Paid a Deposit for a Car, Cancelled within Cooling off Period

LGobi2020 on 19/11/2020 - 06:29
Last edited 19/11/2020 - 09:15 by 1 other user

Two days ago, I paid a deposit for a car I thought was a great deal. However, on reflection it wasn’t and thinking through what happened that day, I was stupid to do that.

I asked for a test drive and the sales man said it was fine until he walked out with the keys and said he realised the car didn’t have a licence plate as he put it on another car. I assume it was a traders licence plate or something. He allowed me to drive it in his yard so I drove for no more than 50 metres. When I paid the deposit he asked for my signature on a few documents and this was while he was taking about registration and transfer of ownership.

Turns out one of them was a contract of sale. I figured this out when I told him I was not proceeding with the sale. He told me I have already signed the contract and waived my cooling off rights. He says he will be sending a copy of the contract through this morning.

Does this mean I’m obligated to go through with the sale? What are my options? I’ve developed cold feet because of the events that occurred on that day. I really haven’t been settled and I have a lot of doubts about the car now. I’d rather buy it from a dealership than from this used car yard.

I understand now that I was stupid to sign any documentation especially under the circumstances. I need advice please. I’ll be speaking to him in a few hours.

Automotive

Comments

  • SBOB on 19/11/2020 - 06:41
    +5

    Laws likely depend on the state regarding any cooling off periods.

    Be prepared to either lose your deposit or go through with the purchase though if you're outside these, or have signed any contracts waving these.

    A used car salesperson isnt going to do you any favours, but is instead there to teach you very valuable life lessons

    • pegaxs on 19/11/2020 - 09:55
      +4

      Be prepared to either lose your deposit

      Incorrect. You can only lose a part of your deposit, not all of it (unless all of it is a small amount)

      For NEW cars;

      the licensed motor car trader may keep $400 or two per cent of the purchase price (whichever is greater).

      For Used cars;

      the licensed motor car trader may keep $100 or one per cent of the purchase price (whichever is greater).

    • [Deactivated] on 19/11/2020 - 11:45
      +1

      A used car salesperson is… there to teach you very valuable life lessons

      That's actually a pretty valuable lesson. 🤣

  • Cartman2530 on 19/11/2020 - 06:45
    +10

    The rule is don't sign anything until you have read through it thoroughly, and gotten someone else to look it over as well.

    Have a look at the contract you signed, it should state all the terms and conditions that you agreed to. Its likely that you won't get your deposit back if you cancel though.

  • U30004 on 19/11/2020 - 07:00
    +1

    Relax, read the contract first. I also put deposit on a car and signed a contract, but after 2 days changed my mind as car had no service history. Called the dealer, told them my deposit was conditional and they refunded (even though their tone changed, which is understandable as it's a lost sale). Politeness can go a long way

  • apsilon on 19/11/2020 - 07:04
    +2

    OK, so you signed paperwork without knowing what it was but how did you pay a deposit without realising what was going on? Read the paperwork and Google the cooling off period for your state/territory, go in today and sort it out. You may lose the deposit. I'm not sure what you were referring to about waiving rights but AFAIK it's not possible to waive your consumer rights, even if you agree to.

  • pantsparty on 19/11/2020 - 07:19

    To be honest it sounds like you made some mistakes here - consider it an expensive lesson to learn. Read your contract again carefully - if you indeed signed away any cooling off period then you may be screwed.

  • screensaver on 19/11/2020 - 07:31

    You must never sign anything without reading it. You could say you have changed your mind and if they dont do the right thing you are the sort of person to take further action including leaving bad reviews of your experience, Check if the business has reviews anywhere.

  • Jugganautx on 19/11/2020 - 07:37
    +3

    Like stealing candy from a baby, babeeeeh yeeehawww!

    • jackinyourbox on 19/11/2020 - 09:31

      Yeah. Should of given him a juggernaut head punch. Then shout “GRRRRRR” - flexing in air

  • Brian McGee on 19/11/2020 - 07:37
    +1

    Usual used car sales tactics of sign this, this and this while interrupting your train of thought with other babble.
    For most states there is no cooling off for a used vehicle, only for new.
    Contract point would've been the time to put stipulations down for "return deposit if credit/loan not approved", "full refund if car doesn't pass roadworthy" or whatever.
    You may have to either take the car or lose the money.

