Dealership refusing to refund deposit

WestonDave

Tozer wrote: »

I think the general consensus seems to be that you have yourself to blame for the predicament you are in.....

However....

The legal view is that you are entitled to the money back unless it is a genuine pre-estimate of the loss likely to be suffered by the dealer in you not proceeding.

I've set out the understanding of contact law above - could you provide legal backing to the second statement since you seem to be suggesting there is an override to contact law, which also contradicts the advice given by Kent Trading Standards.

Hintza

e_boz wrote: »

So the general consensus is that I am not entitled to my deposit back then???

Exactly, should do all your haggling first.

Tozer

WestonDave wrote: »

I've set out the understanding of contact law above - could you provide legal backing to the second statement since you seem to be suggesting there is an override to contact law, which also contradicts the advice given by Kent Trading Standards.

No, it is a principle of contract law - not an overriding of it. In my view, Kent Trading Standards view is far too simplistic. Not for the first time that Trading Standards give very broad brush advice.

If forfeiture of a deposit is penal in nature, then it is unenforceable as it operates as a liquidated damage for not proceeding with the contract. Whether the OP is entitled to a refund will depend upon the circumstances.

See the commentary in Chitty on Contracts - 29-041 (page 1428) - the leading case is Stockloser -v- Johnson [1954] 1 QB 476. Also supported in Treitel's Contract Law.

Oh, and Workers Trust & Merchant Bank Limited - v- Dojap Investments Ltd [1993] AC 573.

muskoka

Is this a main dealership? If so, speak to the Dealer Principle. He is the guy that RUNS the dealership & he can override any other member of staff's decision, if he wants to. Don't get stroppy with him though - just point out the facts and tell him what you want.

barvid

Don't believe everything a Trading Standards officer tells you about the law. Most of the time they know about as much as some of the folks on this very forum.

e_boz

Well 48hrs later and I have the DP agreeing to refund my full ammount. The umbrella company that owns the dealership are also falling over themselves to appologise .
It takes guts to take on a big company but hooray - there is humanity out there.:T

laburnum5_2

Your problem seems very similar - I made an enquiry about a new car was given a price but garage was waiting to close & I wanted to think about it, The Salesman said the car in the showroom was the only one available & if I left a deposit he would refund it if I didnt want to proceed with the car no order form was signed & £200 paid on cc. On return to Garage a few days later (salesman was off the next day )when I said that I was going to pay the cash he said that the price would be increased if we didnt use their finance company. I wasnt happy & asked for the terms & agreement which he refused 3 times but he suggested that I took their finance & then make 1 pymt then cancel. I said no because costs would be incurred. He then suggested that I signed the finance form then cancel before making pymt I still said no then finally he said he would let me have the car for cash at the same price but sales manager wasnt happy .
He then give me a blank finance form still no terms & agreement & told me to sleep on it & fax it back to him. I decided next day that I didnt want to deal with this garage because of the way that the finance was presented & left messages to request a refund Salesman on a training course. After various messages left& conversations Salesman said the refund was in system. 2 weeks later no refund.!!!
I emailed garage & they are looking into the matter & are unable to deal with it until team manager returns 1st March but they mention cancellation of order & costs incurred on locating the car !! (in the showroom?) The company is part of a National Company & seem to be highly regarded so perhaps I should go straight to the Head office. I have now ordered a different type of a car from a garage who has excellent customer service & will be paying cash & picking up on 1st March but this incident has left a sour taste does anyone think I will get my refund ?
The trading standards/Credit Card say it will be my word against the salesman & even though my partner was there he is not a dependant witness.

property.advert

Quite simply the OP should have worked out whether losing the £500 still made it a better deal to go with the local garage.

Fools rush in springs to mind. Do people actually think that there is only one car out there and they must pay a deposit today, before they check the whole market ? Perhaps, but then they should not complain afterwards for their lack of research or judgement.

I know the OP is miffed about £500 but it is her fault. 100%.

jdturk

property.advert wrote: »

Quite simply the OP should have worked out whether losing the £500 still made it a better deal to go with the local garage.

Fools rush in springs to mind. Do people actually think that there is only one car out there and they must pay a deposit today, before they check the whole market ? Perhaps, but then they should not complain afterwards for their lack of research or judgement.

I know the OP is miffed about £500 but it is her fault. 100%.

Was miffed, they are getting a refund, lucky lucky lucky

Fridge3

WestonDave wrote: »

Therefore on 20th you created a legally binding verbal contract to buy the car. As of that moment you were obligated to hand over the full price of the car and the dealer the car in roadworthy condition. There is no cooling off period as there was with the finance (that is a specific legal measure to do with finance and distance selling).

However its not worth the dealers hassle putting you through the courts to enforce the sale so he's offered you a second contract - the ability to buy your way out of your obligations under the first contract for the consideration of £500. You therefore have a choice - deliver under the first contract or go with the second.

You do not have a right to simply change your mind and walk away - just because M&S allow people to bring things back they don't like doesn't make it law - M&S do it as a marketing gimmick. However it does create a misleading impression as the number of threads on here saying "Retailer X won't give me money back because I've changed my mind" who then get the same disappointing news. You are an adult, you have entered into a contract in law, and you are stuck with it.

I agree with the above. The contract was made when you

e_boz wrote: »

returned to the dealership on 20-2-10 and agreed i wanted to buy the car.