Hi there. Generally, the law assumes that, if you have signed a contract, you have also read and understood the terms of that contract and you agree to be bound by them. If you decide to exit a contract early because of a change of mind, you will be in breach of the contract terms and a financial penalty may be imposed. The terms and conditions of your loan contract should explain any financial penalties you need to pay for an early exit from the contract. In the Northern Territory, there is generally no cooling-off period for vehicle purchases.

You may be able to terminate the contract without financial penalty if the car dealership misrepresented the terms of the loan. A misrepresentation occurs if a seller makes false statements to a buyer (or fails to notify the buyer of essential information) for the purpose of getting the buyer to sign the contract. Whether the car dealer made misrepresentations to you depends on the nature and circumstances of your conversations with the dealership. Your legal rights will also be affected by the relationship between the car dealership and the bank, and the extent to which the car dealership held themselves out to be a representative of the bank.

Suggested way forward

You should contact Northern Territory Consumer Affairs on 1800 019 319 for more information. You would also benefit from speaking to a lawyer who can review the loan contract and advise you of your best course of action. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.