Seek Advice to Get out of New Car Sale Contract

LKnighthuang on 24/11/2018 - 21:51
Last edited 26/11/2018 - 23:01 by 2 other users

Hi Guys,

I'm seeking for some opinion to walk-out with a new car sales contract, that I had signed a sell contract and it was "subject to finance" on last Saturday.
The dealer called on Monday advise that I did not get approved from the financer and requested to provide Centerlink statement to meet capacity. The FTB benefit was under my partner's name and she refuses to support this statement.

Will I be able to walk-out this contract provide that:
1. I'm not able to submit FTB income statement due to it was applied by my partner and I do not have the right to access her account.
2. The car I deal with is a minor hail damage vehicle. Could this vehicle be considered as demonstrate car? We actually had a test drive on it. (So I may meet 7 days cooling-off period under QLD law.

Thank you for comments guys!

Automotive

Comments

  • [Deactivated] on 24/11/2018 - 22:39
    +42

    Hold on, you're unemployed, and you are trying to buy a car? And you've tried to buy it in your partner's name, without her permission? And you want help?

    • ozhunter on 24/11/2018 - 23:02
      +11

      Family Tax Benefit (FTB) is a payment that helps eligible families with the cost of raising children.

      He's not on Newstart lol

    • Peter Enis on 24/11/2018 - 23:02
      +9

      But it's got Hill damage!

      • Dr Techno on 25/11/2018 - 00:18
        +8

        it will buff out, OP will just need to avoid all future hills.

        • tomsco on 25/11/2018 - 00:20
          +3

          What about mountains?

          • resubaehtgnolhcs on 25/11/2018 - 00:34
            +4

            @tomsco: don't make a mountain out this … it's only a hill!

          • Dr Techno on 26/11/2018 - 02:16
            +1

            @tomsco: Oh boy! I didnt think of that one. The fear of mountains will turn any upholstery brown :P

      • Knighthuang on 25/11/2018 - 20:48

        Sorry for my poor English.
        I mean Hail damage vehicle.

        • DangerNoodle on 26/11/2018 - 14:41
          +1

          You should get an estimate for the cost of repairs for the hail damage. If you plan to get comprehensive insurance, a lot of insurers will refuse to cover a vehicle with pre-existing damage.

          • nayfon on 27/11/2018 - 10:36

            @DangerNoodle: hail damage (depending on the amount) would be an exception. They wouldn't cover any additional hail damage claim.

    • Knighthuang on 25/11/2018 - 20:45
      +1

      Sorry for my poor English.
      I had a full-time employment. But did not meet the finance capacity, therefore Dealer requested to have FTB for supplement.
      I like to cancel the deal and that's why seek some opinion here.

      • [Deactivated] on 25/11/2018 - 21:32
        +4

        Why would you even consider a car you can’t afford in the first place?

        • Knighthuang on 25/11/2018 - 21:45
          +1

          My bad! I thought I can afford it, with my income.
          The question is finance did not approve it and requested FTB income statement.

          I understand that with FTB, I will be approved. But my partner had concern and don't want to provide FTB

          • [Deactivated] on 25/11/2018 - 22:37
            +27

            @Knighthuang: Sounds like you've got a great relationship, and a head for finance. Best of luck to you.

            • HighAndDry on 26/11/2018 - 13:44
              +7

              @[Deactivated]: Sounds like OP's partner has a good head for finance, and OP should run more of their (large) spending decisions past them first before signing contracts.

            • T1OOO on 26/11/2018 - 20:00
              +1

              @[Deactivated]: One to watch on the fast movers rich list for sure.

          • kingmw on 26/11/2018 - 12:21
            +1

            @Knighthuang: Your partner is wise and if you need to stretch your finances (including FTB) to buy a new car then I would definitely reconsider a) whether you need a new car b) getting a cheaper or second hand car.

  • spackbace on 25/11/2018 - 01:44
    +34

    Options:

    1. Yes, you can tell them you're not putting the finance in joint names, hence you're unable to obtain finance yourself
    2. If you have a cooling off period, use it to get out of it.
    3. Don't mean to judge, but if there is any mental incapacity to understand a contract then you can legally get out of it.

