How to get out of a new car contract?

stealthmatt on 29/12/2016 - 21:22
Last edited 29/12/2016 - 21:27

So I signed a car contract and its for an expensive car. ($80,000)

Iv decided the car is not what I am wanting and now have cold feet. (I signed it 2 days ago). Financially I don't think its a good decision to go with this car. Its not because I am looking for a better deal or anything, its just not the right car and financially too much.

I know this is not good, I haven't taken delivery of the car and I haven't signed the dealership finance (but it has been approved for finance as of this afternoon.) Delivery is expected mid jan as they have to receive it from another dealership)

There is this clause in the contract - does this mean I am going to have to pay 10%? What can I do? I have paid a $1000 deposit.

  1. DEFAULT

(a) If Customer defaults in observing any of these terms and conditions, then without prejudice to any other rights and remedies, Dealer may terminate this

Contract and resell vehicle with no liability to Customer (and re-take possession of vehicle if necessary) and: .

(i) Forfeit and retain any moneys paid by Customer on account of purchase price of vehicle to a limit of ten percent (10%) of the purchase price of

vehicle; or

(ii) Recover by way of liquidated damages from Customer all loss of profit and reasonable expenses and costs incurred as a result of such default; or

(iii) Recover from Customer by way of liquidated damages an amount representing ten percent (10%) of the total delivered price specified in this Order

for breach; and may retainany traded vehicle or other goods or proceeds of sale of same or any moneys paid by Customer on account of the purchase price of vehicle

on account thereof.

Automotive

Comments

  • dylanando on 29/12/2016 - 21:29
    +2

    Keep the car you rich bastard :(

    • stealthmatt on 29/12/2016 - 21:36

      I am not rich, just stupid and it was a "want" rather than a "need"

      The loan term is for 5 years so its not really that expensive, and with a ballon payout it reduces it significantly.

      Anyways thanks for your advice.

      • dylanando on 29/12/2016 - 21:38
        +1

        Honestly, You obviously can afford it and you obviously wanted it and you clearly work hard so why not keep it?
        It's a lot of money but you got to live life and let's be honest, 5 years is just around the corner. Many others will disagree with my advice but enjoy it.

  • Ughhh on 29/12/2016 - 21:45

    You'll probably just lost the deposit

  • 01011010 on 29/12/2016 - 21:49

    agreed just lose the deposit.

  • Randxyz123 on 29/12/2016 - 21:54
    +2

    Have you tried calling the manager of the dealership and discussing your options?

  • nomoneynoproblems on 29/12/2016 - 21:55
    +7

    I don't know man, I hear $80k cars are good investments these days.

    • xoom on 29/12/2016 - 23:22
      +8

      Only if you are 21 year old uni grad. Who just scored a job at westpac and value the looks from his future peers about said car.

      • Alpacino299 on 02/01/2017 - 14:38

        ahahah that thread was great

  • theclearout on 29/12/2016 - 22:07

    https://www.qld.gov.au/law/your-rights/consumer-rights-compl…

    So, cut your losses how you like and move on, or buy the car…

  • wholistic on 29/12/2016 - 23:41
    +5

    I take deposits on large sales. If we are not yet significantly out of pocket (e.g. purchasing otherwise difficult to sell equipment on you behalf) and we think there is any chance that you will return to business with us again in the future - we will refund the deposit to keep the goodwill.

    The deposit is intended to show you are genuine, have skin in the game and cover the costs before the sale is closed. But shit happens, and for us, we want the sale and a happy customer. Not the deposit and someone feeling a bit ripped off.

    Let the sales person know as soon as possible, every day increases the chance of them ordering something or committing enough work to your sale that it's going to cost them. Tell them the truth, you thought this was possible, but now looking at all the figures, as much as you love the car it just isn't right. Thanks for their service, you will talk to them first when things change and you are ready to buy.

    Then ask for it back, be polite, but firm and don't be afraid to maintain the silence.

  • Suspect420 on 30/12/2016 - 08:21

    What car is it?

    This is important. Well kind of coz im curious.

    You definitely will not be up up for 10% either. Its a clause stating that if you had placed a 50% deposit that they could not keep it all but instead just 10% total value of car i.e $8k and refund you $32k

    Come to think of it there should be a cooling off period in the contract which is by law. You should be entitled to cancel and recieve full refund

    • stealthmatt on 30/12/2016 - 11:47

      No cooling off period with new cars, only demo and used cars.

