$2000 Deposit for a Demo Car Purchase. Refundable? Contract Not Signed

axlfan on 17/01/2022 - 15:05
Last edited 17/01/2022 - 15:22

Hi All,

Just wanted to check with fellow ozbargainers about a few things.

So we ended up deciding to buy a demo prestige car from NSW (we live in VIC) as it has the trim/packages and color we were after. The car is a 2021 model with warranty until 2026.

Also I should say that the few Melbourne CBD dealers we spoke to here seemed to be in a world of their own. One guy is on vacation and wants me to wait without trying to get someone else at his dealership to help me. The folks at Geelong were great but didnt have options. The car is Volvo and apparently they are having a great time now in terms of sales atm. So perhaps good for them!

Anyways, I think we got a decent price (no rego) for it. We put down a $2000 deposit for it via credit card. We have not signed anything yet. Contract was sent on Friday evening.
So my question is if we end up changing our mind, what happens now? Nothing has been signed yet. Do I get back my $2000?

My read of NSW law seems to suggest that if I sign the document, there is a 1 day cooling off period and the dealer can charge $250 or 2% of the car price which ever is lower.

Is this correct?

Edit: I am not really going to cancel this purchase and intend to most probably go through with it. Asking to see my options just in case.

Automotive

Comments

  • Drakesy on 17/01/2022 - 15:09

    You can prepay 5 years of rego?
    Sure thats not warranty?

    It's a deposit, if you break the contract you lose it.
    Otherwise it's not a deposit.

    Grey area regarding the contract not being signed, but surely you got a receipt for the deposit that outlines the sale? if not i'd seriously be reconsidering my priorities in life.

    • axlfan on 17/01/2022 - 15:16
      +1

      Sorry that is factory warranty. The car does not have rego. Looking at close to $4500 in fees in VIC.

      The "receipt" is the contract of sale which records the payment and deducts the $2000 from the balance payable.
      So based on this, if we change our mind now, its goodbye to $2000 made by CC payment?

      • Drakesy on 17/01/2022 - 15:19
        +2

        But yep
        You've pretty much hit the nail on the head

      • HeWhoKnows on 18/01/2022 - 15:38
        +1

        Op says

        "Edit: I am not really going to cancel this purchase and intend to most probably go through with it. Asking to see my options just in case."

        Why are you wasting our time?

        You got the car you wanted, exactly the way you wanted it
        And there is a "just in case" …Really?

        And you know you will lose your deposit if you withdraw.

        Now go and buy your dream car and leave us alone please

  • tonyjzx on 17/01/2022 - 15:16
    +2

    i stop reading at "Volvo"

    i think you did a smart thing with the credit card because you can always do a chargeback

    my opinion is that any talk of a deposit is usually a red flag… i dont care if you're buying a corolla from syd city toyota

    you're always going to have an uphill battle getting your money back… or suddenly your $50,000 car with agreed price is now $52,000…

    • djkelly69 on 17/01/2022 - 15:19
      +7

      i think you did a smart thing with the credit card because you can always do a chargeback

      You can't do a chargeback just because you paid a (potentially) non-refundable deposit and want the money back.

    • axlfan on 17/01/2022 - 15:23

      Haha. Volvos arent bad at all. I did my research and test drove the model I was after. Seems like its have a resurgence in sales in Oz too.

      • Soluble on 17/01/2022 - 15:43

        Got a Volvo from the Geelong guys a couple of years ago, great car! First guy had no interest in selling me a car though.

        • axlfan on 17/01/2022 - 15:46

          Nice! Yeah the Geelong folks were great. Too bad they had limited stock!

      • pharkurnell on 17/01/2022 - 16:25

        I havent seen a Volvo dealer or car on the road in … i cant even remember how long ago.

          • axlfan on 18/01/2022 - 16:22

            @spackbace: With a variance of +29% jump in sales in the last column. :) Which shows it is on the up and up!

            This is a great list btw but it combines all the segments. The famous X3 is just at 60.
            In the medium SUV segment, the XC60 is 3rd this year.

            But regardless if I loved a Citroen and if only 10 other Aussies bought it(which probably is the case) then I would still go with it.

            • spackbace on 18/01/2022 - 16:23

              @axlfan:

              With a variance of +29% jump in sales in the last column. :)

              MG ZS went up 235% so that point doesn't help ;)

              In the medium SUV segment, the XC60 is 3rd this year.

