How much will cancelation fee be?

[jy01752684]

Just called my dealer to cancel my order. In the end, I figured a 118TSI is a bit too much to afford for me at this stage and for my usage of the car. As I was prepared, I was told there's going to be cancelation fee. I mean it's fair enough, dealer did work and now I need to cancel, I am prepared to lose some money.

So now the question is how much can I expect to lose? The car was at the port when I placed my order. It's a basic 118TSI DSG with no options. I am pretty sure the car's not registered yet. I put down $500 as deposit, and that's the most I expect to lose. Can the dealers in this forum give some idea what the industry norm of cancelation fee for such a situation is please?

thank you

[Brendan_A]

Read the contract you signed. It will tell you.

[jy01752684]

Well, contacts say "entitle to claim 10% of the value for 'liquidation damage'". I dont think I am going to pay for $3000 for that... Anyone wants to take it off my hand? lol

[Maverick]

Just called my dealer to cancel my order.

Did you ask the dealer how much it was going to cost you?

You would be better off going in to talk to the sales manager direct to get it sorted out and explain your situation as he may cut you a break, calling in to cancel could cost you extra.

So now the question is how much can I expect to lose? The car was at the port when I placed my order. It's a basic 118TSI DSG with no options. I am pretty sure the car's not registered yet. I put down $500 as deposit, and that's the most I expect to lose. Can the dealers in this forum give some idea what the industry norm of cancelation fee for such a situation is please?

Well, contacts say "entitle to claim 10% of the value for 'liquidation damage'". I dont think I am going to pay for $3000 for that... Anyone wants to take it off my hand? lol

There's your answer, you signed the contract and you agreed to the conditions. If you're lucky you may get away for less but it depends on the salesmanager/dp hence why talking to them face to face would be best as you can resolve it on the spot.

[jy01752684]

It's true they have the right to pursuit for the 10%. But to me, it's not a fair term anyway. If they can justify that they have a 'floatation damage' of more than $500.

And the sales manager was asking me "Well, how much does it say on the contract?" And turned around the page and 'tried' to find the number. That really looked a bit fake to me.. Shouldn't a sales manager know all the numbers by heart?

The way I see it is: They definitely have the right to pursuit $3000 free money. But they have no reason to be left unhappy with $500. That's what the deposit for anyway. If they agreed to accept a deposit of $500, they had their ass covered. Or they would've asked for more deposit. I'll see how it works out in the end.

[jy01752684]

And something interesting about this subject.

http://www.hotfrog.com.au/Companies/Car-Solutions-Motor-Vehicle-Consultants_899343/Can-a-Motor-car-dealer-sue-me-for-a-cancellation-fee-2475

[elisiX]

I read my contract with McGraths VW Sutherland and it states that 5% of the purchase price is due on cancellation.

My GTI is $57k so the cancellation fee is $2850.

[WhiteJames]

Depends on the model. If you have a GTI or Golf R that everyone wants, but has to wait for, the dealer will happily return your deposit and sell the vehicle to someone else, probably for a higher price. If your model is a dime a dozen, your bargaining power will be reduced.

Cheers.
WJ

[jy01752684]

To be honest, it's an unfair line which gives the dealer 'right' to charge more than their so called 'floatation damage'. That's my feeling anyway. But why I signed the contract? Because this line doesn't mean that much before you really have to cancel it. I guess I can call that experience. Lesson leart, everything has to be clearly written. Dont trick yourself to believe that dealer will be fair(from customer's view) with you when the time comes. But dealers may think it's fair for them to charge that. We are counterparties with opposite interests in terms of money, that's why we have a court right?

But no hard feelings, I wouldn't mind to go to the same dealer again when I think it's a more suitable time to own a new car for myself. But I want this game to be 'fair' in my way.

[elisiX]

Buyers remorse is a bitch.

[Spook]

While it is within their right as per the contract to charge you the 10%, I would think in most cases you would just forfeit your deposit. Maybe if they are nice (and there is demand for your spec), they might let you off without any penalty. Have you spoken to your dealer yet?

[jy01752684]

Yes. Over the phone. But spoke to the sales manager face to face. I am still trying to convince them. Wish me luck!

[GTi Bhoy]

5%

Who is the dealer ?
5% is all the contract says they can charge.
if you explain your situation and if all else fails demand your money back you will get it. Tell them you will go to fair trading and they wil roll over.
If it costs you anything it will be rare as they can sell the car to someone else and make the same or more. Getting the car into the dealership has cost them nothing.

[Maverick]

Who is the dealer ?
5% is all the contract says they can charge.

He just said that the contract says 10% which he agreed to and signed.

if you explain your situation and if all else fails demand your money back you will get it. Tell them you will go to fair trading and they wil roll over.
If it costs you anything it will be rare as they can sell the car to someone else and make the same or more. Getting the car into the dealership has cost them nothing.

Getting the car to the dealership does cost them money, the car has now arrived and the dealership is now taking delivery of a car that is surplus to requirements.

The dealership is entitled to recover the amount on the contract, I guess you think that the sales man, sales manager, ming mole, support staff and so on all work for free? And that dealership financing of stock cars has 0% interest?

[WhiteJames]

May also depend if your dealer has an in house legal department. Larger dealership like AHG or Suttons may well do. Taking you to court will cost money and time if engaging an external law firm to by the car dealer. Walking away from a $500-$2,000 deposit may be half way to recouping their cancellation fee on the contract. It's not like they have difficultly selling the Golf.

Cheers.
WJ