Signed a new car contract, need to cancel - will I be ok?

[B1gdeano]

Hi,

Long story short I went to local BMW dealer on Sunday and agreed to purchase a new M140i

I agreed to buy the car that was in the showroom as it ticked all my boxes with spec and paint etc.

Signed the new car order form papers and paid a deposit.

So far so good! However when I got to work this morning we had our Monday briefing and were told company is having to make considerable cost savings and likely that site closures and redundancies will take place. Now we haven't been given notice or told we are at risk, but that the company is doing a plan that will be out by May and after that they will know what they want to do with regards to closures etc. So while not at risk per se, Its not good and would be highly irresponsible of me to accept a new car and PCP knowing there is a chance I will be out of work soon!

Where do I stand with regards to cancelling the order? The car was stock and in the showroom, so their costs should be next to zero. Practically 3 work hours passed between me leaving Sunday an hour before they closed and letting them know as soon as I came out the meeting this morning. I also haven't signed any finance paperwork yet, only the purchase order form.

All i got from them was "Need to speak to BMW and call you later" - they never did and then they were busy when I called after work and didn't call me back even though the receptionist said they would.

Just quite stressed at the moment as obviously need to try to prepare for the worst, and just want to cancel this until I know if I am safe or not in the summer.

Anybody been in a similar situation? Will they cancel the order?

Thanks

[stuart-ermrc]

Have you paid a deposit?

[B1gdeano]

stuart-ermrc said:

Have you paid a deposit?

Yes, Deposit was paid

[jayemm89]

Reasonably sure you can cancel and get your deposit back if it's within a certain time period - you should have a "cooling off" period with more or less anything like this.

Don't quote me on it, but I have known people who've had to change cars for various reasons and if it is just a car in the showroom and they haven't registered it for you etc yet, just phone them up and be honest. They'll have had this before.

[B1gdeano]

jayemm89 said:

Reasonably sure you can cancel and get your deposit back if it's within a certain time period - you should have a "cooling off" period with more or less anything like this.

Don't quote me on it, but I have known people who've had to change cars for various reasons and if it is just a car in the showroom and they haven't registered it for you etc yet, just phone them up and be honest. They'll have had this before.

I think this only applies if I did it over the phone or online as thats the distance selling regs - the contract I have here has all that 14 days thing on the back but it doesnt apply as I was on site in the dealership when I signed.

Im hoping they just cancel and keep my deposit tbh, the loss will sting a bit but better than being forced into proceeding in the circumstances

Just they didnt give me much of an answer on the phone but "will call you back"

[anonymous-user]

I'd back the honesty approach.

Not sure how the cooling off periods work on these things. I assume you signed paperwork. Is there anything in there? I am pretty sure if its done in the dealership you do not have a cooling off period and would lose the deposit. However they may refund you on the basis that goodwill may work out for them in the future.

Worst is you lose the deposit, they wont make you take the car. That is the purpose of the deposit. Fingers crossed they give you it back and in a few months you have job security and are back buying from them again.

[B1gdeano]

euphoricmess said:

I'd back the honesty approach.

Not sure how the cooling off periods work on these things. I assume you signed paperwork. Is there anything in there? I am pretty sure if its done in the dealership you do not have a cooling off period and would lose the deposit. However they may refund you on the basis that goodwill may work out for them in the future.

In my initial email I did say that all being well I will return in the summer and make the purchase, Just with that news it's irresponsible of me to proceed.

Maybe worth me trying to contact BMW finance people to advise of change of circumstances? Surely they have to be responsible lenders?

The contract states that if finance is not approved they will cancel the agreement.

[B1gdeano]

petrolhead4 said:

You can cancel and there should be a clause within the pre-contract signed when the deposit was taken that it is possible to withdraw. However, in doing so, the customer agrees to forfeit some of all or the deposit as it costs time for the dealer to prepare the finance, do the credit checks, start the paperwork to register the vehicle, etc.

I suspect that the deposit will be returned minus £500. In most cases £500 is required to secure the car for this reason.

Never got a pre contract. Just a receipt for the deposit, and a proper new car order contract.

[Nickp82]

End of the day, unless the dealer are a complete bunch of wkers, they will accept you want to cancel and refund your deposit.

You wouldn’t believe the amount of people who are suddenly potentially being made redundant the day after ordering a brand new car .

From the dealer’s point of view, it is highly annoying when it happens but they will accept it after a few days and everyone can move on.

[Nickp82]

petrolhead4 said:

The solution here is to stop pressuring customers to sign an order form before leaving the dealership.

I don’t think that would have made any difference in this instance though? The OP just had a (potential) change of circumstance.

[Alucidnation]

If it were me, i would be on the dealers doorstep at opening time tomorrow, especially if they haven't bothered to get back to you.

But then again, that's nothing new from a BMW dealership.

