No cooling-off period for WA car buyers

24/Feb/2012

Comments: 3 readers have left a comment

CONSUMER Protection received 791 calls from consumers confused about cooling-off periods for sales contracts in 2011, half of them from people who wanted to terminate a contract they had signed to buy a car.

A cooling-off period is the length of time a consumer is able to cancel a contract without penalty but in WA there is no such period when buying a car.

Commissioner for Consumer Protection Anne Driscoll said there were only a few limited circumstances when a cooling-off period applied to consumers.

“When consumers sign a contract to buy a motor vehicle in WA there is no cooling-off period. That’s why they need to think really carefully and read the fine print before putting pen to paper,” Ms Driscoll said.

“In most cases there was no need to sign a contract to work out a deal; the contract finalises the terms of the deal and should only be signed when you are entirely satisfied.”

One of few times a cooling-off period would apply was with a health club or gym membership where consumers had a 48-hour cooling-off period under WA’s Fitness Industry Code of Practice.

Door-to-door, telephone or telemarketing salespeople also have to give you a cooling-off period and consumer rights are fully protected under the Australian Consumer Law.

This law applies to all uninvited approaches; door-to-door, over the phone or even from salespeople in shopping centre car parks.

“In these instances where the purchase is over $100, the seller must provide a cooling-off period of 10 business days. During that time no money can be taken and services cannot be supplied.”


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What everyone else is thinking

Jay

02/01/2013

It is really annoying and car dealers do really push hard on you to sign contract. This just happend to me yesterday.All I went in to do was to test drive the car.Honestly, the car was perfect for me.But I clearly couldnot afford the car. Inaddition, I did mention them that I want to sell my current car first and when thats done,from there on further decision will be made.Unfortunately, I got trapped in there trap.

Irwin

09/12/2012

I have been cheated to buy a car because there isnt such a rule. I am actually disgusted at our legislation allowing it to happen then blaming the dealership.

Sherwyn

09/03/2012

Its terrifying to find out that if you have changed your mind about a vehicle purchase you can be slapped with a charge of up to 15% of the vehicle cost. We need the ten day cooling off period to be applied for vehicle purchases in W.A. If it can be done for telecommunication purchases it should be done for larger purchases. Please protect the consumer.

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