Left a £500 deposit at Ford- Dealer says non-refundable.
Discussion
If the car was taken off sale after the deposit was paid then common sense would dictate you've paid for a service - deposit lost. Unless there was something wrong with the car or agreed the agreed terms of the deposit were breached. If it was merely changing your mind then fair enough it's lost...
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?
Is it just a deposit to hold a used car for a few days, or is it a deposit for a brand new odd-spec car from the factory?
I would expect a certain amount of customer goodwill from a Main Dealer.
Although I heard pretty much nothing but bad things about Ford dealers recently.
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?
Is it just a deposit to hold a used car for a few days, or is it a deposit for a brand new odd-spec car from the factory?
I would expect a certain amount of customer goodwill from a Main Dealer.
Although I heard pretty much nothing but bad things about Ford dealers recently.
hora said:
Friends father left a £500 deposit on a car however had a change of mind but the salesman has been quite rude/almost aggressive saying the deposit is non-refundable.
What are a Consumers rights on this?
(I'll find out what was signed and how long after the deposit was made/cancelled).
Bit of a head scratching moment here:What are a Consumers rights on this?
(I'll find out what was signed and how long after the deposit was made/cancelled).
If you get the deposit back if you simply change your mind, then what is the point in asking for a deposit?
In putting down a deposit (presuming that he was in the dealership and had seen the car etc) then he agreed to buy the car. The dealer has taken it off sale and prepped it ready. In the meantime he can't sell it, and may never sell it again at the price agreed. That is why the deposit is said to be 'non-refundable'.
However, if you wanted to go to the very strict interpretation of the law, essentially the buyer has breached the contract. The seller has the right to ask for damages caused by this breach. So, should the car be sold for £300 less than before, then this is the amount of damages. Essentially, the deposit means that the dealer already has these damages should that situation occur.
The best bet in this case is hold the dealer to that, wait until the car is sold, and then write to try and get the deposit back on the basis that the loss was less than the deposit.
JustinP1 said:
If you get the deposit back if you simply change your mind, then what is the point in asking for a deposit?
It goes some way to deter the test pilots.I still think it depends on the exact point the deposit was take and then the sale declined.
I gave a deposit to have a certain car shifted within the network for me to look at, I was told I would get a refund if I didn’t like it.
I know people who have given a deposit over the phone before going to look at the car.
In these cases a ford main dealer would have loads of cars in stock and if it was a rare car they would have taken contact details of interested customers and can call them back.
They won’t have lost a sale because of the cancellation.
As mentioned above though, if it’s a cancellation right at the last moment and the dealer has done a final prep of the car, with the full showroom clean and so forth then it has cost them something, and the deposit is lost.
swerni said:
What an odd question.
It’s relevant though.If he changed his mind because he doesn’t like the car he might have some avenue for getting deposit back under some sort of customer satisfaction guarantee.
Same as if he’s found the car cheaper somewhere else and Ford offers a ‘cheapest in town guarantee’ sort of thing.
Snowboy said:
Same as if he’s found the car cheaper somewhere else and Ford offers a ‘cheapest in town guarantee’ sort of thing.
Have they ever paid out under that clause ?Surely, no one will find the 'same' car cheaper as there will always be differences in miles done, or some small spec change.
swerni said:
not it's not.
Asking "could he ask" isn't the same as "is he entitled to"
he can ask for a full refund if he wants to
I thought you were questioning the question about why he’s changed his mind, not the question about could he ask for a refund.Asking "could he ask" isn't the same as "is he entitled to"
he can ask for a full refund if he wants to
Just a bit of misunderstand, nothing to see here, move along,.
Snowboy said:
swerni said:
not it's not.
Asking "could he ask" isn't the same as "is he entitled to"
he can ask for a full refund if he wants to
I thought you were questioning the question about why he’s changed his mind, not the question about could he ask for a refund.Asking "could he ask" isn't the same as "is he entitled to"
he can ask for a full refund if he wants to
Just a bit of misunderstand, nothing to see here, move along,.
Snowboy said:
I gave a deposit to have a certain car shifted within the network for me to look at, I was told I would get a refund if I didn’t like it.
