Cancelling a Vehicle sales agreement, can it be done?

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Loismustdye

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#311899 25-Feb-2024 00:33

We signed a sales and purchase agreement for a brand new vehicle, however I am having second thoughts about it and feel I need some more time to think about it and I am now wondering whether the agreement can be cancelled if no money or keys have changed hands.

the details: we had a trade in on a new vehicle (this was only done today), no deposit has been paid, we haven’t taken possession and we haven’t handed over our vehicle. All that is happened is we have a sales and purchase agreement signed by us both. We had some things to sort with the bank first and in doing so we (myself) have got some reservations about the vehicle chosen. We did ask for some accessories (bonnet protector, tow bar, and a canopy although that’s a few weeks off) for the Ute and as it was late today I assume the dealer won’t have done these and possibly won’t till the workshop is open on Monday but would need to check. If these are fitted I’m aware we will need to go through (fair enough).

Can it happen or are we now committed?

It’s nothing to do with the sales or anything at all like that (dealer and salesperson was pretty good and easy to deal with to be fair) just my own personal apprehension.

Has anybody had any experience with this (the contract not me being a wuss)?

cheers

elpenguino

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#3199619 25-Feb-2024 00:54

Pretty sure there's a legal cool off period when buying a vehicle. There's mention of one here: See if you meet the conditions given. Always good to discuss things with the dealer too, ASAP.

https://www.consumer.org.nz/articles/car-buyers-rights#:~:text=When%20taking%20out%20a%20loan,agreement%20to%20purchase%20the%20car

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Wheelbarrow01

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Chorus

#3199625 25-Feb-2024 04:58

What does it say in the terms of the agreement you signed? I assume they gave you a copy?

Handle9

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#3199658 25-Feb-2024 07:43

elpenguino:
Pretty sure there's a legal cool off period when buying a vehicle. There's mention of one here: See if you meet the conditions given. Always good to discuss things with the dealer too, ASAP.

https://www.consumer.org.nz/articles/car-buyers-rights#:~:text=When%20taking%20out%20a%20loan,agreement%20to%20purchase%20the%20car.

AFAIK the cooling off period mentioned would only apply if OP had taken credit from the dealer as part of the S&P agreement.

If they signed the S&P agreement without a finance clause then it’s up to the dealer whether to enforce the contract.

Linux

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#3199661 25-Feb-2024 07:48

I cancelled a S&P agreement on a brand new vehicle after I paid the deposit. The dealer ripped up the contract and refunded my 10k deposit with no questions asked. The sales person was really good about it.

I did end up buying another brand new vehicle off the same sales person about 6 months later and I ended up spending more

Batman

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#3199672 25-Feb-2024 08:30

tell them ASAP and you should be fine

the longer you wait the harder it gets

Goosey

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#3199679 25-Feb-2024 08:39

There will be an explanation in the S&P for this scenario.

Email them today saying you have changed your mind / want to pause the decision you previously made.

Copy in the sales person too (as you would send email to the main dealer email in the first instance).

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#3199688 25-Feb-2024 09:15

It can take a while before anyone reads email. Give them a call asap. Chances are they'll be good about it with no issues, or they'll grumble slightly and then cancel it anyway. It happens every day imo not an issue.

Loismustdye

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#3199815 25-Feb-2024 12:16

Thanks for the advice, had a talk with the sensible half this morning about the whole thing, she is perfectly happy with the decision to go ahead with it mainly because bang for buck with safety features it is a pretty good buy. The nearest competitor would cost close to another $10k and is missing some of the features that this has.
Kinda figured it all stemmed from me going down a few rabbit holes yesterday with hunting out reviews, user experiences and potential issues (I’m a pessimist by nature and tend to focus on the negative lol), as well as where the vehicle is made :-)

Couldn’t find much within the S+P around this issue
Like with all things I tend to overdo the research side when I buy stuff which makes me second guess myself.

