Anyone cancel order from dealer after placing deposit?

[Voodooman]

Hi guys, i have purchased a brand new toyota wish last weekend from one of the parallel dealer. I put down a chq of 15k but was bounce back due to insufficient money inside account.

 

I have work out my budget and realized its have exceed if i will to get it.

A bit regretted now. Think better look for a 3 to 4 yr coe left over car that i can afford.

 

I would like to know am i able to back off or cancell the sale agreement. If there any thing such as cooling period?

 

Btw, the sale agreement did state 'All sale deposits are not refundable or transferable in the event of cancellation of this sales agreement.'

 

As my chq didnt went through, am i able to back off?

 

Thankbin advance for all valuable input.

Doubt the PI will go after you to enforce contract and claim damages if they know you don't have 15k in the bank.

 

But if they suffered real damages, they might come after you via the Small Claims Tribunals.

[Darryn]

Doubt the PI will go after you to enforce contract and claim damages if they know you don't have 15k in the bank.

 

But if they suffered real damages, they might come after you via the Small Claims Tribunals.

Yeah...agree with this - time and money spent will be hard to recover for them -

Right now, money in your wallet - to get it our from your wallet is hard

[Watwheels]

Unless the relative fake the signature, I don't think the relative can take loan on behalf simply with the IC.

 

 

 

I dunno lah. I dun understand how their mind works.

[Maxoo]

i asked my friends with is a property agent and insurance agent. There is a certain of cooling period for both industries. But dunno applicable to car sale anot

Edited April 15, 2015 by Maxoo

[Stone78]

A good sales man will understand you when you tell them your situation now. Otherwise just compensate them few hundred bucks. Don't drag too long.

[1fast1]

 

if im not mistaken, by law, as you have signed the contract and your cheque has bounced, you have opened up yourself to legal recourse from the seller. now everything depends on him whether want to claim you or not.

 

your cheque not going through is NOT a cancellation of agreement, since that requires mutual consent to be cancelled (since it involves 2 parties signing the doc)

 

your best bet is to say really no money. go down with $100 or $200 cash in your wallet, offer it as a 'final settlement' and have them sign a paper that says acceptance of the cash means neither part shall have any legal recourse against the other moving forward. make sure to get someone authorized by the company, with company stamp on it. (however, not i am not a lawyer, and that is something i would do if i was in your shoes. how it pans out is entirely on you)

 

Good reply. The act of writing a valid cheque is essentially a legally-binding pledge to make payment. The fact that it's been dishonoured by the bank (the drawee) means the liability for payment falls back on the drawer, i.e. the person who wrote the cheque. So the pledge to pay remains in effect and the payee (car dealer) can pursue this claim against the one who wrote the cheque.

 

That signature on the contract along with the handing over of a negotiable instrument (the cheque) already signifies that a legally-binding contract has been willingly entered into by the buyer. There's no "simple" stepping away at this point - the buyer has to either honour the deal (at least make good the deposit amount, even if he has to forego it later), or negotiate some other written settlement with the car dealer.

 

If I were the buyer in this circumstance, I would:

 

a) be sweating blood

 

b) be feverishly scrutinising the contract boilerplate for small print related to default of the deposit payment to find out my liability

 

c) make a call asap and be very, very nice to the dealer. Nothing good can come of apathy in this case. Under no circumstances should he try to "siam" calls or liability,

Edited April 15, 2015 by Turboflat4

[Darryn]

 

Good reply. The act of writing a valid cheque is essentially a legally-binding pledge to make payment. The fact that it's been dishonoured by the bank (the drawee) means the liability for payment falls back on the drawer, i.e. the person who wrote the cheque. So the pledge to pay remains in effect and the payee (car dealer) can pursue this claim against the one who wrote the cheque.

 

That signature on the contract along with the handing over of a negotiable instrument (the cheque) already signifies that a legally-binding contract has been willingly entered into by the buyer. There's no "simple" stepping away at this point - the buyer has to either honour the deal (at least make good the deposit amount, even if he has to forego it later), or negotiate some other written settlement with the car dealer.

 

If I were the buyer in this circumstance, I would:

 

a) be sweating blood

 

b) be feverishly scrutinising the contract boilerplate for small print related to default of the deposit payment to find out my liability

 

c) make a call asap and be very, very nice to the dealer. Nothing good can come of apathy in this case. Under no circumstances should he try to "siam" calls or liability,

+1 -

 

But also look at the flip side of the coin -

Imagine cheque bounce - what would be the responsibility of the dealer?

It would be "somewhat" valid for him to claim contract void as deposit not paid, correct?

The customer would have difficulty in enforcing in that instance

 

While I agree with your analysis - I think there are two other things at play

a) No smart business man takes action until the cheque has cleared - so the dealer is already "behind" if he tries to collect

b) Even IF you assume that the contract is enforceable (which it probably is, but I wouldn't take as a given) the dealer could technically (I think) only claim his "loss". Which I am assuming is not the full purchase price of the car - is probably more like what $3-$5k? Taking the case to court etc etc seems like a lot of effort for something that probably happens not infrequently

 

Remember here that the car is a Wish - so it's not really unique or anything else, and the dealer can most likely sell to someone else with no difference...

 

Note also that if the "cheque bounced" - financing may be an issue anyway....

[1fast1]

+1 -

 

But also look at the flip side of the coin -

Imagine cheque bounce - what would be the responsibility of the dealer?

It would be "somewhat" valid for him to claim contract void as deposit not paid, correct?

