VIC Car Broker Refusing Refund of Deposit - What to Do?

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Rong Yuan

Member
23 October 2016
2
0
1
On 16 Oct 2016, I submitted an inquiry regarding a new Mazda 3 SP25 GT BN series on the website of Private Fleet. On 17 Oct, the sales representative called me. I told him over the phone the car I wanted was a Mazda 3 SP25 GT BN series' most recent model. He came back with a few prices.

Yesterday afternoon, he told me over the phone the final price for a Mazda 3 SP25 and asked for my credit card details. He did not emphasize the model and made me assume that the quoted car was the same as the one I instructed him to seek out during our first phone call. He then debited my credit card before he sent the required paper work without my consent.

I waited for 20 minutes for the paperwork and chased him. Later, an email came with an attached New Vehicle Purchase Agreement. After I saw the agreement, I called him straight away to point out that the car on the agreement is not what I instructed him to buy. He refused to refund the deposit and said I have confirmed the purchase over the phone.

I emailed to the managing director and requested the recording of my first conversation with the sales representative. His reply is "the only calls recorded are the confirmation calls".

I wasn’t allowed enough time to listen or read the agreement, ask questions or get advice. The agreement was sent to me after they had debited my credit card. They failed to disclose key contractual terms such as there is no cooling off period. They refuse to refund.

I was told that if I want to buy the GT model via them, an extra $4300 will be added on top of the $28510 price they quoted, a price much dearer than other dealers’.


Can I get my money back on the following ground?

The conduct of the broker is misleading, deceptive and unconscionable for the following reasons:


1. The broker failed to disclose (a) whether the motor vehicle broker has a financial or other business relationship with the supplier of a motor vehicle in relation to which the services are provided, and (b) whether the motor vehicle broker receives a fee or other consideration from the supplier arising out of the provision of those services. (3) The disclosure must be made before the motor vehicle broker provides services in that capacity. (Motor Dealers and Repairers Act 2013-Sec 103)

2. The broker failed to disclose key contractual terms such as there is no cooling off period. The agreement was sent to me after they debited my credit card and after I chased for the agreement.

3. As a customer who rarely buys a car, I wasn’t allowed enough time to listen or read the agreement, ask questions or get advice before the deposit and the service fee was taken out from my credit card.

4. The broker can only provide the recording of their so called confirmation conversation, but not the first conversation during which I specified the correct model I wanted to buy. This fact suggests that the broker’s negligence in looking after a customer. It may also point towards the fact that the broker was lying about the specifications I gave them.

5. In the agreement they sent me later, there is no identification number of the particular car they want to sell.

6. It is impossible for me to obtain a written quote from another dealer as suggested by the broker, because the dealers refuse to give written quote for commercial competition reasons.
 

Matthew Karakoulakis

Well-Known Member
27 October 2016
69
13
224
Hi Rong,

It seems you have become the subject of an unlawful situation.

The agreement was oral at this point and lacks clarity. In the instance that there was an agreement, the dealership has breached this agreement by substantially altering the vehicle model that was initially discussed and quoted.

Merchants can’t debit your credit card without your consent. This transaction could fall within the Australian Consumer Law, which has specific applications to motor vehicles. From your instructions the dealership might have breached their advertising requirements and legal obligations.

If the dealer is a licensed motor car trader, you are generally entitled to a cooling off period. The Australian Consumer Law contains provisions for such misleading and deceptive conduct.
 

Rong Yuan

Member
23 October 2016
2
0
1
Hi Rong,

It seems you have become the subject of an unlawful situation.

The agreement was oral at this point and lacks clarity. In the instance that there was an agreement, the dealership has breached this agreement by substantially altering the vehicle model that was initially discussed and quoted.

Merchants can’t debit your credit card without your consent. This transaction could fall within the Australian Consumer Law, which has specific applications to motor vehicles. From your instructions the dealership might have breached their advertising requirements and legal obligations.

If the dealer is a licensed motor car trader, you are generally entitled to a cooling off period. The Australian Consumer Law contains provisions for such misleading and deceptive conduct.

Thanks Matthew, I will take this matter to the tribunal. This broker is located in NSW. I am wondering if I can apply to VCAT and whether this broker who holds an motor vehicle dealing license falls in the definition of car trader.

According to Victoria's regulation, licensed motor car traders are required to include a prescribed information box in the contract of sale for each vehicle they sell, that sets out information about the cooling-off process. The agreement which was sent to me by email after their so-called verbal confirmation does not have this nor

I have read many reviews about this business Some customers' comments are:
  • Uses Dishonest Hard Sales Tactics
  • dodgy tactics, confusing processes. They resorted to bullying tactics to not refund money, changing the goal posts and making up stuff as they went
  • Serious lack of transparency & non-disclosure about commissions, & dubious sales tactics
  • Dodgy, empty promises and bullying tactics were used
 

Matthew Karakoulakis

Well-Known Member
27 October 2016
69
13
224
Hi Rong,

Would you like to get your legal advice this afternoon, say at 3pm?

I can advise you more when we speak or before starting your VCAT application since you are based in Melbourne. Feel free to use the LawTap link Matthew Karakoulakis, Lawyer, AMK Law - Melbourne, VIC - LawTap - Find a Lawyer & Book Online Instantly to fix a time for early next week if you prefer.

VCAT can determine matters, particularly when your circumstances involve a contractual relationship or where you are in Victoria.

Before starting your VCAT application we will address the concerns you have raised about those reviews and consumer comments if it helps you more as well.

Yours faithfully,