Protect a caravan deposit: keep it small, pay by card, get the dates in writing
Published . 6 min read • Buying Guide
- Pay the smallest deposit the seller will accept, and get a receipt.
- Pay by card. If the van is never delivered, you may be able to ask your card provider for a chargeback.
- Get the delivery date in the contract, with a line saying the deposit is refunded if the date is missed.
- Pay the rest in stages as the build progresses.
- In NSW and WA, check the seller holds a dealer licence.
In this guide
- What happens to my deposit if the business goes bust?
- Does my state have a fund that repays a lost deposit?
- Which way of paying protects me most?
- How much should I pay up front?
- What should the contract say?
- Can I cancel and get my deposit back?
- Does a PPSR check protect my deposit?
- What to do if the seller stops answering
- Where to get help
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What happens to my deposit if the business goes bust?
If the business that took your deposit goes into administration or liquidation, you usually become an unsecured creditor. Unsecured creditors are paid after the administrator's costs and after staff wages and entitlements. They are often paid only part of what they are owed, and sometimes nothing.
A business under administration often keeps trading for a while. If the administrator says it will honour existing orders, follow its directions. If the business stops trading, you lodge your claim with the administrator or liquidator. The claim goes on a form called a proof of debt, with your contract and receipts attached.
A van that has not yet been built or set aside for you usually does not belong to you yet. Your claim is then for the money you paid.
Does my state have a fund that repays a lost deposit?
Some states run a fund that can repay money a licensed dealer fails to refund. Whether it covers a caravan, and a new one, depends on the state.
- NSW: the Motor Dealers and Repairers Compensation Fund lists a deposit a dealer failed to return as a reason to claim. It covers caravans and other towable RVs. The dealer must have been licensed, or you must have reasonably believed it was.
- WA: caravan dealers must be licensed. If you cancel a contract with a dealer, the most the dealer can charge you is 5% of the total price.
- Queensland: dealer licences cover used caravans. Ask the Office of Fair Trading whether its claim fund can help with a deposit on a new van.
- Victoria, SA, Tasmania, the ACT and the NT: the dealer laws cover vehicles with their own engine, so a motorhome may be covered. Ask your fair trading office how a towed caravan is treated.
Ask your state fair trading office before you pay a large deposit.
Which way of paying protects me most?
Paying by credit or debit card gives you the most options if the van is never delivered. You may be able to ask your card provider for a chargeback, including when the seller has gone into administration. Time limits apply, so contact your card provider as soon as a delivery is missed or the seller stops answering. A chargeback is for goods that do not arrive. It does not apply if you change your mind while the seller can still deliver. Money sent by bank transfer is rarely recoverable.
How much should I pay up front?
Pay the smallest deposit the seller will accept, and get a receipt. Queensland's Office of Fair Trading advises against paying the full price up front, even for a custom build. Pay a deposit, then progress payments as the build reaches agreed stages. Tie each payment to a finished stage of the build. A request for money outside the agreed schedule is a reason to stop and ask questions.
Our caravan show checklist has the deposit questions on one printable sheet.
What should the contract say?
The seller must give you a written contract. Read it before you sign, and do not sign under pressure.
Check the contract covers:
- the exact model, layout and options
- the total price, and whether it can change
- the deposit amount, and when it is refundable
- the build slot and the delivery date
- what happens if the delivery date is missed
- the payment stages
- the seller's full legal name and ABN, so you can look the business up later
Queensland's suggested wording for a new-car contract works for a caravan too:
"[Van details, including layout, options and build date] is to be delivered by [date] otherwise the contract will be cancelled and deposit refunded."
Ask whether your deposit will be held in a trust account. A term that lets only the seller change the date, the price or the van may be unfair. A court can strike out an unfair term, and the rest of the contract still stands. A "no refunds" term has no effect on your consumer guarantee rights.
Can I cancel and get my deposit back?
There is usually no cooling-off period when you buy a caravan from a business. Read the refund terms before you pay. Under the Australian Consumer Law (ACL), a business may take a deposit only if it can reasonably expect to supply the van on time. It must then deliver by the agreed date, or within a reasonable time if no date was agreed. If a delivery date is missed, contact the seller in writing first. If that does not fix it, contact your state fair trading office.
Does a PPSR check protect my deposit?
A PPSR (Personal Property Securities Register) search shows money owed on a particular van. It does not show whether the business selling it is in financial trouble. Our PPSR check guide explains when to run one.
What to do if the seller stops answering
- Search ASIC's published notices at publishednotices.asic.gov.au for the business name. It shows whether an administrator or liquidator has been appointed.
- If one has, contact them and follow their directions about existing orders.
- Lodge a proof of debt with the administrator or liquidator, with your contract and receipts attached.
- Call your card provider about a chargeback straight away, because time limits apply.
- Contact your state fair trading office. In NSW, ask about a claim on the Motor Dealers and Repairers Compensation Fund.
If the seller is a sole trader rather than a company, search the National Personal Insolvency Index, run by the Australian Financial Security Authority (AFSA).
Where to get help
- Your state or territory fair trading office, for your rights and any fund that applies.
- The ACCC (Australian Competition and Consumer Commission) guide for when a business goes bust.
- ASIC (Australian Securities and Investments Commission) guides for creditors.
- AFCA (the Australian Financial Complaints Authority), if you think your bank handled a chargeback badly.
- A lawyer or community legal centre, for advice on your own contract.
This page is general information, not legal advice.