We payed a 3k deposit on a car that turned out to not be what it was supposed to be. We asked the private seller to reduce the price or reduce, or return our deposit. He agreed on a new price after a week of messing us around, then asked for half of the remaining money, which we said no to (because we didn't trust him), and gave him our word that we could collect the car as first agreed. He then went and sold the car the following day and is refusing to give us our deposit back. Legally is he required to return it under Australian Consumer Law?
WA Getting Car Deposit Back from Seller under Australian Consumer Law?
- Thread starter chelle73
- Start date
Hi Chelle73,
Unfortunately, Australian Consumer Law does not cover sales by private sellers. If the seller is an individual, you will need to go to the State Administrative Tribunal or the Magistrates Court for the return of your deposit. It sounds like you entered into a contract (for sale and purchase of the car) with this private seller, and the car was substantially different from what you thought you were buying. If this is the case, you may be able to get out of the contract under contract law (misleading and deceptive terms, or no agreement) and recover your deposit by voiding the contract. Basically, you need to have a reason to 1) void the contract (i.e. the contract should not have been concluded), in which case, you will get the deposit back; or 2) reason to terminate the contract + reason to recover your deposit (i.e. you don't necessarily get your deposit back, this will depend on why you can terminate the contract, what was said between you and the seller, what the misleading statement/defect was, what the terms of the contract was etc.)
Unfortunately, Australian Consumer Law does not cover sales by private sellers. If the seller is an individual, you will need to go to the State Administrative Tribunal or the Magistrates Court for the return of your deposit. It sounds like you entered into a contract (for sale and purchase of the car) with this private seller, and the car was substantially different from what you thought you were buying. If this is the case, you may be able to get out of the contract under contract law (misleading and deceptive terms, or no agreement) and recover your deposit by voiding the contract. Basically, you need to have a reason to 1) void the contract (i.e. the contract should not have been concluded), in which case, you will get the deposit back; or 2) reason to terminate the contract + reason to recover your deposit (i.e. you don't necessarily get your deposit back, this will depend on why you can terminate the contract, what was said between you and the seller, what the misleading statement/defect was, what the terms of the contract was etc.)
Getting a deposit back can be tricky, especially if there was no clear written agreement about when it would be refundable. Hopefully, you’re able to work things out with the seller without too much hassle. Thanks for sharing your situation—it’s a good reminder for buyers and sellers alike to make deposit terms clear before any money changes hands.
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