Reeds Motor Group
Cancelation of vehicle purchase

I wish to receive your advice with the following:

I intended to purchase a brand new vehicle from Reeds Dealership and have signed the Offer to Purchase and legally binding Wesbank Contract. I was then in the process of insuring the car but received high premiums which make the car unaffordable.

I then wanted to cancel the deal by the dealership within 3 days of signing the contract (I have not yet taken the delivery of the vehicle). They told me that they have registered the vehicle in my name already, as the result I would have to pay cancelation fee.

They send me the invoice of R 18 756.30 for cancelation on 05.12.2013 which needs to be paid by 06.12.2013.

Am I obligated to pay this fee?

The problem is that I cannot afford the vehicle. Can you please assist.

Kind Regards,
Aphumle