I know people who have given a deposit over the phone before going to look at the car.
In these cases a ford main dealer would have loads of cars in stock and if it was a rare car they would have taken contact details of interested customers and can call them back.
They won’t have lost a sale because of the cancellation.
In which case what was the point of the deposit?I know people who have given a deposit over the phone before going to look at the car.
In these cases a ford main dealer would have loads of cars in stock and if it was a rare car they would have taken contact details of interested customers and can call them back.
They won’t have lost a sale because of the cancellation.
They may as well simply hold the car for you until you have seen it. If a deposit is refundable then in reality no deposit is actualy needed.
I'm picking up a new (to me) caravan on Thursday. The dealer asked for a non refundable deposit of £500 on the van. I didn't query this, but he said it is simply to cover their costs and to remove the van from sale,etc. He said that when I bring my p/x van in - which they haven't seen yet and it's not as described, then if I pull out then, I get my deposit back or if they pull out of the deal, I get my deposit back. But if I just decide I have changed my mind, then I lose the money.
I think it's a good idea. In this case it would appear that the clause has served it's purpose. If the person has simply changed their mind, then they should lose the money. If there is some other mitigation, then it's a case of explaining to the dealer had begging for mercy.
I think it's a good idea. In this case it would appear that the clause has served it's purpose. If the person has simply changed their mind, then they should lose the money. If there is some other mitigation, then it's a case of explaining to the dealer had begging for mercy.
I always thought that the deposit was the first (say) £500 of the purchase price, and it was a way of ensuring that you could secure the car whilst you went off and made arrangements such as getting a loan or financecounting out the balance in £50 notes.
Not something that you give the dealer to optionally hold the car, unless of course you agree something specific before handing over the readies.
Not something that you give the dealer to optionally hold the car, unless of course you agree something specific before handing over the readies.
Just a ccopy & paste from a website whilst doing a Google on this one:
The existing law on deposits, as confirmed by the Consumers' Association and the National Consumer Council, is that once you pay a deposit you have entered into a contract binding on both sides. As a customer your only get-out is if you have made "time of the essence" - a legal term meaning you can cancel the order and have your deposit refunded if the time factor is essential, and the company has agreed to this in writing.
"If you place an order and pay a deposit, you have made a legally binding contract to purchase the goods," said Alison Lindley, legal expert at the Consumers' Association. "If you then change your mind you have broken the contract and must forfeit your deposit. There is no legal requirement on the company's part to deliver within a fixed period unless you as buyer have stated a specific deadline."
I was also sure I'd read on another webiste that as you have formed a binding legal contract, should you change your mind the garage could actually pursue you for the purchase - so you could be forced, legally, to actually purchase the vehicle once a deposit is paid - your desposit shows the intention to buy, not to think about it. But cannot find this right now.
The existing law on deposits, as confirmed by the Consumers' Association and the National Consumer Council, is that once you pay a deposit you have entered into a contract binding on both sides. As a customer your only get-out is if you have made "time of the essence" - a legal term meaning you can cancel the order and have your deposit refunded if the time factor is essential, and the company has agreed to this in writing.
"If you place an order and pay a deposit, you have made a legally binding contract to purchase the goods," said Alison Lindley, legal expert at the Consumers' Association. "If you then change your mind you have broken the contract and must forfeit your deposit. There is no legal requirement on the company's part to deliver within a fixed period unless you as buyer have stated a specific deadline."
I was also sure I'd read on another webiste that as you have formed a binding legal contract, should you change your mind the garage could actually pursue you for the purchase - so you could be forced, legally, to actually purchase the vehicle once a deposit is paid - your desposit shows the intention to buy, not to think about it. But cannot find this right now.
Devil2575 said:
In which case what was the point of the deposit?
I believe it was just to make sure I was a serious buyer and a way to do a sneaky credit check.A window shopper or test pilot might not want to hand over £500 even if they will get it back eventually.
They might not even be able to afford to hand it over.
I guess the dealership has so few customers pulling out of the deal it’s worth offering the refund.
From a customer point of view, I was a lot happier giving a refundable deposit then I would have been giving a non-refundable deposit.
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.
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