Order form signed - can you then walk away?

[Martin_M]

Hi folks,

Hope someone can help. A couple of weeks ago I spotted a new and unregistered car I fancied down south (I live in Scotland). I negotiated a deal with the dealer, paid a £100 deposit (should have been £500 but negotiated them down) and signed an 'order form' which basically outlined the car's spec and total cost minus my part exchange.

I sent this signed copy off to the dealer along with the V5 of my part exchange and a postal order for £105 (dvla) to have the private plate on my part exchange put on retention.

Having sent the above to the dealer, it then transpired that the dealer fit accessories that come with the car are on back order in Italy and will not be with the dealer for another week - hopefully next week.

I'm hoping there won't be any other problems and that I'll be able to collect the car next weekend without any issues but if I wanted to, could I walk away? I haven't signed any finance documents as yet - just the order form for the vehicle that is in their forecourt.

I was initially advised that the car was 'ready to go' very soon and that the dealer fit accessories would go on during the pdi. It then transpired that these were not yet in the dealer's possession which I was annoyed about as they only revealed this once I had paid a deposit and sent off the paperwork.

Worst-case scenario and I did walk away, I assume the deposit is history?

Thanks in advance.

[Martin_M]

Had another read through the order form and this looks like the most significant section with regard to my question. If I'm not mistaken, I would have to pay the profit the dealer would have made on the vehicle?

8. It is agreed that if the Buyer shall fail to take delivery of the motor vehicle within seven days from the date when he is notified that it is ready for delivery then the deposit shall be forfeited and the Seller shall be entitled to claim from the Buyer and the Buyer shall be liable to pay to the Seller by way of liquidated damages and not by way of penalty a sum equal to the gross profit which the Seller would have made in respect of the sale of the said motor vehicle if the Buyer had taken delivery thereof in the date specified and had paid the full purchase price of the said motor vehicle in cash without any used motor vehicle having been accepted in part exchange.

[iandc]

Why would you want to walk away? You have found a car you like, negotiated a good deal, spent money on a deposit and DVLA then want to cancel as the car will be a week late. Chill out man there are more important things in life than waiting an extra week for your (I assume) dream car bought at a reasonable price.

[Martin_M]

I totally agree - what's concerning me is that I'll soon have to pay another £400 (monthly payment) on my current car and tax at £220. I'm worrying because I don't want to spend more than £600 before I trade the car in.

[Sheepshanks]

Martin_M said:

Had another read through the order form and this looks like the most significant section with regard to my question. If I'm not mistaken, I would have to pay the profit the dealer would have made on the vehicle?

8. It is agreed that if the Buyer shall fail to take delivery of the motor vehicle within seven days from the date when he is notified that it is ready for delivery

That wouldn't seem to be relevant at this stage as you haven't been notified that it's ready.

What do the T's and C's say about the dealer cancelling?

[Martin_M]

Sheepshanks said:

That wouldn't seem to be relevant at this stage as you haven't been notified that it's ready.

What do the T's and C's say about the dealer cancelling?

edit: I see what you mean re. not being told it's ready. Not sure if the following is relevant...I have it in writing via e-mail that the parts just needed to be added during the pdi and that the car would be ready 'very soon' - obviously, I believed the parts were on site ready to be fitted...not in another country.

With regard to the dealer cancelling...I can't see anything explicitly referring to the dealer cancelling. Not sure how relevant these points are:

2. This Order shall be binding on the Buyer and shall not be revocable by him but it shall not bind the Seller until his final approval of the transaction has been given. Such approval shall be in writing

3. Time of delivery is not guaranteed by the Seller who will use his best endeavours to secure delivery of the goods on the estimated delivery date but he shall not be liable for any damages or claims of any kind in respect of delay in delivery of any claim whatsoever arising thereupon.

[Roo]

Your tax can't be due for at least another couple of weeks.

If it goes past 1st October before your new car is ready you'd get an automatic refund so would lose one month at the most.

[Martin_M]

Roo said:

Your tax can't be due for at least another couple of weeks.

If it goes past 1st October before your new car is ready you'd get an automatic refund so would lose one month at the most.

Thanks Roo, I didn't realise that.

