South Australian Current Acts South Australian Current Acts (1) This section
applies to a contract entered into by a dealer after the commencement of this
section for the sale of a second-hand vehicle to a natural person, other than
a contract for the sale of a vehicle of a prescribed class or the sale of a
vehicle in prescribed circumstances.
(2) Subject to this
section, a purchaser under a contract to which this section applies may, by
giving the dealer written notice before the expiration of the cooling-off
period of the purchaser's intention not to be bound by the contract, rescind
the contract.
(3) The notice may be
given—
(a) by
giving it to the dealer personally; or
(b) by
posting it by registered post to the dealer's address for service (in which
case the notice is taken to have been given when the notice is posted); or
(c) by
leaving it for the dealer at the dealer's address for service with a person
apparently responsible to the dealer; or
(d) by
transmitting it by fax or email to a fax number or email address provided by
the dealer (in which case the notice is taken to have been given at the time
of transmission).
(4) If in legal
proceedings the question arises whether a notice has been given in accordance
with this section, the burden of proving the giving of the notice lies on the
purchaser.
(5) A dealer, or a
person acting on behalf of a dealer, may not demand or require the purchaser
of a second-hand vehicle under a contract to which this section applies to
make a payment in respect of the sale before the expiration of the cooling-off
period, other than payment of a deposit towards the contract price of the
vehicle that does not exceed 10% of that price.
Maximum penalty: $5 000.
(6) In proceedings for
an offence against subsection (5), if it is proved that the defendant
received money from the purchaser, it will be presumed, in the absence of
proof to the contrary, that the defendant demanded or required the payment of
that money.
(7) If a purchaser
rescinds a contract by notice under this section, the dealer must, before the
end of the next clear business day after receiving the notice, refund to the
purchaser any amount paid in respect of the sale less 2% of the contract
price of the vehicle or $100, whichever is the lesser (which the dealer is
entitled to retain).
Maximum penalty: $5 000.
Expiation fee: $500.
(8) For the purposes
of subsection (7), a refund may be paid—
(a) by
giving the purchaser payment in cash or by cheque; or
(b) by
posting a cheque by registered post to the purchaser's last known address (in
which case the refund is taken to have been paid when the cheque is posted);
or
(c) by
electronic transfer of funds into an ADI account nominated by the
purchaser (in which case the refund is taken to have been paid when the
transfer is executed by the dealer); or
(d) by
any other prescribed method.
(9) If the purchaser
of a second-hand vehicle under a contract to which this section applies enters
into a contract for the provision of credit
(a "credit contract") in connection with the purchase, the following
provisions apply:
(a) if
the contract for the purchase of the vehicle is rescinded under this
section—the credit contract is void and any associated mortgage or other
security taken by the credit provider is discharged;
(b) if
the contract for the purchase of the vehicle is not rescinded—the
credit contract does not take effect until—
(i)
the purchaser waives his or her right to a cooling-off
period in relation to the contract for the purchase of the vehicle in
accordance with section 33; or
(ii)
if the right to a cooling-off period is not waived—
the expiration of the cooling-off period.