43Cooling-off period

43 Cooling-off period S. 43(1) amended by Nos 74/1996 s. 27(1), 17/1999 s. 12(1)(a), 4/2008 s. 14(1). (1) A purchaser (not being a motor car trader or a body corporate) under an agreement for the sale of a motor car may, at any time before the expiration of three clear days after the purchaser signs the agreement, terminate the agreement by giving to or serving on the motor car trader or an agent of the motor car trader notice in writing to the effect that the purchaser terminates the agreement. S. 43(1A) inserted by No. 74/1996 s. 27(2). (1A) For the purposes of subsection (1), a clear day does not include any day that is— (a) a Saturday or a Sunday; or (b) a day that is wholly or partly observed as a public holiday throughout Victoria. S. 43(1B)(1C) inserted by No. 4/2008 s. 14(2), repealed by No. 50/2014 s. 39. S. 43(2) amended by No. 4/2008 s. 14(3), substituted by No. 50/2014 s. 39. (2) Subsection (1) ceases to apply on acceptance by a purchaser of delivery of the motor car within the period during which the purchaser may terminate the agreement. S. 43(2A) inserted by No. 4/2008 s. 14(4), repealed by No. 50/2014 s. 39. S. 43(3) amended by Nos 74/1996 s. 50(e), 17/1999 s. 12(1)(b). (3) A motor car trader must not sell, give in exchange or otherwise dispose of a motor car given or agreed to be given by a purchaser under an agreement for the sale of another motor car in satisfaction of part of the purchase price during the period during which the purchaser may terminate the agreement under this section. S. 43(4) amended by No. 17/1999 s. 12(1)(b). (4) If an agreement for the sale of a motor car has been terminated in accordance with this section— S. 43(4)(a) substituted by No. 4/2008 s. 14(5). (a) the vendor under the agreement must pay to the purchaser all money received by the vendor less— (i) in the case of an agreement for the sale of a used motor car or an off‑trade‑premises sales agreement of any motor car, the sum of $100 or 1 per cent of the purchase price under the agreement (whichever is the greater); or (ii) in the case of an agreement for the sale of a new motor car that is not an off‑trade‑premises sales agreement, the sum of $400 or 2 per cent of the purchase price under the agreement (whichever is the greater); and S. 43(4)(ab) inserted by No. 4/2008 s. 14(5). (ab) the vendor under the agreement must return to the purchaser any motor car given in satisfaction of any part of the purchase price; and (b) any collateral credit agreement is discharged to the extent that it was entered into for the purposes of the payment for the motor car supplied or to be supplied under the agreement; and (c) any security interest in the motor car arising under the collateral credit agreement is extinguished to the extent that it secures the payment of a debt or other pecuniary obligation or performance of any other obligation under the collateral credit agreement; and (d) a purchaser who has accepted delivery of the motor car before the agreement was terminated— (i) is liable to the motor car trader for any damage (other than fair wear and tear) occurring to the motor car while it was in the purchaser's possession; and (ii) subject to subsection (5), must return the motor car to the motor car trader. (5) A purchaser is not liable under subsection (4)(d) to return the motor car to the motor car trader if, before the agreement was terminated, a defect appeared in the motor car for reasons beyond the control of the purchaser making the motor car— (a) incapable of being driven; or (b) unroadworthy— but must permit the motor car trader to collect, or arrange for the collection of, the motor car. S. 43(6) amended by Nos 41/1995 s. 62(Sch. 1 item 5.1), 11/2010 s. 53. (6) Sections 25 and 26 of the **Credit Act 1984** and section 135 of the National Credit Code within the meaning of the National Consumer Credit Protection Act 2009 of the Commonwealth do not apply to the termination of agreements under this section. S. 43(6A) inserted by No. 72/2010 s. 48(Sch. item 16(1)). (6A) Division 1 of Part 5-5 of the Australian Consumer Law (Victoria) does not apply to the termination of an agreement under this section. (7) This section does not apply to an agreement for the sale of a commercial vehicle or a motor car purchased at a public auction. S. 43(8) inserted by No. 17/1999 s. 12(2). (8) In this section ***off-trade-premises sales agreement*** means an agreement for the sale of a motor car that is made or entered into in the presence of the purchaser (or a person acting on behalf of the purchaser) and the motor car trader (or a person acting on behalf of the motor car trader) at— (a) a private residence other than a private residence which is the business premises of the motor car trader or the person acting on behalf of the motor car trader; or (b) the workplace of the purchaser— unless the agreement was entered into at either of those premises at the request of the purchaser. S. 43A inserted by No. 11/2010 s. 54.