Sugarcane Posted March 19, 2014 Share Posted March 19, 2014 I need a little advice here. I paid $500 holding deposit to buy a car for $44000. While looking for finance the finance company put me through to a car broker who got me a deal for the same car for $700 cheaper with added accessories worth $2000. So the broker's offer is about $2700 cheaper. But the first dealer whom I paid the holding deposit is trying to force me into buying the car. They are saying by putting the holding deposit in, I'm obliged to buy the car even though I haven't signed a contract on paper. To complicate the things a bit I'm buying the car in my company name. I did give my company name and ABN to the first dealer so that they can put it on the contract (that I officially didn't sign on paper). So what do wise people think about it? Am I obliged to buy the car from the first dealer as I paid the holding deposit? Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 Each state is different but I'm thinking you are in NSW. Firstly if you have not signed a contract they cannot force you to buy the car, you may however lose your deposit. Check this though as I'm sure you may have grounds to get your deposit back. Take a look here and give them a call they will tell you immediately where you stand. http://www.fairtrading.nsw.gov.au/ftw/Consumers/Motor_vehicles/Steps_to_buying_a_car/Finance_and_contracts.page? Please let us know how you go on Link to comment Share on other sites More sharing options...
Sugarcane Posted March 19, 2014 Author Share Posted March 19, 2014 Each state is different but I'm thinking you are in NSW. Firstly if you have not signed a contract they cannot force you to buy the car, you may however lose your deposit. Check this though as I'm sure you may have grounds to get your deposit back. Take a look here and give them a call they will tell you immediately where you stand. http://www.fairtrading.nsw.gov.au/ftw/Consumers/Motor_vehicles/Steps_to_buying_a_car/Finance_and_contracts.page? Please let us know how you go on Thank you The Pom Queen. The fair trade office advised me that it's a grey area. Paying the holding deposit itself might be equivalent to signing a contract. However to look into the matter fully they want to me lodge a formal complaint. That would take about 3 weeks. I wonder if anyone knows more into the legal side? Or any alternatives to get the first dealer to cancel whatever they call a buying contract. Link to comment Share on other sites More sharing options...
Sugarcane Posted March 19, 2014 Author Share Posted March 19, 2014 At the same time a few other people are saying since I didn't put pen to paper, they can't force me to buy the car. Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 So what if you had been refused finance? Link to comment Share on other sites More sharing options...
Sugarcane Posted March 19, 2014 Author Share Posted March 19, 2014 In that case they'd have returned me the deposit. Anyway I went and told them that I have been in touch with NSW Fair Trading office. That seemed to put them on the defensive a bit. They agreed to cancel the deal and return the deposit without much fuss after that. Happy endings... Link to comment Share on other sites More sharing options...
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