Ask an expert


Jalexanon40

I signed up for a no deposit finance deal for a car that had finance owing. The local car dealer facilitated it all. So far I have discovered the two key remotes i was told "just needed batteries" have cost $50 to repair, the electric windows don't all work, it is too much per week repayments, it is guzzling gas, I can't fit my band equipment and children into it like I need to, when I put the fan on it blew white flecks of dust all over the interior of the car and the previous owner smoked in it which makes my stomach churn every time I get in the car. Do I have any right of return and contract cancellation whatsoever?

Anon

You should take the vehicle back to the dealer to have the problem with the electric windows seen to and discuss the matter with the key remotes with them. The personal issues you have with the car are not actual faults with the vehicle; you cannot return the vehicle on these grounds.

Jalexanon40

Thanks, but what about the question of the value of the car? I also do not have a copy of the CIN.

ABayliss

I'm not sure what you mean about the value of the car. If you agreed to purchase it at a particular price, it is quite difficult to argue later about the value of the car.
A couple of things that are of concern though.
(1) You said that there is fincnce outstanding on the car. I trust this has been settled with the finance company?
(2) The dealer must give you a copy of the CIN.

Jalexanon40

It was a private seller facilitated by a car dealer (doing it as a favour to the seller, gaining nothing) who organised my finance for $8500 and had the seller's contract paid off (so he could get over to Australia to attend to serious family matters). I purchased a warranty through the dealer and repayment insurance cover. The dealer quoted a value of $10,999 to my finance company and my insurer, making my premiums dearer. I don't quite understand his purpose for doing so. I read some posts on this site that indicated buyers might have grounds to have the sale reversed if they have been misled as to the value of the car.

ABayliss

Generally speaking, you can't return a car just because you decide later on that you're not happy with the price. However, this situation is becoming more complicated and several alarm bells are starting to ring.
If this was a private sale, then you have no come-back - and there will be no CIN. However, this deal really doesn't sound like a private sale - it sounds like the dealer has made money. Definitely, he would have profited from selling you the warranty and repayment policies.
Then there's the matter of the "value" of the vehicle. If you say that the purchase price was $8,500 but the dealer wrote up the agreement as $10,999, this is illegal (it's known as "hydraulicing").
Depending on when the deal was done, there may be some grounds to unwind the finance deal - there's usually a 3 day period with finance agreements.
All in all, while some of your grounds for wanting to reject the vehicle will not be strong enough to reject the vehicle, perhaps there may be other grounds via the finance company as well as the possibility this deal has been illegally hydrauliced.

Jalexanon40

Okay, well it's been just over a week for me to process the situation I've got myself into. There wasn't a written agreement for the sale of the car between the dealer and I, just the credit contract from MTF and the Autosure Policy Certificate which has the odometer reading at sale wrong, too. Should I contact MTF,now?

ABayliss

As it's over a week ago, I don't think MTF can unwind the finance deal, but it seems to me that the vendor is a trader and not a private seller. It seems unlikely he will be willing to take the car back, but in the first instance, you need to make the approach to the dealer.
In the event you have no luck, Motor Vehicle dealers are governed by the MTA, so the best approach may be for you to contact the MTA Mediation Service on 0508 682 633 to see if they can mediate on your bahalf.