Pre-estimated liquidated damages (PELD)

This publication is for: 
Business / companyMotor industry

From 1 January 2022, the maximum amount of pre-estimated liquidated damages (PELD) that a motor vehicle dealer may charge is five per cent.

Dealers should not be asking for this amount as a default position. 

The cancellation cost has to be a genuine and reasonable assessment of likely losses as a result of the deal not proceeding.

A consumer is entitled to receive their full deposit back and should not be charged any pre-estimated liquidated damages if:

  • The contract is broken because the dealer has breached their obligations.
  • The consumer withdrew their offer before the dealer accepted.
  • The consumer cannot meet their contractual obligations despite taking all reasonable steps to do so.

Need to know more about PELD and contracts? Go to our page Vehicle sales contracts.

PELD flyer (Dealer)
PELD flyer (Dealer), by Motor vehicles


Consumer Protection
Last updated 02 Feb 2022

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