When looking for a contract cancellation, or rescission, after a car purchase you must act quickly, however after a contract has been recognized, the buyer is bound by it. You must contact the seller in person or by letter rescinding from the contract and returning the vehicle if delivery has taken place.
When this has been done in a quick manner it shows intention to cancel and will minimize the loss of the dealer or seller. When a contract is withdrawn or rescinded both parties must be in the same position before the contract was done. There is one exception; under the MCT (Motor Car Traders) Act when the cooling off period under section 43:
• A used car contract: $100 or 1% of the purchase price, whichever is greater; or
• A new car contract: $400 or 2% of the purchase price, whichever is the greater.
• The car sold to you is given back to the seller.
• The money you paid plus the trade in (or equivalent monetary value if already sold)
There can be some incidents, which will make contract cancellation possible. One way is if the dealer gives false information of the odometer. Another way is if the buyer is under the age of 18. In addition, if the contract states something about an existing fact about the car, which is not true: this is called misrepresentation. This may simply be the statement that it is a “one owner car”, or that something on the car is “original”
Section 43 of the MCT Act stipulates a cooling-off period for the purchase of a used car from a motor car trader. On 1 December 2008, unless proclaimed earlier, section 43 will also apply to new car sales.During the cooling off period the buyer has three days to cancel or rescind the contract.
When buying a new car it is important to know what you want in a car, inspect the vehicle for any signs of prior damage and know your rights as a purchaser.