Left a £500 deposit at Ford- Dealer says non-refundable.
Discussion
Podie said:
You know you're posting this on PH, right?
Podie the caravan thread is only seen by VIP members approved by PH Towers, there are literally thousands of shed pullers on here but you are not able to see their posts. You just need to apply for access to this thread with proof of caravan ownership.Snowboy said:
Morally – I’d hope the money would be returned.
I’ve paid deposits for a car before at a BMW garage and the dealer said it was refundable if I saw/tested the car and changed my mind.
I guess it depends on which stage the purchase process is at?
This is the issue in your case.I’ve paid deposits for a car before at a BMW garage and the dealer said it was refundable if I saw/tested the car and changed my mind.
I guess it depends on which stage the purchase process is at?
If you are putting down a deposit on a car you have not seen, technically you would still be bound, and strictly, unless there was something not as described a contract is in place.
I think what has happened with you is a more generous derivation of that where the dealer is 'putting his money where his mouth is' and showing faith that the car is as he has described to get you to come for a test-drive.
However, in the situation with the OP and he's test driven it, and agreed to buy it, then he wan't to pull out, then he is liable for the losses incurred in the breach - which incidentally could be more than any deposit taken.
In reality though, the deposit is simply forfeited and both parties move on.
lost in espace said:
Podie said:
You know you're posting this on PH, right?
Podie the caravan thread is only seen by VIP members approved by PH Towers, there are literally thousands of shed pullers on here but you are not able to see their posts. You just need to apply for access to this thread with proof of caravan ownership.A photo of your caravan with today's paper and a tin of custard propped against it?
lost in espace said:
Podie said:
You know you're posting this on PH, right?
Podie the caravan thread is only seen by VIP members approved by PH Towers, there are literally thousands of shed pullers on here but you are not able to see their posts. You just need to apply for access to this thread with proof of caravan ownership.
daz3210 said:
What happens if say you give a deposit and then cannot get the finance for the car?
Must happen more frequently in these difficult times than it used to.
Some dealers have started asking for a deposit "subject to finance approval".Must happen more frequently in these difficult times than it used to.
I have never considered a deposit to be refundable, its a commitment from yourself to the seller that you are going to purchase said vehicle. In return he takes it off sale and turns down other potential buyers, whilst taking up space on their forecourt.
If you where lucky enough to have a friendly dealer who sympathised with your situation (unlikley if your experience with ford is anything like mine), or the time in which you changed your mind was minimal (same day maybe) then possibly.
A deposit gives commitment from both sides, for the dealer not to sell the car to someone else, for the buyer to come up with the balance and complete the deal.
How would a buyer feel if a dealer decided it didn't want to sell them the car and instead just refunded the deposit to the buyer? These forums would be full of people jumping up and down giving all sorts of faux legal b
ks telling them to sell the seller for every last bean, or not to accept anything less than a 50% discount, free servicing for life, £10k worth of free upgrades and parts and a night of passion with the dealer principal's wife.
The dealer might have missed an opportunity to sell the car to someone else in the intervening time, keeping the deposit compensates him for this.
How would a buyer feel if a dealer decided it didn't want to sell them the car and instead just refunded the deposit to the buyer? These forums would be full of people jumping up and down giving all sorts of faux legal b
ks telling them to sell the seller for every last bean, or not to accept anything less than a 50% discount, free servicing for life, £10k worth of free upgrades and parts and a night of passion with the dealer principal's wife.The dealer might have missed an opportunity to sell the car to someone else in the intervening time, keeping the deposit compensates him for this.
markmullen said:
A deposit gives commitment from both sides, for the dealer not to sell the car to someone else, for the buyer to come up with the balance and complete the deal.
How would a buyer feel if a dealer decided it didn't want to sell them the car and instead just refunded the deposit to the buyer? These forums would be full of people jumping up and down giving all sorts of faux legal bks telling them to sell the seller for every last bean, or not to accept anything less than a 50% discount, free servicing for life, £10k worth of free upgrades and parts and a night of passion with the dealer principal's wife.
The dealer might have missed an opportunity to sell the car to someone else in the intervening time, keeping the deposit compensates him for this.