    Take your pick

    (I'm a car salesman)

    • ihbh on 25/11/2018 - 06:46

      How would OP or someone demonstrate/prove 3.?

      • JIMB0 on 25/11/2018 - 08:28
        +51

        Hill damage

        • tomsco on 25/11/2018 - 08:47
          +16

          If there’s hill damage, they may want to check under the bonut to see the extent of it.

          • Wallyt99 on 27/11/2018 - 23:12
            +2

            @tomsco: I wonder if this is a high yield investment vehicle?

      • spackbace on 25/11/2018 - 14:47

        Disability pension could be an easy one without going to court.

        Most dealers would rather let you walk away than go through the court process if it's not an easy case. If it's just a simple "I don't want this any more" then be prepared to pay up to 15% or go to court, but if there's reasonable reasons and you notify them asap they'll let you out and re-advertise the car.

        • Knighthuang on 25/11/2018 - 20:58

          Would Family tax benefit consider as disability pension?
          Dealer did mention to pay 10% contract price.

          • tryagain on 26/11/2018 - 14:01
            +1

            @Knighthuang: No

          • bmerigan on 27/11/2018 - 21:34

            @Knighthuang: What..? No.
            FTB is an income supplement for raising children. Children are not a disability.
            Also, YOU don't receive the FTB so YOU can't list it as YOUR income.

            Since it is pending finance, and you didn't get finance approval, I don't actually understand what the problem is now.

    • Knighthuang on 25/11/2018 - 21:28

      Thanks Spackbace.

      1. Dealer advise FTB income statement is for financer to evaluate.
      2. There is no cooling off period for new car in QLD. Since you are a salesman, will this hail damage vehicle meet DEMO car? provide that it was in the showground and been test drive?
      3. I'm not certain if I may used mentally incapacity to understand a contract to get out of it.

      I assume I may walk-out the contract only if this car does met DEMO car, then I may have this 7 days cooling off period.

      • spackbace on 26/11/2018 - 00:19
        +12

        Don't get hung up on the demo side of stuff.

        The inability to obtain finance is your easy way out. You've already had your application rejected once.

        Funny thing is, comprehensive insurance is a requirement for finance. You may struggle to insure a hail damaged car.

        I'd be looking into that also :)

        • Name on 28/11/2018 - 14:42
          +1

          Nah, you can get comprehensive insurance for hail damaged cars.

          I've got it. They just won't cover repairs to the panel that has hail damage, or they'll look at the costs. So for example.. $1000 to repair a panel, but it'll cost $400 to fix the hail damage on that panel. So you pay $400 and they'll pay the remaining $600. Atleast that is how it works with my insurance company.

  • PinzVidz on 25/11/2018 - 03:35

    So I may meet 7 days cooling-off period under QLD law.

    There is no cooling off period on new vehicle purchases in QLD. If it is used, the cooling off period expires the following business day at 5pm.

    • ozhunter on 25/11/2018 - 05:12

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

      Correct, but for used cars

      Cooling-off period form
      Before you sign the contact, the dealer must fill out and give you the cooling-off period form (PDF, 172KB).

      If you don’t get this form, the dealer must give you a 7 day cooling-off period instead of 1 day.

      • Knighthuang on 25/11/2018 - 21:16

        The issue is this hail damage car has not register. but it was demo on the show ground. Not sure if this meet demonstrate car?

        • Austaurean on 26/11/2018 - 08:47

          Its not a Demo car.
          A 'Demonstrator' vehicle is a car that is registered by the dealer and notified to the manufacturer as a demo.
          or at least notified with a 'TBA' rego number, although not actually registered.
          A 'New' vehicle is an unregistered vehicle that is not notified as Sold or Demo to the manufacturer and
          may be on in transit or at the yard and may also be driven on a dealers plate for a test drive.
          Again, a new vehicle being driven to test drive does not qualify it as a 'Demo' vehicle.
          source, ex New Vehicle Sales person 1 x franchise, then New Car Sales Manager 2 x franchises, then Fleet Manager 5 x franchises.
          from 10 years ago…

          If you signed for the car in your name only, then your partners income has nothing to do with your purchase or finance application.
          Plus as others have said, FTB is a payment for the children
          If car is in both names, then the dealer may argue that you have not taken all reasonable steps to gain said finance if both purchasers incomes are not taken into account.

