Car buyer learns lesson hard way

People need to choose carefully when buying a car - a change of mind does not legally entitle you to a refund.
A young Rotorua man couldn't get a refund for a newly bought car when he changed his mind.
Cao Xun, a 21-year-old student, bought a secondhand Subaru Impreza then decided against the purchase the next day.
Ministry of Consumer Affairs adviser Joanne Kearney said under the law Mr Cao was not entitled to a refund because there was nothing wrong with the car and no misdemeanours involved.
"In this situation, the dealer is under no obligation to give a refund."
After Mr Cao bought the car and drove it home, his parents in China were concerned both for Mr Cao's safety in a fast car and that the insurance for a male under 25 would be too much.
Mr Cao tried to take the car back to the dealer he had bought it from, but he was told he could only get a partial refund.
Ms Kearney said Mr Cao would have been entitled to a full refund only if there had been a problem with the car.
The manager of the car yard said the reason they offered only a partial refund was because the company had spent money on the car's warrant of fitness and registration and the car had already been registered in Mr Cao's name.
The manager explained that having another owner on the vehicle's record devalued the car, especially since Mr Cao was the first New Zealand owner. It meant the car was no longer a "fresh import".
Ms Kearney said when people were buying a vehicle they should remember to think not only about the price of the car but also consider other costs like registration, warrant of fitness, insurance and petrol.
She also warned buyers about not putting deposits on cars unless they are really serious about buying the car, because often deposits are non-refundable.
She said customers might claim a refund if they had an agreement with the seller before the purchase was made.
Ms Kearney said a lot of retailers put up "no refunds" signs, which consumers should look out for.
She recommends potential buyers check the Ministry of Consumer Affairs website for information.
 

CHECKING THE FACTS
Check trader registration, Consumer Information Notice and money owed on the vehicle.
Have the vehicle checked before deciding if you want to purchase it.
Be wary of unrealistic trade-in offers. The price of the vehicle you want to buy could be increased to cover the difference.
Compare the prices of similar vehicles in other traders' yards to work out the best deal.
If a warranty is offered, check what it covers, what excess costs there are and rules about servicing.
If there is something wrong with the car check your legal entitlements under the Consumer Guarantees Act.
Under the Fair Trading Act the trader must not mislead or deceive you, or make false representations about the vehicle.
If you believe you have been misled you can report this to the Commerce Commission.

BEFORE YOU BUY
Don't be pressured into buying before you are really sure.
Read very carefully what you are signing. Don't get caught out by signing something you haven't read properly.
Decide how you're going to pay for the vehicle. Many traders offer finance deals but look into other finance sources too.
Remember, you don't have the right to return goods for a refund if you just change your mind, unless you had an agreement with the shop that you can.
Visit www.consumeraffairs.govt.nz for more information.