              2nd for over $60k, but nearly 10% of the sales of the RAV4, for example

              • axlfan on 18/01/2022 - 16:25

                @spackbace: No it does being a Medium Luxury segment. Please go back to the list and see the variance for the others in that segment. What does it say for X3, X1, Q5,Q3 and the GL series from Benz?

                And good for MG! Aussies love their Chinese!!!

              • axlfan on 18/01/2022 - 16:47

                @spackbace: But isnt comparison with the RAV4 unfair? Not same segment. Can be compared with the NX300 from Lexus which I think shares some of the RAV4 platform.

                • spackbace on 18/01/2022 - 16:48

                  @axlfan:

                  Not same segment.

                  .

                  Medium SUVs under $60,000: Toyota RAV4 (35,751), Mazda CX-5 (24,968), Mitsubishi Outlander (14,572)
                  Medium SUVs over $60,000: BMW X3 (4242), Volvo XC60 (3688), Audi Q5 (3604)

                  Both classed as Medium SUVs under VFACTS

                  • axlfan on 18/01/2022 - 16:54

                    @spackbace: 2nd category are premium SUV's. So of course they will compare the XC60 with X3 and Q5.

                    If you want to compare a Rav4 with a Volvo please go ahead and feel good about yourself mate.

                    • spackbace on 18/01/2022 - 17:01

                      @axlfan:

                      In the medium SUV segment, the XC60 is 3rd this year.

                      Just correcting errors in your statement…

                      If you want to go making generalised statements, be prepared to admit when you're wrong.

                      • axlfan on 18/01/2022 - 17:17

                        @spackbace: I see it now. It was a typo and I intended to say premium SUV. That would be obvious right?
                        So did it make you feel all warm and good inside to "correct" me.

                        The way some of you jerks have been responding on this thread has made me lose track of why I opened it in the first place.

                        • spackbace on 18/01/2022 - 17:18

                          @axlfan:

                          The way some of you jerks have been responding on this thread has made me lose track of why I opened it in the first place.

                          Yet you're the first with a personal insult…

                          • axlfan on 18/01/2022 - 17:20
                            -3

                            @spackbace: Not an insult if it is true.

                            70% of the replies here are unhelpful with butt-hurt folks asking irrelevant stuff. So you have been on my case because I missed typing luxury/premium.

                            If you feel smart comparing different types of cars go ahead. No more responses. Compare sales of Hot wheels to Volvo while you are at it. If you think Volvo sucks then good for you. Feel good about your achievement for the day.

                            • spackbace on 18/01/2022 - 17:23

                              @axlfan:

                              So you have been on my case

                              Nope, discussion…

                              Maybe take a breath lol

                              • axlfan on 18/01/2022 - 17:24
                                -3

                                @spackbace:

                                Maybe take a breath lol

                                Maybe stop being a jerk lol

  • life is suffering on 17/01/2022 - 15:20

    You will get some of it back. Need to check o. The receipt you got when you paid 2k Or the contract.

    • axlfan on 17/01/2022 - 15:21

      The contract. It records the $2000 being paid and deducts from the balance owed.

  • deme on 17/01/2022 - 15:27
    +5

    Edit: I am not really going to cancel this purchase and intend to most probably go through with it. Asking to see my options just in case.

    Worry about it then

    • axlfan on 17/01/2022 - 15:37

      Could happen pretty fast and want to be ready.

      • Seraphin7 on 17/01/2022 - 15:58
        +6

        You need to be ready before handing over cold hard.

        That said, it appears that you have effectively entered a contract for the purchase of the vehicle. Without knowing what you have and haven't spoken about and/or communicated by email, the payment of a deposit, recorded against a contract of sale, and without any suggestion/evidence that this is not to be taken as such, you may find it difficult to argue the contrary.

        Despite the views of some, the payment of a deposit conveys to you certain rights that have value (and that you consume that value) whether or not you go through with the purchase. Unless specifically allowed by law or contract, I've always assumed deposits to be non-refundable.

        • axlfan on 18/01/2022 - 12:05

          Makes sense thank you. We will be going ahead in any case.

  • life is suffering on 17/01/2022 - 15:28

    I was duped like this too..in QLD the min is 100 dollars but the sales person was like put in 2000 dollars. I didn't do my due diligence

    • axlfan on 18/01/2022 - 12:04

      This is correct. In summary, thats the only thing I wasnt happy abt. In any case the car is great and the price is fair too and so we are going ahead.

      Also, the car matched our specific requirements and so no issues there.

  • spackbace on 17/01/2022 - 15:29
    +3

    Why are you buying a car from a different state than your own?

