Are deposits returnable?

[jasonwdh]

Afternoon, have put a £1,000 deposit on a car which now, due to circumstances changing, I need back as I can't buy the car any longer. Most of the forums I've read through on the subject seem to suggest that I have no recourse even though it was agreed (verbally) the deposit was refundable.

Have I lost the money?

Thanks for any suggestions.

[Starfighter]

The seller, presumably a dealer, is entitled to keep the deposit to cover reasonable costs for you not completing the contract. What is reasonable depends on the circumstances.

What did the seller say when you contacted them?

[jasonwdh]

Hello starfighter and thanks for the reply, they don't reply to me and seem to be screening their calls for me! I've called and texted/emailed them but had nothing back.

[jasonwdh]

by the way the deposit is being held by the dealer but it's against a private car of the person who owns the dealership - not sure if that makes any difference?

[Sheepshanks]

If it was agreed that it was refundable then what's the issue?

Should be refundable anyway - dealers seem to be able to cancel deals when it suits them.

[jasonwdh]

it was agreed verbally, my fault completely

[Starfighter]

A dealer trying the private sale trick is generally treated as a dealer.

[jasonwdh]

so does that mean they should be returning my deposit? Sorry, I'm just really confused as to where I stand on this matter! Is their lack of contact an admission that it should be returned and they're just digging in or just one of "we don't have to return it, tough"?

[Trevor555]

Have you visited the dealer, and viewed the car?

Or just agreed all over the phone?

And as already said, be very wary of a dealer selling a car and telling you it's a privately owned car. Are they saying it'll be a private sale?

[lost in espace]

If it was a dealer you must have some kind of paperwork. Ring your bank and try a chargeback.

[jasonwdh]

Hello Trevor - it was all agreed over the phone, haven't seen the car. Was going to arrange an inspection before buying but had to pull out before that was arranged.

[Trevor555]

jasonwdh said:

Hello Trevor - it was all agreed over the phone, haven't seen the car. Was going to arrange an inspection before buying but had to pull out before that was arranged.

Legal bods will be along soon hopefully to concur, or tell me I'm full of it, but it's a distance sale as you haven't seen the car, and not visited the dealer.

Go along to complete the sale, view the car and say no thanks, it's not what I expected.

Then contact citizens advice if they won't return your deposit, or as above, do a chargeback if you paid by credit card.

Print the advert off for the car, you might need it for the credit card co.

[jasonwdh]

also should say that I agreed this over a month ago (some of which I was stuck abroad).
I've also messaged them to say that I want to pull out of the sale so not sure I can still go in and say it's not what I expected?

Sorry about this, I'm not generally this flakey!

[jasonwdh]

lost in espace said:

If it was a dealer you must have some kind of paperwork. Ring your bank and try a chargeback.

I have WhatsApp messages to say they have the deposit etc but never had any paperwork as they did state it was a private sale handled through the dealer. As I said somewhere above it's a car from the (dealer) director's private collection - it is advertised on the company website though...

[Dave.]

Over a month ago? Chances are they've already sold that car to someone else.

Is there an advert for it anywhere still?

[Trevor555]

jasonwdh said:

also should say that I agreed this over a month ago (some of which I was stuck abroad).
I've also messaged them to say that I want to pull out of the sale so not sure I can still go in and say it's not what I expected?

Sorry about this, I'm not generally this flakey!

They might have since sold it I guess having received your message to cancel.

From the dealers point of view they'll be a bit pee'd off having had it off sale for a month for someone to change their mind without viewing the car.

Maybe write them a friendly letter to ask for some of your deposit back?

[jasonwdh]

Dave. said:

Over a month ago? Chances are they've already sold that car to someone else.

Is there an advert for it anywhere still?

It's still for sale on their own website and here on Pistonheads, don't think the advert has ever been removed or had a "Sold" marker put on it.

[The Cardinal]

If you have paid by phone via the dealer, then distance selling regulations should apply.

Assuming that you can demonstrate this could not reasonably be seen as a private sale, then this is good news as it means you can get your deposit back if you paid in this way.

Indeed, if you paid fully for the car in this way - without prior inspection - then you'd be able to get all your money back at any time up to 14 days after receiving the goods.

I suggest you politely inform them in writing (perhaps after a phone call) that you cannot proceed with the sale. You could say something like "as this was a distance sale, I am asking for my deposit to be refunded in full". A reasonable and experienced dealer will recognise that they must refund you and will likely have dealt with this before.

If this does not happen, then you have several other options. For example, paying by debit or credit card means you could ask the card issuer to do a "charge back". Many people have had success with this method for other consumer issues, including monies paid for travel pre-pandemic. With a credit card, you could also go a further step with a Section 75 request.

N.B. this is my recollection, so please check for yourself.

[grudas]

have you asked for it back and they said no or have you not asked yet?

ask and if they refuse to refund after agreeing verbally then you have a different issue.

the whole point of a deposit really is to:

take the car out of sale for x amount of days
pay to "keep the car for you"

etc

if I was selling a car privately and someone asked me to hold it with a deposit I would not be refunding it.

waste my time and waste your money.