Victoria Legal Aid

Buying a car – what's the law?

This video provides basic legal information about buying a car for people new to Australia. It is the part of a series of videos about the law for people who have recently arrived in Australia.

See more videos about the law.

Transcript

Text: Buying a car

[An image shows of a young woman and a young man walking out of a supermarket. They both wear casual clothing—the woman wears a black dress with a grey jacket and bag, the man wears jeans and a black hooded jacket. The pair is shown walking towards the car park in a series of still images.]

Young woman: Hi Tom, I’m getting a car this weekend! I crashed my old car a few weeks ago.

Tom: Oh no! Are you OK?

Young woman: Yes, I’m fine. But the car isn’t.

Tom: Hope you find something!

[The image fades to black and is replaced by an image of the young woman standing in a used car yard with her hand on her chin in a pose of contemplation.]

Young woman: I really like that car!

[Vision changes to an image of the young woman standing beside a black sedan while an older salesman with glasses smiles at her.]

Salesman: Well this car’s a bargain. Best car I’ve had in the yard for months. It’s worth $10,000.

[Vision changes to an image of the young woman looking wary.]

Young woman: But it costs too much!

[Vision changes to an image of the salesman gesturing emphatically and smiling.]

Salesman: Hey, I like your face - you can have it for eight and a half.

[Vision changes to an image of the young woman with her hands outstretched imploringly.]

Young woman: I don’t have that much money.

[Vision changes to an image of the salesman ushering the young woman into his office.]

Salesman: No problem. Come into the office and let’s see what we can do.

[Vision changes to an image of the young woman looking cautious, sitting opposite the salesman at his desk.]

Young woman: Umm, I think I need some more time...

Salesman: Trust me, that car will be gone in an hour ... you’re getting it for a great price.

[Vision changes to an image of the salesman grinning as he hands the young woman a pen.]

Salesman: Just sign here on the dotted line—it’s easy.

[Vision changes to an image of the young woman looking thoughtful and pleased as she contemplates the salesman’s offer.]

Young woman: I really like that car. Nothing can go wrong. I’ll sign it.

[Vision changes to an image of the young woman signing a contract and then fades to black.]

[An image shows of the young woman standing by her new car as she shows it off to an older woman.]

Older woman: Very nice...How much was it?

Young woman: Only $8,500.

[Vision changes to an image of the older woman looking worried as she looks over the paperwork.]

Older woman: Yes, but look here. The interest is 18%.

Young woman: What does that mean?

Older woman: You’ll have to pay $4,400 in interest!

Young woman: Really?

Older woman: That means you will pay $12,900, NOT $8,500. That’s $215 every month for 5 years!

[Vision changes to an image of the younger woman looking surprised.]

Young woman: I have to pay rent and food! Ohhh, I don’t know if I can pay it! Hmmm…

Older woman: So what will you do?

Young woman: Oh it’ll be OK. At least I have a good car. Get in, I’ll take you for a drive!

[Vision fades to black.]

Text: A few months later

[An image shows of the young woman talking to the salesman. Her car bonnet is open and they are standing in the used car yard.]

Young woman: The gears don’t work.

Salesman: Sorry. The warranty has expired so I don’t have to fix it.

[Vision changes to an image of the salesman walking away from the young woman.]

Young woman: I’m not going to keep paying for a broken car. I got this letter from the bank.

[Vision fades to black.]

[An image shows of the young woman sitting at a kitchen table with the older woman. She is holding a letter and looking concerned.]

Older woman: What does it say?

[Vision changes to an image of the young woman holding the letter so that the camera can see the red, bold text “DEFAULT NOTICE”.]

Young woman: Well, I missed two payments on the car, and now I have to pay the whole amount I owe within 28 days.

[Vision changes to an image of the older woman looking outraged.]

Older woman: They’re thieves!

Young woman: I can’t pay it, I don’t have enough money!

Older woman: Ooh that car is trouble.

[Vision fades to black.]

[An image shows of the young woman collecting mail from her letterbox.]

Young woman: I’ll read them later.

[Vision changes to an image of the young woman putting the unopened letters in a drawer.]

[Vision fades to black.]

[An image shows of the young woman sitting at a desk and talking on her mobile phone. She looks worried.]

Female voice: You have to pay the loan.

Young woman: But the car is broken. I can’t drive it!

Female voice: You have a loan contract with us - you have to keep paying.

[Vision fades to black.]

[An image shows of the young woman’s car on the back of a tow truck.]

[Vision changes to an image shows of a man securing the car to the tow truck.]

[Vision changes to an image of the young woman looking alarmed.]

Young woman: Hey, that’s my car, what are you doing?

[Vision changes to an image of the repo man explaining the situation to the young woman.]

Repo man: We have to take the car - you haven’t paid the loan.

[Vision changes to an image of the young woman receiving a reposition notice with red, bold text reading “NOTICE AFTER REPOSSESSION”.]

Young woman: They take my car and I still have to pay the loan! This is crazy!! Maybe I should call a lawyer to find out what I can do.

[Vision fades to black.]

[An image shows of the reception of Legal Aid through glass doors. A sign on the doors reads “Legal Aid Lawyers And Services”.]

[An older woman with glasses sits at her desk, talking on the phone with the younger woman.]

Older woman: Did you read the contract?

Young woman: Umm, no.

Older woman: Well, because you signed the contract it’s not easy to get out of it.

[Vision changes to an image of the young woman sitting at a desk and talking desperately with the older woman from Legal Aid.]

Young woman: I see that now! I haven’t got a car, I haven’t got any money and they still want me to pay. What can I do?

[Vision changes to a split screen still image of the two women talking.]

Older woman: You should see a financial counsellor. They can talk to you about your options.

[Vision fades to black.]

[An image shows of an office with a sign that reads “Financial Counsellor”.]

[Vision changes to an image of the young woman sitting across a desk from a middle-aged Asian woman with black hair. The young woman is handing the older woman some documents.]

Young woman: These are all the papers.

Financial counsellor: Thanks. Now I can help you work out what to do next.

[Vision changes to an image of the young woman looking relieved.]

Disclaimer: The material in this print-out relates to the law as it applies in the state of Victoria. It is intended as a general guide only. Readers should not act on the basis of any material in this print-out without getting legal advice about their own particular situations. Victoria Legal Aid disclaims any liability howsoever caused to any person in respect of any action taken in reliance on the contents of the publication.

We help Victorians with their legal problems and represent those who need it most. Find legal answers, chat with us online, or call us. You can speak to us in English or ask for an interpreter. You can also find more legal information at www.legalaid.vic.gov.au

Reviewed 10 March 2022

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