New vehicle cancellation ?
Discussion
Say someone tested a vehicle at a franchised dealers, didn't agree on a price and left. Later the dealer rang, a price was agreed on a new vehicle and a 4% credit card deposit paid on the phone. The vehicle is unregistered and in stock and would be subject to a finance agreement. At this point nothing has been signed and the dealer hasn't provided their terms and conditions particularly regarding cancellation rights/deposit forfeit. If the consumer changes their mind are they entitled to the return of their deposit in this situation ?
I had a similar thing. Saw a car I wanted online (with an interior described as 'cream', which was what I wanted, but couldn't get to view it that week). So I paid a £100 deposit by CC to reserve it until I could see it.
When I got to the car I immediately saw the interior was not cream but butterscotch, which I hate. Tried to get my money back under 'misdescription' but neither Geezer Garage nor the CC company would refund.
So hopefully you will do better than me.
When I got to the car I immediately saw the interior was not cream but butterscotch, which I hate. Tried to get my money back under 'misdescription' but neither Geezer Garage nor the CC company would refund.
So hopefully you will do better than me.
Why would you pay a deposit without finding out what the terms of the deposit are?
Surely the whole point of a deposit is to prevent them from selling it to someone else, which they didn't do.
how much is 4% though? if it's a 5k car it' sounds reasonable if it's a 50k car, well...
Surely the whole point of a deposit is to prevent them from selling it to someone else, which they didn't do.
how much is 4% though? if it's a 5k car it' sounds reasonable if it's a 50k car, well...
Edited by gowmonster on Tuesday 24th September 12:32
blade7 said:
Does the lack of written or verbal terms and conditions prior to taking the deposit prevent the dealer retaining the deposit, and what would happen if the finance was declined ?
Hard to say, sounds like more of a gentleman's agreement without agreed terms and conditions. Why didn't you ask before putting down your deposit?Obviously you'll have evidence to support the deposit transfer but they might try and be difficult if the finance fails e.g. deposit returned minus charge for finance application etc. I'd imagine it's down to the dealer though and they'd do their best to make a finance agreement work for you.
The Stiglet said:
Hard to say, sounds like more of a gentleman's agreement without agreed terms and conditions. Why didn't you ask before putting down your deposit?
The phone conversation focused on the price, a 1% deposit was declined. It's not a dead deal but it's good to know your rights before putting pen to paper. Did either party mention whether the deposit was non-refundable?
I did a similar thing with a car several years ago, having seen it in a dealership advertised with full service history. I told the dealer I would buy it if it was as-described. I was suspicious that mileage/condition etc may not be correct so agreed to pay a (verbally stipulated) refundable deposit, giving the dealer a chance to ensure that the documentation was correct before I turned up to pay the balance and collect the car. The dealer couldn't provide service history/book/invoices. I chose not to proceed with the purchase. We argued about the deposit. Basically my case was clearer and stronger than his and he refunded when I threatened to take it up with the CC company.
ETA: Oops! Just noticed OP was talking about a new car. Sorry - this was obviously a used one.
I did a similar thing with a car several years ago, having seen it in a dealership advertised with full service history. I told the dealer I would buy it if it was as-described. I was suspicious that mileage/condition etc may not be correct so agreed to pay a (verbally stipulated) refundable deposit, giving the dealer a chance to ensure that the documentation was correct before I turned up to pay the balance and collect the car. The dealer couldn't provide service history/book/invoices. I chose not to proceed with the purchase. We argued about the deposit. Basically my case was clearer and stronger than his and he refunded when I threatened to take it up with the CC company.
ETA: Oops! Just noticed OP was talking about a new car. Sorry - this was obviously a used one.
Edited by sideways sid on Tuesday 24th September 13:20
PurpleMoonlight said:
If the dealer refuses to refund, just remind them you currently have the protection of the Distance Selling Regulations and are entitled to cancel the purchase without reason and receive all your money back.
Don't think the DSR apply as a similar vehicle was viewed at the dealers premises.blade7 said:
On a related subject if someone was a house husband with no income could they qualify for finance ?
Hold on. You've put a deposit on a car without checking what your rights are and done it without checking that you will get finance to buy it? If so, you've done it the wrong way round.
As to your question about whether you will get finance. That depends. There's always some company that will finance you but you will pay for it in the rate of interest and you might not want to take a 12% loan.
Are you a risky proposition? How's your credit rating? Have you financed before? How much household debt do you have? You say you don't have an income but surely your wife pays you a monthly allowance for things? This is income. She may need to act as a guarantor.
Did you consider asking your wife to take finance instead should any problems occur?
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