Can a car dealership cancel agreement and refund a deposit?

[Shaboo]

Hi all,

Yesterday I agreed to buy a car from a dealership and signed a Non Refundable deposit agreement.

Ive now just received a call with them saying that the car I agreed to buy was taken in part exchange, the previous owner has since had problems with the new car purchased so wants the car I put a deposit down for back from the dealer. Therefor the dealer just wants to cancel our agreement and refund my deposit.

Surely it isn't as simple as that for them? Im just wondering if I should claim some sort of compensation for it? I received no sort of T&C's saying they can cancel the agreement. It took a near 2 hour round trip to deal the time so obviously lost petrol expenses etc.

Any help would be much appreciated!

Thanks

[eybic]

What do you want to be compensated for? What loses have you suffered?

[Shaboo]

Well the main loss is:

1, Fuel costs for me to get to the dealership
2, took 1/2 day holiday to sign the contract agreement
3, theres theres the possibility for the legal term "loss of bargain"

I just didn't think once I had signed a non refundable deposit agreement they could then ask to rerun it?

[anonymous-user]

What does the form you signed say about cancellation? I would have thought the full terms would be in the paperwork?

[POORCARDEALER]

Only way you will get compensation is if the showroom floor is wet and you fall over injuring yourself.

[lookingforajob]

POORCARDEALER said:

Only way you will get compensation is if the showroom floor is wet and you fall over injuring yourself.

Given the small nature of his claim, a large dealership would be unlikely to try and defend it. The cost of them defending it (even if they won), would be outweighed by the costs to them as you can't* get costs back in the Small Claims Court.

Therefore most companies make the business decision to pay out for very small claims.

• I'm talking practically - technically is CPR's are not adhered to it can happen, however it is incredibly rare.

[anonymous-user]

Jesus Wept.

[lookingforajob]

Shaboo said:

Well the main loss is:

1, Fuel costs for me to get to the dealership
2, took 1/2 day holiday to sign the contract agreement
3, theres theres the possibility for the legal term "loss of bargain"

I just didn't think once I had signed a non refundable deposit agreement they could then ask to rerun it?

Is the juice worth the squeeze? As in is it worth enough for you to pump hours into getting anything back?

If it truly is a none refundable deposit - I would think they would be breaching the unfair contract terms laws if they want to nullify the contract on the basis as it makes life easier for them.

Ask for the money and slate the dealer on facebook and twitter. That would be a better punishment than going through all of the rubbish that comes with court.

[POORCARDEALER]

lookingforajob said:

POORCARDEALER said:

Only way you will get compensation is if the showroom floor is wet and you fall over injuring yourself.

Given the small nature of his claim, a large dealership would be unlikely to try and defend it. The cost of them defending it (even if they won), would be outweighed by the costs to them as you can't* get costs back in the Small Claims Court.

Therefore most companies make the business decision to pay out for very small claims.

• I'm talking practically - technically is CPR's are not adhered to it can happen, however it is incredibly rare.

Erm, one of my business interests is a company that provides legal advice to the motortrade, but thanks for the education.

[PurpleMoonlight]

I do wish dealers would not use 'no refund deposits' it is very likely an unfair term as it is totally weighted in favour of the dealer.

OP, the best you can get without involving more of your time is getting your money back. Consequential losses are not necessarily impossible to obtain but would likely involve significant work on your part and possibly a county court claim.

Just never utilise their dealership again.

[lookingforajob]

POORCARDEALER said:

Erm, one of my business interests is a company that provides legal advice to the motortrade, but thanks for the education.

And neither of us have seen any contracts or know which company it relates. Does your business interest qualify you to give legal advice? Would you instruct legal council for a £60 claim?

My comments were general - but the idea that he has no legal comeback is not correct. Whether it is worth him pursuing is.

[Phil Dicky]

I do wonder sometimes what's happened to the world....if this was me I would think fk it and look for another car. The last thing I would consider is legal action and all the grief that entails for a tank of fuel.

[POORCARDEALER]

lookingforajob said:

POORCARDEALER said:

Erm, one of my business interests is a company that provides legal advice to the motortrade, but thanks for the education.

And neither of us have seen any contracts or know which company it relates. Does your business interest qualify you to give legal advice? Would you instruct legal council for a £60 claim?

My comments were general - but the idea that he has no legal comeback is not correct. Whether it is worth him pursuing is.

