Contacts & Sample letters
Contacts
Australian Financial Complaints Authority (AFCA)
www.afca.org.au
Consumer Affairs Victoria (CAV)
www.consumer.vic.gov.au
CAV administers the Motor Car Traders’ Guarantee Fund.
Consumer Action Law Centre
www.consumeraction.org.au
Sample letters
The following appendices contain sample letters that can be used in the following situations:
cancelling a car sale contract in the cooling-off period (appendix A);
ending a car sale contract because of failure of a condition precedent (appendix B);
rescinding a car sale contract (appendix C); and
withdrawing from a car sale contract (appendix D).
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(Your name, address and date)
(Name and address of car trader)
cc Finance company (if applicable)
and Consumer Affairs VictoriaDear Sir/Madam,
Motor vehicle registration no. ABC 123 (or other description of car)
I terminate any agreement for sale of the above motor car pursuant to section 43 of the Motor Car Traders Act 1986 (Vic).
I require you to immediately return any money and/or trade-in (if applicable) due to me on termination of this agreement, failing which legal proceedings will be issued against you in the Victorian Civil and Administrative Tribunal.
Your cheque should be made payable to the writer and sent to (insert your address).
(Insert your signature and name)
Notes
As you only have three cooling-off days in which to terminate a car sale contract, it is best that this letter be delivered by hand to the car trader within this period. You could also send the letter by express or registered post, or email or fax it.
Return the car to the car trader immediately.
Keep a copy of the letter for your records. If hand-delivered, it is suggested that you take a friend to act as a witness to the delivery of the letter.
Copies of the letter should be sent to the lender (if finance is taken out to purchase the car) and Consumer Affairs Victoria.
Under section 43 of the Motor Car Traders Act 1986 (Vic), the car trader is entitled to retain 1 per cent of the purchase price or $100, whichever is greater. So, if other grounds for rescission exist, the letter should state that you rely on the cooling-off period as well as specifying the other grounds.
If the car trader arranged finance, the finance contract is also discharged. You may need to pay any fees or charges already incurred under the finance contract.
-
(Your name, address and date)
(Name and address of car trader)
cc Finance company (if applicable)
and Consumer Affairs Victoria
Dear Sir/Madam,Motor vehicle registration no. ABC 123 (or other description of car)
I rescind any agreement for the sale of a motor car made in respect of the vehicle referred to above on the basis of the failure to meet the condition precedent as to finance (or whatever condition precedent you are relying upon).
I require you to immediately return the full amount of any deposit and/or trade-in (if applicable) held by you, failing which legal proceedings will be issued against you in the Victorian Civil and Administrative Tribunal (or the Magistrates’ Court).
Your cheque should be made payable to the writer and sent to (insert your address).
(Insert your signature and name)
NotesThis letter can also be used where the car is purchased from a private person.
You can notify the seller or car trader by phoning them and reading the letter, as well as posting (by registered post), faxing, emailing or hand-delivering the letter to the seller or car trader immediately.
Return the car to the seller immediately.
Copies of the letter should be sent to the lender (if finance is taken out to purchase the car) and Consumer Affairs Victoria (if the car is bought from a car trader).
If the seller or car trader is troublesome, add this to the letter: ‘In the unlikely event that you are correct in asserting that the purported contract was wrongfully repudiated, then you are only entitled to nominal damages under subsection 56(2) of the Goods Act 1958 (Vic). In view of the above, it would be in the mutual interest of all involved if the contract is cancelled.’
If you are able to rely on the cooling-off period as a fallback position, you may like to add: ‘Alternatively, I rely on section 43 of the Motor Car Traders Act 1986 (Vic), and terminate the agreement pursuant to that section.’
Keep a copy of this letter for your records.
If you have a finance contract in relation to the purchase, but have rescinded on grounds other than the sale contract being subject to finance, you should write to the lender enclosing a copy of this letter, stating that under section 135 of the National Credit Code, as the sale contract is rescinded, the finance contract is also discharged.
-
(Your name, address and date)
(Name and address of car trader)
cc Finance company (if applicable)
and Consumer Affairs Victoria
Dear Sir/Madam,Motor vehicle registration no. ABC 123 (or other description of car)
I rescind any agreement for sale of a motor car made in respect of the vehicle referred to above on the following grounds:
1 The car is not of acceptable quality and there has been a breach of the condition implied in section 54 of the Australian Consumer Law.
2 The statutory right conferred by section 45 of the Motor Car Traders Act 1986 (Vic).
3 (Insert any other grounds for rescission.)
I require you to immediately return the full amount of any deposit and/or trade-in (if applicable) held by you, failing which legal proceedings will be issued against you in the Victorian Civil and Administrative Tribunal (or the Magistrates’ Court). Your cheque should be made payable to the writer and sent to (insert your address).
(Insert your signature and name)
Notes
Option 1 is only available where the seller sells the car in the course of a business.
Option 2 is only available where the car is purchased from a car trader.
See note 2 in appendix B.
Return the car to the seller immediately.
See note 4 in appendix B.
See note 5 in appendix B.
Keep a copy of this letter for your records.
See note 6 in appendix B.
-
(Your name, address and date)
(Name and address of car trader)
cc Finance company (if applicable)
and Consumer Affairs Victoria
Dear Sir/Madam,Motor vehicle registration no. ABC 123 (or other description of car)
As provided by section 88B of the Motor Car Traders Act 1986 (Vic) (‘Act’), I withdraw from any agreement for the sale of a motor car made in respect of the vehicle referred to above on the ground that the agreement for sale does not contain the prescribed particular terms and conditions in accordance with section (insert section 41 or 42 as appropriate) of the Act.
I require you to immediately return the full amount of the deposit and/or trade-in (if applicable) held by you in accordance with subsections 88B(4) and (5) of the Act, failing which legal proceedings will be issued in the Victorian Civil and Administrative Tribunal. Your cheque should be made payable to the writer and sent to (insert your address).
I also terminate my credit contract in accordance with section 21 of the National Credit Code (if applicable).
(Insert your signature and name)
NotesIn the first paragraph, refer to section 42 if the vehicle is a new car, and to section 41 if the car is used.
There are two other grounds of withdrawal under section 88B: the failure to comply with section 37 or an offence under section 38. The last three lines of paragraph one of the letter need to be amended to suit the ground relied upon.
The third paragraph only applies if no credit has been obtained within the meaning of section 21 of the National Credit Code.
See note 2 in appendix A.
See note 4 in appendix B.
See note 2 in appendix B.
Keep a copy of this letter for your records.
Contacts & Sample letters
Chapter: 6.7: Buying a car
Contributor: David Niven, Legal Consultant
Current as of: 1 September 2024
Law Handbook Page: 569
Next Section: Sample letters & Contacts
