QLD Car Deposit - Can I Have My Money Back?

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James A

Member
12 June 2015
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I made a deposit for a car to an individual. Under Australian consumer law, can I have my money back if I changed my mind?
 

Tim W

Lawyer
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28 April 2014
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If you are buying from a private seller (that is, one who is not "in trade of commerce"),
then the Australian Consumer Law probably does not apply to the transaction
 

Ivy

Well-Known Member
10 February 2015
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87
789
Hi James,

If you are buying a car from a private seller than a limited part of the Australian Consumer Law applies.

The three Australian Consumer Law guarantees that apply to you a private car sale transaction are:
  1. Clear title,
  2. Undisturbed possession, and
  3. Undisclosed securities
The guarantees protect you if for example, the person you are buying the car from isn't the owner with the right to sell or the bank knocks on your door trying to reclaim the car because there was still money owing on it. You can have a look at this blog post for more information: Faulty Second Hand Car? Your Options as a Buyer - Legal Blog - LawAnswers.com.au

Contract law governs the transaction between you and the private seller when the ACL doesn't apply. For example, if you were mislead about the car in some way by the seller directly or by the advertisement then you may be able to ask for your deposit back or to ask the seller for the cost of any repairs needed.

Why have you changed your mind about the car?
 

James A

Member
12 June 2015
3
0
1
Hi James,

If you are buying a car from a private seller than a limited part of the Australian Consumer Law applies.

The three Australian Consumer Law guarantees that apply to you a private car sale transaction are:
  1. Clear title,
  2. Undisturbed possession, and
  3. Undisclosed securities
The guarantees protect you if for example, the person you are buying the car from isn't the owner with the right to sell or the bank knocks on your door trying to reclaim the car because there was still money owing on it. You can have a look at this blog post for more information: Faulty Second Hand Car? Your Options as a Buyer - Legal Blog - LawAnswers.com.au

Contract law governs the transaction between you and the private seller when the ACL doesn't apply. For example, if you were mislead about the car in some way by the seller directly or by the advertisement then you may be able to ask for your deposit back or to ask the seller for the cost of any repairs needed.

Why have you changed your mind about the car?
Thanks Ivy. I made the deposit bcos the buyer assured me of my refund if I change my mind. Unfortunately, what I wanted to use the van didnt work out as planned. So I got back to the private seller and explained why am changing my mind. But the seller denied the fact that I will get my refund if I change my mind. She has refused to refund rather asking me to come and pay the balance and the van.She has been compelling me to pay the balance but am no longer interested
 

James A

Member
12 June 2015
3
0
1
If you are buying from a private seller (that is, one who is not "in trade of commerce"),
then the Australian Consumer Law probably does not apply to the transaction
T
If you are buying from a private seller (that is, one who is not "in trade of commerce"),
then the Australian Consumer Law probably does not apply to the transaction
Thanks
If you are buying from a private seller (that is, one who is not "in trade of commerce"),
then the Australian Consumer Law probably does not apply to the transaction

Thanks Tim. The private seller has refused to refund my money and am considering taking the case to Court. What do u think please?
 

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
4,934
820
2,894
Sydney
Even if this was a transaction to which the ACL applied,
there is no general right in the ACL to a return of a (part) payment for "change of mind". *

The guarantees to which @Ivy refers are indeed the case,
but I am not sure that they are immediately relevant to your situation.

Am I correct in thinking that you did not include in your agreement with the seller
any provision for the sale being contingent on something else happening?



--------------------------------------------------------------
* You may be thinking, "But K-Mart does it all the time..."
And so they do. But that is a business practice of their own choosing,
and is beyond what is required by the ACL.
 

Ivy

Well-Known Member
10 February 2015
498
87
789
Hi again James,
@Tim W is correct that the ACL doesn't apply here and it doesn't provide the right of return for change of mind anyway.
Firstly, do you have the van in your possession? Secondly, as Tim indicated, did the seller know that you were waiting on something else to fall into place before securing the van?

I believe that possibly your only option would be to lodge a claim with QCAT (it appears that Queensland differs to other States in that this type of dispute is heard by QCAT rather than the local court). You would have to show that there was an agreement of the type you are alleging (i.e. the two of you agreed that you would pay a deposit which would be returnable if you changed your mind). Before you do this, assuming you don't have the van in your possession, you should send a letter of demand to the seller asking for the refund of deposit as per the terms of your (oral?) agreement.