I'm hoping things will go to plan but I'm just thinking about the 'what if?' scenario.

That just leaves the fact I'd have made another monthly payment on my current car which obviously wouldn't be reflected in the original deal.

[AGK]

Get a settlement figure that'll last for 30 days.

I've been in the same position and finance house returned the monthley payment because the settlement figure had been paid before it expired.

[anonymous-user]

Do you worry like this about everything, OP, or have you in fact changed your mind about the car? You cannot walk away without risk. You have contracted to buy the car. The seller has been careful to provide that it is not liable for being late. If you do not buy the car, as well as losing the deposit you could be sued by the garage for loss of the anticipated profit on the sale. The liquidated damages clause might be challengeable as a penalty* (it matters not that it says it isn't a penalty), but I wouldn't bet on such a challenge succeeding, and even if it did the garage would still have a claim for its actual loss.

* A damages clause that exceeds a reasonable estimate of loss and is really there to compel performance. Such a clause can't be enforced.

[JMGS4]

EU law states that ALL written contracts can be revoked within 7 days in writing, (reasons do not have to be given) date of posting must be within the 7 days....... e-mails etc are NOT legal docs under EU law!

[tenpenceshort]

JMGS4 said:

EU law states that ALL written contracts can be revoked within 7 days in writing, (reasons do not have to be given) date of posting must be within the 7 days....... e-mails etc are NOT legal docs under EU law!

So I order a steak, the waiter writes my order down, I eat it and decide a few days later I shouldn't have had it, I have 7 days to go and ask for my money back? Ace!

Edited by tenpenceshort on Sunday 14th September 08:17

[turbobloke]

tenpenceshort said:

JMGS4 said:

EU law states that ALL written contracts can be revoked within 7 days in writing, (reasons do not have to be given) date of posting must be within the 7 days....... e-mails etc are NOT legal docs under EU law!

So I order a steak, the waiter writes my order down, I eat it and decide a few days later I shouldn't have had it, I have 7 days to go and ask for my money back? Ace!

Aye, just return what's left of the steak and you should be OK there.

[anonymous-user]

JMGS4 said:

EU law states that ALL written contracts can be revoked within 7 days in writing, (reasons do not have to be given) date of posting must be within the 7 days....... e-mails etc are NOT legal docs under EU law!

Utter rubbish.

[2 sMoKiN bArReLs]

JMGS4 said:

EU law states that ALL written contracts can be revoked within 7 days in writing, (reasons do not have to be given) date of posting must be within the 7 days....... e-mails etc are NOT legal docs under EU law!

If you are in the UK 8.11 a.m. is a little early to have been on the lager

[anonymous-user]

To expand on that, a 7 day cancellation period applies in the case of a consumer distance sale (and so not to all contracts). The OP's case may have been a distance sale, although that isn't entirely clear. Note however that the right to cancel does not apply when the goods are made to the customer's specification. This may be relevant here depending on what sort of accessories the OP has ordered.

BTW, a contract can be made by email or indeed by clicking on a website.

OP, there are lots of pub lawyers in here. You have to sift out the nonsense.

Edited by anonymous-user on Sunday 14th September 09:20

[awg454]

It sounds like a deposit given over the phone to me,as he said he signed and sent the order form back,does that make a difference

[anonymous-user]

It's not clear to me whether the OP did the deal at the garage, or over the phone or by email. If by phone or email, the DSR will apply, but subject to the point about goods made to specification or personalised.

[TVRnutcase]

Martin_M said:

I totally agree - what's concerning me is that I'll soon have to pay another £400 (monthly payment) on my current car and tax at £220. I'm worrying because I don't want to spend more than £600 before I trade the car in.

As someone else has said - you will be out of pocket by a months tax. As for the monthly payment - you have finance on the trade, you will then have less finance.

You are really only out of pocket by the interest for another month, conversely you will have saved the interest of a month on a new vehicle.

[Vaud]

JMGS4 said:

EU law states that ALL written contracts can be revoked within 7 days in writing, (reasons do not have to be given) date of posting must be within the 7 days....... e-mails etc are NOT legal docs under EU law!

You might be trying to be helpful.

But don't post rubbish.