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Help paid deposit on car but dont want to proceed
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# 1
pvsol
Old 04-02-2010, 11:40 AM
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Default Help paid deposit on car but dont want to proceed

Hi, went into a local used car dealer at the weekend and saw a car I liked, to be honest they told me that if I didnt leave a deposit then they would sell the car to someone else that they had interested in it and foolishly I fell for it and paid them £1000 by credit card. I didnt sign anything.
I have changed my mind and wondered if I had any rights to the deposit back or have I just lost that??

Many thanks.
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# 2
voiceofreason
Old 04-02-2010, 11:46 AM
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No mate.

I think that's the point of a deposit, you see?

You're well f*cked
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# 3
cyberbob
Old 04-02-2010, 11:47 AM
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If its a non refundable deposit no you don't.
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# 4
Mankysteve
Old 04-02-2010, 12:13 PM
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Why would you leave a deposit without signing anything? And no you don't have a chance.
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# 5
Tozer
Old 04-02-2010, 1:21 PM
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Plenty of cases where holding onto a deposit in situations where it would penalise the buyer is unfair. Can car be readily resold? How much was it for?
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# 6
pinkshoes
Old 04-02-2010, 1:50 PM
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If they didn't get you to sign something (to say that you agree to pay the balance in X days etc...), then you could try and use this to your advantage i.e. if they then go ahead and sell the car to someone else, they have to give you back the £1000.
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# 7
Hintza
Old 04-02-2010, 2:06 PM
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What happened to "My word is my bond"?

Then we wouldn't need deposits. If you have agreed to buy something then you should go back and complete the purchase. If you wern't sure then you should have said I will sleep on it.

But folk want it all ways.

IF YOU ARE NOT SURE THEN DON'T LEAVE A DEPOSIT

(sorry just a rant )
“Every time you come to Russia with a sword, from a sword you will perish.” Aleksandr Zakharchenko August 2014. An apt warning!
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# 8
hartcjhart
Old 04-02-2010, 2:08 PM
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Quote:
Originally Posted by pvsol View Post
Hi, went into a local used car dealer at the weekend and saw a car I liked, to be honest they told me that if I didnt leave a deposit then they would sell the car to someone else that they had interested in it and foolishly I fell for it and paid them £1000 by credit card. I didnt sign anything.
I have changed my mind and wondered if I had any rights to the deposit back or have I just lost that??

Many thanks.

fell for it? for all you know they may have had someone else,apart from that the garage are well within their rights to keep the deposit,wether you signed anything does not matter,
deposits are taken to try to stop people changing their mind
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# 9
bazster
Old 04-02-2010, 2:55 PM
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The only thing you can do is to ask them nicely, but if they say "no" then you either proceed with the purchase (and either use or sell the car) or you kiss goodbye to £1,000.
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# 10
Anihilator
Old 04-02-2010, 3:14 PM
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The law around deposits is that they cannot legally be non refundable.
The garage can withhold it to cover their damages though due to your breach of contract.

In order to do this they would have to quantify their losses.

They have to mitigate their losses however if they can no longer sell the car at the same value they can dock your deposit by this amount along with reasonable admin costs for relisting etc

Morally you took the !!!! and have caused a great deal of hassle and wasted time, resources and potentially lost them sales.
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# 11
bazster
Old 04-02-2010, 3:17 PM
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Once again Anihilator chimes in with the definitive legal position. Thanks!
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# 12
hartcjhart
Old 04-02-2010, 4:39 PM
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firstly have a look at this from trading standards

http://www.tradingstandards.gov.uk/K...%20refunds.pdf



[if they had a buyer lined up, why wasn't it sold, why didn't it have a deposit on it already, why wasn't it a £50 deposit, why was no contract signed? ]

perhaps the other buyer had to sell their car?the OP agreed to pay £1000

No contract needed to be signed at that time,although a receipt should have been issued
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# 13
Equaliser123
Old 04-02-2010, 5:33 PM
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Quote:
Originally Posted by bazster View Post
Once again Anihilator chimes in with the definitive legal position. Thanks!
Not really. It all depends on the circumstances. As others have said, if to retain it would constitute a penalty (i.e. not a genuine pre-estimate of the loss likely to be suffered in the OP not proceeding with the contract) then the deposit can be reclaimed in full.
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# 14
bazster
Old 05-02-2010, 5:46 AM
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Quote:
Originally Posted by Equaliser123 View Post
Not really. It all depends on the circumstances. As others have said, if to retain it would constitute a penalty (i.e. not a genuine pre-estimate of the loss likely to be suffered in the OP not proceeding with the contract) then the deposit can be reclaimed in full.
How is that different to what Anihilator said?
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# 15
Tozer
Old 05-02-2010, 10:09 AM
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Quote:
Originally Posted by bazster View Post
How is that different to what Anihilator said?
Anhilator said: "The law around deposits is that they cannot legally be non refundable."

It isn't that straightforward. Cases go either way depending on whether the retention of the deposit would act as a penalty.
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# 16
Hintza
Old 05-02-2010, 11:04 AM
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You also have to price in risk for unforseen events. Extreme example:-

Take the Toyota recalls these could result in all Toyotas being declared scrap (not likely I know) and thus the value of all other cars would rise say 20%.

If the buyer has left a deposit he obviously buys at the agreed price if the car is not a Toyota.

If the car is a Toyota he then walks away thanking his lucky stars it was only the deposit.

Anyway you get my drift and risk should be priced into any deposit along with interest rates.
“Every time you come to Russia with a sword, from a sword you will perish.” Aleksandr Zakharchenko August 2014. An apt warning!
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# 17
bingo bango
Old 05-02-2010, 11:17 AM
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The civil position has already been touched on here, but there may also be a criminal aspect to this. If so, TS investigating may elicit a refund from the dealer on 'good faith' grounds.

The possible offence is under Reg 12 of The Consumer protection from Unfair Trading Regs 2008. This section specifies that offences are created for banned practices listed in schedule 1, and number 7 in that list is:

7. Falsely stating that a product will only be available for a very limited time, or that it will only be available on particular terms for a very limited time, in order to elicit an immediate decision and deprive consumers of sufficient opportunity or time to make an informed choice.

TS would need to prove that there was no other buyer in order to prosecute, but as a strict liability offence, the trader will have a tough time providing a defence. This part of the legislation is there specifically to stop traders from pressurising a consumer into a sale.

As I have said, this does not mean TS can get you the deposit back. You should still report the matter to them anyway.
I would then hope that the trader sees sense and returns your deposit, or at least the bulk of it. This may hopefully negate the need for a civil action by OP.

Last edited by bingo bango; 05-02-2010 at 11:19 AM.
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