25BCooling-off period

25B Cooling-off period (1) A purchaser (other than a dealer or a corporation) under an agreement for the sale of a motor vehicle may, at any time before the end of 3 clear business days after the purchaser signs the agreement, terminate the agreement by giving to or serving on the dealer or an agent of the dealer written notice to the effect that the purchaser terminates the agreement. (2) Subsection (1) ceases to apply if the purchaser immediately before accepting delivery signs an instrument in accordance with the loss of right to terminate form approved under section 93 (Approved forms) acknowledging that the right to terminate the agreement no longer applies. (3) A dealer shall not sell, give in exchange or otherwise dispose of a motor vehicle given or agreed to be given by a purchaser under an agreement for the sale of another motor vehicle in satisfaction of part of the purchase price during the period during which the purchaser may terminate the agreement under this section.

(4) If an agreement for the sale of a motor vehicle has been terminated in accordance with this section— (a) the vendor under the agreement— (i) shall pay to the purchaser all money received by the vendor under the agreement less the sum of $100 or 1% of the purchase price under the agreement (whichever is the greater); and (ii) shall return to the purchaser any motor vehicle 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 vehicle supplied or to be supplied under the agreement; and (c) any security interest in the motor vehicle 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 vehicle before the agreement was terminated— (i) is liable to the dealer for any damage (other than fair wear and tear) occurring to the motor vehicle while it was in the purchaser’s possession; and (ii) subject to subsection (5), shall return the motor vehicle to the dealer. (5) A purchaser is not liable under subsection (4) (d) to return the motor vehicle to the dealer if, before the agreement was terminated, a defect appeared in the motor vehicle for reasons beyond the control of the purchaser making the motor vehicle— (a) incapable of being driven; or

(b) unroadworthy; but shall permit the dealer to collect, or arrange for the collection of, the motor vehicle. (6) The National Credit Code, section 135 does not apply to the termination of agreements under this section. (7) This section does not apply to an agreement for the sale of a commercial vehicle or a motor vehicle purchased at a public auction.