Misrepresented contract Sportsback not satisfied!

[lancer2008]

I went to Mitsubishi late last year in October to test drive a Lancer Sportsback.

I told the salesperson that I had serious doubts about buying the car that day. I told him it was above my budget spending but I was prepared to find out how much per week it would cost through financing.

The sales guy told me in order to go through the finance steps he needed me to sign a form. He drew up a contract and said that I would not be buying the car unless I was happy with the financing side of things. He added a clause in the contract for me saying "pending finance approval". I thought that this had covered me. He handed me the pen to sign the form and I again checked with him asking him" so If I sign this I still haven't bought the car. He said correct and I signed it.

As soon as I signed it he shook my hand and congratulated me on buying the car. I told him I was not ready to buy a car. I immediately complained to 3 people, the after sales lady (who told me to go back to the sales guy and that it was probably to late), the finance guy and the sales guy. The sales guy just kept shaking my hand saying it was too late!

A couple of days later I had to go back and finalize the finance ( i felt obliged to not breach the contract). The new finance guy asked me how I was going and I told him my woes. I told him that I might loose my license in 2009 and he told me not to worry that I would probably still be able to drive to work in my situation.

I finally found out how much per week it was going to cost and it is way too much for me to comfortably afford it and I am really worried about what will happen when I loose my license.

A lady from Mitsubishi rang me to see If I would fill out a customer satisfaction survey and I told her over the phone that I was not happy. After hearing my story she said that it sounded like the sales guy had done the wrong thing and that I should seek legal advice! I intent to write to Mitsubishi regarding this and have also rang legal aid immediately following the signing of the contract.
Legal aid have told me that a) the contract was misrepresented to me and b) it is very difficult to prove!
I believe that a consumer should be able to know there weekly repayment figure before signing up to buy a new car and this should be legislated!

I also feel that the sales guy mislead the finance company into signing me up as I warned him that I didn't feel like I could afford to buy the car. The finance should have failed and I wanted to ring the fiance company to say that I was in financial trouble(legal aid told me not to ring the finance company)! I feel that the sales guy misrepresented me to the finance company and I wonder if this is a company owned by Mitsubishi or the Australian Motors Group and that they just wanted me to sign up to make a sale!

I feel like I have been tricked into buying the car!

[TheLoanMan]

Under the Consumer Credit Code, you should have been given a Letter of Offer, which becomes the contract and discloses what the payments are. This is to be signed by you before they can draw down the loan.

If the repayment amount was unacceptable, you should not have signed the contract.

The way you have explained the situation there may be a breach of the Consumer Credit Code, by the person selling the finance at the car yard.

I would contact the office of fair trading and explain the situation to them, because once the person selling the finance knew that you were not happy with the finance he should not have pressured you into it.

[lancer2008]

I rang the office of fair trading.

They said because I signed the finance agreement (under pressure) that I don't have a leg to stand on.

I was given the impression by the finance guy and the sales guy that it was too late to back out before I signed.

I did tell the finance guy I was not happy about what was happening, he never mentioned that it would be ok to not go ahead with the deal.

I was just trying to do the right thing by them. They made it sound like (after I signed the contract for the purchase of a new vehicle) that it was too late to back out even though I complained to 3 different people.

I even rang consumer affairs twice and the only advice was this. I was told to not give bank statements and see if the financing would fail. Unfortunately when I went into the shop again the finance guy said straight away that finance was approved. I felt like I was already bound by the contract to follow through otherwise be in breach of their conditions.

I explained to consumer affairs the added clause of subject to finance approval and was told that this was on behalf of the finance company.

Anyway, my business seems to be failing due to the economic downturn. I feel like my world is going to fall apart.

I will try to be positive in the face of it all.

[lancer2008]

I have just rang the legal services commission and they think that I shouldn't have had to sign the sale of contract just to look at finance figures. She said i might have been tricked or coerced into signing.
I am making an appointment for Monday.

[julslovesjesus]

I feel for you I really do. Once bitten twice shy huh? I guess you'll never do that again - and on paper, they are in the right - it is a he said she said type of situation where you'll have to try to prove what they agreed to. I really think you might be stuck. Having said that, the conduct of the sales guy was unconscionable. I don't know how people like that sleep at night. Just remember - what goes around comes around.
I'm hoping you get a good outcome though!

[mhz]

You had no obligation really to sign the forms for any contract in the first place.

You could have found out about finance without even signing a contract to purchase the car.

I have been stung in the past when I was younger and purchasing a car.
I went to buy a car and signed the contract and left a deposit. I was getting an RACV test done on the car and told the sales guy I would not be buying the car if I was not happy with the RACV report.

The report came back and we found that the car had been in a major accident. I refused to go ahead with the purchase but the salesman had worded the contract so that it read "subject to RACV test, no major mechanical defects".
As the car did not have any major mechanical defects (only structural and cosmetic defects) I was obligated to complete the purchase agreement or forfeit my deposit.

After seeking legal advice I now have the following put in the terms of the sale
"Sale subject to customer satisfaction with RACV test and subject to customer finance"

That way if i can't afford it through whichever finance company I choose, I can easily back out.

[rgg066]

1. UNDER NO CIRCUMSTANCES TAKE POSSESSION OF THE VEHICLE. Do not even sit in it again. and advise the dealer that given the salesman fraudulently misled you and that in accordance with your verbal instructions at the time, you do not want to purchase the vehicle.