    • DashCam AKA Rolts on 17/01/2022 - 15:37
      +1

      Thanks for asking. Cheers.

    • axlfan on 17/01/2022 - 15:37
      +1
      1. Lesser options here and higher prices.
      2. Didnt get the same reception here as it looks like there are few dealerships and they are pretty busy.
      • spackbace on 17/01/2022 - 15:45

        You've factored in all on-road costs associated with it?

        The demo is a genuine demo used only by the dealership?

        I'd be surprised if the differences were that great once you strip off stamp duty tbh

        • pharkurnell on 17/01/2022 - 16:25

          Only hire cars get flogged more than demos :D

          • spackbace on 17/01/2022 - 16:32

            @pharkurnell: Not usually

            But the reason for my questions are there's always 'factory demos' found on the used car lot masquerading as a genuine dealer demo, when they're not

            • lovepub on 18/01/2022 - 09:15

              @spackbace: What's the difference and bad about factory demo and dealer demo?🤔

              • kiitos on 18/01/2022 - 11:38

                @lovepub: Would like to know too

              • spackbace on 18/01/2022 - 11:49
                +1

                @lovepub: Warranty, general treatment.

                Genuine demo - warranty starts when it goes into your name, you'll be the first person in the book
                Factory demo - warranty already started, could have been used as a press demo etc

                Depending on the type of car, that could mean it's been used on a track day or anything.

                • axlfan on 18/01/2022 - 11:57

                  @spackbace: Correct. Ours is a factory demo and warranty started on June '21. Ends on June '26.

                  Also comes with roadside assist until '29

        • axlfan on 18/01/2022 - 11:57

          Correct mate. I think we have saved $1500-2000 for sure. As I said the wife threw a spanner into the works by asking for a specific trim and options.

          That car was only in the NSW dealership. Interestingly, the day after we paid this deposit, a similar car was listed at a VIC dealership but for a very higher price. $11k more but that was a driveaway price. The same dealership was listing cars without prices and when I enquired, it went to the guy who asked me to wait until next week when he got back from vacation. So with this wonderful customer service in VIC, decided to go with nsw.

  • Euphemistic on 17/01/2022 - 15:38
    +1

    What does the contract say?

    • axlfan on 18/01/2022 - 10:35

      If the Purchaser fails to take delivery of the Vehicle, defaults in payment of the Balance owing to the Dealer or is otherwise in breach of this Agreement, the Dealer may terminate this Agreement, and: (a) the
      deposit paid by the Purchaser or 10% of the Purchase Price, whichever is the greater, will be forfeited and/or become due and payable to the Dealer; (b) the Dealer is entitled to reclaim possession of the
      Vehicle and the Dealer and/or its agents are entitled to enter the Purchaser’s property for that purpose; (c) the Dealer will attempt to re-sell the Vehicle; and (d) the Purchaser is liable to pay the Dealer by way
      of liquidating damages the amount by which the Balance owing exceeds the actual re-sale price of the Vehicle (less all sale expenses) and any amount forfeited to the Dealer under (a).

      We have not signed anything.

  • AndyC1 on 17/01/2022 - 16:41
    -2

    Gave up as you have not read the contact…. Come back after reading it as contracts can have clauses added or removed on cooling off periods and we are not mind readers.

    • axlfan on 18/01/2022 - 11:53
      -1

      Whatever gave you that idea? Also the contract has not been signed so how does it matter?

      • AndyC1 on 18/01/2022 - 12:28

        The contact will have the info you are asking about.

  • godofpizza on 17/01/2022 - 16:49
    +4

    Why didn't you ask these questions when you paid your $2000?

    • axlfan on 18/01/2022 - 10:34

      When my time machine arrives, will be sure to ask my 2 day old self this question.

      • godofpizza on 18/01/2022 - 11:48

        why don't you just call up the person you left the money with and ask them?

        • axlfan on 18/01/2022 - 12:02
          -1

          Dude they will give a biased reply in all probability right? I simply asked this Q to check options just in case we need to back out.

          The mistake I did was the $2000 payment without checking what the legal deposit is which as it turns out should be the lesser of $150 or 2% of the car price in NSW. Now I know :) That's the only dodgy thing about this purchase so far.

  • salmon123 on 17/01/2022 - 17:03
    +2

    If you don't sign the contract, the dealership will most likely give you your money back.

    They have better things to do, than get into a p*ssing contest / credit card charge backs / arguments over XYZ etc.

