QLD Raised Interest on Secondhand Car Finance - Legal?

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Dee01

Member
14 July 2015
2
0
1
Hi, I bought a 2002 BMW which was originally $14000 but after car finance (car loan) it came to $29000. Devastated I didn't see this earlier as the car dealer came to my place of work and I signed there.

Is it legal to rise the price or interest this high on a second-hand car?

But now I've had the car 6 weeks and the car has already started giving me problems. The leather on the door handles have come off. (All of them) then the stereo has completely gone and now the worst its cut out on me twice while driving.

Any help will be appreciated.
 

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
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2,894
Sydney
Hi, I bought a 2002 BMW which was originally $14000 but after car finance (car loan) it came to $29000. Devastated I didn't see this earlier as the car dealer came to my place of work and I signed there.

Is it legal to rise the price or interest this high on a second-hand car?

But now I've had the car 6 weeks and the car has already started giving me problems. The leather on the door handles have come off. (All of them) then the stereo has completely gone and now the worst its cut out on me twice while driving.

Any help will be appreciated.
It's not the price of the car, it's the total amount you have repaid that is in question.

Perhaps you have borrowed at a quite high interest rate, and the amount borrowed ("total amount financed")
also includes borrowing the amount of the premiums used to pay the lender's insurance.
 

Ivy

Well-Known Member
10 February 2015
498
87
789
Hi Dee,

I'm not sure about the amount you have to pay on the car. What does it say on your contract? Have they jacked up the price because you bought it on finance? Because that is unlikely to be legal. Or is the cost an approximate inclusive of interest?

Regarding the problems you are having with the car, that is covered by Australian Consumer Law under the Competition and Consumer Act. The car needs to be in reasonable repair and if you are having problems with it, you can take it back to the dealer to be fixed. Call Fair Trading in Qld for more information on how to get the car problems resolved.

I am out of my depth when it comes to credit issues. I found this page from the Government about lodging a complaint: How to complain | MoneySmart by ASIC
Potentially you should contact ASIC?