Car dealer refuses to refund £500 deposit...

Car dealer refuses to refund £500 deposit...

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Discussion

PurpleMoonlight

22,362 posts

157 months

Sunday 31st May 2015
quotequote all
agtlaw said:
What was the car sold for? If less than £27,000 then there's a loss.
Hmmmm, I'm not convinced the dealer would win that argument. The customer could argue it was deliberately sold for less so that the customers deposit could be kept to compensate.

I think it's best to assess any losses incurred with the direct breach of contract, for example a valet.

voyds9

8,488 posts

283 months

Sunday 31st May 2015
quotequote all
agtlaw said:
PurpleMoonlight said:
The redress for either party for a breach of contract is the recovery of any loss incurred.

Anything else is a penalty and not enforceable.
What was the car sold for? If less than £27,000 then there's a loss.
This.

If the car sells for £25,000 you may find the dealer comes to you for another £1,500.

PoleDriver

28,634 posts

194 months

Sunday 31st May 2015
quotequote all
Look at it from the other side!
If the dealer said to you "sorry I've sold the car, here's you deposit back" how would you feel?

PurpleMoonlight

22,362 posts

157 months

Sunday 31st May 2015
quotequote all
voyds9 said:
This.

If the car sells for £25,000 you may find the dealer comes to you for another £1,500.
Using that argument the dealer could sell it to a friend for £7,000 and come after the OP for £19,500.

rolleyes

CRA1G

6,521 posts

195 months

Sunday 31st May 2015
quotequote all
voyds9 said:
This.

If the car sells for £25,000 you may find the dealer comes to you for another £1,500.
Totally agree..... because the op is unfortunately in breach of contract..

Durzel

12,258 posts

168 months

Sunday 31st May 2015
quotequote all
Devil's Advocate...

If the situation were reversed and the dealer reneged on the deal and sold the car to someone else who offered more after having taken the OP's deposit (I'm assuming £27,000 was an accepted offer rather then the full listed price) he, and I suspect others, would be up in arms asking "what's the point of a deposit then?"

A deposit holds the car. It is conceivable that another person (or people) might've made an enquiry about buying it, or the dealer may have rung back other parties who had expressed an interest or arranged a viewing our whatever and told them it was sold. I don't quite agree that the dealer's loss is necessarily zero - you can only say that with the benefit of hindsight.

If it's valid to say "well you didn't have any other enquiries so there's no loss" then that renders the concept of a deposit void in my opinion. It's no more valid than the dealer selling on the car because "they had a feeling the person who left the deposit was going to drop out anyway".

voyds9

8,488 posts

283 months

Sunday 31st May 2015
quotequote all
PurpleMoonlight said:
Using that argument the dealer could sell it to a friend for £7,000 and come after the OP for £19,500.

rolleyes
He could but he is under a duty to mitigate his losses.

T5XARV

600 posts

134 months

Sunday 31st May 2015
quotequote all
Why were you out buying a car when you have a property matter pending ? Are you still in the market ? Is it buyers remorse ? Seen another car ?
What is the real reason you welched/ wished to cancel ? Tell us more....
Having worked at a main dealer, I've been on the receiving end of many cancellations.....the stories you hear.....

HTP99

22,530 posts

140 months

Sunday 31st May 2015
quotequote all
T5XARV said:
Why were you out buying a car when you have a property matter pending ? Are you still in the market ? Is it buyers remorse ? Seen another car ?
What is the real reason you welched/ wished to cancel ? Tell us more....
Having worked at a main dealer, I've been on the receiving end of many cancellations.....the stories you hear.....
Yep, I've heard them all; well I thought I had.

btcc123

1,243 posts

147 months

Sunday 31st May 2015
quotequote all
T5XARV said:
Why were you out buying a car when you have a property matter pending ? Are you still in the market ? Is it buyers remorse ? Seen another car ?
What is the real reason you welched/ wished to cancel ? Tell us more....
Having worked at a main dealer, I've been on the receiving end of many cancellations.....the stories you hear.....
I think the real reason why he could not go through with the purchase of the car is he is to young and as half term has finished its back to school tomorrow.

Vaud

50,424 posts

155 months

Sunday 31st May 2015
quotequote all
btcc123 said:
I think the real reason why he could not go through with the purchase of the car is he is to young and as half term has finished its back to school tomorrow.
Yeah right, some school boy also went to the trouble of scanning a document as well.

