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Car Sales, Deposits and Scrappage Scheme

kirklean
kirklean Posts: 30 Forumite
edited 28 November 2009 at 10:23PM in Motoring
Good Evening,
I was hoping that someone could help me, I am seriously in a bit of a pickle. Here goes ...
Anyway, my old Citroen AX failed it's mot last week and will need around £300 to patch it up. So I thought, I might as well take advantage of the scrappage scheme and get a discount of a new car. Went out to a VW dealership and had a test drive of a VW Golf TSi. Nice car, I really liked it and had a brief chat with thesalesman and he suggested it could be mine for around £250 a month. Great I thought, just around the budget that I had in mind.
I went along this week to the same dealership but different location. They seemed to know all about my enquiry the previous week. They forward me on to the salesman and told me the car has been reduced and took a few basic details. Next he discussed a deposit, I wasn't sure what was going on because I thought the scrappage scheme
amount would have discounted the car the same way as a part ex normally would. Turns out he wanted £500 but had not as yet discussed finance/rates etc. Although uneasy and uncomfortable doing it, I gave him the £500 deposit on a Credit Card. I did ask if this was refundable should there be any issues and he said yes but not under certain circumstances. He then printed out a thing called a 'Vehicle Order Form' and asked me to sign it. Again, as there had been no discussion about finance ect, I didn't really know why I should at this stage be signing.
At this point he disappeared, apparently away to speak to one of his colleagues about finance and come back over and got me to fill in a basic questionaiire to do all the credit checking etc. Nothing has been done or agreed at this stage.
Once I went home, with a copy of the form, I noticed the total cost of the vehicle and worked out roughly the cost of finance of the vehicle and it looks like it is going to be £370 a month which is way out of my budget. I feel such a fool and I caved with the smooth salesman.
Question is, I want to back out the deal because it could ruin me and my wife but additionally, I would like to get as much of my £500 back as possible (minus something for their inconviance and goodwill). There is no point buying the car if it gets repossessed in 6 months time.
I noticed that it does state that the deposit is non refundable on the order form. Can they do that even though all the fine details haven't been discussed and agreed? It also says the car has to be present when completing the order form which it wasn't. Where do I stand legally? Can I walk away and claim back some or all of the deposit money?
Also appears on the order form that they will give me £100 for the Citroen AX, which is obviously not taking advantage of the scrappage scheme.
Please help, I am stressed out with this and feel like such a fool.

James

Comments

  • Can someone help me please? I need help
  • naf123
    naf123 Posts: 1,711 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    i had a terrible time with a deposit once for a car I didn't wanted and after very emotional letter to the head of used car sales at my local branch, I finally got my deposit back.

    The lesson I learnt is...always always always read the small print. These car salespeople are smooth talking, trying to make you sign the dotted line! I once heard from someone that if the order form small print doesn't say that the deposit is "NON -REFUNDABLE", then you can get your money back. Most deposits terms and conditions say "the deposit MAY be kept if order is cancelled. It doesn't mean it WILL be kept.
  • But the idea of a deposit is to take the car off sale and turn away and further interest. We stress to potential customers that deposots are only taken once they are 100% sure they want the car.
  • I think terms needed to be discussed though before an agreeement or a deposit should be taken. They may just as well say the car will be £2 million payable at £40k a month until it's paid after receiving a deposit.
  • bclark
    bclark Posts: 882 Forumite
    kirklean wrote: »
    I think terms needed to be discussed though before an agreeement or a deposit should be taken. They may just as well say the car will be £2 million payable at £40k a month until it's paid after receiving a deposit.

    Unfortunately you really should have made that point before signing the form and paying up. The dealer may have demonstrated less than honest practice but you should have been firm enough to say you wanted to negotiate and agree a price before signing.

    I think all you are left with now is to kick up a fuss and try your best to get your deposit back, but that may not be easy.
  • Did the first quote include the discount you would get for the scrap AX?

    You should contact the dealer and explain if they have not taken that into account. Is the car in stock at the dealership or is it being built to your specification?
  • emmell
    emmell Posts: 1,228 Forumite
    Is the difference in price the fact that they haven't used your AX as scrappage, get back on to them and find out why they haven't worked the figures out using your AX. If it has run out of mot and tax though they can't use it. Why didn't you go back to the original dealer who quoted you?
    ML.
    He who has four and spends five, needs neither purse nor pocket
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