How Does A Car/Vehicle Sales Agreement Helps Protect Consumers?

The car sales contract is a legally binding contract. Before signing it, make sure that you read it and if in doubt, raise any questions prior to signing it.

Important: If you have signed contracts to buy a new car with more than one trader, you may have to buy more than one car.

Points to remember before signing a car sales agreement
- You should never sign a blank car sales contract
- You should never sign a car sales contract that is incomplete
- Always insist that all costs are clearly listed
- Do not sign the contract if a delivery date or deadline is not specified
- Do not sign the contract if the contract does not specify the color or any other particulars of the vehicle, whether standard or extra

The Law of Consumer guarantees
Buyers have additional statutory rights under national ‘consumer guarantees’ ascribed in the Australian Consumer Law. It is important that you know that whether or not there is a warranty or extended warranty from the manufacturer or dealer, the car sales agreement or contract cannot exclude those rights. The sale of both new cars and used vehicles come under the Law. Additionally, the cars must be bought from a dealer or manufacturer on or after 1 January 2011.

Note: The Law does not cover vehicles bought at auction or once-off from a private seller

Car Sales Agreements Terms

Contracts for the sale of motor vehicles or vehicle sale agreement by licensed dealers (if not sold to other dealers or sold by auction) are regulated under the Motor Vehicle Dealers Act. Therefore, these are legally binding contracts and, hence, they must be in writing. They must also contain certain prescribed terms and conditions which explain the rights and responsibilities of both the purchaser and the dealer under the contract. Furthermore, they also help determine how contractual matters are dealt with.

The prescribed terms and conditions generally include the following key terms:

• A copy of the contract must be given to the buyer at the time he or she signs the contract
• A condition that the contract does not become enforceable until after it is signed by the dealer and duly accepted by the dealer
• Detail the exact terms of any financing available
• Details on contract termination by either the consumer or the dealer
• Details on any price fluctuations before delivery and how to handle it

By law, the dealer should deliver a new vehicle within three months and a used vehicle within one month after the car sales agreement has come into effect. Otherwise the contract can be cancelled.

Note: If there are additional terms and conditions in a car sales agreement, such terms must not contradict or diminish the requirements of the prescribed terms and conditions. Net Lawman provides professionally drafted Car Sales Agreements for both sellers and buyers of a car/vehicle. These documents ensure that they are compliant with existing laws and help in maximizing protection for both parties by including the necessary prescribed terms and conditions.