Deposit and unfulfilled purchase
Discussion
Dear all,
A question from those in the know if I may.
I might be in a difficult position regarding a purchase which I placed a deposit on (a pre-owned car actually). I have paid a substantial deposit and now there is a risk I can't complete the sale.
The contract agreed was with a non-refundable deposit.
Now.... if I don't complete on this sale I lose my deposit, which I can understand......but what I don't understand is that this amount is totally arbitrary and bears no relation to the 'loses' incurred by the seller, in fact the seller is set to do well if I don't complete.
Surely, in law somewhere, there has to be a rule that says the loss of a deposit has to relate to the loses incurred by the seller, (i.e re-marketing cost, revaluation of the product etc).
thoughts?
A question from those in the know if I may.
I might be in a difficult position regarding a purchase which I placed a deposit on (a pre-owned car actually). I have paid a substantial deposit and now there is a risk I can't complete the sale.
The contract agreed was with a non-refundable deposit.
Now.... if I don't complete on this sale I lose my deposit, which I can understand......but what I don't understand is that this amount is totally arbitrary and bears no relation to the 'loses' incurred by the seller, in fact the seller is set to do well if I don't complete.
Surely, in law somewhere, there has to be a rule that says the loss of a deposit has to relate to the loses incurred by the seller, (i.e re-marketing cost, revaluation of the product etc).
thoughts?
Edited by GarageQueen on Thursday 5th January 20:43
shake n bake said:
It's straight forward with cars, they can keep a proportion of your deposit to allow for time taken off sale, lost advertising ect.
Have you spoken to the garage? Could you proceed with the purchase then sell it on soon after?
thats how I see it should be, a proportion taken t cover loses, but thats not whats being discussed at the moment.Have you spoken to the garage? Could you proceed with the purchase then sell it on soon after?
it troubles me because if I was in that situation, i'd just take half or something to cover the costs.
GarageQueen said:
Dear all,
A question from those in the know if I may.
I might be in a difficult position regarding a purchase which I placed a deposit on (a pre-owned car actually). I have paid a substantial deposit and now there is a risk I can't complete the sale.
The contract agreed was with a non-refundable deposit.
Now.... if I don't complete on this sale I lose my deposit, which I can understand......but what I don't understand is that this amount is totally arbitrary and bears no relation to the 'loses' incurred by the seller, in fact the seller is set to do well if I don't complete.
Surely, in law somewhere, there has to be a rule that says the loss of a deposit has to relate to the loses incurred by the seller, (i.e re-marketing cost, revaluation of the product etc).
thoughts?
They could potentially lose more than your deposit, depending on how quickly it takes to re-sell and what they finally get for it.A question from those in the know if I may.
I might be in a difficult position regarding a purchase which I placed a deposit on (a pre-owned car actually). I have paid a substantial deposit and now there is a risk I can't complete the sale.
The contract agreed was with a non-refundable deposit.
Now.... if I don't complete on this sale I lose my deposit, which I can understand......but what I don't understand is that this amount is totally arbitrary and bears no relation to the 'loses' incurred by the seller, in fact the seller is set to do well if I don't complete.
Surely, in law somewhere, there has to be a rule that says the loss of a deposit has to relate to the loses incurred by the seller, (i.e re-marketing cost, revaluation of the product etc).
thoughts?
GarageQueen said:
Dear all,
A question from those in the know if I may.
I might be in a difficult position regarding a purchase which I placed a deposit on (a pre-owned car actually). I have paid a substantial deposit and now there is a risk I can't complete the sale.
The contract agreed was with a non-refundable deposit.
Now.... if I don't complete on this sale I lose my deposit, which I can understand......but what I don't understand is that this amount is totally arbitrary and bears no relation to the 'loses' incurred by the seller, in fact the seller is set to do well if I don't complete.
Surely, in law somewhere, there has to be a rule that says the loss of a deposit has to relate to the loses incurred by the seller, (i.e re-marketing cost, revaluation of the product etc).
thoughts?
Why, oh why, didn't you think this through before making the contract?A question from those in the know if I may.
I might be in a difficult position regarding a purchase which I placed a deposit on (a pre-owned car actually). I have paid a substantial deposit and now there is a risk I can't complete the sale.
The contract agreed was with a non-refundable deposit.
Now.... if I don't complete on this sale I lose my deposit, which I can understand......but what I don't understand is that this amount is totally arbitrary and bears no relation to the 'loses' incurred by the seller, in fact the seller is set to do well if I don't complete.
Surely, in law somewhere, there has to be a rule that says the loss of a deposit has to relate to the loses incurred by the seller, (i.e re-marketing cost, revaluation of the product etc).
thoughts?
Edited by anonymous-user on Thursday 5th January 20:43
spookly said:
<snip>
I don't understand why you would ever put a deposit down on a purchase you were not 100% sure you would complete.
At the very most it should be weighed up against how willing you are to lose said deposit.I don't understand why you would ever put a deposit down on a purchase you were not 100% sure you would complete.
1. What does the contract say?
2. Have you asked the seller?
3. Are there other options (finance and sell on) that may be less costly than the "substantial" deposit?
G'luck - you may need it.
tigger1 said:
spookly said:
<snip>
I don't understand why you would ever put a deposit down on a purchase you were not 100% sure you would complete.
At the very most it should be weighed up against how willing you are to lose said deposit.I don't understand why you would ever put a deposit down on a purchase you were not 100% sure you would complete.
1. What does the contract say?
2. Have you asked the seller?
3. Are there other options (finance and sell on) that may be less costly than the "substantial" deposit?
G'luck - you may need it.
GarageQueen said:
Now.... if I don't complete on this sale I lose my deposit, which I can understand......but what I don't understand is that this amount is totally arbitrary and bears no relation to the 'loses' incurred by the seller, in fact the seller is set to do well if I don't complete.
It's not arbitrary, it's the amount you agreed to 
. https://www.gov.uk/government/uploads/system/uploa...
Unfair Terms in Consumer Contracts Regulations 1999
See section 6.
Unfair Terms in Consumer Contracts Regulations 1999
See section 6.
spookly said:
tigger1 said:
spookly said:
<snip>
I don't understand why you would ever put a deposit down on a purchase you were not 100% sure you would complete.
At the very most it should be weighed up against how willing you are to lose said deposit.I don't understand why you would ever put a deposit down on a purchase you were not 100% sure you would complete.
1. What does the contract say?
2. Have you asked the seller?
3. Are there other options (finance and sell on) that may be less costly than the "substantial" deposit?
G'luck - you may need it.
, and good luck to the OP 
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