The customer would have difficulty in enforcing in that instance

 

While I agree with your analysis - I think there are two other things at play

a) No smart business man takes action until the cheque has cleared - so the dealer is already "behind" if he tries to collect

b) Even IF you assume that the contract is enforceable (which it probably is, but I wouldn't take as a given) the dealer could technically (I think) only claim his "loss". Which I am assuming is not the full purchase price of the car - is probably more like what $3-$5k? Taking the case to court etc etc seems like a lot of effort for something that probably happens not infrequently

 

Remember here that the car is a Wish - so it's not really unique or anything else, and the dealer can most likely sell to someone else with no difference...

 

Note also that if the "cheque bounced" - financing may be an issue anyway....

 

I agree with what you're saying, but the pitfall is that most deadbeat buyers would be content to remain passive because it's unlikely that the dealer is likely to go after them for such a small amount. In my opinion, that is the wrong thing to do because:

 

- it's not honourable

- if you encounter the one dealer out of ten who decides to make an example of your sorry ass, you'll have riled him up properly by "acting blur" about your mistake.

 

So my point was simple: engage the dealer and apologise to him, explain the circumstances honestly and humbly and try to work out a solution.

Edited April 15, 2015 by Turboflat4

[Little_prince]

if fake signature then it becomes criminal case liao.

 

fraud sure go jail.

Unless the relative fake the signature, I don't think the relative can take loan on behalf simply with the IC.

 

 

 

[Enye]

Hi guys, i have purchased a brand new toyota wish last weekend from one of the parallel dealer. I put down a chq of 15k but was bounce back due to insufficient money inside account.

 

I have work out my budget and realized its have exceed if i will to get it.

A bit regretted now. Think better look for a 3 to 4 yr coe left over car that i can afford.

 

I would like to know am i able to back off or cancell the sale agreement. If there any thing such as cooling period?

 

Btw, the sale agreement did state 'All sale deposits are not refundable or transferable in the event of cancellation of this sales agreement.'

 

As my chq didnt went through, am i able to back off?

 

Thankbin advance for all valuable input.

 

check if your PI is in the MCF 2nd hand car dealer blacklist

 

if they are, then bo chup

 

can jiak just jiak

 

[Maxoo]

Thank for the feedback. As one of the bro mentioned. Think will be better to solve out a way with dealer to meet one another compromise.

[flashbang]

Hi guys, i have purchased a brand new toyota wish last weekend from one of the parallel dealer. I put down a chq of 15k but was bounce back due to insufficient money inside account.

 

I have work out my budget and realized its have exceed if i will to get it.

A bit regretted now. Think better look for a 3 to 4 yr coe left over car that i can afford.

 

I would like to know am i able to back off or cancell the sale agreement. If there any thing such as cooling period?

 

Btw, the sale agreement did state 'All sale deposits are not refundable or transferable in the event of cancellation of this sales agreement.'

 

As my chq didnt went through, am i able to back off?

 

Thankbin advance for all valuable input.

 

You're still liable, cheque is just a payment method.

 

I wonder why you didn't do your sums before placing the deposit for the car.

[Fitvip]

I booked a car from a big AD with a trade-in car and deposited >$2k by CC. Two days later, I called to cancel the deal (as I called, the SE told me that he was about to call me to inform me that my bank loan had been approved). No questions asked. I just gave the excuse that my family did not agree to buying this car. He told me that the refund would take about more than a month as it was through credit Card. I got full refund!

[Maxoo]

I booked a car from a big AD with a trade-in car and deposited >$2k by CC. Two days later, I called to cancel the deal (as I called, the SE told me that he was about to call me to inform me that my bank loan had been approved). No questions asked. I just gave the excuse that my family did not agree to buying this car. He told me that the refund would take about more than a month as it was through credit Card. I got full refund!

Good. As least big company like AD is kind and have a good internel policy when come to refund. But i doubt small company's could.

[Maxoo]

 

You're still liable, cheque is just a payment method.

 

I wonder why you didn't do your sums before placing the deposit for the car.

Lol blamed on myself y i didnt do a caculation that fators for the next few yrs that within my budget when especially economic is not doing good this yr compared to past previous yrs. Better to have some cash on hand for the raining days ahead.

[1fast1]

What happens?

 

Any way to negotiate to get back deposit???

http://www.singaporelawwatch.sg/slw/headlinesnews/61708-judge-dismisses-car-sellers-suit-over-ferrari-sale.html?tmpl=component&print=1&layout=default&page=

 

This judgement, just reported on yesterday, is of high relevance to you. It may be about a Ferrari, but see how the deposit payment was handled. The cheque bounced but the judge still ordered the buyer to pay the deposit in full.

 

Basically, the deposit is already the dealer's money as long as he is keeping his end of the deal. If you want it back you're asking him for a big favour. It's up to him whether he wants to comply.

[Vid]

http://www.singaporelawwatch.sg/slw/headlinesnews/61708-judge-dismisses-car-sellers-suit-over-ferrari-sale.html?tmpl=component&print=1&layout=default&page=

 

This judgement, just reported on yesterday, is of high relevance to you. It may be about a Ferrari, but see how the deposit payment was handled. The cheque bounced but the judge still ordered the buyer to pay the deposit in full.

 

Basically, the deposit is already the dealer's money as long as he is keeping his end of the deal. If you want it back you're asking him for a big favour. It's up to him whether he wants to comply.

 

I'm sure both parties' lawyers earn more than $10k [laugh]

[1fast1]

 

I'm sure both parties' lawyers earn more than $10k [laugh]

 

Yes, it's like AvP, no matter who wins, we always lose (and the lawyers always win).