OCBA - The contract and warranties

The contract

A contract is a legally binding document. Do not sign any contracts, order forms or ‘agreement to purchase' documents unless you are sure you wish to proceed. If you sign a contract and then change your mind there may be significant penalties.

Read your contract thoroughly before you agree to sign. If you have specific requirements, now is the time to set them out in writing. Your requirements could include the obtaining of finance, or ensuring you receive certain agreed vehicle specifications such as colour, build date or delivery date. Such clauses might specify that:

The contract is subject to and conditional upon the purchaser obtaining finance from (insert the name of your credit provider) to complete the purchase.

Vehicle (insert car details including colour and build date) to be delivered by (insert date) otherwise contract will be cancelled and deposit refunded.

Never sign an incomplete contract, and remember to keep a copy of what you sign. If you are unsure about anything in the contract, DON'T SIGN IT.

Make sure your insurance is valid from the time you take ownership of your car.

Warranties

Dealer/manufacturer warranty
A warranty is your guarantee that if your car develops faults during the warranty period (faults that you did not cause), then it will be repaired for you. If repairs need to be carried out, make sure you use a repairer who is approved by the dealer/manufacturer. Check with them first.

Prior to the expiration of the warranty period it's a good idea to have a full vehicle inspection carried out by a qualified, independent operator to identify any problems that require repair. Notify the dealer, within the warranty period, of any faults that have been identified so they can be fixed or replaced.

Warranty (under the Trade Practices Act)
In addition to other warranties, the Trade Practices Act 1974 provides warranty protection for purchasers of new cars. This protection covers all vehicles purchased for $40,000 or less, all vehicles purchased for domestic, personal and household use (irrespective of price) and generally also commercial vehicles purchased for over $40,000 that are primarily for the transport of goods on public roads.

A vehicle must be:

as described or advertised

be of merchantable quality in line with the agreed price paid for the vehicle

Be fit for the purpose that is obvious or that the consumer made known to the dealer.

The consumer may be entitled to cancel the contract, return the vehicle and receive a refund if these conditions are breached. Alternatively, the consumer may negotiate with the supplier for a partial refund, repair or replacement of the vehicle.

Similar consumer protection laws also exist in the Consumer Transactions Act 1972.

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The contract and warranties

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The contract

Warranties