Deposits for a car in private sale

[IrateNinja]

I'm currently selling my car, and this morning took a holding deposit from a main dealer who said they were buying the car with the intention of selling it a customer who had asked them to find a good R26.

This is the first time I've sold a car where I've not been paid in cash and watched the car drive off immediately, so not entirely sure of the the rules on deposits.

I agreed to take all adverts down for the car once we agreed on a price, and I had received the deposit, verbally over the phone (the only emails exchanged were requests for more info on condition and service history), with payment of the outstanding amount taking place on Monday.

Now the dealer has phoned informing me that their intended customer has gone off to buy a car elsewhere and requested their deposit back.

Is it clear cut case of sucks to be them if they no longer want to follow through with the sale?

[Meoricin]

That's pretty much the point of a deposit in this situation.

[Disco You]

Ask yourself two things:
Why did they leave a deposit?
Would they give you the money back if it was the other way around?

They're trying it on, tell them to jog on.

[nsa]

What paperwork do you have? Tempted to agree with others that a deposit is non-refundable. Just curious, how much was the deposit?

[AMST09]

What about your costs for re-advertising as well

[Nedzilla]

I dont see the point of taking a deposit if you have to give it back if they decide to change their mind.Thats their loss and your gain for your inconvenience.

Not sure where you stand legally though when it comes to this.

[16v stretch]

So, they borrowed your car for a few days?

Offer them 50% of the deposit back. Providing the car is returned in the same condition.

[pacman1]

Am I missing something here, you took a deposit, they took your car? Where is the car now?

[smartphone hater]

I read it as though no one has taken the car, the op still has it.

[IrateNinja]

Deposit was a not insubstantial £500, via bank transfer.

They haven't sent anybody to view so it was done over the phone after I sent them a number of photographs.

I wasn't sure on the state of play as there's nothing written down, thanks for confirming!

Edit: Yes, car is still with me they haven't even viewed it in person!

[AMST09]

Quick bit of googling reveals that it seems legally you should only keep hold of what would cover your losses, but you don't know what your losses are yet, you may have to now readvertise for the next six months as they didn't buy the car

[pacman1]

smartphone hater said:

I read it as though no one has taken the car.

IrateNinja said:

This is the first time I've sold a car where I've not been paid in cash and watched the car drive off immediately, so not entirely sure of the the rules on deposits.

I read that as he's been given a deposit, but relinquished the car. How does that work then? If there is an issue with the deposit, where does he stand if he doesn't have the car? Where is his security?

A deposit secures goods by the buyer from other buyers. Only when the price is paid in full should the car be released.

[nsa]

Haha. Milky Bars are on you! How could the dealer be so dumb? If you have anything written down saying it's a deposit, fantastic. Somebody legal will be along soon but I'd guess you could just stop taking their calls.

[IrateNinja]

That statement referred previous sales where money and car ownership changed hands on the spot, sorry for not being clear.

The called requesting more info, I provided it, then phoned back say they were happy, where did I want a holding deposit sent to and when they could collect.

[IrateNinja]

nsa said:

Haha. Milky Bars are on you! How could the dealer be so dumb? If you have anything written down saying it's a deposit, fantastic. Somebody legal will be along soon but I'd guess you could just stop taking their calls.

I thought it was scam until I checked my balance at lunch... I needed some third party assurance that I wasn't looking at it too simplistically!!

[nsa]

IrateNinja said:

I thought it was scam until I checked my balance at lunch... I needed some third party assurance that I wasn't looking at it too simplistically!!

Yes. Please don't send it back. Wait for their lawyers.

[Leins]

Just tell them you turned down a firm offer in the meantime, but that buyer has now bought elsewhere too

They either lose the deposit, or buy the car from you at the pre-agreed price. Chancers trying to have their cake and eat it!

[B16JUS]

Explaine you had others interested who you may have lost as advert deleted.

Whole point of a deposit is them saying they are buying it and not to sell it to someone else

J

[897sma]

Surely at the moment you offered it to them for sale and they accepted the sale a contract was formed. This can be backed up as you have a deposit to prove they intended to buy. I would tell them they need to pay the balance and complete the sale. Alternatively keep the deposit to cover your losses.

[miln0039]

Couldn't agree more with what has been written above.

I accepted when I bought my car privately (put a deposit down 6 weeks before I collected it because I was working abroad) that if I pulled out of the deal for any reason other than the car being materially different on collection to its condition at inspection that the deposit would be for the benefit of the vendor.

Good news is - you've got £500 more for your new car budget