination, and should not be an arbitrary sum.

        A term that imposes a penalty on a consumer for terminating a contract because the business has not complied with its obligations under the contract is likely to be considered unfair. An example of this may be where a business is unable to supply a product ordered by a consumer by the date specified in the contract, but also refuses to refund any money paid by the consumer if they attempt to terminate the contract due to the non-delivery."

    • CheapandUsed on 23/08/2015 - 21:52
      +2

      From the above, youre obviously in NSW

      What did they tick under "Determination as to credit requirements"?

      1. customer doesn't require credit
      2. customer requires credit to be provided
      3. customer authorises dealer to arrange

      Either way, sounds like they are being jerks about it. Perhaps they got someone else who wants to pay a higher price than you were.

    • Cave Fire on 24/08/2015 - 19:45
      +1

      Hi, did you recieve written notice of your contract termination?

    • [Deactivated] on 26/08/2015 - 09:44
      +3

      mate see my above reply. This dealer is full of shit.
      Just ring Hyundai and tell them what's happened and you'll be fine.

      And yes, the i30 is an excellent car. I've sold and financed hundreds of cars, and now work in financial insurance/warranties.
      If you can't find an i30 then the Kia Cerato is the same thing with (I think) an upgraded 2.0 engine. I think there will be a new Elantra coming out soon.
      Your best options: i30, Cerato, Corolla.
      Stay away from Euro brands they are all shit at this price point.

      I can't believe this dealer actually tried this on you.
      So yeah, find out if the dealer is part of a larger group or family owned group (it will be).
      Then call the head office and ask to speak to customer complaints.
      If they don't do anything then call Hyundai.
      I promise you, you will get your money back.

      • Naughtynaughten on 27/08/2015 - 00:02

        Its a used car therefore hyundai have no bearing on the outcome.

      • mousie on 29/08/2015 - 12:03

        The new cerato is a 1.8 very happy with my 2012.Euro cars are great until their warranty expires and you're gouged on spare part repairs.

    • yoyomaster123 on 26/08/2015 - 21:28

      It says in the contract that

      "THE DEALER AGREES TO SELL THE CUSTOMER THE MOTOR VEHICLE"

      In which case the motor vehicle you specified might be this motor vehicle. If he sold it to someone else he might be the one breaching the contract as he himself agreed to sell this vehicle to only you.

  • oscargamer on 23/08/2015 - 21:26
    +2

    were you notified in writing?

  • [Deactivated] on 23/08/2015 - 21:28
    +16

    As the Car Salesman quite rightly stated above - the dealer can't hold you to a contract that is unfair.

    If you could, then anyone could write a contract that says you must pay in seven days or forfeit your soul

    Just because there's a clause in the contract doesn't mean the contract complies with Consumer Law.

    Go to Fair Trading, make a complaint, and ask (nicely but firmly) for your money back.

    • Scorpiogirl on 24/08/2015 - 06:41
      +3

      Exactly. Either way report them. Do you think dealers keep their end of the bargain? Big, fat and ugly NO. If you were seeking finance elsewhere weren't they aware of it or no? Fair trading will tell you your options and where you stand. If there is wrong doing, they will follow it up. They will tell you whether you are wasting your time. Don't wait on a call from them to pass the buck.

      The biggest mistake you will make is relying on them. Why believe anything they say? We probably all have at least one story regarding car salesmen. I have a few lol. No i don't think they are all like that but i won't look one in the eye. Lets just say they never let me down and live up to their stereotype every time.

      I walked in with a cash offer the last time. Once a contract is signed they dont wan't to know you. They sold your car because they probably got an immediate offer or a better one. It is that simple. I wouldn't put $1000 down but then again i wouldn't finance either because i don't trust them. For good reasons too. Wish my experiences weren't mostly negative though. Also don't believe everything you are told. Once you didn't want finance through them they probably figured, oh we wont see him again. Yes that cars for sale..

      • [Deactivated] on 26/08/2015 - 09:49

        Car salesmen are just playing the same game that customers play.
        As a former car salesperson, I can tell you that I no longer retain much faith in human beings in general.
        eg your story about coming in with a cash offer…that happens every day and then once we agree to the deal, the buyer realizes they can squeeze more money by going somewhere else.

        When you get screwed, lied and cheated on by 75% of people walking through the door, you start to develop defense mechanisms and see through everyone's BS.
        In the car industry we have a saying: buyers are liars.
        As you said, not everyone is like this but the majority of people are just slime balls when making larger purchases like this.

        • Scorpiogirl on 26/08/2015 - 10:53
          +1

          You said it…game. My life is not a game. They can play it with someone else. Not me. My cash offer involved signing a contract not just a what if scenario and coming back later. I am not that narrow minded that i see all car salesmen this way.

          I don't play games. I am straight up. I could go on about my experiences but i won't bore you. I am female but i probably know more about cars then the average Joe, no offence. I followed the smart moves, well so i thought, but once it came to them keeping their end of the bargain, that's where it went down hill.