In which case you will just advise everyone with any minor inconvenience to go onto MCOL in the hope the dealer wont defend.

25 years of real life experience in motor trade disputes qualifies me, along with a couple of legal bods in the company.

[lookingforajob]

POORCARDEALER said:

In which case you will just advise everyone with any minor inconvenience to go onto MCOL in the hope the dealer wont defend.

25 years of real life experience in motor trade disputes qualifies me, along with a couple of legal bods in the company.

I'm a really passive person. I'd rather get on with people.

However that's not what I said - I was countering your assertion that no claim was possible. I have stated that I don't recommend court action.

A contract was formed. And the contract is being broken by one party. No contract terms were given. A loss has been incurred. The contract implied security. That is my legal argument.

Admittedly I dropped out of my Law Degree after one year. And I scraped a 2.2 in that year. So I'm not exactly a leading expert on the matter. My only experience is in making several successful court claims against companies and individuals, and also defending two when I ran a small company.

However from a purely academic perspective I'd be interest what your defence would be? With a business interest and 25 years experience you must have encountered this.

Just to add - if I come across as confrontational that is not my intention. I am just interested from another view point.

[andymc]

Shaboo said:

Hi all,

Yesterday I agreed to buy a car from a dealership and signed a Non Refundable deposit agreement.

Ive now just received a call with them saying that the car I agreed to buy was taken in part exchange, the previous owner has since had problems with the new car purchased so wants the car I put a deposit down for back from the dealer. Therefor the dealer just wants to cancel our agreement and refund my deposit.

Surely it isn't as simple as that for them? Im just wondering if I should claim some sort of compensation for it? I received no sort of T&C's saying they can cancel the agreement. It took a near 2 hour round trip to deal the time so obviously lost petrol expenses etc.

Any help would be much appreciated!

Thanks

I thought we were a motoring forum, can you not go onto This Money or Mumsnet etc etc and bh, you've joined just to whine about a first world problem

[kazste]

Why shouldn't he expect something? My personal time is quite valuable to me and if I have it wasted by securing a contract with a company which is then broken, there should be some recompense.

[Blib]

andymc said:

I thought we were a motoring forum, can you not go onto This Money or Mumsnet etc etc and bh, you've joined just to whine about a first world problem

This seems to be a motoring related issue to me. After all, there is a motor vehicle involved in the deal.

[lookingforajob]

kazste said:

Why shouldn't he expect something? My personal time is quite valuable to me and if I have it wasted by securing a contract with a company which is then broken, there should be some recompense.

Time is generally a bit tricky to claim for. Direct costs such as fuel are not. I am not suggesting that the OP should claim through the county court - but the idea they cannot is what allows this terrible service to continue. I can see no defence if the OP were to do so. Even with contract terms, an invoice with "none refundable" would veto allowing them to drop out of the contract.

Not everyone is wealthy, and can afford to lose money like this. To me in my current position losing circa £100 in fuel and other costs would be awful for me. I wouldn't be buying a new car but that is besides the point.

[TVR1]

lookingforajob said:

I'm a really passive person. I'd rather get on with people.

However that's not what I said - I was countering your assertion that no claim was possible. I have stated that I don't recommend court action.

A contract was formed. And the contract is being broken by one party. No contract terms were given. A loss has been incurred. The contract implied security. That is my legal argument.

Admittedly I dropped out of my Law Degree after one year. And I scraped a 2.2 in that year. So I'm not exactly a leading expert on the matter. My only experience is in making several successful court claims against companies and individuals, and also defending two when I ran a small company.

However from a purely academic perspective I'd be interest what your defence would be? With a business interest and 25 years experience you must have encountered this.

Yes, all the time. You have absolutely fewer legs to stand on than Drunky McLegless at a double amputees prosthetics conference .

When you where taking your 'law degree' where you such a drug induced and alchohol addled student that you missed the lectures on contract law? You know, the bit that tells you what makes a contract etc etc?

Besides, INMHO it sounds as if the dealer in question has had a lucky escape. You want compensashun for not being able to complete the purchase (through no fault of yours or the dealers). Just imagine what youd be like if you actually took delivery?

I'll give you a clue, to help you with your academic research on this matter, and it's 1 word. The same word that describes how I feel when I constantly read these sorts of posts.....


FRUSTRATION.

Edited by TVR1 on Friday 27th June 18:16

[Bonefish Blues]

Ponders whether the garage would have refunded ops deposit had he decided not to go through with the purchase...