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).

 

Appendix A: Letter to cancel in the cooling-off period

(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 hereby 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

1As 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.

2Return the car to the car trader immediately.

3Keep 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.

4Copies of the letter should be sent to the lender (if finance is taken out to purchase the car) and Consumer Affairs Victoria.

5Under 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.

6If 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.

Appendix B: Letter to end a car sale contract because of failure of a condition precedent

(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 hereby rescind any agreement for sale of a motor car made in respect of the above-mentioned vehicle on the basis of a non-fulfilment of a 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)

Notes

1This letter can also be used where the car is purchased from a private person.

2You 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.

3Return the car to the seller immediately.

4Copies 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).

5If 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 1959 (Vic). In view of the above, it would be in the mutual interest of all involved if the contract is cancelled.”

6If you are able to rely on the cooling-off period as a “fall back” 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.”

7Keep a copy of this letter for your records.

8If 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.

Appendix C: Letter to rescind a car sale 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 hereby rescind any agreement for sale of a motor car made in respect of the above-mentioned vehicle on the following grounds:

1The car is not of acceptable quality and there has been a breach of the condition implied in section 54 of the Australian Consumer Law.

2The 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 email address).

(Insert your signature and name)

Notes

1Option 1 is only available where the seller sells the car in the course of a business.

2Option 2 is only available where the car is purchased from a car trader.

3See note 2 in appendix B.

4Return the car to the seller immediately.

5See note 4 in appendix B.

6See note 5 in appendix B.

7Keep a copy of this letter for your records.

8See note 6 in appendix B.

Appendix D: Letter to withdraw from a car sale 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)

Pursuant to section 88B of the Motor Car Traders Act 1986 (Vic) (“the Act”), I hereby withdraw from any agreement for the sale of a motor car made in respect of the above-mentioned vehicle 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 hereby terminate my credit contract in accordance with section 21 of the National Credit Code (if applicable).

(Insert your signature and name)

Notes

1In the first paragraph, refer to section 42 if the vehicle is a new car, and to section 41 if the car is used.

2There 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.

3The third paragraph only applies if no credit has been obtained within the meaning of section 21 of the National Credit Code.

4See note 2 in appendix A.

5See note 4 in appendix B.

6See note 2 in appendix B.

7Keep a copy of this letter for your records.