          • Knighthuang on 26/11/2018 - 12:04

            @Austaurean: My partner did not involved into this sell contract and finance application.
            She refused to provided statement and I can't get access with her account.

  • Daabido on 25/11/2018 - 08:14
    -2

    Non est factum.

    • Knighthuang on 25/11/2018 - 21:50

      Thanks for comment.
      not an easy task, wasn't it.

      • Daabido on 25/11/2018 - 21:54

        Huh?

        • Knighthuang on 25/11/2018 - 21:55

          Non est facturm.
          not an easy task to do so, wasn't it?

          • Daabido on 25/11/2018 - 22:01
            -6

            @Knighthuang: Did you actually look it up with the correct spelling? it might relate to Spackbace's number 3 option.

            Taking advantage of the finance option is probably easier done though. You failed finance, you take advantage of that clause, you're out.

            • Knighthuang on 25/11/2018 - 22:20

              @Daabido: Thanks.
              I'll seek legal advise of using "Non est facturm" but I think this will take time and may need to go to court? that will be even costly. Right?!

              Hopefully, I can used finance option to get out of this contract.

  • Chewie on 25/11/2018 - 08:43

    As a side thing, why are you looking at getting a new car if you have to look at part financing from FTB? Is this for Uber use? You can get a used car that might be closer to your financial constraints and still get a car young enough for Uber-ing.

    • Knighthuang on 25/11/2018 - 21:31

      No, I never thinking of used part of FTB to excise finance, in fact. I only provide my income detail to seek finance.
      My partner is right, FTB is for children!

      • HighAndDry on 26/11/2018 - 13:45
        +7

        You also should not be financing a car purchase, period.

  • Ace Ventura on 25/11/2018 - 17:14
    +11

    You didn't get finance, that's your out, they cannot force you to pad an application to try and get through finance. They are simply trying it on. You only need to fail one finance application, they cannot force you to make multiple applications.

    Simply respond saying as per the subject to finance clause I will be cancelling the contract, I will not be purchasing the car. Done, dusted.

    • Knighthuang on 25/11/2018 - 21:41

      I'm not sure if it is one application or multiple. Here below were the mail form Dealer:

      Dealer wrote: What the financers require is Centrelink income statement or family tax benefit statement to meet capacity.
      Your wife’s tax return or PAYG statement will also help with showing that capacity.
      You should be able to access your Centrelink income statements through the app on your mobile, online or calling Centrelink themselves for them to email you the information required.

      There is no capacity to borrow without any additional income. Please send Centrelink income statement you can get from the Mygov app.

      I therefore reply: Thanks for your effort on my finance, after long discussion with my wife and seek other financial support. I'm regret that I can't provide more income support.
      Since I can't get finance, may I request to cancel this sale deal, please.

      But Dealer refuse and continuously requested FTB income statement. Dealer told me that they did nothing wrong and if I want to cancel this contract then I'm facing 10% sell penalty which is near 5000.

      • Daabido on 25/11/2018 - 21:59
        +10

        Stop replying to their emails, except to state you failed finance, are taking advantage of the finance clause to nullify the sale contract and are seeking legal advice. Then go to a local community legal centre and get proper advice.

        Keeping on replying will just make it all the more difficult.

        • Knighthuang on 25/11/2018 - 22:16

          Thank you!
          I will seek legal advise tomorrow. I believed this is the best option.

          In the sell contract, it only stated BALANCE OF $*****.** to be settle by
          Would it be better advantage if:
          1. if I requested Dealer to full amount of finance? I may have more possibility to be reject by the financer?
          2. in the contract, it did not state the time-frame to completed finance. would this affect this sell contract enforcement?