          Treat people with respect. Stick to your word. Don't try your shit on me lol It doesn't matter if your a customer or the sales person. I am not an idiot so don't treat me like one. If i am professional, courteous and abide by my part of the contract why shouldn't you.

          Something doesn't seem right about this post. Not enough feedback. I am more confused by one thing. If you are going wih finance why wouldn't you research it before you look at cars. Handing over $1000 and you do not know if you can get finance seems risky to me. No way, knowing what i know, i would ever do that. I don't know enough to know who is in the wrong.

          My last experience as simple as i can explain.. i put a couple of hundred dollars as a deposit down because the car needed things done to it before pick up( take it or leave it i said ), as written on the contract, by my insistance. Cash money handed over when car ready THEY said. Up to them now. I was a smooth sale and it should have been easy for them. 5-6 days later no call, nothing. I have to call them. Car ready. Get there and told it's not. Through traffic car yard is like an hour and half away. Next day. Go again. Not one thing had been done to the car. I could go on… i won't.

          These stories aren't unusual i am sure. Don't make excuses for people or justify a lack of manners. Bad customer service is just that. Bunch a ….. and i have no interest in people like that. I fixed the issue MY WAY but i wish a positive experience wasn't made into a horrible one, thanks to them. I would prefer thinking highly of people.

          They count on people giving up. They do it because they can. It is why now if i enter a car yard like recently with a friend, i can't even look at them. Nothing personal but i won't trust again. Sad, stupid, whatever.. but it's the way it is now. Guess that's a defense mechanism as you said. I gave them the benefit of the doubt as i do with anyone but they lived up to their stereotype again.

        • McFly on 26/08/2015 - 11:37
          +1

          @murphy84: Have no doubt saying those who aren't car salesmen (ie. practically everyone) would see it more like this…

          Customers are just playing the same game that car salesmen play.
          As a regular car buyer, I can tell you that I no longer retain much faith in human beings in general.

          When you get screwed, lied and cheated on by 75% of car salesmen, you start to develop defence mechanisms and see through their BS.
          In the car buying circles we have a saying: car salesmen are liars.
          As you said, not everyone is like this but the majority of people are just slime balls when making larger sales like this.

          (Note the section I bolded, which I fully agree with.)

  • bigticket on 23/08/2015 - 22:09
    +16

    Find out when the vehicle was sold. There is a slim chance it could have been within the 7 days in your contract.

    • Gershom on 24/08/2015 - 13:40
      +2

      +1

  • divergent on 24/08/2015 - 09:39
    +5

    Regardless of what the contract says, what did the dealer do to deserve your $1,000? Did he earn it in some way, or was this just written into the contract because it happens a lot and this is a manipulative way of making some quick cash? The law is based on the concept of justice, and as far as I'm concerned the contract is one-sided and opposed to this concept, making it legally dubious.

    • t_c on 24/08/2015 - 20:09
      -7

      The dealer stored the vehicle for 14 days, a holding yard would typically charge $50-$60 per day for the same storage service. Car yard rents are huge and storing cars for 2 weeks doesn't pay the rent I'm afraid. If it happened a lot I wouldn't call it a manipulative way of making quick cash but more a necessary clause to ensure they don't go bust storing cars for tyre kickers and turning away legit buyers.

      • Lucious on 25/08/2015 - 03:11
        +7

        a holding yard would typically charge $50-$60 per day for the same storage service.

        http://www.rms.nsw.gov.au/documents/about/forms/45071537-max…

        An authorised holding yard could actually only charge $19.50 plus GST per day.

        • t_c on 25/08/2015 - 06:25

          Interesting, things are a little bit different up here in QLD.

        • Charity on 27/08/2015 - 01:31
          +2

          Can you tell all the car park companies that?

      • Cluster on 25/08/2015 - 15:29
        +2

        $50 to $60 per day. I hope the dealer is charging this to themselves for every vehicle they have in their yard every day. I have seen some used vehicles stay at a dealership for 90 days or more before being sold. $5400 lost on that vehicle in 90 days. On some cars they really should be giving it away free to any random person who walks in otherwise their storage costs will exceed the value of the car.

        Poor dealers.

        • t_c on 25/08/2015 - 16:20

          Good point, but imagine if 90% of the cars on the lot were all sold pending payment, bob says he will pay in 3 weeks, tom says he will have the money next week, jack will have it in a month. poor dealer cant purchase anymore cars cause his lot is at 100% capacity. And these buyers may not show up for months.
          Who's going to pay the rent?
          surely the dealer needs to draw a line in the sand somewhere.

  • AJW on 24/08/2015 - 10:50
    +7

    Need to hear both sides of the story. We have heard yours, but be honest - did you disappear for 2 weeks and only contact them after they gave up and sold the car?

