Used Car Sale - Terms & Conditions

Flyboy152

Just to clear up any confusion:

Can I get a deposit back if I decide to cancel the service/goods I ordered?

This information applies to England, Wales, Scotland and Northern Ireland
You may be able to get your deposit back if it was put down as part-payment. You should remember that the trader is entitled to compensation because you have broken the agreement for goods or carrying out a service so keeping part or all of the deposit might be reasonable if the trader has spent money based on your order.
If you change your mind and it seems reasonable for the trader to keep the deposit because they have already spent money based on your order then you do not have to pay any more than the amount of the deposit.
Deposits can be refunded if the trader has not kept their side of the agreement or if you and the trader agree beforehand that the deposit would be returned in particular circumstances.

Hintza

Flyboy152 wrote: »

Just to clear up any confusion:

Don't leave a deposit unless you are willing to deal. If you are not sure then don't do it.

Once you leave a deposit you should be bound by your word and not need any weasly ways out. I just don't understand why people don't get this.

shaun_from_Africa

Just to clear up any confusion:

It doesn't clear it up in the least.
There are plenty of official websites that state the opposite.

Deposits

Q. I agreed to buy a car from a local dealer last week and put down a deposit of £100. I have now decided to buy a different car from another dealer so can I have my deposit back?
A. When you agreed to buy the car you entered a legally binding contract and you will be in breach of this contract if you decide not to go ahead with the purchase. The courts would probably allow the dealer to keep the deposit for holding the car for you and not selling it to anyone else. The dealer could also claim compensation from you if he has incurred any reasonable losses above the amount you left as a deposit.

http://www.aberdeenshire.gov.uk/tradingstandards/consumers/questions.asp

GemBee_2

I get what you are all saying. My point in now they are backing out, they never stated there wouldn't refund a deposit. We didn't sign an agreement and they still haven't taken the car off the forecourt. It is on there website and on the forecourt still for sale! Therefore they haven't suffered any losses.

wealdroam

GemBee wrote: »

I get what you are all saying. My point in now they are backing out, they never stated there wouldn't refund a deposit. We didn't sign an agreement and they still haven't taken the car off the forecourt. It is on there website and on the forecourt still for sale! Therefore they haven't suffered any losses.

So have they now given you your deposit back or not?

GemBee_2

Nope, they are still refusing
I just don't understand how they can refuse the deposit. I now we gave it to them with the intention of buying the car. But things beyong our control changed, they backtracked and we are now left £500 out of pocket.
Surely there is something to say that they cannot keep hold of the deposit. We paid by credit card so we are hoping to have some joy that way but it is the principle now.

bingo_bango

I see a bit of a difference in OP asking to cancel because the PX car is kaput, and the actual legalities of what has happened.

OP agrees to enter a contract for the purchse of a car. The agreement is that they are to provide their old vehicle in part exchange and pay a particular price for the new car.

OP subsequently calls dealer and states that the PX car is not in the condition he thought it was. They subsequently attempt to change the terms of the contract (that they have already entered into by accepting the £500).

I would argue either one of two things here.

a) OP has a contract, and the trader now wants to amend the terms of that contract (understandably, but perhaps not reasonably). OP is not bound to any contract other than that agreed. If the trader will not now continue with the contract, then OP has the right to consider it voidable which would entail a full refund. There are no costs here other than an hour of the salesmans time. However, as the trader is the one in breach of the original terms which they will not honour, they wouldn't be entitled to claim any 'reasonable losses'.

b) The contract has been frustrated. As the OPs car is now inoperable, it has become impossible for the contract to continue as it was intended. This has the effect in law of automatically ending the contract. In such a case, OP is entitled to claim all monies paid so far back.

shaun_from_Africa

it has become impossible for the contract to continue as it was intended

The garage could possibly argue that concluding the contract isn't impossible, but certainly more expensive or difficult.
The OP's car could still be repaired and then traded in as promised.

There are no costs here other than an hour of the salesmans time

It's possible (unlikely, but possible) that the garage have already promised the OPs car to another buyer or dealer, and there might ba a loss involved in cancelling this deal.

GemBee_2

bingo_bango wrote: »

I see a bit of a difference in OP asking to cancel because the PX car is kaput, and the actual legalities of what has happened.

OP agrees to enter a contract for the purchse of a car. The agreement is that they are to provide their old vehicle in part exchange and pay a particular price for the new car.

OP subsequently calls dealer and states that the PX car is not in the condition he thought it was. They subsequently attempt to change the terms of the contract (that they have already entered into by accepting the £500).

I would argue either one of two things here.

a) OP has a contract, and the trader now wants to amend the terms of that contract (understandably, but perhaps not reasonably). OP is not bound to any contract other than that agreed. If the trader will not now continue with the contract, then OP has the right to consider it voidable which would entail a full refund. There are no costs here other than an hour of the salesmans time. However, as the trader is the one in breach of the original terms which they will not honour, they wouldn't be entitled to claim any 'reasonable losses'.

b) The contract has been frustrated. As the OPs car is now inoperable, it has become impossible for the contract to continue as it was intended. This has the effect in law of automatically ending the contract. In such a case, OP is entitled to claim all monies paid so far back.

How do I best put this to the garage? They are impossible to talk to. They just shout and be little me and tell me I haven't got a clue what I am talking about and I am trying to sound cleverer than I am! They told me to call a solicitor.

bingo_bango

shaun_from_Africa wrote: »

The garage could possibly argue that concluding the contract isn't impossible, but certainly more expensive or difficult.
The OP's car could still be repaired and then traded in as promised.

I agree with the logic Shaun, but the point is that this contract cannot continue in its current form. If OP does not want to amend the terms (which look as if they are going to be financially less favourable to him) then he does not have to. If the trader is not going to continue with the contract they agreed (for whatever reason) then OP has the right to walk away with no penalty.

shaun_from_Africa wrote:

It's possible (unlikely, but possible) that the garage have already promised the OPs car to another buyer or dealer, and there might ba a loss involved in cancelling this deal.

So they have effectively tried to sell goods to which they have no title. That would look good in front of the magistrate at small claims.

It's immaterial. Frustration has the effect that all monies paid in advance of conclusion of the contract are recoverable. S.1(2) of the Law Reform (Frustrated Contracts) Act 1943.