          By the way, on the contract, it stated "delivery must be by close of business in current month unless otherwise stated". and "Subject to Finance".

      • Ace Ventura on 26/11/2018 - 14:04

        They are just trying it on, they know they don't have any recourse.
        "as per the subject to finance clause, As I have failed my initial finance application, I am cancelling the contract. I am not liable for any penalty as per our contract. (assuming all is true of course). Please cease contact with myself and family, any further requests will be forward to my legal representation."

      • brendanm on 26/11/2018 - 22:38
        +5

        Holy hell you were trying to buy a $50k car that has hail damage and you failed finance? You need to do up a budget or reprioritise some things.

        • Aceboy884 on 27/11/2018 - 22:26
          +1

          I was going to say the same, the stupidity is beyond imagination for someone with low or no income.

  • canyoudoitcheaper on 25/11/2018 - 23:04

    Have you put down a deposit on the car? If you walk away from the contract you would be forfeiting it

    • Knighthuang on 26/11/2018 - 11:55

      Thanks, I had deposit 1000. I hoping to walk out the contract without further financial damage.

  • Typical16-bitEnjoyer on 26/11/2018 - 08:36

    Who's the finance through? Contact them directly. Tell them your wife refuses to provide FTB statement (not you.) Ask if finance is approved. If not, ask for written confirmation. Take written confirmation to dealer. End thread.

    • Knighthuang on 26/11/2018 - 11:52

      I finance through the Dealer. I don't know who they finance with. I'm not sure if I may get this info from Dealer.

      • Typical16-bitEnjoyer on 26/11/2018 - 12:32
        +4

        You haven't looked at a single piece of paperwork when buying this car have you? Probably a good place to start. You're buying a ~50k car, with hail damage, on finance, partner on centrelink - you should probably pay a bit more attention to the finer details.

        • Homr on 26/11/2018 - 15:59
          -5

          how you know he is buying a $50K car???

          • ozhunter on 26/11/2018 - 16:00
            +1

            @Homr: From OP previous comment "Dealer told me that they did nothing wrong and if I want to cancel this contract then I'm facing 10% sell penalty which is near 5000."

              • Typical16-bitEnjoyer on 26/11/2018 - 16:43
                +5

                @Homr: Nice. Questions why I know a relevant fact then states they didn't even read OPs posts fully. Cool.

                  • Ughhh on 26/11/2018 - 17:42
                    +1

                    @Homr: Who likes to spoon feed an adult like a baby?

      • Tightpocket on 26/11/2018 - 13:01

        What car brand is this? it helps as most dealer either have their own financing team or thru the bank, some of us probably can tell you just by knowing the brand of the car.

        • No ONE on 27/11/2018 - 18:57

          May be Toyota Kluger! 😂

  • h4zey on 26/11/2018 - 10:10

    take them to court, nah just kidding.

  • Cluster on 26/11/2018 - 14:00

    BTW, for anyone thinking of signing a contract and putting "subject to finance" on it as a get out clause, it's completely worthless. You might not be able to get finance for the car at a reasonable interest rate, but there's nothing stopping the dealer engaging a lender of last resort with extortionate interest rates and saying "there, finance is available, pay up!"

    • spackbace on 26/11/2018 - 14:06
      +5

      Actually not true, if they go to a broker to a shitty financier you have the right to pull out.

      Back of our contract in the fine print:

      Where this Contract is subject to the Purchaser obtaining finance, the Contract is conditional upon the Purchaser obtaining approval for the granting of a loan:
      C) from the lender named in the Contract (or a lender acceptable to the Purchaser).
      D) upon reasonable terms and conditions in the circumstances.

      That fine print is designed to protect both sides.

    • rompastompa on 26/11/2018 - 14:23

      I can't remember exactly what, but I believe you can write something like, "Subject to personal finance". That way, you can get out of the deal if you're not using the dealer's finance.