  • stealthmatt on 30/12/2016 - 11:45
    +1

    Just an update after negotiations, the dealer offered to set it at $5000 ($1000 existing deposit and $4000 remainder) to get out of the contract, but put in a trust with the dealership, so if I ever did buy a car in the next 2 years or so. I could reuse this $5000.

    Lesson learnt. At least I am not in debt for a car for the next 5 years.

    • [Deactivated] on 30/12/2016 - 12:24

      Damn. Could get a whole other car for that $5k.

    • xoom on 30/12/2016 - 12:37

      you got out relatively unscathed.

    • wholistic on 30/12/2016 - 12:57
      +1

      GET THIS ARRANGEMENT ON PAPER before you even think about transferring any more money.

      I still think you could have got out of this with the deposit alone, if not nothing at all.

      The dealership is way ahead on this deal, but I am glad you are happy(?) with it.

      • stealthmatt on 30/12/2016 - 13:30

        No I am not happy, its $5000 that's dead if I don't use it and yes that is a lot of money for nothing.

        Well they said they already arranged for it to be transferred from another dealership which is $1000 transportation costs. (They tried to get this on me in the original contract, but I refused to pay extra for transportation).

        There are clauses in the contract that say the dealer can cancel the contract but has to return the full amount of money given. So really they could cancel the contract with out any problems.

        They also said that as there was a trade in they wont make that potential money any more, but really I still think its hog wash.

        I still think they will make there money anyways because the car will be brand-new in there showroom, even though they said they asked a "favor" of the other dealer, but still a buyer will come in and buy it.

        I would have been happy just to pay $1000 for the transportation costs, but they still insisted this is a business and "we have honored our part of the contract".

        I was very polite and direct and humble, explaining my reasons. However, it wasn't enough.

        • godofpizza on 30/12/2016 - 14:25

          i would not give them any more money. at most you would lost the 1000$ or whatever you have paid to 10% of the purchase price.

        • Suspect420 on 31/12/2016 - 19:11

          @godofpizza: 100% agree

          You couldn't get finance. End of story.

          Don't pay up and walk away losing only $1000

          Any contact legally has a cooling off period

          There is a ‘cooling-off period’ that applies if you purchase a car from a dealership and the dealership:
          arranges your loan for the car, or
          supplies application forms for, or a referral to, a credit provider. This is called a linked credit arrangement.
          Under these circumstances only, there is a ‘cooling-off period’ giving you 1 day to change your mind. The cooling-off period begins when the contract is entered into and generally closes at 5pm on the next day that the dealer is open for business.
          Note that the cooling-off period does not apply to motor cycle purchases.
          During the cooling-off period the purchaser can cancel the contract by signed, written notice given to the dealer. The purchaser will be liable to pay the dealer $250, or 2% of the purchase price, whichever is the lesser amount.

          http://www.fairtrading.nsw.gov.au/ftw/Consumers/Motor_vehicl…

        • whooah1979 on 02/01/2017 - 14:58

          @BKZ:

          Any contact legally has a cooling off period

          Op is from qld. Do you have one for qld?

        • spackbace on 02/01/2017 - 21:20

          @BKZ:

          WA doesn't have a cooling off period for car contracts. Hence why we can deliver a car the same day it's bought

        • Suspect420 on 04/01/2017 - 04:05

          @Spackbace:

          Somewhere back in my Uni days i remember learning consumer law protects against ifnorance for certain duration of time whether it was stated or not.

          It was on one of my commercial engineering management courses and it came up for discussion.

          Either way not a good place to be if you couldnt afford the car in the first place.

  • Foxtail on 01/01/2017 - 09:42

    In Qld after reading there was a 7 day cooling off period I got our of a block of land 5 days after signing contract, funds returned a week later, not sure if it applies to cars.

    • Ughhh on 01/01/2017 - 11:30

      You can also get FHOG for homes too, not sure if it applies to cars…FCOG?

      / >.>

  • doctordv8 on 05/01/2017 - 01:34

    I am sure a solicitor will cost less the than $5000 on offer to get you onto loosing the $1000 dep only or getting it all back even. Try legal aid?
    Lol.

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