Why is Tracker allowed to have 36 month contracts, but the CPA states 24 months?
The CPA provides that, if a consumer agreement is for a fixed term, that term may not exceed the maximum period prescribed by the Minister. The Minister prescribed that the maximum period for a fixed-term consumer agreement is 24 months, UNLESS:
- Such longer period is expressly agreed with the consumer; and
- The supplier can show a demonstrable financial benefit to the consumer.
The 36 month period is agreed to telephonically or by completing a form, through the dealer or the broker and is also stipulated in the Terms and Conditions. If you are not willing to agree to the 36 month contract period, Tracker offers a cash option which allows you to pay for the unit and installation costs upfront, and then you will have a monthly contract for the services with no minimum period.
The financial benefit to you, should you agree to the 36 month contract period, is that the upfront cost for the unit and the installation is included in the 36 monthly subscriptions (which is less than if it was over 24 months), which allows you to pay it off over a period of 36 months, interest free.