Reservation Fee - Return
Discussion
Bit of a weird one and more it is just really annoying me and I'd love to prove a point...
We recently reserved, financed and took delivery of a car from a well known Group dealer (that covers many brands). The car was in the system and it met our spec so we were asked to pay £1,000 to reserve the vehicle on the 11th April 25 (2 week lead time). I was over excited at the time, so didn't ask too many questions didn't see any T&C's etc just took them at their word as reputable etc.
Anyway picked up the car and completed all the paperwork on the 29th April 25 and at this point was told they couldn't refund the money to my credit card and could I send them my bank details to refund it. They mentioned it may take a few days to get processed...
I was pretty miffed by this.
Previous experience and I believe typical is the reservation fee gets considered in the agreement/part of the deposit, I can accept that it isn't and they will refund me. But what really irks me is that they keep my money for an indefinite amount of time. I kicked up a bit of a fuss on the day and said I expect it back same day they were like OK OK (just to pacify me I feel), I sent my bank details to them and they responded by e-mail on the collection day that "I have had confirmation from my manager that your refund has been processed with accounts". Now to me that is a grey area response processed by accounts and paid by accounts are two different things.
Now I have looked on their website for a documented process, there isn't one, only for online reservation fees (I was in person at the dealer when I paid), At the time the refund process wasn't explained to me and I assumed it would be accounted for at the end and it has now been arguably 3 days since they said it was processed. Most transactions don't take 3 days anymore.
I'm sure all I can do is get pissy with them to little effect and complaining to the FCA as they are a broker and didn't explain things or the Motor Ombundsman will get me nothing but I want to make a point, they demand from me and then play games with my money on return even when I follow all of their rules.
Does anyone have any advice apart from lifes to short move on.
We recently reserved, financed and took delivery of a car from a well known Group dealer (that covers many brands). The car was in the system and it met our spec so we were asked to pay £1,000 to reserve the vehicle on the 11th April 25 (2 week lead time). I was over excited at the time, so didn't ask too many questions didn't see any T&C's etc just took them at their word as reputable etc.
Anyway picked up the car and completed all the paperwork on the 29th April 25 and at this point was told they couldn't refund the money to my credit card and could I send them my bank details to refund it. They mentioned it may take a few days to get processed...
I was pretty miffed by this.
Previous experience and I believe typical is the reservation fee gets considered in the agreement/part of the deposit, I can accept that it isn't and they will refund me. But what really irks me is that they keep my money for an indefinite amount of time. I kicked up a bit of a fuss on the day and said I expect it back same day they were like OK OK (just to pacify me I feel), I sent my bank details to them and they responded by e-mail on the collection day that "I have had confirmation from my manager that your refund has been processed with accounts". Now to me that is a grey area response processed by accounts and paid by accounts are two different things.
Now I have looked on their website for a documented process, there isn't one, only for online reservation fees (I was in person at the dealer when I paid), At the time the refund process wasn't explained to me and I assumed it would be accounted for at the end and it has now been arguably 3 days since they said it was processed. Most transactions don't take 3 days anymore.
I'm sure all I can do is get pissy with them to little effect and complaining to the FCA as they are a broker and didn't explain things or the Motor Ombundsman will get me nothing but I want to make a point, they demand from me and then play games with my money on return even when I follow all of their rules.
Does anyone have any advice apart from lifes to short move on.
paul_c123 said:
I don't know why you didn't ask for the reservation fee to be part of paying the car, and knock £1000 off the price you paid. It seems crazy to have a separate reservation fee over a deposit.
Every other finance deal I have done thats always been the way. For some unknown reason they don't do this. However it does seem to have resolved itself it turns out they could refund the credit card and have now done that.Like was said not really an issue or bad just annoying, I hate when rules aren't reciprocal if I'm late with their money they wont be happy...
I'm waiting on a £10k refund from Mercedes, as they took £10k to much last week when paying off the balloon on my GLE.
Apparently, the £10k advance payment that I made in February was not allocated to my account, even though I have a hardcopy letter from MB thanking me for the payment at that time.
Apparently, the £10k advance payment that I made in February was not allocated to my account, even though I have a hardcopy letter from MB thanking me for the payment at that time.
Could this be todo with distance selling rules. You say it was in their system not something you saw in branch.
By splitting it up are you paying for a service in the reservation of the car and then paying separately for the car itself allowing them to argue that you inspect the vehicle before purchasing.
I know dealers have been seeing an increase in customers taking the mick with the distance selling stuff.
By splitting it up are you paying for a service in the reservation of the car and then paying separately for the car itself allowing them to argue that you inspect the vehicle before purchasing.
I know dealers have been seeing an increase in customers taking the mick with the distance selling stuff.
Seems odd, last car I reserved (I usually take my chances instead) simply deducted the reservation from the deposit, I wasn’t expecting it to be refunded unless there was an issue and we couldn’t proceed.
I’d imagine that’s how 99% of these things go, the reservation just goes towards your deposit and you use the cash that you would have been putting down to pay off the credit card.
