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Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44386
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I place a deposit on a new car before signing the finance contract

Customer Question

I place a deposit on a new car before signing the finance contract "loan agreement" with Savvy Finance, though I did sign a client agreement form through an agent of the financier "Vehicles Direct"
The deposit was $550.00 where they asked for $1000.00, so I paid $1000.00.
Vehicles Direct stipulates the $450.00 would be refunded after settlement.
2 days after depositing the funds I had a change of heart after seeing the loan agreement.
I have been in contact with the representative for Vehicles Direct enquiring of my deposit and they say I am not eligible to be refunded my $1000.00.
Gianni said: "I will talk with my boss about the manner when he gets back for Singapore next week and will let you know where we go form here"
I should have heard form Vehicles Direct last week.
Quote form the contract:
Where the customer refuses or fails to take delivery of the motor vehicle, or is otherwise in breach of his obligations under this contract, the dealer of Vehicles Direct may terminate this contract by written notice to the customer.; thereafter any deposit paid or payable by the costumer to an amount not exceeding 5% of the total purchase price of the vehicle shall be forfeited. Both parties acknowledge that the dealer shall be entitled to claim by the way of pre estimated liquidated damage from the customer an amount equal to 5% of the total road cost. Less any deposit forfeited.
My bank statement shows my deposit went to Savvy finance, making it difficult to track down whom I should be speaking with in regards ***** ***** back my hard earned money. I believed the funds went to Vehicles Direct not Savvy finance, as the dealer "Gianni" from Vehicles Direct asked for the deposit.
My question is "Am I eligible to attain a refund on my deposit? and should I talk with Savvy Finance?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good MorningMy name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advice but a guide to assist you.Was the contract subject to finance?
Customer: replied 1 year ago.
The agreement is attached
Customer: replied 1 year ago.
I don't understand your question: Was the contract subject to finance?
Expert:  Leon replied 1 year ago.
What I meant is Did you make the contract conditional on you being able to borrow the money from a financier?It appears the answer is no. If it was subject to finance and you could not get the finance then you could terminate and get all your money back. Buying a new car, there is no cooling off period and you cannot terminate you have to buy unless the contract says that if you do not get a loan approved you can cancel. Here is the link from the Department of Fair Trading in QLD am sorry to be the bearer of bad news but if you decide not to buy you will lose the 5% that the contract says. Do you need to get a loan to buy it? Has that loan been approved?
Customer: replied 1 year ago.
Yes I need to get a loan to buy the car.
I contacted Savvy Finance to see how much I could borrow as I just wanted a used car for a small loan amount.
They put me onto there dealer Vehicle Direct to find a car.
They pushed me into this new car.
The said the posit was $550 but asked for $1000 and said I would get $450 back after settlement!
What dose forfeited mean? Where has my money gone?
Expert:  Leon replied 1 year ago.
Good MorningForfeit means you lose it. You have to pay it. Did you tell the dealer that you were borrowing the money?Do you have anything in writing from Savvy Finance recommending this dealer?
Customer: replied 1 year ago.
Savvy finance got Vehicles direct to contact me.
forget it.... This going no where
Expert:  Leon replied 1 year ago.
Good AfternoonThe contract you have signed binds you to buying the car. The dealer should have made the contract subject to finance and I would suggest you contact them and have it changed. Once you then get a letter from Savvy Finance that your finance has not been approved you can terminate and get your money back. If your finance is granted then you have to proceed. The link I have sent you explains what your rights are and it is not in your favour. I am sorry for not being able to give you better news. Here is the link again. understand it is frustrating, but you have not been advised correctly by the dealer and he has not completed the contract correctly and you can use this to have tit changed. Do not tell them you changed your mind because that is not an excuse you can use under the law to cancel and get your money back. I wish you the best of luck and if there is nothing further thank you for using my services. If I have missed anything, or you have any further questions please let me know If there is anything else in the future please do not hesitate to ask. Please do not forget to leave positive feedback. RegardsLeon