Motor vehicles account for a large amount of complaints handled by the Office of Regulatory Services. The following information will provide consumers with advice in regard to buying a motor vehicle and dealing with motor vehicle repairers.
When you purchase a motor vehicle it will be through a motor vehicle dealer, at an auction or privately. Your rights may differ depending on who you buy your vehicle from.
When considering buying a motor vehicle, shopping around and being informed is important and may well save you money later. It is beneficial to investigate ongoing costs such as credit repayments, insurance, spare parts, servicing and petrol usage, which vary greatly.
If you need to borrow money it also advisable to shop around for the best loan terms. Credit charges can significantly increase the cost of a motor vehicle. If you do need to borrow money but are unsure whther the loan will be approved, ensure the seller writes 'Subject to finance satisfactory to the buyer' on the receipt when you pay a deposit. This means if the loan is not approved you are not obligated to purchase the vehicle.
When you purchase a motor vehicle from a motor vehicle dealer you are protected under the Sale of Motor Vehicles Act 1977 (the Act). The principle benefits include a cooling off period, guaranteed title, and in some circumstances warranty provisions.
The cooling off period is three clear business days from the time of purchase in which you may reconsider the purchase of a new or used motor vehicle. Saturdays, Sundays and public holidays are not considered business days. If you decide to terminate your agreement you must do so in writing which must be received by the motor vehicle dealer within the three day cooling off period. Deposits are not totally refundable if you decide to terminate the agreement. Under the Act a dealer is entitled to retain $100 or 1% of the purchase price, whichever is the greater amount.
A motor vehicle purchased through a motor vehicle dealer has clear title, meaning you are protected against another party claiming a financial interest in the motor vehicle.
The Act requires motor vehicle dealers to provide a warranty in certain circumstances. The motor vehicle dealer must repair any defects that occur during the warranty period so the car is in reasonable condition relative to its age and the distance travelled. Purchasers receive a three month or 5,000km warrantly on all used cars less than 10 years old that have travelled less than 160,000km. Neither you or the motor vehicle dealer may sign away the warranty rights.
Things not covered by the warranty include tyres, batteries, perishable items such as brake pads and wiper blades, accessories fitted after manufacture such as stereo systems, damage caused by accidents, misuse or negligence after delivery, damage to paintwork or upholstery after delivery, tune-ups or services and tools.
It is important to take great care if you intend to purchase a motor vehicle at an auction and take the same precautions as if you were buying the motor vehicle privately.
If a motor vehicle purchased at auction has a problem you will only be able to seek redress if the auctioneer deliberately misrepresented the motor vehicle. If the motor vehicle was sold at an auction on behalf of a licensed motor vehicle dealer the purchase may be covered by the warranty provision under the Act.
If you purchase a motor vehicle privately there is far greater emphasis on you as the buyer to consider your purchase as the Act does not apply to privately sold motor vehicles. There is no cooling off period or warranty provisions. If you purchase a motor vehicle privately this office is unable to assist you if there is a problem.
You should ensure there is no money owing on the motor vehicle. If money is owing you risk having the motor vehicle repossessed by a previous owner's financial institute. You should:
If you leave a deposit you should ensure both you as the buyer and the seller agree about what the deposit means. A deposit usually means that an agreement has been reached about the sale of the motor vehicle, however this may be subject to certain conditions such as a REVS search or a mechanical inspection. You should determine in writing before leaving a deposit whether the deposit is refundable if you do not proceed with the purchase.
The following tips may assist when purchasing a motor vehicle:
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