  • Noblejoker on 24/08/2015 - 14:04
    +3

    Just state that you weren't properly informed, the dealer knew you were obtaining alternative finance, that you were prepared to pay as negotiated, they did not give any details in writing after initial contract and that as they sold the car to someone else you would like a full refund
    My guess is the dealer principal will just hand back the deposit
    If not then just politely inform them that you have no choice but to go to Fair Trading
    Any reasonable business owner know this is not something u want to hve to deal with for a lousy $1K when you already made the sale
    There is no case that the dealer was prejudiced by your actions - he sold the car anyway
    he may be able to keep some costs to offset his loss, but he doesn't have one
    In my amateur opinion a Small claims court judge will hand you back your money and the dealer will lose out by having to attend
    Don't be rude or nasty or threaten to publicise just stay reasonable and ask for the refund

  • Mosha on 24/08/2015 - 14:11
    +7

    For any future car buyer, don't give the dealer a dime until you're ready. If they don't have your money it's up to them to chase you and I can only assume they didn't remind you. Hyundai's just like so many other car dealer yards are a dime a dozen, you would of found the same car in the same or other yard within the same month, you don't need to put any car on hold, it's just a ploy by the dealers to spend money and rope you in.

    • spackbace on 24/08/2015 - 14:30

      don't give the dealer a dime until you're ready.

      If you're prepared to sign a contract to buy a car, why aren't you prepared to leave a deposit?

      There is no 'ploy' here and as I said earlier, dealer's like in the OP are trying to act outside the law, but fact is there is many rules and regulations governing our industry. If you can't get finance, you get your deposit back. There's no 2 ways around that.

      In WA there's no cooling off period, but thank god there isn't! We can have you driving away in your new car the same day you purchased. Now if you were entitled to a cooling off period, there's no way we'd fit accessories to the car if you could just call and say 'nah, I won't bother with that now'. If you want to get out of a contract here, you either prove you can't get finance, or you pay 15% of the purchase price. But same protection is there for the buyer as well, so we can't just go 'oh sorry but this other customer paid $100 more so we're gonna sell it to them, sorry'.

      Everyone thinks we're shady/dodgy/whatever because of dealings with a small car yard, or because the neighbour's friend's dog's brother tells a story of being robbed by a dealer.

      I think you'd actually be surprised how many customers try to be shady/deceptive/or just outright lie, compared to the salespeople.

      You made me rant because you can't just simply leave a refundable deposit. It's not a complicated thing.

  • malbrothers on 24/08/2015 - 14:56
    +7

    Contact Fair Trading….now.

  • mishrael on 24/08/2015 - 15:29
    +2

    Sounds like the kind of dealer most people would prefer to avoid in any respect.

    Knows customer in good faith (paid a deposit) is pursuing alternate finance for vehicle. Dealer demands deposit when car is sold to a third party.

    Now Even if it's beyond the '7 day limit', There is such a thing as the spirit of the law, the letter of the law isn't the be all and end all to everything.

  • bobwokeup on 24/08/2015 - 16:38

    The dealer is definitely in the wrong here. However why did it take 2 weeks to get finance? When looking for a house you should get a pre-approved amount so you know your limits. Same principles should apply here. Either way I'd be fighting hard to get back the cash. Take it to court and name & shame the dealer. Very unethical.

  • andyken on 24/08/2015 - 21:34

    something to learn from this case: pre-approval loan or no deposit at all

  • [Deactivated] on 24/08/2015 - 21:48

    wow that is totally unfair, regardless of the week you did put a deposit down which should be proof enough.

    i would get my money back or that guy will have extra joints in his arms and legs where there shouldnt be.

  • chumlee on 24/08/2015 - 21:49

    How can the OP take delivery of the vehicle within 7 days as per T&C's if he/she hasn't paid in full for the vehicle?

    • hahaboy on 24/08/2015 - 22:59
      +1

      they always take the $1000 ;)

  • gstfree on 24/08/2015 - 22:43
    +1

    Dodgy dealership. The clause of losing deposit is unfair and not reasonable.
    Forfeiting $1k does not represent the true cost to the dealership. They sold your car to someone else and now want to forfeit your deposit?? I would lodge a claim against the dealership.

    Anyway, if I were you, i will firmly ask my 1,000.00 deposit back, not 999. If they refuse, i will complain to the organization who issued dealership license and file a case with fair trade. I am sure you are not the only victim of the dodgy dealership.

  • [Deactivated] on 24/08/2015 - 22:54

    Why is option 1 more (purchase another vehicle) not an option? Have a word to their new / demo sales staff and see if any deals on 2014 plated new stock can be had - a1 year old used car from a dealer will usually not be sufficiently discounted to make it worth your while compared to private sale or buying new/demo. Dealers don't always charge the same finance rate to each customer who walks in the door - they get commissions from their financier depending on amount / rate. Try negotiate their rate down if possible.

    The 1k deposit is chicken feed compared to what they will make by selling you a car and you taking out finance with them. It's in their interest to find you something acceptable to you that you'll be happy with. The other points above about fair trading are a good avenue if it all goes pear shaped, but seeing if they can cut you a better deal on something else would probably be a lot less stressful.

    • letthiswork1 on 24/08/2015 - 23:49
      +6

      after being treated like that the last thing i would want is to give them anymore money personally…

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