2. Contact the financier and advise them you were deceived, making the contract invalid.

3. Write to the dealer principal and state your case.

4. Write to Consumer Affairs lodging a formal complaint in relation to the conduct of the salesman.

5. Write to Mitsubishi Australia lodging a formal complaint in relation to the conduct of the salesman.

6. Write to A Current Affair and Today Tonight.

Keep us posted.

[lancer2008]

I rang the finance company and told them that I was mislead when I asked to look at finance.
I was told that the finance company would look into it.
I have since had 2 people from Australian Motors ring me to try and refinance the car. Indecently they can only reduce the repayment by $10 per month!

I asked the finance guy If he had asked the sales guy about what had happened in the sign up process. He said he had not done this! It seems that you can't even complain and get them to look into your story!

I keep referring them to this website as I think they should be aware of how I feel about being stitched up by them!

The finance people at Australian Motors are asking me what I expect to achieve from this....(they just want me to refinance or sell the car at my loss). I would like to hear from them that they have looked into my story first and maybe acknowledge the problem! Then we could work out what to do.

I think the next step I take will be writing to consumer affairs as I am not getting any real help from them!

[SOTD]

I'm unaware of your age but when i was a youngster i was told never to sign anything and i mean ANYTHING unless i was sure of what i was signing and only an idiot would do so. So please excuse the arrogance but you are either young, uneducated (check my spelling lol) or stupid. If your not young....well...go figure.

I always sit on the fence and there are always two sides to every story. To all the people who make comments like " what goes around comes around ", God help Lancer 2008 if his side of the story lacks some truth if any.

I believe the only way for people to avoid being bound unfairly by contracts is to introduce some form of education at schools regarding contract law.

Contracts are a great tool, realy they are in place to protect sellers as well as purchasers. Use this tool and use it well.

[lancer2008]

I wonder from your attitude If you are from Australian Motors! .....SOTD
This comment has only appeared after I rang the finanace company and after the car yard ringing me to see If I wanted to reduce my repayments by $10 per moth (hardship lol) or sell the car and lose more money.

[lancer2008]

I also paid for fabric protection ($1400). I went to the car yard and told them there was a hole in the boot of the car after just having it for 3 weeks. The hole was formed from putting my musical instrument in the back of the car. The fabric is really quite weak and not at all sturdy as shown in the LANCER advertising where all sorts of things are being thrown into the back of the car.
Now I drive around with a rug in the back of the car to protect it because Australian Motors wont fix it under the fabric protection policy.
They say that rubbing does not count as damage. A hole does.
Ask yourself how is a hole formed or a rip or tear. Could it be from something applying pressure to it and therefore tearing the delicate fabric used in the LANCERS.

[lancer2008]

SOTD

Re your comment...
So please excuse the arrogance but you are either young, uneducated (check my spelling lol) or stupid.

Actually I suffer from depression! Does this count as stupid! Does this mean it is fair to take advantage of someone!

[tweettee]

While I sympathize with your situation, I don't understand why you signed anything that looked even remotely like a contract when you were fairly certain you couldn't afford it. I am curious as to what you thought you were signing. Surely alarm bells would have been ringing when it started becoming apparent that this was a contract for sale with clauses because regardless of these clauses, it was still a contract to purchase a car you were more than likely unable to afford.
And with regard to SOTD's comment about consumer education, when I was in year 10 (nearly 20 years ago) we actually did a subject called Consumer Education and one of the topics was about buying a car as well other contract related matters. It was one of the most valuable subjects I have ever done.

[lancer2008]

I told the sales guy this was not the car for me as there was a cheaper model available.

I said I was prepared to look at finance figures though as I needed to buy a car and was looking at my options.

I was told to look at financing I had to sign a form. I asked the sales guy verbally that If I signed this did it mean I was buying the car.

He said "no" so I signed it so I could look into how much per week buying a new car could potentially cost.

As soon as I signed it, he congratulated me on buying a new car.

I felt that he misled me and now I certainly know that you can't put your trust into these guys even If they do seem helpful or friendly. They don't really car about the customer at all. They only care about themselves.

I immediately complained to 3 separate people but was told it was too late to back out of the deal.

A week later I had to go back and do the financing. I was under the impression that I could be liable If I did not try to secure the finance and so did not withhold any information.

I actually told the finance guy I felt very uncomfortable about buying the car, felt duped and told him my situation which was difficult.

I would just like to add that when you have mental depression, it can really slow you down and impaor your decisions.


I would like to see the finance industry regulated tightly to protect people from this happening to them.

A) A sale of contract is not valid until the full payments of the car is negotiated. (for me this process was a whole week later). I did ring legal aid to get advice but it did not help at all.


B) Finance/Sale must not be made under duress, or by deception.

C) A caryard must tell the buyer their rights they are entitled to, even If it means not making a sale.

D) I did ring the finance company and made an official complaint. They have not replied with a satisfactory report of looking into my claims.
Official complaint recognition and reporting should be made in writing.

Just my thoughts on the industry.

Do you know If any of the new finance laws protect people from this happening?

Do you think I should make a complaint about Capital Finance company on this website because I feel they have failed to investigate my claims?

[tweettee]

Did you read what you were asked to sign?