  • gasman70 on 19/11/2020 - 07:39
    +4

    Obviously, Ozb is the last place you should come for advice.

    If hollow guidance, condescending attitudes, with a hint of pomposity is what you’re after, you’ve found the right place.

    Welcome aboard.

    • NewbiefromVic on 19/11/2020 - 09:01
      +1

      A community is what its members make of it …

    • pegaxs on 19/11/2020 - 09:20
      +2

      That's ironic coming from someone that has asked so many questions over their time as a member here… Also seem to give a lot of answers, too. So, are you possibly part of the problem?

    • blitz on 19/11/2020 - 10:42
      +3

      What do you think about those people who only come here to ask for advice and only post one or two bargains in six years? I mean, aren't they kind of pompous also?

      • bobbified on 19/11/2020 - 11:51

        "What do you think about those ungrateful people who only come here to ask for advice…."

        Had to add a little extra word because not all of us fall into that category! ;P~

      • gasman70 on 19/11/2020 - 14:05
        -4

        Pompous for asking for advice and not posting bargains? Not sure if you have grasped what the word means.

        Anyway, I’m eternally grateful for almost all of the contributors in this great forum. I’ve received some great advice and had some fantastic bargains, all because people have taken the time to make this forum what it is.

        Of course, I’d love to have posted more deals but by the time I run into one, it’s already been on here for a few hours/days.

        I was merely having a laugh at some of the condescending responses that many provide here when someone is in need of genuine advice. I’m sure there are many who would agree with me.

        Do you need a hug petal?

        • gasman70 on 19/11/2020 - 14:15
          +1

          Anyway, some great advice below….including from pegaxs.

          • pegaxs on 19/11/2020 - 19:53
            +1

            @gasman70: I always try to back up anything I say with links to the relevant legislation or government or legal website… So not everyone is offering up "hollow guidance", but I do laugh at times when the feeble minded get on the neg train because, even though I have provided links to the legislation/information/facts, it doesn't reaffirm their conformation bias.

            But I will admit, in the face of blind stupidity, I can be a little condescending. Even in the face of overwhelming proof, some morons still wont accept the facts. I dont care about feelings, I care about facts. If my facts hurt someone's feelings, that's a them problem, not a me problem.

            And I will admit, sometimes, this is the last place that some people should come for their advice, because;
            They either want to argue with people who have the answer, but they don't like the answer they are given, or seeking confirmation bias, only to be schooled in reality, or it's a lot of "I think" or "my dad's mate's father's uncle said…" when a 10 second Google search would prove them wrong and lastly, because quite often, the OP cant tell the truth and omits important facts that can change the answer to their question because they already know the truth would make them look like an idiot.

            • gasman70 on 19/11/2020 - 20:06
              +1

              @pegaxs: Yeah, I get it but I’m not actually having a go at people who have provided valuable advice, like yourself. The mention of getting it in writing was invaluable and very important; the fact that you may be banging your head against the wall while saying it, several times, is irrelevant…..good advice is good advice, whether it verbal, email, carrier pigeon or smoke signals.

              My jibe was at the usual ‘shouldn’t have done that’ or ‘you’re screwed’ brigade. Of course, these people exist everywhere, including here.

              That said, 70% of input here is in good faith with the aim of trying to help and pull someone out of a hole they’ve fallen into, be it through ignorance, stupidity or just naively.

              I should have really ended by initial post with a wink or a smiley face. There was no malice in it at all

              • pegaxs on 19/11/2020 - 20:24
                +1

                @gasman70: The thing I don't like about this site is that the correct and factual answers are often pushed to page two in favour of the comedic answers. The factual and correct answer OP is looking for will have 5 upvotes at the bottom of page two, while the first comment in the thread will say "LoL YoUr F'd iN tHe A. LoL" and have 90 upvotes and another 40 comments trying to get some of that sweet upvote action.

                And heaven forbid if the correct answer is not the community expectation. I have seen the factually correct answer obliterated by neg votes all because the community didn't like the facts or it went against something they didn't want to hear. VIN/Build/MY/compliance dates, E10 and RON threads are great for that.

  • elgrande on 19/11/2020 - 07:47
    +1

    Did you apply for finance as part of the purchase? This may give you additional cooling off rights.