Batman

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#3199833 25-Feb-2024 13:12

Loismustdye:

hunting out reviews, user experiences and potential issues (I’m a pessimist by nature and tend to focus on the negative lol), as well as where the vehicle is made :-)

Like with all things I tend to overdo the research side when I buy stuff which makes me second guess myself.

glad i'm not alone

Loismustdye

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#3199839 25-Feb-2024 13:44

Batman:
Loismustdye:

hunting out reviews, user experiences and potential issues (I’m a pessimist by nature and tend to focus on the negative lol), as well as where the vehicle is made :-)

Like with all things I tend to overdo the research side when I buy stuff which makes me second guess myself.

glad i'm not alone

Haha yeah, nice to see a fellow kindred spirit.
It absolutely bugs the crap outta my wife whenever we do a bigish purchase

Technofreak

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#3199866 25-Feb-2024 15:09

Loismustdye:

Thanks for the advice, had a talk with the sensible half this morning about the whole thing, she is perfectly happy with the decision to go ahead with it mainly because bang for buck with safety features it is a pretty good buy. The nearest competitor would cost close to another $10k and is missing some of the features that this has.
Kinda figured it all stemmed from me going down a few rabbit holes yesterday with hunting out reviews, user experiences and potential issues (I’m a pessimist by nature and tend to focus on the negative lol), as well as where the vehicle is made :-)

Couldn’t find much within the S+P around this issue
Like with all things I tend to overdo the research side when I buy stuff which makes me second guess myself.

In my experience people are quick to complain and slow to recommend. Bad reviews often out number good reviews for this reason.

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sen8or

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#3200048 26-Feb-2024 09:17

From a dealers perspective, it really does depend on circumstances and the contract itself. Some deposits are noted as non-refundable in the terms of the VOSA, this is dealer dependent. Can be changed to refundable on things like finance approval, test drive, wife's approval etc etc. But if you put down a deposit on a vehicle that has to be ordered, its less likely to be refundable.

The "cooling off" period relates solely to the finance agreement. You do have the right to cancel a finance contract within a certain period, this does not negate your obligations to complete the vehicle purchase, thats a separate legal contract.

Even if the deposit is non refundable, you may be able to negotiate to transfer the deposit to a different vehicle (exception being if you wanted modifications or accessories and these have already happened).

Loismustdye

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#3200066 26-Feb-2024 10:13

sen8or:
From a dealers perspective, it really does depend on circumstances and the contract itself. Some deposits are noted as non-refundable in the terms of the VOSA, this is dealer dependent. Can be changed to refundable on things like finance approval, test drive, wife's approval etc etc. But if you put down a deposit on a vehicle that has to be ordered, its less likely to be refundable.

The "cooling off" period relates solely to the finance agreement. You do have the right to cancel a finance contract within a certain period, this does not negate your obligations to complete the vehicle purchase, thats a separate legal contract.

Even if the deposit is non refundable, you may be able to negotiate to transfer the deposit to a different vehicle (exception being if you wanted modifications or accessories and these have already happened).

No deposit in our case fortunately, but thats very good to know. Thanks

Bung

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#3200067 26-Feb-2024 10:15

sen8or: The "cooling off" period relates solely to the finance agreement. You do have the right to cancel a finance contract within a certain period, this does not negate your obligations to complete the vehicle purchase, thats a separate legal contract.

Does that apply even if the vehicle hasn't been taken?

Consumer's advice is

"When taking out a loan, the Credit Contracts and Consumer Finance Act (CCCFA) gives you a cooling-off period of 5 working days. If you haven’t taken possession of the car, you can cancel both the loan and the agreement to purchase the car. However, if you’ve already driven the car off the lot, you’ll still have to find the money to pay the dealer for the vehicle."

sen8or

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#3200104 26-Feb-2024 11:54

IANAL, but unless theres legal precedent that supports their advice, I'd suggest its just an opinion and terms of a contract trump an opinion. If you haven't taken possession of the car, no dealer is likely to take enforcement action forcing you to complete a purchase contract, thats just daft, but whether or not they refund you a deposit, thats a different story.