I’d imagine that’s how 99% of these things go, the reservation just goes towards your deposit and you use the cash that you would have been putting down to pay off the credit card.
Tigerj said:
Could this be todo with distance selling rules. You say it was in their system not something you saw in branch.
By splitting it up are you paying for a service in the reservation of the car and then paying separately for the car itself allowing them to argue that you inspect the vehicle before purchasing.
I know dealers have been seeing an increase in customers taking the mick with the distance selling stuff.
I can believe what you said could be the reason.By splitting it up are you paying for a service in the reservation of the car and then paying separately for the car itself allowing them to argue that you inspect the vehicle before purchasing.
I know dealers have been seeing an increase in customers taking the mick with the distance selling stuff.
However, the "Head of Business for the dealership apologised and agreed the process of reservations needs to be looked at. This dealer is a big chain though, US in origin and brought a load of UK known dealers. Maybe it's a US thing... my car about a year and a half ago was from a UK owned dealership group covering many brands and they did the deduct thing...
I put down a £1k reservation fee on a new car, built and already on the boat from Korea.
I was also part exchanging my old car, balance going on low-rate manufacturer finance.
It was explained that the £1k would be refunded on collection. I asked if it could be added to the px as a deposit, but was told that wasn't how they do it.
Local dealer group with 4 sites covering the County, multi-franchise (Kia/Hyundai, MG, Nissan, Peugeot and Citroen)
I was also part exchanging my old car, balance going on low-rate manufacturer finance.
It was explained that the £1k would be refunded on collection. I asked if it could be added to the px as a deposit, but was told that wasn't how they do it.
Local dealer group with 4 sites covering the County, multi-franchise (Kia/Hyundai, MG, Nissan, Peugeot and Citroen)
Moonpie21 said:
Anyway picked up the car and completed all the paperwork on the 29th April 25 and at this point was told they couldn't refund the money to my credit card and could I send them my bank details to refund it. .
As a matter of interest credit card issuer rules require a refund be made to the credit card if a credit card is used to make the payment. Otherwise you are getting round the cash advance fees situation. Unless this has change recently.£1000?! I paid £49 to reserve a car just over two weeks ago. Went to see it on Good Friday, paid £250 proper deposit and picked it up last week having paid the actual deposit having sold my car in the meantime through Motorway. The £49 was back on my card before I got home. It can't (in this instance at least) go to Audi finance as part of the deposit as it was paid direct to the dealer to stop them selling it to someone else and isn't actually part of the purchase. At least that is what they told me and it kinda makes sense.
As others have alluded to its to avoid distance (or consumer contract regulations as its known now )selling 'issues'.
If a 'deposit' is taken remotely the purchase is considered a distance sale with the 14 day change your mind for any reason clause.
A reservation fee is merely that and doesn't come off the price of the vehicle. It's a seperate transaction.
A couple of years ago the legal assistance providers in the motortrade started suggesting this tactic.
The 14 day 'buyers remorse' clause is ridiculous for a used vehicle.
We insist on customers coming to view the vehicle in person. They need to make sure they want the car, and in turn we need to meet them and make sure its someone we want to sell a 7-12 year old motor vehicle to as well.
If a 'deposit' is taken remotely the purchase is considered a distance sale with the 14 day change your mind for any reason clause.
A reservation fee is merely that and doesn't come off the price of the vehicle. It's a seperate transaction.
A couple of years ago the legal assistance providers in the motortrade started suggesting this tactic.
The 14 day 'buyers remorse' clause is ridiculous for a used vehicle.
We insist on customers coming to view the vehicle in person. They need to make sure they want the car, and in turn we need to meet them and make sure its someone we want to sell a 7-12 year old motor vehicle to as well.
dhibbert said:
As others have alluded to its to avoid distance (or consumer contract regulations as its known now )selling 'issues'.
If a 'deposit' is taken remotely the purchase is considered a distance sale with the 14 day change your mind for any reason clause.
A reservation fee is merely that and doesn't come off the price of the vehicle. It's a seperate transaction.
A couple of years ago the legal assistance providers in the motortrade started suggesting this tactic.
The 14 day 'buyers remorse' clause is ridiculous for a used vehicle.
We insist on customers coming to view the vehicle in person. They need to make sure they want the car, and in turn we need to meet them and make sure its someone we want to sell a 7-12 year old motor vehicle to as well.
It sounds like a dodge to circumvent DSR, and as such I'd not be surprised if a "reservation fee" was deemed to be a deposit. It looks like a deposit and it quacks like a deposit, after all.If a 'deposit' is taken remotely the purchase is considered a distance sale with the 14 day change your mind for any reason clause.
A reservation fee is merely that and doesn't come off the price of the vehicle. It's a seperate transaction.
A couple of years ago the legal assistance providers in the motortrade started suggesting this tactic.
The 14 day 'buyers remorse' clause is ridiculous for a used vehicle.
We insist on customers coming to view the vehicle in person. They need to make sure they want the car, and in turn we need to meet them and make sure its someone we want to sell a 7-12 year old motor vehicle to as well.
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