Especially if they are selling a white Porsche CGT.How would a buyer feel if a dealer decided it didn't want to sell them the car and instead just refunded the deposit to the buyer? These forums would be full of people jumping up and down giving all sorts of faux legal b
ks telling them to sell the seller for every last bean, or not to accept anything less than a 50% discount, free servicing for life, £10k worth of free upgrades and parts and a night of passion with the dealer principal's wife.The dealer might have missed an opportunity to sell the car to someone else in the intervening time, keeping the deposit compensates him for this.
10 Pence Short said:
I can understand a non-refundable deposit where the car is ordered to be built to specification, or a dealer purchases a car from another dealer specifically on behalf of a customer. If the deposit is for a car sat in stock at a dealer or one that a dealer has not yet committed to buy, I think it's a bit harsh. In those cases I'd take the deposit as a show of faith that stops me allowing someone else to buy the car until it's collected, but would return it if the buyer pulled out.
But the point of the deposit is to stop the dealer from offering the car to anybody else. If you put down a deposit on a car and then change your mind a week later the dealer may have missed the opportunity to sell the car to somebody else. I suppose the dealer's loss on an ordinary used Ford would be less than £500 but the dealer needs to know a buyer is pretty committed before taking a car off the market.If you ask nicely the dealer might give you something back as a goodwill gesture but I don't think they have any legal or moral obligation to do so.
Now, I always thought that deposits and basic contract law meant that a deposit could be held in the event of non completion of sale only to the extent that the seller is at the same position financially as if the original sale went through.
So if person buys car for 9k, 500 quid depos, buyer pulls out, dealer then sells act for 8800 to someone else, they have to (basically) return 300 quid to the original fella. I say basically as they can also charge reasonable additional selling costs eg advertising, etc.
I am sure this is the case for both private and commercial sales. Of course, proving they owe you is not so easy! ,
So if person buys car for 9k, 500 quid depos, buyer pulls out, dealer then sells act for 8800 to someone else, they have to (basically) return 300 quid to the original fella. I say basically as they can also charge reasonable additional selling costs eg advertising, etc.
I am sure this is the case for both private and commercial sales. Of course, proving they owe you is not so easy! ,
markmullen said:
How would a buyer feel if a dealer decided it didn't want to sell them the car and instead just refunded the deposit to the buyer?
Oh come on, you know that happens all the time (except the dealer will arse about and delay refunding the deposit).Car they were pulling from another branch turns out to be sold, or deciding not to retail a used car, are common scenarios.
This is why dealers should refund deposits - it's been held that not refunding them is unfair as the sales contract is weighted in dealers favour.
Deva Link said:
Car they were pulling from another branch turns out to be sold, or deciding not to retail a used car, are common scenarios.
Ah right, are they really?I'll have to bow to your many years front line motor trade sales experience on that one because in my experience they are far far far more uncommon than customers getting buyers remorse and changing their mind.
In my experience, unless we have lost money by taking the car off sale for some particular reason we give deposits back if someone pulls out.
I've only ever kept one persons deposit, because he wanted to buy the demo I was driving, put down a deposit and we took the car off fleet for a month while we waited for him and he never came back. If he ever did we'd tell him to do one!!
I've only ever kept one persons deposit, because he wanted to buy the demo I was driving, put down a deposit and we took the car off fleet for a month while we waited for him and he never came back. If he ever did we'd tell him to do one!!
Podie said:
I have to agree with Justin.
You pay a deposit as an intent to make a purchase. If you change your mind, then you lose the deposit.
If the dealer failed to deliver, you'd expect some sort of compensation (e.g. a higher spec car for the agreed price)
^ This! You can almost garantee that the OP is the same sort of person who want 'compenstion' if the car is delayed by 1 minute! You pay a deposit as an intent to make a purchase. If you change your mind, then you lose the deposit.
If the dealer failed to deliver, you'd expect some sort of compensation (e.g. a higher spec car for the agreed price)
When you sign an order form you enter in to a legal agreement, if either party change the paramaters then the deal is off!
daz3210 said:
What happens if say you give a deposit and then cannot get the finance for the car?
Must happen more frequently in these difficult times than it used to.
If your dealer is arranging the finance and you fail, then you get your deposit back. If you're arranging your own finance (ie pay the dealer outright) and you haven't got it in place and you pay a deposit and then can't get finance, you lose your dipper!Must happen more frequently in these difficult times than it used to.
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