Car dealer refuses to refund £500 deposit...
Discussion
PurpleMoonlight said:
SMcP114 said:
If a deposit is refundable what is the point of it in the first place? I genuinely don't understand.
Because it shows an intent to buy/sell that both parties prefer to see, and 99% proceed without any issue.Life and business isn't perfect though and occasionally the contract needs to be terminated. This could be an hour after the deposit is paid, or a day or a week. Then, the party cancelling the contract is responsible for any losses incurred by the party being cancelled upon. Mostly this is next to nothing so neither party bothers to pursue it.
IANAL but surely unfair contract terms would apply where the burden is onerous or disproportionate (eg. a £10k deposit on a £27k car)?
The OP has entered into this agreement willingly, the terms are quite clear and unambiguous, and the sum of the deposit not unreasonable given the cost of the item secured.
I guess it's possible the OP could win in small claims court - though it would likely be a pyrrhic victory - if the burden is on the dealer to quantify their loss. As it is though, in my humble opinion, the OP ought to chalk this one up to bad judgement (considering the impending house purchase) and think about the ramifications of signing contracts in future.
The OP has entered into this agreement willingly, the terms are quite clear and unambiguous, and the sum of the deposit not unreasonable given the cost of the item secured.
I guess it's possible the OP could win in small claims court - though it would likely be a pyrrhic victory - if the burden is on the dealer to quantify their loss. As it is though, in my humble opinion, the OP ought to chalk this one up to bad judgement (considering the impending house purchase) and think about the ramifications of signing contracts in future.
anonymous said:
[redacted]
There's been a few threads on this over the past few years. Disgruntled PHers who have placed a deposit on a car only to have it returned with an apology. The general consensus on PH is to move on and buy another car. Flipping this situation, the dealer should give the customer the deposit back.I think the OP should consider himself lucky that it was only a £500 deposit. On a £27k car I would have expected to deposit at least £1k.
I would expect the dealer could easily show £500 loss just in lost opportunity to sell the car over a BH weekend. Easiest thing in the world to say he had another couple of enquiries on the car. Therefore he now needs to extend his stocking finance on the vehicle for another month because the OP backed out, had to cancel workshop time that he had allocated to prep the car and was unable to book other work into that slot, waste of the salesmans and other staff members time, and now we have passed months end the car will probably have taken a book drop so the dealer may have to lower the price to compete with others who have fresh stock purchased at a lower price. etc etc.
Sorry OP, man up take it on the chin and move on.
I would expect the dealer could easily show £500 loss just in lost opportunity to sell the car over a BH weekend. Easiest thing in the world to say he had another couple of enquiries on the car. Therefore he now needs to extend his stocking finance on the vehicle for another month because the OP backed out, had to cancel workshop time that he had allocated to prep the car and was unable to book other work into that slot, waste of the salesmans and other staff members time, and now we have passed months end the car will probably have taken a book drop so the dealer may have to lower the price to compete with others who have fresh stock purchased at a lower price. etc etc.
Sorry OP, man up take it on the chin and move on.
Edited by oldnbold on Sunday 31st May 19:27
Greendubber said:
swerni said:
He paid a deposit and signed a contact that states it's non returnable.
He's not being ripped off , he should man the f
k up, learn a lesson from it and stop wasting people's time.
Pretty much my opinion on it too. He's not being ripped off , he should man the f
k up, learn a lesson from it and stop wasting people's time. Chalk it up and move on.
Surely this situation is exactly the whole point of having a "deposit" ?
I also find it hard to believe you are out to buy a car, when surely having your house on the market - something more in the story!
Those T&Cs to me, don't state you can have your deposit back. You've paid the £500 on the basis you were purchasing said vehicle, if the dealer had said - pay £500, I will refund it if the car isn't described then fair enough. However, he didn't do this - you agreed to buy, you pulled out of the sale.
If it was a busy or quiet Sunday, someone could have called after you left to leave a deposit on the vehicle, he said no as you had left a deposit and this person buys another car. You then pull out of deal, the other person has another car and the dealer still hasn't got £27k for the car.
IMO, take on the chin and walk away!
Those T&Cs to me, don't state you can have your deposit back. You've paid the £500 on the basis you were purchasing said vehicle, if the dealer had said - pay £500, I will refund it if the car isn't described then fair enough. However, he didn't do this - you agreed to buy, you pulled out of the sale.
If it was a busy or quiet Sunday, someone could have called after you left to leave a deposit on the vehicle, he said no as you had left a deposit and this person buys another car. You then pull out of deal, the other person has another car and the dealer still hasn't got £27k for the car.
IMO, take on the chin and walk away!
It slightly annoys me when people think that a deposit will stop all other people from buying a car, but if that person can't complete at a later date then they expect their deposit back in full. It's not really what a deposit is.
I notice that the car in question is not listed at the dealership any more. Sold, or maybe still removed from sale a week on?
I notice that the car in question is not listed at the dealership any more. Sold, or maybe still removed from sale a week on?
apotts said:
It slightly annoys me when people think that a deposit will stop all other people from buying a car, but if that person can't complete at a later date then they expect their deposit back in full. It's not really what a deposit is.
This.If I was in the same situation I would ask nicely for the deposit back but not with any expectation.
Refusing to refund a deposit for a new car made to order I can understand, but for something already sitting in the lot...?
The dealers lost bugger all really. Non-refundable deposits are used to close a sale there and then and prevent people changing their mind overnight more than anything I suspect.
The dealers lost bugger all really. Non-refundable deposits are used to close a sale there and then and prevent people changing their mind overnight more than anything I suspect.
swerni said:
If it happened........
It happened. One of my customers. Ours was the fourth 918 he bought, and the first one he actually received. Two of the others didn't exist, the third was a very very well known dealership who refunded his deposit 13 days down the line and pointed out the clause in his agreement that allowed them to back out up to 14 days down the line. As to the OP, I'm astonished you'd not "lost your job". That is the usual MO of a buyers remorse time waster.
markmullen said:
As to the OP, I'm astonished you'd not "lost your job". That is the usual MO of a buyers remorse time waster.
That is a good one and definitely the most commonly used! Amazing how many people find out they're getting made redundant on a Monday morning after buying a car on Saturday 
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