    Car purchase contracts are more relevant for new build-to-order cars, where there might be a several week/month lead time between ordering and delivery. If you were to cancel this contract, the dealership might finish up with a car that they have to sell at a loss.

    When you're buying a car that's already on the lot, ready for delivery, but change your mind, the dealership can easily sell it to someone else. The one exception is if the car is already registered in your name, then you'll probably lose some money.

    • axlfan on 18/01/2022 - 10:33

      Thanks and makes sense.

  • MoshPitShaq on 17/01/2022 - 17:26
    +1

    One guy is on vacation and wants me to wait without trying to get someone else at his dealership to help me.

    They want their commission…

    • Seraphin7 on 17/01/2022 - 18:44

      100% correct. The shenanigans I've seen go on between "colleagues" at dealerships is quite hilarious.

    • axlfan on 18/01/2022 - 10:32

      Not only that but the price was inflated or the price was listed as "upon application" so that precludes any research into fairness before negotiations.

  • MS Paint on 17/01/2022 - 21:16

    Volvo is Chinese shite these days

    • axlfan on 18/01/2022 - 10:32
      +1

      Sorry but that is your ignorance. Geely owns Volvo similar to how Tata owns Land Rover and MG is owned by another company.

      But the core designers and technicians are based in Sweden and are from the original Volvo setup. My car is made in Sweden too and has won tons of awards. Is also considered one of the safest cars in the world.
      https://www.volvocars.com/au/why-volvo/our-awards

      Test drove a ton of other similar cars including the BMW X3 and found this better than all of them (in my opinion of course). Dont know about other models but this one seems to built to last.

      • life is suffering on 18/01/2022 - 12:07

        On XC90 made in Sweden nowadays

        • axlfan on 18/01/2022 - 13:32

          Incorrect and do you have a source? Australian bound XC60s are also made at the Gothenburg plant in Sweden.

          Also, even if they were made in China, I cannot generalize and state that the car will be of low quality.
          My BMW motorcycle was made in India and it has the same quality checks as those made in Germany.

          But good to know that everything you own is made in Australia or the western world.

          • spackbace on 18/01/2022 - 13:51
            +1

            @axlfan:

            Australian bound XC60s are also made at the Gothenburg plant in Sweden.

            Have a source?

            Although not definitive, Redbook puts country of origin as China

      • MS Paint on 18/01/2022 - 13:38
        +1

        and has won tons of awards.

        Sorry but that is your ignorance. They don't win them. They almost always buy them.

        Car Sales Highly Recommended - 2018

        Things like this don't mean anything. Marketing bulltish

        • axlfan on 18/01/2022 - 13:41
          +1

          Could be but I test drove all the contenders and loved this and the rest does not matter. Having owned a Hyundai (still own this),Lexus and Honda in the past I feel I have a varied experience to make this judgement.

          https://www.goauto.com.au/news/volvo/volvo-ends-2021-as-fast…

          You may say that the above article is also purchased and the Earth is flat but this can be verified by VFACTs car sales. Its good to see that others see the potential in the Volvo SUV's which in the medium segment is only behind X3 and Q5(giants of this segment).

          But like I said, after test driving all the rest including our all time fav Lexus, this was the car we loved so that's that I suppose.

        • axlfan on 18/01/2022 - 13:42

          Volvo is Chinese shite these days

          Yes this has profound meaning and in a thread where I am asking for a different thing altogether.

  • OzHunterNSW on 18/01/2022 - 15:17

    Good bye deposit…. that is what it was…. so now you forfeit your deposit bc you changed your mind placing the seller in a precarious position

  • axlfan on 18/01/2022 - 16:28

    On a side note, are there any other ozbargainers who own a XC60, 40 or 90? :))))) I thought I saw some threads discussing them previously when I barely knew that Volvos made SUVs.

  • axlfan on 16/04/2023 - 10:55

    Fast forward more than a year and we are very happy with the purchase. See a lot more Volvos on the road now. But more importantly, the car has been safe, dependable and a joy to ride.

    From sales figures: https://www.carexpert.com.au/car-news/what-are-australias-to…

    Premium medium SUVs

    Mercedes-Benz GLC SUV and coupe – 2513 sales
BMW X3 and X4 – 2413
Volvo XC60 – 1707
Audi Q5 – 1494
Lexus NX – 1461

Volvo XC40 – 2269 sales
Mercedes-Benz GLA – 1307
Audi Q3 – 1247
BMW X1 – 1176
Lexus UX – 475
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