Lost Deposit on Car

clarebear

Not sure if there is anything we can do about this, but just wondered if anyone had any insight - we put a deposit on a car we planned to buy from a dealer - £300. The following day, I had an accident, which means that we need to keep the current car (which is automatic when the new one isn't). We rang and advised the garage who told us it was tough - no deposit back. We hadn't signed any paperwork, nor had they advised us at the time we made the payment that it was non-refundable. I know it's a long shot, but do we have any come back? It's just so infuriating to lose £300 for nothing.

fishingdobbie

If I were you I would contact my local trading standards office,also look on their website, there is all sorts of info concerning cars,also your local CAB.

Pssst

He must have given you some kind of receipt for your 300 notes? what does it say on there? Verbal agreements are sketchy,best to have it written.

hewhoisnotintheknow

i kind kind of see both sides of the story here

He doesnt care why you can go ahead

You cant go ahead - you had not planned

Without paper work its going to be hard to proove - and at the end of the day you should of insisted on it

Hintza

A deposit is an option to buy. The seller then withdraws the car from sale. If you do not buy the car the option lapses. You shouldn't get the deposit back take it on the chin and dson't put a deposit down the next time.

marlot

Hintza wrote: »

A deposit is an option to buy. The seller then withdraws the car from sale. If you do not buy the car the option lapses. You shouldn't get the deposit back take it on the chin and dson't put a deposit down the next time.

I would agree if it was as binding on the dealer as on the punter.

If the dealer sells the car to someone else, all you'll get is "Sorry Mate, I'll refund your deposit"

in51der

clarebear wrote: »

Not sure if there is anything we can do about this, but just wondered if anyone had any insight - we put a deposit on a car we planned to buy from a dealer - £300. The following day, I had an accident, which means that we need to keep the current car (which is automatic when the new one isn't). We rang and advised the garage who told us it was tough - no deposit back. We hadn't signed any paperwork, nor had they advised us at the time we made the payment that it was non-refundable. I know it's a long shot, but do we have any come back? It's just so infuriating to lose £300 for nothing.

No way they can keep that deposit if you have not signed paperwork, if they are a franchised dealer go right to the top and don’t take no for an answer if not threaten with a solicitors letter that usually does the trick. they are relying on you going away once they have said no, but persevere and you will get your deposit back they have no legal right to retain it.

sheslookinhot

Can you not buy an auto from him ?

photome

in51der wrote: »

No way they can keep that deposit if you have not signed paperwork, if they are a franchised dealer go right to the top and don’t take no for an answer if not threaten with a solicitors letter that usually does the trick. they are relying on you going away once they have said no, but persevere and you will get your deposit back they have no legal right to retain it.

that might work if the dealer doesnt say "what deposit", with no paperwork there is no proof

Altarf

By you deciding to not buy the car you have breached the contract. The dealer is entitled to damages for your breach. The damages are not automatically what you have paid as a deposit, but what the dealer has lost due to your breach.

For example this may be additional advertising costs, interest, depreciation, etc until he sells the car. However the dealer has a duty to mitigate his loss, so he cannot sell the car for 10p and claim the difference as a loss. Nor can they stick the car at the back of the lot and forget about it. If challenged in court, he would have to prove his loss.

So at this moment in time the dealer cannot quantify the loss and therefore cannot say for certainty that £300 is the loss and that they can retain the deposit.

In better times when cars were selling quickly, it would have been worth challenging the dealer to prove that the loss was £300, with a threat of court action if necessary.

In these more uncertain times when cars are not selling as quickly, you will need to consider if the dealer's loss is likely to exceed £300 and if you believe it is, then you might want to walk away.

in51der

Altarf wrote: »

By you deciding to not buy the car you have breached the contract. The dealer is entitled to damages for your breach. The damages are not automatically what you have paid as a deposit, but what the dealer has lost due to your breach.

For example this may be additional advertising costs, interest, depreciation, etc until he sells the car. However the dealer has a duty to mitigate his loss, so he cannot sell the car for 10p and claim the difference as a loss. Nor can they stick the car at the back of the lot and forget about it. If challenged in court, he would have to prove his loss.

So at this moment in time the dealer cannot quantify the loss and therefore cannot say for certainty that £300 is the loss and that they can retain the deposit.

In better times when cars were selling quickly, it would have been worth challenging the dealer to prove that the loss was £300, with a threat of court action if necessary.

In these more uncertain times when cars are not selling as quickly, you will need to consider if the dealer's loss is likely to exceed £300 and if you believe it is, then you might want to walk away.

A contract is formed and a deposit retained on the signing of an order in this case this has not happened so you are entitled to your money back or what is the point of having paperwork which protects both parties? If you went to a solicitor he would get your money back with one letter unless the seller is a one man band operation in which case he may hold out a bit longer, but I would certainly contact trading standards as you have a legitimate reason for cancelling and have not signed any paperwork!