Car dealer increasing price on car once deposit placed?

[fergus]

I recently agreed to buy a classic car for a specified price and paid a 10% deposit. The trader confirmed via email "Just to confirm we have agreed a purchase price of X and I have taken a card deposit of Y to secure it for you. I have agreed to have the car fully checked over, serviced, MOT'd and any defects rectified, these include but are not limited to XYZ..."

Whilst having the (known) defects rectified, the garage doing the work noticed that the car had a slight oil leak and required a new head gasket. This has led to further, unexpected, expense for the dealer, who has subsequently requested an upwards revision in the price, stating they have had interest in the car at above the advertised price, and the garage doing the work stating they believe the car is worth more than the sale price.

What's the legal situation here?

[PurpleMoonlight]

The dealer is in breach of contract.

Tell them you expect them to honour it and see what they do. They may, or they may give you your deposit back and sell to someone else. If they do the latter you can sue them for any losses you have incurred.

[AngryPartsBloke]

PurpleMoonlight said:

The dealer is in breach of contract.

Tell them you expect them to honour it and see what they do. They may, or they may give you your deposit back and sell to someone else. If they do the latter you can sue them for any losses you have incurred.

I thought it was the diffrence you could claimif you had to pay more on a similar model?

[Jon1967x]

There was a long thread recently where the dealer was acting as a broker and the person who's car it was didn't want to go through with it.

IIRC you can't enforce the sale of the car unless its a rarity, but you can sue for the loss incurred (the loss including any extra over the agreed price you might need to pay for an equivalent car)

[fergus]

Thanks for the replies guys. It's a fairly rare car in exceptional unrestored condition, so finding another would be very difficult.

[JustinP1]

fergus said:

I...stating they have had interest in the car at above the advertised price, and the garage doing the work stating they believe the car is worth more than the sale price.

What's the legal situation here?

Ask them whether it would be fair that after purchase if you can find a garage to value the car at less than the agreed price, that they give you a refund.

[Jasandjules]

fergus said:

Thanks for the replies guys. It's a fairly rare car in exceptional unrestored condition, so finding another would be very difficult.

How aggressive do you want to be? You could politely write to them and say:

Thank you for your correspondence of XX date wherein you state that price of the vehicle registration XXX XXXX has increased since the payment of my £XX deposit paid on XXX.

However, I must advise that we have a binding contract for the purchase of the above vehicle at £XXX price.

Kindly therefore confirm that your previous correspondence was an error and you will abide by our contractual agreement.

[lookingforajob]

I'd speak to them is a reasonable way - state how disappointed you are, how you used them because of their exceptional reputation etc... Basically make the see you are a great guy and someone they want to deal with and do the right thing by. If you are going to go legal over this its going to cause a massive headache (and this is coming from someone who usually advises people to go legal).

Most companies do put a value on their reputation. Nothing to stop you pointing out how great they have been. Tell them you have stretched to the limit of your budget and then some. Basically make whoever makes the decision feel like the bad guy here - tell them the truth about how much you love the car, and how long you have looked for one! Even state just how excited you are to have it.

If things don't turn out well - you can point out your friend has advised you to slam them on facebook/twitter. A reasonable business in this situation will take the hit and move on. If they don't want to be reasonable then you don't want to give them your business anyway. Ultimately I can think of a 100 ways for them to get out of the deal if they want to, and you could never prove they were breaching contract! (Sorry sir the car has been crashed by our mechanic etc...).

[BertBert]

lookingforajob said:

(and this is coming from someone who usually advises people to go legal).

Ah good some tough love coming...

lookingforajob said:

you can point out your friend has advised you to slam them on facebook/twitter.

Really? That's sure to do it then

[lookingforajob]

BertBert said:

Really? That's sure to do it then

Depending on the company that can be just about the most effective way to force action.

[can't remember]

Right, firstly to point out my advice isn't coming from a professional understanding of the law, but I have had a few years of dealing with this sort of stuff. Go back to the trader and point out that the garage has done work outside his budget and that his problem is with the garage not you. Either they have done work without his consent or he has given them carte blanche without talking to you first.

Secondly consider whether the new price is a fair valuation of the car with the work done. If it is swallow it and try and come to a deal with the dealer , he knocks down his margin, you pay a bit more. Is it worth loosing this classic for a couple of hundred quid for a new head gasket?

You can go legal and maybe get your deposit back but you will miss out on the car. Your choice.

[Jasandjules]

can't remember said:

You can go legal and maybe get your deposit back but you will miss out on the car. Your choice.

Well if the car is rare and the OP is unlikely to find another he could seek specific performance of the contract i.e. force the dealer to sell that car to him at the specified price.

[can't remember]

Jasandjules said:

can't remember said:

You can go legal and maybe get your deposit back but you will miss out on the car. Your choice.

Well if the car is rare and the OP is unlikely to find another he could seek specific performance of the contract i.e. force the dealer to sell that car to him at the specified price.

It's rare to the point where changing the head gasket (a job worth a few hundred quid)is being considered to be a significant enough change in price to be going legal.I would start with jaw-jaw rather than law-law. My guess is that the dealer (like most classic dealers) isn't looking to rip off the OP, it's just repairs cost more than he budgeted for. Talking is likely to get everyone involved a fair deal.

[Jon1967x]

can't remember said:

It's rare to the point where changing the head gasket (a job worth a few hundred quid)is being considered to be a significant enough change in price to be going legal.I would start with jaw-jaw rather than law-law. My guess is that the dealer (like most classic dealers) isn't looking to rip off the OP, it's just repairs cost more than he budgeted for. Talking is likely to get everyone involved a fair deal.

I agree. The dealer could have lashed up the car and flogged it with the defect only for it to come out later. He's been straight on the problems, if the car is special, then its worth a chat and a gentlemans agreement to maybe split the extra cost if its a few hundred.

[12lee]

fergus said:

This has led to further, unexpected, expense for the dealer, who has subsequently requested an upwards revision in the price, stating they have had interest in the car at above the advertised price, and the garage doing the work stating they believe the car is worth more than the sale price.

This is just wimpy posturing from the dealer who'd really like you to cover/split the cost of the unexpected repairs in the 'included but not limited to' which was a silly thing to bind themselves to. If they had balls they'd be saying:

"Look, when the car was in for work, the garage found a leak, fixed it but it's cost more than expected. We approved the work as we didn't want you to have a subsequent problem and be annoyed with us. Can we come to some reasonable agreement about this work? If not, then to cover our costs we'll need to try to sell it at a higher price and will return the deposit".

Their error has been to reflect the work in the price, rather than be transparent and say 'It cost xyz more than expected. Here's the invoice as proof.' and I'm sure that with that reasonable behaviour, you'd be behaving equally reasonably to get the car you want knowing it's been repaired. Alternatively, go legal, have cost and grief and potentially not get the car or get it with who knows what as problems....

[Hilts]

fergus said:

This has led to further, unexpected, expense for the dealer, who has subsequently requested an upwards revision in the price, stating they have had interest in the car at above the advertised price, and the garage doing the work stating they believe the car is worth more than the sale price.

What's the legal situation here?

What would the dealer have said if you'd asked for a discount because you'd seen one cheaper elsewhere?