NSW Australian Consumer Law on Buyer Wanting Refund?

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Myrna

Member
27 January 2017
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0
1
In early November 2016, I sold my car to a person I know. There was no advertisement. I stated it's a good car, but it's 10 years old and done over 200,000 km. I advised I was asking $5000ONO and without being asked, I offered it up to the buyer at $4500 which was accepted. There was no test drive, only cursory inspection and accepted as is. The buyer transferred the money and collected the car the following week.

I'd had work done on the car and at collection I went through the work report and that I was not aware of any further mechanical issues. Two things in hind sight, I forgot to mention that my mechanic had advised I needed two new tyeares before rego (late Dec), and the air con had been weak the previous summer but given I had not been using the car since mid winter (the heater works fine). I had completely forgotten about that. After the car was collected I used the proceeds to pay for another car I was buying.

I went to lodge the disposal of vehicle notice and seek a refund on the unused registration but was advised if the transfer had not been completed then the buyer would be driving an unregistered car and asked if I wanted to check if that had been done before I lodged the papers. I agreed.

Because it was an interstate purchase, to change the rego, the buyer had to have it inspected which was done 4 weeks after purchase and collection of the car. The mechanic did a minor service and fitted two new tyeares and recommended the A/C needed regassing ($750) and there were two further mechanical issues which would cost a further $900. I am not aware if he would have passed it for rego at that point.

Six weeks after collection, the day before my rego was due to expire, the buyer emailed me outlining these issues and, given they were now in possession of 3 cars they were unable to sell, would I please take the car back and stated "I figured since you can sell it again (making an easy 8k) that you may take it back?"

On those conditions I agreed, retrieved the car, my mechanic did the compulsory NSW re-rego inspection which it passed and I re-registered the car with a view to reselling. I've had further correspondence asking for a refund and telling me that in taking the car back "anyone would think I'd been doing them a favour", to which I agreed it was a favour under the circumstances.

I have since offered to 1. return the car again or 2. to sell the car and that on resale my intention is to refund the first buyer with the proceeds up to the original purchase price of $4500 but offered no guarantee that it would be the full amount. Subsequent email from the buyer is demanding the full refund immediately.

Where do I stand under Australian Consumer Law? Given the rego is still in my name, can I legally on sell the car? Should I just return the car and cancel my rego? I am not in a position to refund the original money given I have purchased another car.
 

Lance

Well-Known Member
31 October 2015
852
123
2,394
Hi Myearna,

Wow, what a mess. Correspondence? How has this all be communicated. Email? I really don't think this is a consumer law matter. Australian Consumer law doesn't apply to a private sale. This blog will give some more information: Lemon Car? What You Can Do Under Australian Consumer Law - Legal Blog - LawAnswers.com.au

Saying that a seller and buyer are bound by common law contract requirements. The question here is: was there a contract for sale. Money changes hands and a vehicle, then the vehicle was given and accepted back and an emailed demand for the money. I would have said don't accept the vehicle back, but that's too late. you have a couple of options:
  • Speak with a lawyer to determine if there is a binding contract and determine if accepting the car back is sufficient to end the contract.
  • pay the money back
  • try to reason with them (if you don't have the money available) see if you can sort it out outside of court.
Their next step is most likely to seek the money back from you through small claims court and from the information above I think they will get it. They may even get the they money for the tires, regassing and other repairs (I'm assuming they paid for that).

I would seek legal advice.
 

Myrna

Member
27 January 2017
3
0
1
Thanks for your response Lance, the issue was resolved yesterday. The buyer decided to take the car back and use it as a trade-in, so it was delivered directly to the dealership and signed over in the buyer's presence.

Regards
 

Lance

Well-Known Member
31 October 2015
852
123
2,394
That's a great outcome Myearna. Always best to avoid a legal battle if at all possible.