[B1gdeano]

Alucidnation said:

If it were me, i would be on the dealers doorstep at opening time tomorrow, especially if they haven't bothered to get back to you.

But then again, that's nothing new from a BMW dealership.

I will give them another call in the morning, and if not getting anywhere with them/not getting called back etc then will head over after work to see them in person.

End of the day if potentially have no work in a couple of months then they can't seriously say I can proceed?! I have pretty much told them it's unlikely I can pay the instalments therefore they shouldn't lend the finance?

[Nickp82]

Just to put your mind at rest, the worst thing that can happen here is you lose your deposit.

Judging by your OP, you have not signed any actual finance docs, just an order form, is that correct?

[B1gdeano]

Nickp82 said:

Just to put your mind at rest, the worst thing that can happen here is you lose your deposit.

Judging by your OP, you have not signed any actual finance docs, just an order form, is that correct?

Correct, didnt sign and dont have any finance forms - they said they will be sent to me? I must admit I was under the impression that I would complete the finance part later, but since looking around the internet think they already approved me while I was there for the PCP? They didnt ask about my income though which was what made me think I would be going over that later in the week!

Anyhow all i have got in the pack is the deposit receipt, a new vehicle order form and a new vehicle contract.

[B1gdeano]

petrolhead4 said:

I'd be surprised if the finance documents have been signed at this stage in the process. It is often completed just before/at the time of collection. The salesman often asks that you look over them and confirm the finance is as expected before signing as it is a regulated financial agreement.

The finance documents will include the rate of APR, the loan amount, total amount, terms and conditions of the finance, etc. And of course a page for the bank account and sort code for the direct debit instruction.

I didnt sign any finance forms there, only the ones that I have with me and a copy of the contract that they kept. Nothing finance related was signed Sunday

[ilikejam]

Probably 3 times in the last 3 years I've put down deposits on cars then cancelled after signing finance docs and had the deposit refunded.

Don't worry about it too much, but definitely don't let it slide past a few days without acknowledgement.

[B1gdeano]

petrolhead4 said:

To summarize:

1. You are not obliged to sign the finance agreement

2. In most cases where finance has been arranged on a vehicle if the customer does not agree to the finance then the purchase is canceled. However, as you have technically entered into an agreement to purchase the vehicle the dealer could hold you to contract and require that you find other means to finance the vehicle. In practice, this doesn't happen and most pre-contracts have a cancellation clause where you the customer agree to forfeit the deposit in the case of non-delivery. This is why you need a copy of the pre-contract

3. A car dealership cannot, realistically, force a customer to take delivery of a vehicle. It is not worth their time, effort or money to pursue this legally. This is the purpose of the deposit: to commit the customer to the purchase of the vehicle. They will keep your deposit and sell the car to another future customer

This is what I am expecting/hoping to be honest, that I just forfeit the deposit to leave the contract. I have read all the T&C however and there is no "get out clause" or reference to deposit being forfeit. The only way apart from them cancelling is to refuse the car and not collect it - but then they state they will try to sell the car in a timely manner or auction it - obviously at a loss - which I will then be invoiced for.

Want to avoid all that! The car is stock, in the showroom. It isnt registered and they hopefully haven't proceeded with any of that after me informing them of the change in circumstances this morning! So it should be a case of take off the reserved sticker, open the car back up for viewing and let someone else buy it!

[anonymous-user]

Nickp82 said:

You wouldn’t believe the amount of people who are suddenly potentially being made redundant the day after ordering a brand new car .

I suspect people get so carried away and excited at the thought of getting a brand new car they sign up without thinking too much about the cost each month. Once they have signed up reality hits and they start to realise they don't want the car as much as they thought, once they realise how much it will cost each month.

Strangely enough I am pretty much in this same position. I signed up to a new lease car and using man maths convinced myself it would be nearly as cheap as running a shed. I then came to the realisation that I hate monthly payments, hence why I have not had any finance for 16 years.

I have not signed anything aside from a personal proposal form which was details such as address, work, salary etc. This was accepted in seconds and I was asked what colour I wanted via email. I was then told the car was ordered. I have not paid any deposit at this point.

Changed the oil in my shed at the weekend, it drives brilliantly and I am now wondering why I would get rid of it just to get a new car with all the added worry about people damaging it and having to pay dealers £200 for an oil change.

Very tempted to cancel to be honest. I was told the lead time is 16 weeks so I suspect they can easily delete it from the system?

[B1gdeano]

Well I have forward an email from work to the chap at the dealership I have been dealing with that pretty much confirms the cost cutting going on at work, so they can see it's genuine.

Can't believe they would keep pushing the sale having been shown that there is a chance that I cant afford it in the coming months!

Asked him to call in the morning, so we will see I guess.

[reglard]

Redundancy sucks despite consultation they will have made their mind up. Should think no worries with dealership, not worth their reputation dragging you through a car you can possibly no longer afford.