QLD Signed Car Yard Contract - Doesn't Include Car Loan?

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28 December 2014
Hi, I'm currently in a situation where I was accepted for finance on a rent to own vehicle. I was asked to come in and sign the contract. I signed the contract to buy a motor vehicle from the car yard, but the finance broker had not got me to sign his contract for car finance (car loan). After driving the vehicle home, I rang the finance broker only for him to tell me the repayments are $260 per week after car yard told me they would be $150 per week. It's been a week and still no contract for finance. What can come out of this under contract law or Australian Consumer Law? Thanks


Hi Johno,

have you paid anything yet?

If you haven't signed a contract for finance yet, then you should still be able to negotiate the payment terms. If the car yard provided misleading information as to the terms of the finance contract which you relied upon then you may have grounds to either terminate the contract for the vehicle or get finance on the terms that were explained to you.
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Sarah J

Well-Known Member
16 July 2014
Melbourne, Victoria
Hi Johno,

When you first negotiated the terms of the hire-purchase agreement and the finance agreement with the finance broker, was there anything made in writing (e.g. a preliminary terms of agreement sheet, an advertisement, information brochure)?

Have a look at your hire-purchase agreement signed with the finance broker and see if it mentions any financial agreement or loan rates.

Given that you entered into the hire-purchase agreement on the basis of a particular loan repayment rate, if that rate later changes, you have grounds to terminate the agreement for misleading point of sale advice or substantial change to terms of agreement. Like Sophea said, I would speak with the finance company first and see if they will agree to the original loan rates, or a renegotiated rate that both parties will accept, if not, ask to terminate the agreement. If they refuse or if they impose a penalty for terminating the agreement, contact the Financial Ombudsman Services and file a complaint and get them to assist in your dispute with the loan company. They are a free service and should be able to help you in your dispute.
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