Dealers, watch out for this guy

Dealers, watch out for this guy

Author
Discussion

Shotgun Rider

816 posts

172 months

Tuesday 3rd April 2012
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JoPo1 said:
Am I the only one who's read the whole thread an the bit at the bottom that says 'from this thread'.

fking calm down.
Well four people mentioned the fact that it wasn't the OP who paid the deposit, so you obviously didn't read the whole thread yourself wink

JoPo1

386 posts

159 months

Tuesday 3rd April 2012
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Shotgun Rider said:
Well four people mentioned the fact that it wasn't the OP who paid the deposit, so you obviously didn't read the whole thread yourself wink
I must have been reading while they were replying lol

bebee

4,685 posts

227 months

Tuesday 3rd April 2012
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My 10p.......... the dealer should not expect to keep £250 in 15 hrs of holding, that's taking the piss!! The dealer wouldn't like if if it was done to him/her.

I would have left a £50 deposit and he could keep that amount in the event of changing my mind. I would not however leave a deposit on a car over the phone without seeing it first, if it sells, then it sells.

If I was sure on the car having see and driven it then I would be happy to leave £250 until I got the balance sorted.

Ari

19,361 posts

217 months

Tuesday 3rd April 2012
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My (patchy) understanding of the law on this one is that the dealer cannot keep the deposit unless he can prove out of pocket expenses incurred.

Given that it's pretty hard to prove that he could have sold the car for figure "x" and didn't because of the deposit securing it, and then later had to take figure "y" because that's all he could then get for it (ie prove a loss between "x" and "y"), and it's unlikely he incurred other costs as a result of the car being off the market for a less than a day, I'd have thought he would be on a sticky wicket with this one.

Absolutely not condoning what the customer did, a deal's a deal and all that, but I think if he'd gone legal the dealer would have to have refunded anyway.

As I say, my knowledge is patchy on this, happy to be corrected if I'm wrong?

PurpleMoonlight

22,362 posts

159 months

Tuesday 3rd April 2012
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Come on, let's be fair.

The dealer has hardly suffered any losses, the transaction was cancelled the very next day so they could easily have agreed to the refund.

I would also argue that a deposit isn't in itself fundamentally non refundable. That would have had to be made clear to the purchaser at the time of payment, and even then it could easily be argued that it is contra to the fair contracts legialation. Really, the dealer should only seek to recover any losses from the deposit and refund the balance.

TheHeretic

73,668 posts

257 months

Tuesday 3rd April 2012
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I don't think the dealer keeping the money is the issue. I think the issue is telling the bank that the dealer took the number as a goodwill thing, then charged 250 quid on it without the chaps permission, etc. essentially fraud.

PumpkinSteve

4,109 posts

158 months

Tuesday 3rd April 2012
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He would've been entitled to his deposit back anyway, even if he hadn't resorted to stupid tactics, wouldn't he? You can get your deposit back if you place it before seeing the car, or am I wrong?

SMcP114

2,916 posts

194 months

Tuesday 3rd April 2012
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I would be too embarassed to ask for a deposit back, from either a dealer or a private seller.

MX7

7,902 posts

176 months

Tuesday 3rd April 2012
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PurpleMoonlight said:
I would also argue that a deposit isn't in itself fundamentally non refundable.
What's the purpose of a deposit if it's fully refundable?

Dangerous Dan

624 posts

173 months

Tuesday 3rd April 2012
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MX7 said:
MSE doesn't seem to attract the sharpest knives.
Nor the most financially astute, hence will try to screw out dealers/businesses of money that they legitimately paid.

NWMark

518 posts

218 months

Tuesday 3rd April 2012
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wouldnt distance selling regs cover the deposit, so he would have got it back anyway?

Rick101

6,977 posts

152 months

Tuesday 3rd April 2012
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I hve read before that dealers are only entitled to keep reasoanble costs. In many cases this means the deposit should be returned in full providing the dealer hasn't paid out for it.

Can't say I agree with it. I think is quite fair that is you make a deal, pay a deposit and then break that deal, the deposit is lost. The dealer could have lost other sales because some mupppet wants to mess him about.

