Can something be done?

Sshanaz on 03/11/2014 - 21:26

Long story cut short I purchased a car from Toyota car dealer and it was also financed through Toyota.

I was happy with the car upon testing however when I spoke with financer, he told me to put $500 deposit which is non refundable because he was going to do all the paperwork and organize the finance. I was offered 15% rate because I was working casual and when I raised concerns I was eventually offered rate of 12%. I was unaware of rules at that time and being a student I was scared of losing $500 so I accepted their 12% rate.

I guess their conduct was deceptive as they cannot keep my deposit if I dont want to proceed with the deal. I want to get your suggestion if I am wrong here and action could be taken.

Automotive

Comments

  • boonanza on 03/11/2014 - 21:31

    Was the finance at the Toyota dealer or did you source finance elsewhere?

    • Sshanaz on 04/11/2014 - 07:56

      Toyota finance

      • Baysew on 04/11/2014 - 14:18
        +1

        Oh what a feeling ?

  • Logical on 03/11/2014 - 21:48

    What are the contract provisions in relation to termination of contract?

    • Sshanaz on 04/11/2014 - 07:57

      Have to pay early exit fees.

  • Logical on 03/11/2014 - 21:56

    So you have the car and a 12% loan? Do you want to give the car back and rescind the contract? or do you want to take on the financier about the 12% rate being too high? Is your contract for the car 'subject to finance'? If you accepted the 12% rate then you accepted the finance and the car is legally purchased.

    • Sshanaz on 04/11/2014 - 08:02

      I proceeded with finance only because I did not want to lose my $500. I was told by the finance person of toyota dealer that they will not refund deposit because they have done hard work to do paperwork.

      This is deceptive because what if they offered 40% interest and I dont take it, it implies I will lose $500 just because he completed two forms.

  • battler on 03/11/2014 - 23:00

    "Unaware of rules" suggests ignorance, possibly contradicting "conduct was deceptive"

    How have they been deceptive?

    • pao2x on 03/11/2014 - 23:35

      Not disclosing the loan rate and requiring a $500 deposit before disclosing it is deceptive. In what planet is that not deceptive?

      • Sshanaz on 04/11/2014 - 08:04

        Deposit was taken before disclosing the rate and I was advised that they will not refund it if they go ahead and put through my application for loan.

        I never realised I will be offered 12% rate as I was expecting around 6%.

        • battler on 04/11/2014 - 08:12

          Agree, deposit before disclosure is deceptive.
          OP's initial comments did not make that clear, but now it has been clarified.

        • Sshanaz on 04/11/2014 - 09:42

          @battler:
          where I can complaint and raise my concern?

        • pao2x on 04/11/2014 - 12:05

          @Sshanaz:

          You should raise the issue with the sales agent who sold it and told you to deposit $500. If he/she does not help you get it back or negotiate an acceptable rate say that you will take them to the ombudsman or ACCC.

  • Cheeper on 03/11/2014 - 23:57

    Difficult for me to figure out the exact problem here??
    It looks like the op signed the agreement and paid his deposit so he would not miss out on the reduced interest rate he negotiated?? If so, then what is the problem?
    Is the op now having second thoughts about the deal and now looking for a way out?
    Sounds like he may have gone in for a "look" and a slick salesman led him up the aisle to the commit to purchase stage?

  • Ughhh on 04/11/2014 - 12:46
    +3

    Never assume anything, especially if it involves money and signing something.

  • mini2 on 04/11/2014 - 13:05

    Sorry to sound a little harsh but…didn't you talk to those "business manager" up front about the loan, terms, rates, fees payable, early exit stuff etc? I don't know about you but I wouldn't dare even slapping a deposit until I get an indicative rate from somewhere.

    Didn't shop for finance elsewhere/pre-approved before you gone shopping?

    Try stick a clause in there next time when you make an offer - "subject to finance approval from [insert financier name] at [a reasonable interest rate not 0% comparison rate] or lower".

    Chalk it up as a lessons learnt and move on. Or complain to Toyota head office and see how that go.

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