Deposit for Car Refundable

Snich76

I recently found a second hand car I liked at a main dealer through their website. It was also on Autotrader and both did not have a picture but it was the exact spec I wanted so I called them and they said it hadn't arrived in their showroom yet (hence no picture) but would be happy to take a deposit of £500 to reserve until I could get there to look at it next week. He said it was refundable and do I want to talk to him about a part exchange figure for my car, which I did and we agreed a p/x price.

I double checked at the end of the conversation that if we changed our mind the deposit was refunable but all he would commit to was "yes, if the car being bought was not as advertised/specified".

I am assuming if I change my mind I am entitled to my deposit back for any reason, is that correct? I haven't signed anything and any agreed figures are only in principal but if we change our mind between now and seeing it, I would think nothing is binding but the wording used by the saleperson is worrying me as I dont want them to turn around and say they are keeping the despoit because a sale had been agreed?

Hammyman

Ah. The caveat is "if the car being bought was not as advertised/specified". If it is as advertised, you can't get a refund. I wouldn't leave a deposit. I doubt the car will be sold in the next week.

victor2

Don't you have anything in writing for the deposit? If it's only a receipt with no supporting documentation then all you have is the verbal agreement, which is unfortunately not going to be much use if you don't have an independent witness.
It also depends on why you change your mind (assuming you do). The salesman said yes, if the car being bought was not as advertised/specified, so if it falls short in that respect, such as the mileage being vastly different, then you should be OK. However, if you just don't like it when you see it or drive it, then it might be more difficult or impossible to get your money back.

Edit:
Assuming you haven't already paid the deposit, don't unless the salesman agrees it is refundable if you change your mind within a set period of time.

Snich76

If it was some back-street garage, I would certainly get everything in writing and probably wouldnt even pay a deposit. But as the car hasnt even been seen by me so the payment was just to ensure it wasnt sold before we got there, and it is from an approved dealership, plus he said at the start that it was a refundable deposit, I didnt think it would be a problem.

victor2

If it is an approved dealership then they should have a standard written document to go with the receipt for a deposit. Read it carefully and see if it meets your needs. What would put you off the car? Cigarette burns in the upholstery? Does the advert say the upholstery is "as new"?

The only time I have asked for, and got, a deposit on a car back was when I first looked at it, it had a very heavy clutch and the dealer said they'd sort it. They couldn't improve it, so I got my money back. That was an approved dealer and I can't remember what the paperwork said as there was no problem getting my deposit back.

MX5huggy

Don't pay a deposit, simple.

If it's refundable, what is the point of him taking it. The dealer will have no qualms about selling the car to someone else, if the price is better than you are paying or if a friend of the dealer wants it for example even if you have paid a deposit (will pay you back, but will say the car was crashed on the way to being delivered or some such).

Flyboy152

Snich76 wrote: »

I recently found a second hand car I liked at a main dealer through their website. It was also on Autotrader and both did not have a picture but it was the exact spec I wanted so I called them and they said it hadn't arrived in their showroom yet (hence no picture) but would be happy to take a deposit of £500 to reserve until I could get there to look at it next week. He said it was refundable and do I want to talk to him about a part exchange figure for my car, which I did and we agreed a p/x price.

I double checked at the end of the conversation that if we changed our mind the deposit was refunable but all he would commit to was "yes, if the car being bought was not as advertised/specified".

I am assuming if I change my mind I am entitled to my deposit back for any reason, is that correct? I haven't signed anything and any agreed figures are only in principal but if we change our mind between now and seeing it, I would think nothing is binding but the wording used by the saleperson is worrying me as I dont want them to turn around and say they are keeping the despoit because a sale had been agreed?

You are entitled to a return of your deposit, less any provable expenses incurred by the dealer, directly involved in the transaction with you.

vaio

spot on, it's breach of contract.

In theory if the punter breaches then he's responsible for all losses incurred by the garage (which might be more than the deposit) and if the garage breaches then they are responsible for any additional costs the punter incurs.

I suppose an alternative view is that the deposit is pre-agreed value on the costs the dealer will incur if the punter doesn't complete so no need to prove anything and no refund