Can we cancel a car purchase under a 14-day withdrawal right without paying for value loss?

Dear Questioner,

If the contract stipulates the right to withdraw within 14 days, you have the right to return the car.

If the dealer refuses, you can send a legal notice.

Contact us on WhatsApp at [--------] so we can help you.

Dear Questioner,

In your case, the right to withdraw and return the car depends on the terms and conditions stated in the contract you signed with the car dealership.

Let’s discuss the main aspects and the possible legal position based on these circumstances.

1. Right of withdrawal within 14 days

- Review the contract:

The first thing you should do is review the terms of the contract you signed when you purchased the car, including the terms related to the right of withdrawal within 14 days.

These terms should clarify whether you are entitled to return the car and get a refund or if there are special terms for this.

- Cancellation terms:

If the contract clearly states that you have the right to withdraw within 14 days without additional terms, the dealership should abide by this without demanding compensation for any loss in value.

2. Loss of value and slight use

- Loss of value and use:

It is common for car dealerships to demand compensation for loss in value if the car has been used even slightly because the car becomes “used” once it is driven outside the dealership.

However, the dealership must determine this loss based on your actual use of the car (in your case only 20 km) and not apply an excessive and unfair discount.

- Whether it is a cancellation or buyback:

If the condition speaks of “cancelling” the contract, it usually means that the transaction is being carried out as if the deal had never taken place, meaning there should be no significant discount on the amount paid.

However, if it is being treated as a “buyback,” the dealer may claim compensation based on the depreciation of the car.

3. Actions you can take

- Contact the dealer formally:

Send a formal letter to the dealer requesting that you exercise the right of withdrawal as stated in the contract, and request a full refund or specify the amount of the discount based on light use (20 km).

- Negotiate the potential loss:

If the dealer insists on compensation for the loss of value, try to negotiate the amount based on the light use of the car. Driving only 20 km should not result in a significant discount on the value of the car.

- Legal advice:

If you cannot reach an agreement with the dealer, it may be useful to consult a lawyer who specializes in consumer issues or contract law.

The lawyer can help you understand your rights and pressure the dealer to comply with the terms of the contract.

- Filing a formal complaint:

If no resolution is reached, you can file a complaint with the UAE Consumer Protection Department or the relevant consumer rights regulating authority in your area. These authorities can investigate the issue and provide you with support.

Conclusion

It seems that you are right to consider that you are exercising the right to withdraw from the contract and not a repurchase, especially if the contract clearly states this.

Any compensation for loss of value should be reasonable and reflect the actual use of the car (20 km only).

If your rights are not respected, please contact us by phone or WhatsApp for assistance.

If your contract explicitly states that you have a 14-day right to withdraw without any additional charges, you should be entitled to a full refund, regardless of the mileage or time elapsed.

We need to negotiate with the seller or plan for a contract breach after reviewing the agreement.

Yes, if there is no fault in the car, then you have to pay for it.

Dear Questioner,

1. In the event of non-completion of the sale and transfer of ownership, you can terminate the contract with a statement of the reason and pay appropriate compensation to the other party for the consensual use.

2. In the event that the other party refuses to settle, we can take legal action to recover the car and demand a refund of the paid car value.

You can contact us to carry out the necessary procedures.

Dear Questioner,

Based on your description, you have a valid right to withdraw from the contract within the 14-day cooling-off period.

This is a consumer protection law in many jurisdictions. The dealer's claim for a loss of value due to the car's mileage is likely invalid.

The 14-day withdrawal period is typically intended to allow consumers to change their minds without facing significant financial penalties.

If you need further clarification, you may ask us.

Dear Questioner,

Thanks for your inquiry!

According to UAE law, consumers have the right to withdraw from a contract within 14 days of purchase without any penalty or loss of value.

This is known as the "cooling-off period" and is meant to protect consumers from making hasty decisions or being pressured into a purchase.

In your case, it seems that you have exercised your right to withdraw within the 14-day period. Therefore, the dealership cannot charge you for any loss of value or buy-back fees. They must refund you the full amount you paid for the car.

If the dealership refuses to comply with the law, you can file a complaint with the Consumer Protection Department of the Ministry of Economy. They will investigate the matter and take appropriate action to ensure your rights are protected.

It is important to note that this right to withdraw only applies to purchases made at a physical store or dealership.

If you purchased the car online or through a distance selling method, different rules may apply.

In any case, it is always advisable to carefully read and understand the terms and conditions of a contract before signing it. If you have any doubts or concerns, it is best to seek legal advice before making a purchase.

Please do not hesitate to contact us via phone or email for further assistance.

Greetings,

You are likely correct in asserting that you can cancel without reimbursement for loss of value, provided that you adhere strictly to any conditions outlined in your purchase agreement and local laws regarding withdrawal rights.

Refer to the purchase agreement, as it governs the relationship between the parties.

Dear Questioner,

In the UAE, the concept of a "right to withdrawal" is not as universally established in consumer law as in some other jurisdictions, but specific terms like a 14-day right of withdrawal could be included in individual contracts, as seems to be the case here.

Let’s break down the situation:

1. Right of Withdrawal Clause

- Contractual Agreement:

Since the dealership agreed to a 14-day right of withdrawal, this clause should govern your rights.

A right of withdrawal generally allows the buyer to cancel the contract and return the item within a specified period, usually without significant penalties or costs, especially if the item is returned in near-new condition (which seems to be your case, with only 20 km driven).

- Cancellation vs. Buy-Back:

The dealer claiming this as a "buy-back" situation is likely misrepresenting the nature of your agreement.

A right of withdrawal is a cancellation, not a buy-back, meaning the dealer should refund the full amount paid (or at least close to it) without significant deductions for "loss of value," unless this was specifically mentioned in the withdrawal clause.

2. Loss of Value

- Minimal Use of the Car:

Since you’ve only driven 20 km in a week, the car’s value should not have depreciated significantly. The dealer’s claim for compensation due to loss of value may be excessive, especially if the vehicle is still in near-new condition.

It’s crucial to review the exact wording in the contract regarding any deductions upon withdrawal.

3. What You Can Do

- Review the Contract:

Check the wording of the right-to-withdrawal clause. If there is no specific mention of loss of value or penalties for exercising your right, you are within your rights to request a full or near-full refund.

- Negotiate with the Dealer:

Present your argument to the dealer that a right of withdrawal is not a buy-back scenario, and you are entitled to a refund under the terms of the contract.

- Consumer Protection:

If the dealer refuses to honor the contract as agreed, you can file a complaint with the Consumer Protection Department under the Ministry of Economy in the UAE. They can help resolve disputes between consumers and businesses and ensure your rights are upheld.

- Legal Action:

If the dealer continues to refuse or attempts to impose unjustified deductions, you may consider seeking legal advice or pursuing legal action. Since this is a contractual issue, it could be escalated to court if needed.

4. Steps to Follow

- Written Communication:

Document your request to withdraw in writing and cite the contract clause, making it clear that you are exercising your right to cancel, not selling the car back.

- Consumer Complaint:

If negotiations fail, file a complaint with the UAE’s consumer protection authorities.

By sticking to the agreed terms and escalating the issue if necessary, you can likely resolve the situation in your favor.

Let me know if you need assistance with the consumer complaint or legal representation!

Regards,

Omar Mosaad