NSW New Car Purchase Dispute - What Can We Do?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now
27 March 2017
4
0
1
Hi

I'm in real need of help at the moment as this issue is driving me nuts.

I would appreciate all help and as to what avenues I have and also if I can sue for damages. If there is a lawyer willing to take this one as well, please pm me.

On October last year I decided to purchase a new car for my 7-month pregnant wife for her birthday. We saw the car we like and in negotiations with the salesman we said we have a trade-in car and would like to swap over the personalised plates from trade in to new car as part of the deal.

We told the salesman that our car is parked in the adjacent street and he said that's OK and asked us for the make and year model. I said it may be a 12 or 13 but not sure. He put the rego number in the service NSW app and told us after conferring with his boss that they can give us 16k, we said 17k and we can sign the deal and he said OK.

So he immediately printed the contract and even though we said we don't want a car finance from them. They made us sign some documents for finance and we signed the documents and left. A few weeks later when finance paid them the balance we went in to take delivery of the new car.

We met the same salesman and gave him the keys to the trade-in. He did a brief inspection, asked us to take all our belongings asked me to sign the transfer of ownership, took off our personalised plates and took us to the new car. He affixed the personalised plates put a ribbon on took photographs and gave us the keys, shook our hands and off we went!

We had taken delivery of the brand new car. We asked the salesman if the rego had been done and he gave us a green slip receipt and said it was all done and the rego paper will come In the mail.

We were nearly 5 minutes away from home and the salesman rang and said that his boss is next to him and he forgot to get me to sign an important document and without that he can get in trouble and also we cannot drive the car legally without it.

We turned back and when we reached the dealership it was around 6:30pm, there was another man who said he is the manager and they also locked the gate behind us and said it appears the trade-in has finance owing. I said we paid in cash and we purchased it from a dealer so he said he will call the dealer tomorrow and sort it out and it should be an outdated record. He said unfortunately by law he can't let us drive our car tonight and tomorrow they will drop off the car.we had no choice and left the car and gave the key.

The next day morning a man who said he is the manager rang me and said good news the finance was an outdated record. I said great when are you bringing my car. He said bad news Is in the contract it states it is a 2013 model car and you gave us a 2012 car and you have to pay a difference if $7000.

I said I am going to the police as the deal is finished , it was your salesman who put the model in your computer and he checked the car prior to handing over the keys to the new vehicle. They ended up keeping both my vehicles for 2 weeks. My pregnant wife had to take a cab during this period and this was depressing her.

I immediately went to a lawyer who said this is ridiculous you need to go to the police and I did. When I gave them my personalised plates no it still came up with my trade in car. What I didn't know at the time was that the dealer had registered the new car in the morning and subsequently after I told him I would go to the police had unlawfully reversed the rego and registered the new car in the dealerships name.

Plot thickens.

Police said, "it is not registered in your name and nothing they can do; it is a civil matter". We went through 3 lawyers in the due course who all said NCAT and fair trading will take a few months
Our lawyer sent them a letter stating that no dispute was raised at the point of delivery and collection. This letter was ignored. The contract also said the trade in was 2013 first registered my(manufacturer year) 2014 xxxx. How can there be a car manufacturer a year ahead and registered the year before??this was obvious evidence of dealer stuff up.

Some two weeks later I received a cheque from the roads and maritime services for overpayment for 2800$ I questioned the general manager of the dealership and said you unlawfully deregistered our car who said that it was an overpayment and that the car was not registered in our name and he said he would like to put this behind us and if we payed that money back , I said I would pay him $2000 as I have incurred hire car and lawyer fees.

I went to the dealership and they said the general manager is in a meeting and that I need to pay first. He was actually standing in the next cabin and watching. I paid the $2000 and he came in with another person and asked me to sign another contract which said sale of demonstrator car with the exact same particulars contract number , vehicle vin and engine no as previous.