      Though, you shouldn't be in this position unless you've done your due diligence and make sure you want the deal, and can afford the finance repayments.

      • Typical16-bitEnjoyer on 26/11/2018 - 16:45

        You should always state the lender in the contract. Protects you from this scenario. Nothing stopping you from obtaining finance elsewhere.

        • rompastompa on 26/11/2018 - 16:48

          Ahhh, that's probably what it was. Subject to finance from my x bank/lender. And, especially if you're already a customer, you can tell your lender to not give you finance.

    • Ace Ventura on 26/11/2018 - 14:27

      Wouldn't you have to sign said application?
      You should have called to nullify the contract based on the first application failure.

  • Knighthuang on 26/11/2018 - 15:49
    +12

    Hi guys,

    Thank you all for the valuable comments.

    Like to update that Dealer had send a refund form to fill and they will proceed to refund my deposit back into my bank account.
    I guess I have walk out this contract?

    Thanks again for all the valuable comments and Yes, I had learn my lesson!

    • Homr on 26/11/2018 - 16:04
      +1

      Congrats

    • Ace Ventura on 26/11/2018 - 17:32

      Well done, don't be surprised if they mess around and take as long as possible to return the deposit, just keep on their back about it.

      • Knighthuang on 26/11/2018 - 20:57

        Thanks.
        As long as I'm walk out the contract, I'll be patient for them to take week or two.

  • wayfastwhitie on 27/11/2018 - 11:25

    What was the car you were looking at out of curiosity?

    • therooftop on 27/11/2018 - 13:10
      -2

      80k investment vehicle

  • paablo84 on 27/11/2018 - 12:31
    +1

    This was a wild ride. Hope OP learned something, damn

  • aussieolfaction on 27/11/2018 - 14:36

    John Cadogan just uploaded a video that answers this very question: https://www.youtube.com/watch?v=jbRv8Mrc8SM

    • spackbace on 27/11/2018 - 15:01
      +2

      Umm, he doesn't actually give any advice in that video, just his usual crap.

      1. if you've paid a deposit, you've also signed a contract. You're well aware that you've bought a car, you haven't been swept up in anything
      2. it's not often a salesperson will say that it's fine for you to pull out etc. Those salespeople don't last long in their jobs.
      3. dealerships can and will go for up to 15% of the purchase price. It's there in the conditions we showed you and you had the opportunity to read. We don't care if it goes to court, that's handed off to the legal team

      Fact is, don't sign something you are unsure about. That applies to so many facets in life. If you can be coerced into signing a contract, you should have a good hard look at yourself.

      • aussieolfaction on 27/11/2018 - 16:01

        Fact is, don't sign something you are unsure about. That applies to so many facets in life. If you can be coerced into signing a contract, you should have a good hard look at yourself.

        Agreed 100% with these statements.

        I'm not sure how much of Cadogan's video the OP will find useful, but figured there's no harm in forwarding it his way.

      • gtech on 27/11/2018 - 20:08

        "If you can be coerced into signing a contract, you should have a good hard look at yourself."
        Typical salesman comment

        • spackbace on 27/11/2018 - 20:25

          You realise how much time we spend with a customer before they sign? It's not like you walk in the door and we shove a contract under your nose. Hell even the data entry required takes a good 5-10mins to do before we print it out. Then you go see another person who congratulates you on your purchase, and asks you for $500-$1000 cash.

          And you'd still leave wondering if you bought a car?!

    • brendanm on 27/11/2018 - 16:21

      Imagine watching this guy unironically.

  • popcornready on 27/11/2018 - 20:34

    Still curious as to the make and model of the car

  • Arcticsoldier on 27/11/2018 - 21:18

    I was in a similar situation. My bank didn't approve finance but their finance company did but with higher interest rate. I declined but they tried to make me get the car. Went to court and won. It was subject to be getting finance by me, not the dealership.

  • Tuukmaak on 28/11/2018 - 00:15

    Hey I was actually convinced this was a troll post… In any case it was an interesting read.

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