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Buying a car – what's the law?

This video provides basic legal information about buying a car for people new to Australia. It is the part of a series of videos about the law for people who have recently arrived in Australia.

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Transcript

Text: Buying a car

[An image shows of a young woman and a young man walking out of a supermarket. They both wear casual clothing—the woman wears a black dress with a grey jacket and bag, the man wears jeans and a black hooded jacket. The pair is shown walking towards the car park in a series of still images.]

Young woman: Hi Tom, I’m getting a car this weekend! I crashed my old car a few weeks ago.

Tom: Oh no! Are you OK?

Young woman: Yes, I’m fine. But the car isn’t.

Tom: Hope you find something!

[The image fades to black and is replaced by an image of the young woman standing in a used car yard with her hand on her chin in a pose of contemplation.]

Young woman: I really like that car!

[Vision changes to an image of the young woman standing beside a black sedan while an older salesman with glasses smiles at her.]

Salesman: Well this car’s a bargain. Best car I’ve had in the yard for months. It’s worth $10,000.

[Vision changes to an image of the young woman looking wary.]

Young woman: But it costs too much!

[Vision changes to an image of the salesman gesturing emphatically and smiling.]

Salesman: Hey, I like your face - you can have it for eight and a half.

[Vision changes to an image of the young woman with her hands outstretched imploringly.]

Young woman: I don’t have that much money.

[Vision changes to an image of the salesman ushering the young woman into his office.]

Salesman: No problem. Come into the office and let’s see what we can do.

[Vision changes to an image of the young woman looking cautious, sitting opposite the salesman at his desk.]

Young woman: Umm, I think I need some more time...

Salesman: Trust me, that car will be gone in an hour ... you’re getting it for a great price.

[Vision changes to an image of the salesman grinning as he hands the young woman a pen.]

Salesman: Just sign here on the dotted line—it’s easy.

[Vision changes to an image of the young woman looking thoughtful and pleased as she contemplates the salesman’s offer.]

Young woman: I really like that car. Nothing can go wrong. I’ll sign it.

[Vision changes to an image of the young woman signing a contract and then fades to black.]

[An image shows of the young woman standing by her new car as she shows it off to an older woman.]

Older woman: Very nice...How much was it?

Young woman: Only $8,500.

[Vision changes to an image of the older woman looking worried as she looks over the paperwork.]

Older woman: Yes, but look here. The interest is 18%.

Young woman: What does that mean?

Older woman: You’ll have to pay $4,400 in interest!

Young woman: Really?

Older woman: That means you will pay $12,900, NOT $8,500. That’s $215 every month for 5 years!

[Vision changes to an image of the younger woman looking surprised.]

Young woman: I have to pay rent and food! Ohhh, I don’t know if I can pay it! Hmmm…

Older woman: So what will you do?

Young woman: Oh it’ll be OK. At least I have a good car. Get in, I’ll take you for a drive!

[Vision fades to black.]

Text: A few months later

[An image shows of the young woman talking to the salesman. Her car bonnet is open and they are standing in the used car yard.]

Young woman: The gears don’t work.

Salesman: Sorry. The warranty has expired so I don’t have to fix it.

[Vision changes to an image of the salesman walking away from the young woman.]

Young woman: I’m not going to keep paying for a broken car. I got this letter from the bank.

[Vision fades to black.]

[An image shows of the young woman sitting at a kitchen table with the older woman. She is holding a letter and looking concerned.]

Older woman: What does it say?

[Vision changes to an image of the young woman holding the letter so that the camera can see the red, bold text “DEFAULT NOTICE”.]

Young woman: Well, I missed two payments on the car, and now I have to pay the whole amount I owe within 28 days.

[Vision changes to an image of the older woman looking outraged.]

Older woman: They’re thieves!

Young woman: I can’t pay it, I don’t have enough money!

Older woman: Ooh that car is trouble.

[Vision fades to black.]

[An image shows of the young woman collecting mail from her letterbox.]

Young woman: I’ll read them later.

[Vision changes to an image of the young woman putting the unopened letters in a drawer.]

[Vision fades to black.]

[An image shows of the young woman sitting at a desk and talking on her mobile phone. She looks worried.]

Female voice: You have to pay the loan.

Young woman: But the car is broken. I can’t drive it!

Female voice: You have a loan contract with us - you have to keep paying.

[Vision fades to black.]

[An image shows of the young woman’s car on the back of a tow truck.]

[Vision changes to an image shows of a man securing the car to the tow truck.]

[Vision changes to an image of the young woman looking alarmed.]

Young woman: Hey, that’s my car, what are you doing?

[Vision changes to an image of the repo man explaining the situation to the young woman.]

Repo man: We have to take the car - you haven’t paid the loan.

[Vision changes to an image of the young woman receiving a reposition notice with red, bold text reading “NOTICE AFTER REPOSSESSION”.]

Young woman: They take my car and I still have to pay the loan! This is crazy!! Maybe I should call a lawyer to find out what I can do.

[Vision fades to black.]

[An image shows of the reception of Legal Aid through glass doors. A sign on the doors reads “Legal Aid Lawyers And Services”.]

[An older woman with glasses sits at her desk, talking on the phone with the younger woman.]

Older woman: Did you read the contract?

Young woman: Umm, no.

Older woman: Well, because you signed the contract it’s not easy to get out of it.

[Vision changes to an image of the young woman sitting at a desk and talking desperately with the older woman from Legal Aid.]

Young woman: I see that now! I haven’t got a car, I haven’t got any money and they still want me to pay. What can I do?

[Vision changes to a split screen still image of the two women talking.]

Older woman: You should see a financial counsellor. They can talk to you about your options.

[Vision fades to black.]

[An image shows of an office with a sign that reads “Financial Counsellor”.]

[Vision changes to an image of the young woman sitting across a desk from a middle-aged Asian woman with black hair. The young woman is handing the older woman some documents.]

Young woman: These are all the papers.

Financial counsellor: Thanks. Now I can help you work out what to do next.

[Vision changes to an image of the young woman looking relieved.]

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