    • Gobi2020 on 19/11/2020 - 08:06

      No I didn’t apply for finance. I was looking to make a transfer.

  • Austaurean on 19/11/2020 - 08:18
    +1

    as another has said, you cant waive your rights, they will try to hold you to the waiver though, but you can explain the waiver is not legally binding. (perhaps state dependant?)
    But as an ex car sales person for new cars,
    we would agree to a deal with the buyer and then print out the paperwork and go through the paperwork and explain what, where and what to sign.
    It was also the same for the used car guys at the dealership. We also used a waiver form, but it was more of a way to solidify the sale in the buyers mind,
    plus it meant we could begin the car prep for delivery or order the car sooner rather than later. Buyers are generally happy with that as they generally want the car asap.
    So I struggle with understanding these type of 'didnt know what I did/signed' posts.

    • pegaxs on 19/11/2020 - 09:25

      In Victoria, the only time a cooling off waiver applies is if you pay for the car and take it the same day. For example, walk in Monday morning, view a car, sign paperwork, go and get a bank cheque and drive it out of the dealer's yard at lunch time the same day. You cant then change your mind 3 days later and take the car back for a refund.

      However, if you choose to accept delivery of the vehicle during this three-day period, you will automatically lose your right to cool off.

      The normal cooling off period stands as trongy has stated below.

  • trongy on 19/11/2020 - 08:18
    +7

    This information was pretty easy to find on the Consumer Affairs Victoria website.

    Used car cooling-off period

    You have three clear business days (excluding weekends and public holidays) after you sign a contract to change your mind

    The dealer can keep some of the deposit you have paid ($100 or one per cent of the purchase amount, whichever is greater).

    You have three clear business days (excluding weekends and public holidays) after you sign a contract to change your mind.

    • jjjaar on 19/11/2020 - 09:26
      +1

      They’re probably confusing OP on purpose so the 3 days pass before OP does enough research

  • SelfMade on 19/11/2020 - 08:51
    +3

    You test drove a car for 50 metres and then decided to buy it by signing a bunch of documents without reading them?

    You need to take responsibility for your decisions, expensive lesson.

  • bobbified on 19/11/2020 - 08:57
    +2

    He allowed me to drive it in his yard so I drove for no more than 50 metres.

    The fact that he doesn't sound like he wanted you to test drive the car is really bad already. I would stay away from the car!

    When I paid the deposit he asked for my signature on a few documents … turns out one of them was a contract of sale.

    What else did you think you were paying a deposit for? When you get a copy of the contract, have a good read of it. If it's the standard Contract of Sale, it'll tell you about any cooling off period.

  • pegaxs on 19/11/2020 - 09:37
    +3

    If you are going to cancel a contract of sale and doing so within the cooling off period… it MUST be done in writing.

    Do NOT just tell them over the phone. You will need to put it in writing and have some sort of confirmation that you delivered the written notice. Email with delivery receipt, signature on delivery letter (IF it gets there in time) or take it in and hand deliver it with a witness.

    There is no "cooling off waiver" unless you have accepted delivery of the vehicle within those 3 days. Don't let them tell you otherwise.

    • pegaxs on 19/11/2020 - 11:15

      For the utter moron that is negging my replies in this thread… Your intent to cancel the contract must be done in writing.

      From Consumer Affairs Victoria (OP's state)

      New car cooling off (note: the bold text)
      Used car cooling off (note: first sentence under "Changing Your Mind")

      On the same links, the reference to waiving cooling off periods, it says;

      However, if you choose to accept delivery of the vehicle during this three-day period, you will automatically lose your right to cool off.

      Further more, the Vic. Motor Car Traders Act 1986 says;

      43 Cooling-off period
      (1) A purchaser (not being a motor car trader or a body corporate) under an agreement for the sale of a motor car may, at any time before the expiration of three clear days after the purchaser signs the agreement, terminate the agreement by giving to or serving on the motor car trader or an agent of the motor car trader notice in writing to the effect that the purchaser terminates the agreement

      Also source: Was once a new/used cars salesman in Victoria.

      Happy for you to convince me otherwise.

  • Ughhh on 19/11/2020 - 10:05
    +1

    When I paid the deposit he asked for my signature on a few documents and this was while he was taking about registration and transfer of ownership.

    Turns out one of them was a contract of sale.