The other side of the coin is if the dealer doesn't fufil thier obligations, the buyer should be well within their rights to claim deposit back.

Rollcage

11,327 posts

194 months

Tuesday 3rd April 2012
quotequote all
Ari said:
My (patchy) understanding of the law on this one is that the dealer cannot keep the deposit unless he can prove out of pocket expenses incurred.

Given that it's pretty hard to prove that he could have sold the car for figure "x" and didn't because of the deposit securing it, and then later had to take figure "y" because that's all he could then get for it (ie prove a loss between "x" and "y"), and it's unlikely he incurred other costs as a result of the car being off the market for a less than a day, I'd have thought he would be on a sticky wicket with this one.

Absolutely not condoning what the customer did, a deal's a deal and all that, but I think if he'd gone legal the dealer would have to have refunded anyway.

As I say, my knowledge is patchy on this, happy to be corrected if I'm wrong?
I think as far as the wording of the law goes, this is correct. I'd be interested in knowing if anybody has ever successfully sued for the return of a deposit in a similar circumstance though.

Butter Face

30,620 posts

162 months

Tuesday 3rd April 2012
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As a dealer, I have been on the sharp end of this, customers placing deposits and shaking hands then changing their mind overnight.

Yes it's a bh, yes it gives you the hump, but I've never kept a deposit, just made people feel like st for doing it and refused to do it unless they come in and explain eye to eye why they want it back.

englisharcher

Original Poster:

1,607 posts

166 months

Tuesday 3rd April 2012
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Butter Face said:
and refused to do it unless they come in and explain eye to eye why they want it back.
How would you feel if, instead of doing that, the buyer called his bank, and basically told them that you had committed fraud by using his card details without authorisation?

GC8

19,910 posts

192 months

Tuesday 3rd April 2012
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pistonpie said:
lol...what do you think a deposit is for...?
Do you think that a deposit is forfeited in the event that the sale doesnt proceed? Why do you think that? This perpetuates the 'retained deposit' myth, but it really isnt that simple.

I believe that the dealer can only keep the entire £250 if it was given on the understanding that it would be forfeited if the sale didnt go ahead, but even that has to depend on the car being fit and as described.

Butter Face

30,620 posts

162 months

Tuesday 3rd April 2012
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englisharcher said:
Butter Face said:
and refused to do it unless they come in and explain eye to eye why they want it back.
How would you feel if, instead of doing that, the buyer called his bank, and basically told them that you had committed fraud by using his card details without authorisation?
I'm obviously talking about people who have been into the dealership and put their pin in our machine, which is not something they could do.

On the slim chance that happened, I would be backed up by the directors of my business, there are steps I need to follow before taking someones money and they wouldn't let our company be accused of wrongdoing.

Oh, and obviously its a procedural thing that any deposit being returned has to be signed for by the customer, hence them having to come in. smile

Fox-

13,265 posts

248 months

Tuesday 3rd April 2012
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What sort of a massive chimp whacks a 250 quid deposit down on 2.5k car he's never seen anyway? What a stupid thing to do.

That said was it was a trader and he was placing the deposit over the phone it's surely covered by the Distance Selling Act anyway and as such is refundable, however stupid the buyer was.

Deva Link

26,934 posts

247 months

Tuesday 3rd April 2012
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Rick101 said:
I hve read before that dealers are only entitled to keep reasoanble costs. In many cases this means the deposit should be returned in full providing the dealer hasn't paid out for it.

Can't say I agree with it. I think is quite fair that is you make a deal, pay a deposit and then break that deal, the deposit is lost. The dealer could have lost other sales because some mupppet wants to mess him about.

The other side of the coin is if the dealer doesn't fufil thier obligations, the buyer should be well within their rights to claim deposit back.
But that's unfair - an "uneven" contract.

You want the buyer to forfeit the deposit if he pulls out, so he loses £250. But if the dealer cancels he just shrugs and gives the deposit back so doesn't lose anything. How is that fair?

veevee

1,455 posts

153 months

Tuesday 3rd April 2012
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MX7 said:
What's the purpose of a deposit if it's fully refundable?
To secure the car.