Car Purchase

jacton

I have paid a holding deposit of £250 for a car and I am due to pay the balance and collect the car on 3 July 2010. This is a cash deal and I am going to use a bankers draft to make the payment, but What happens if I change my mind and do not want to go ahead with the purchase?

jimboban

It all rather depends on the terms of the agreement you've signed.

Best case, you'll lose the deposit and walk away.

Worst case, (depending on what you've signed) they come after you for the balance - or potentially hold you liable for any consequential losses they might incur due to you.

I suppose there is a 3rd (unlikely!) option in that you may have a particularly nice and generous dealer who is happy for you to walk away and have your deposit refunded!

JB

jacton

Thanks for the prompt reply

I thought there was a seven day cooling off period for all purchases whether cash or hire purchase, is this not the case in buying a car?

maninthestreet

jacton wrote: »

Thanks for the prompt reply

I thought there was a seven day cooling off period for all purchases whether cash or hire purchase, is this not the case in buying a car?

Where did you sign the agreeement? On the premises if the car dealer?

jacton

I have signed a New and Used Vehicle order form. on this forms it states:-
'I certify that I am over 18 years of age. I/we agree to deposit the sum of £250 immediately and to pay the balance with 7 days. Failure to take the vehicle and pay the aforementioned balance within the agreed time will allow the seller to consider the contract repudiated and where the sale is not the subject of a prospective regulated agreement under the Consumer Act 1974 the sum deposited shall be lost. this will not affect the seller's right to recover damages for loss or expenses arising from the Purchaser's breach. i have read and agreed to the terms and conditions and realise that this document is legal and binding on me'
that is all that is on the order form. I have not signed any other paperwork

I am in all probablility going to complete the purchase but may not be able due to my work schedule complete in the seven days. I can certainly make the payment but may not be able to collect the vehicle in the timescale. this is what my concern really is.

4743hudsonj

so contact them, if you appeal to their better nature they may hold it for you.

jimboban

Agree - any (half decent!) dealer would far rather wait a few more days and do the 'deal' proposed rather than turning nasty and taking the "you've missed the 7 day deadline" approach.

Note - as I hinted earlier, if you pull out of the deal, under the text you've highlighted below, they'd have every right to come after you for damages to cover their losses due to 'your' breach.

JB

woody01

jacton wrote: »

I have paid a holding deposit of £250 for a car and I am due to pay the balance and collect the car on 3 July 2010. This is a cash deal and I am going to use a bankers draft to make the payment, but What happens if I change my mind and do not want to go ahead with the purchase?

You lose £250 (unless the dealer feels asorry for you).
That's exactly the point of a deposit.

jacton wrote: »

Thanks for the prompt reply

I thought there was a seven day cooling off period for all purchases whether cash or hire purchase, is this not the case in buying a car?

You haven't purchased anything yet, so there is nothing to cool off from.

jimboban

woody01 wrote: »

You lose £250 (unless the dealer feels asorry for you).
That's exactly the point of a deposit.


You haven't purchased anything yet, so there is nothing to cool off from.

Plus - as you've signed on trade premises, there would be no 'cooling off' period anyhow...

Be nice to that dealer when you call! ;-)

funkymonkey1

If is is just a case that your work means you can't get there in time but you still want the car, I don't think the garage are going to mind as long as you let them know.

No judge is going to thank them for issuing proceedings for a short delay, especially where you have kept them informed.

squack

sounds like the o.p. has had second thoughts. . which is fair enough on a large purchase . . to the dealership though, his £250 deposit is just the price of dealing with potential time wasters . .