The OP has a reasonable question, not sure why every reference has to be "it's half term" at the moment.

numtumfutunch

4,721 posts

138 months

Sunday 31st May 2015
quotequote all
PoleDriver said:
Look at it from the other side!
If the dealer said to you "sorry I've sold the car, here's you deposit back" how would you feel?
Im fairly sure something like this was posted a while ago and the consensus was "too bad matey"

I find it hard to see how they would be so short sighted as to run the risk of you slagging them off on social media given the short time frame of handing the 500 notes over and then pulling out of the sale

Cheers


oldnbold

1,280 posts

146 months

Sunday 31st May 2015
quotequote all
numtumfutunch said:
I find it hard to see how they would be so short sighted as to run the risk of you slagging them off on social media given the short time frame of handing the 500 notes over and then pulling out of the sale

Cheers
Firstly several instances of people slaging companies off on social media where it's come back to bite them in the ar5e.

Secondly what reason would he have to slag them off? He signed an order form that clearly stated his deposit would not be refunded if he changed his mind. It wasn't exactly hidden in the small print of a huge document was it. The OP is the one in wrong here, in some cases you may be lucky and the dealer will refund out of goodwill.

Very strange that the OP didn't have some kind of knowledge about a property deal the day before. If he feels strongly enough about this then I guess small claims court is the way ahead.

Why is it in this country when someone makes a mistake it's always someone else's fault these days.

Mojooo

12,707 posts

180 months

Sunday 31st May 2015
quotequote all
Bottom line is opinions dont matter - what matters is contract law.

The dealer has to be able to justify his losses.

A lot of people are playign devils advocate with role reversals - but what is the deposit was £10,000 - would it be fair to retain such a large amount?

The question is what is the loss - the time spent dealing with the custoemr or the loss of profit which may exceed £500

V8forweekends

2,481 posts

124 months

Sunday 31st May 2015
quotequote all
LoonR1 said:
Whilst I know everyone will be fully supportive of the OP and accuse the dealer of sharp practice .....

I won't. He shouldn't have signed that order and paid the deposit. Time to man up and accept the loss - and not do it again - after all, it's not like he was (presumably) marched in with a heavy at each arm demanding he sign. Why can't anyone take any responsibility for their own actions any more?

PurpleMoonlight

22,362 posts

157 months

Sunday 31st May 2015
quotequote all
V8forweekends said:

I won't. He shouldn't have signed that order and paid the deposit. Time to man up and accept the loss - and not do it again - after all, it's not like he was (presumably) marched in with a heavy at each arm demanding he sign. Why can't anyone take any responsibility for their own actions any more?
Taking responsibility is one thing, being willing to be ripped off by a dealer seeking to keep a deposit regardless of their loss is another.

V8forweekends

2,481 posts

124 months

Sunday 31st May 2015
quotequote all
Mojooo said:
Bottom line is opinions dont matter - what matters is contract law.

The dealer has to be able to justify his losses.

A lot of people are playign devils advocate with role reversals - but what is the deposit was £10,000 - would it be fair to retain such a large amount?

The question is what is the loss - the time spent dealing with the custoemr or the loss of profit which may exceed £500
Then don't sign a contract and hand over a deposit - or if you do, don't start crying and whining about it later as if you never signed it/said it.

IANAL but the recent decision about parking seems to suggest that you don't need to prove a loss - at least not in full, and that an element of deterrence was OK. If every dealer "sold" a car multiple times to people who failed to complete the deal, without any recourse, their costs might be considerable.

photosnob

1,339 posts

118 months

Sunday 31st May 2015
quotequote all
I'd go back to my credit card company and ask them to issue a chargeback.

You have payed a deposit for something you will not be getting. It will be then up to the dealership to defend the chargeback. Much easier for you than small claims, and a much bigger pain for them.

I agree generally that you shouldn't sign on the line and pay a deposit if you can't commit. But they know the rules and they have to play by them too. They are a business out to make money, sometimes they will get mucked around.

Personally I'd be amazed if they defended the chargeback. Chargebacks are a right pain.

V8forweekends

2,481 posts

124 months

Sunday 31st May 2015
quotequote all
PurpleMoonlight said:
V8forweekends said:

I won't. He shouldn't have signed that order and paid the deposit. Time to man up and accept the loss - and not do it again - after all, it's not like he was (presumably) marched in with a heavy at each arm demanding he sign. Why can't anyone take any responsibility for their own actions any more?
Taking responsibility is one thing, being willing to be ripped off by a dealer seeking to keep a deposit regardless of their loss is another.
Don't sign then.

andymc

7,348 posts

207 months

Sunday 31st May 2015
quotequote all
photosnob said:
I'd go back to my credit card company and ask them to issue a chargeback.

You have payed a deposit for something you will not be getting. It will be then up to the dealership to defend the chargeback. Much easier for you than small claims, and a much bigger pain for them.

I agree generally that you shouldn't sign on the line and pay a deposit if you can't commit. But they know the rules and they have to play by them too. They are a business out to make money, sometimes they will get mucked around.

Personally I'd be amazed if they defended the chargeback. Chargebacks are a right pain.
All the kept deposits go towards the sales staff Xmas parties