I didn't want to sign but I was forced to as I couldn't handle it any more. i knew there were so many wrongdoings but didn't have the energy as my wife was quite depressed and needed the car for work so I did and took possession of the car.

The general manager assured me that I was the first owner and gave that in writing(which is actually false representation) he said when new cars sometimes arrive at the lot they are registered in the dealers name by default.

I must add that initially my wife was the signatory for the rego purpose even though the contract was for both of our names and this time I had to sign and take ownership of the car. So in essence the same car was first registered in my wife's name , was deregistered without consent , registered in the dealers name and then in my name.

So that concludes the first part of the nightmare.

Now some five months after part 2 begins.

The dealer contacted me asking to repay the overpayment cheque in my wife's name from service NSW as he said it was payed to us by mistake.we told him The transaction is finished speak to your general manager.

Now, service NSW called me and is threatening legal action to recover the cheque as according to them the dealer did register in my wife's name and reversed the transaction citing the vehicle was not delivered. I told them the vehicle was delivered and told them I have all the evidence pictures and all.they say that the cheque was supposed to go to the dealer and was sent to my wife by mistake.i said to them I will fight this as the roads and maritime services has without consent allowed to deregistered my asset.


Please help. Any opinions would help.

What should I do in regards to the RMS cheque situation what is my standing? Also can I or should I go after the dealer and can I get damages (car value is 60k)? If so please point me in the direction.

Thank you for reading.
 

Emge0708

Active Member
4 April 2017
9
1
34
Quite a situation you have there Jackie. I am a lawyer in Western Australia, so I will give my opinion on the "dealer" issue and general thoughts on the rego issue -

Rego

I am slightly confused by the information above -
  1. You received a cheque for $2800 for an overpayment
  2. You contacted the dealer and agreed? to give them $2000 of the $2800
  3. The dealer accepted the $2000 and you drove away with a new car.
  4. The dealer then contacted you demanding you provide a refund of the overpayment? - Was this for the same $2800 cheque which you gave $2000 or a different overpayment?
I think, but could be mistaken, the dealer has taken the $2000 in lieu of the $7000 for the mistaken model/year? Is this correct?

Car purchase (Dealer)

Can you advise why you think the dealer seen fit to keep both vehicles for two weeks? Did you demand your "old" car be returned and the contract voided?

The dealer may very well have checked the make/model/year of the vehicle however it is not their responsibility to ensure this is correct. Looking at it from a different perspective, you entered into a contract where you agreed to trade-in a vehicle that you didn't own? I realise it was accidental, but just giving a different perspective.

I will be able to comment more once you can confirm the above.

Cheers
 
27 March 2017
4
0
1
Quite a situation you have there Jackie. I am a lawyer in Western Australia, so I will give my opinion on the "dealer" issue and general thoughts on the rego issue -

Rego

I am slightly confused by the information above -
  1. You received a cheque for $2800 for an overpayment
  2. You contacted the dealer and agreed? to give them $2000 of the $2800
  3. The dealer accepted the $2000 and you drove away with a new car.
  4. The dealer then contacted you demanding you provide a refund of the overpayment? - Was this for the same $2800 cheque which you gave $2000 or a different overpayment?
I think, but could be mistaken, the dealer has taken the $2000 in lieu of the $7000 for the mistaken model/year? Is this correct?

Car purchase (Dealer)

Can you advise why you think the dealer seen fit to keep both vehicles for two weeks? Did you demand your "old" car be returned and the contract voided?

The dealer may very well have checked the make/model/year of the vehicle however it is not their responsibility to ensure this is correct. Looking at it from a different perspective, you entered into a contract where you agreed to trade-in a vehicle that you didn't own? I realise it was accidental, but just giving a different perspective.

I will be able to comment more once you can confirm the above.

Cheers
Hi emge0708

Thank you so much for your reply firstly.

The cheque for $2800 was from the roads and maritime services for deregisteration or reversal of registration of he vehicle from my wife's name. Up till the point I got this cheque, the dealership did not want to talk to me.