    What else did you think the papers were? What other kind of paper would require signatures?

    If a stranger or a sales person ask for you signature, you need to question and know all the circumstances first . Expensive lesson.

  • Cheeper on 19/11/2020 - 10:43
    +2

    I thought a cooling off period on a car purchase was only when finance was involved?
    Check the laws in your state re cooling off periods and when they apply.

    Welcome to the world of car dealers… they are your friend until you sign that paper, then they just want your cash and your ass out of that place.
    Never trust them… never.
    Never accept anything they say unless it is in writing. "They lie"…
    Always get a used car inspected and have at least TPP insurance before you drive it off the lot.

    • bobbified on 19/11/2020 - 12:11

      .. they are your friend until you sign that paper, then they just want your cash and your ass out of that place.

      This is so true. Signing the contract seems to wipe the salesman's memory of who you are and why you're even there!

  • Porker on 19/11/2020 - 10:56
    +1

    I want to say give the benefit of the doubt and say it was a mistake, but since you questioned it and his response was that you signed away your rights, then I'd say that it was intentional. Not saying all dealers are shady MOFOs, but this one sounds like such a low move to make.

    I've only ever bought one secondhand car, but when I was shopping around, my experience was quite entertaining (on reflection). When I questioned the safety of one car to a secondhand dealer, his response was ".. when it's your time, it's your time.. It won't matter how safe / unsafe the car is..". Others had the typical sales line ".. you know where this car would look good?… in your driveway…"

  • Vancomycin 1000mg on 19/11/2020 - 11:06

    Hey mate, this actually happened to me as well when I was young and dumb. This is typical of them. Instead the sale man was talking about one the big businessman in Western Australia (John Hughes) and how he knows him and how he ended being so successful. Ended up signing the contract while he was talking and shit. Anyway I refused to buy the car cos I told him my budget and the car was out of my budget so I need to get extra.
    He should've added "subject to financial approval" in the contract. But he didn't.

    Anyway, they were threatening me with court cases and were asking me to pay back 15% of car value for loss. I stood my ground and got refund. Good luck man. Learn from your mistakes.

    It wasn't John Hughes dealer btw.

    • Gobi2020 on 19/11/2020 - 12:30

      got a 230 refund as he said he had already paid for a RWC to be done and paid for an appointment at Vicroads for the rego stuff. he will give me back the 220 if the car sells within 30 days. Im happy to walk away honestly. Lesson learnt.

      • Vancomycin 1000mg on 19/11/2020 - 13:57

        Yes that's good buddy. Never go there again.

        From that experience, I hate dealers with passion.

      • apsilon on 19/11/2020 - 14:03

        I'd push back. There is no appointment fee to have rego done so that's pure BS and I don't know how much a roadworthy costs in VIC (NSW is about $40) but that's just a cost of doing business. Lodge a complaint with VIC fair trading or whatever it's called down there. Good that you got some back but you're still being taken for a ride.

        • Gobi2020 on 19/11/2020 - 14:11

          there actually is here in vic. https://www.vicroads.vic.gov.au/registration/registration-fe…. I will randomly google the vin number and if it shows that its been registered, ill ask him for my 220. also, i was thinking legally, the dealer may hold 1% of the value of the car when a buy cancels within the cooling off period which works out to be $205. So yeah.

        • pegaxs on 19/11/2020 - 14:17

          There is no appointment fee to have rego done

          Nek minnit… Appointment booking fee for registration at VicRoads… $19 If it requires inspection, that's another $30.20, thank you *cash_register_jingling.mp3*

          Is there a booking fee?
          Yes, when booking, you’ll need to pay an appointment fee. Please note: concessions can’t be used.

          Source: Register a vehicle. VicRoad's website

          • apsilon on 19/11/2020 - 14:23

            @pegaxs: Didn't think any state charged an appointment to go and make a payment. That's a joke in itself.

            Either way, that's about $50, not $220

            • Gobi2020 on 19/11/2020 - 15:18

              @apsilon: The other amount was for RWC which he said he paid for.

  • yellowfever on 19/11/2020 - 19:07

    Was your deposit $450?

    • Gobi2020 on 19/11/2020 - 21:22

      No it was 500

  • Keplaffintech on 20/11/2020 - 18:05

    What did you think the deposit was for?

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