When I brought up that they might have deregistered the car without consent they gave me some story and said if I paid them back that money that would cover the registration cost and they would give the car back. I negotiated that I would pay back 2000$ and as I had incurred lawyer costs and hire costs and saw fit that the 800$ would cover those expenses instead of the 2800$ I could take the car, they then made me sign another contract for the same vehicle now under a demo car.

The general manager gave me a statement in writing that I am the first owner of the car and the car has not been used for demo purposes. This is again false representation as per records of rms I am the second owner.

They are now trying to claim the 2800$ again through the rms saying that it was mistakenly sent to my wife and it should go to them as they paid it and they are entitled to the refund.

My question here is, isn't it illegal to reverse or deregister a car without consent?

When I spoke to rms, they confirmed that the dealer did register the car in my wife's name that morning but went back the same afternoon and reversed it giving the reason that the car was not delivered to customer when in fact I picked up delivery of the vehicle the night before and have pics and videos proving that I collected the car
.
Until I brought up the cheque, they didn't want to negotiate and kept both cars and demanded for more money for the model etc.

My solicitor also sent them a letter asking for the reason why they kept both cars and this was ignored.over the phone the manager Said that they know the law and the trade in car is part of the payment so they can keep it until the dispute is resolved.

In regards to the error of the model and year, we told the salesman we didn't know and he checked the rego on his system and populated that information on the contract , so at the time we were convinced that this was correct.

Even at the point of collection and delivery of the new car the salesman did inspect the trade in before he handed us the keys to the new vehicle.in my opinion as per the contract law the moment the keys for the new vehicle was given to me the contract was fully delivered ? The onus is on the buyer I.e dealer as they are buying my trade in to do their due diligence properly?

As mentioned before they then took the new car back through deceptive and questionable ways and ended up keeping both vehicles till the day we received the cheque from rms and paid the $2000.


The rms is now claiming the $2800 from us to pay back to dealer, as according to them the dealer paid for it and they should refund them.

Let me know your thoughts
 

Emge0708

Active Member
4 April 2017
9
1
34
Thanks for clearing that up Jackie

It is probably easier to start with highlighting that I don't disagree with any of your points, you have valid arguments i.e. they should have done due diligence, it was "wrong" of them to keep both vehicles and yes you should have been told about the fact the vehicle was a "demo" car. I just think there are also valid arguments from the dealers perspective and this is why I wanted to give a different view on the trade-in situation.

Can you confirm my understanding is correct - In your opinion, the dealer has agreed to give you the new car after you paid $2000 for the "rego mistake". You paid $2000 and they gave the new car, then later came after you for the full $2800 and likely kept the $2000 paid previously due to the model difference between the cars?

Apologies, just trying to get my head around the situation

Cheers
 
27 March 2017
4
0
1
Thanks for clearing that up Jackie

It is probably easier to start with highlighting that I don't disagree with any of your points, you have valid arguments i.e. they should have done due diligence, it was "wrong" of them to keep both vehicles and yes you should have been told about the fact the vehicle was a "demo" car. I just think there are also valid arguments from the dealers perspective and this is why I wanted to give a different view on the trade-in situation.

Can you confirm my understanding is correct - In your opinion, the dealer has agreed to give you the new car after you paid $2000 for the "rego mistake". You paid $2000 and they gave the new car, then later came after you for the full $2800 and likely kept the $2000 paid previously due to the model difference between the cars?

Apologies, just trying to get my head around the situation

Cheers
Hi emge0708

Thank you for your reply and also your patience in this matter.

Yes in my opinion the $2000 was paid back for the rego issue , I did not want to budge on paying extra for the model error made by their salesman as It is their blunder and also the fact that I took delivery of the vehicle. The $2000 was paid back to them in full and final settlement of this matter.

Yes, they have kept the $2000 now and are coming after the $2800 through the rms for the cheque.