Car Dealer - ? Breach Of Contract

ChopperST

Hi All,

Wondering if anyone can help me? I purchased a used car from a car dealership last Friday by paying a deposit of £1000 on a vehicle costing £35000. We were meant to pick the car up today.

However, the dealer has rung in a panic to say the car is no longer avaliable and they can't source a replacement vehicle of a similar spec etc. and will be refunding my deposit and its hard cheese basically. We have sold our car so now have no means of transport.

Where do we stand with respect to contract law / consumer rights. Does the deposit constitute a contract between us and the dealer and do we have a case for breach of contract?

Many Thanks.

Flyboy152

ChopperST wrote: »

Hi All,

Wondering if anyone can help me? I purchased a used car from a car dealership last Friday by paying a deposit of £1000 on a vehicle costing £35000. We were meant to pick the car up today.

However, the dealer has rung in a panic to say the car is no longer avaliable and they can't source a replacement vehicle of a similar spec etc. and will be refunding my deposit and its hard cheese basically. We have sold our car so now have no means of transport.

Where do we stand with respect to contract law / consumer rights. Does the deposit constitute a contract between us and the dealer and do we have a case for breach of contract?

Many Thanks.

It would very much depend on what the terms are in the contract you had with the dealer. Typically this will set out the limits of their liability.

How did it come to be no longer available? Could it have been a part exchange they were expecting, or a purchase they were hoping to make on your behalf?

ChopperST

Flyboy152 wrote: »

It would very much depend on what the terms are in the contract you had with the dealer. Typically this will set out the limits of their liability.

How did it come to be no longer available? Could it have been a part exchange they were expecting, or a purchase they were hoping to make on your behalf?

Thanks for taking the time to reply. The car was another customer who asked them to buy it back from him, the dealer basically brokered the deal and the guy they were buying off sold it privately from under them and me.

Flyboy152

So not really the direct fault of the dealer. It is unfortunate and hugely annoying, but the dealer can't be held liable for your decision to sell your car before you took delivery of your new one. What does it say about cancellations in the sales order?

ChopperST

Flyboy152 wrote: »

So not really the direct fault of the dealer. It is unfortunate and hugely annoying, but the dealer can't be held liable for your decision to sell your car before you took delivery of your new one. What does it say about cancellations in the sales order?

We were going in to sign the paperwork yesterday. I was led to believe the dealer already had this car. Why take a deposit on goods you dont have?

arcon5

Flyboy152 wrote: »

So not really the direct fault of the dealer. It is unfortunate and hugely annoying, but the dealer can't be held liable for your decision to sell your car before you took delivery of your new one. What does it say about cancellations in the sales order?

No it's not their fault, but the fact the dealer was let down is not ops problem. Unless the terms have a clause to protect themself from situations beyond their control it could still be deemed to be breach of contract.

Although they probaby do have something somewhere.

ChopperST wrote: »

We were going in to sign the paperwork yesterday. I was led to believe the dealer already had this car. Why take a deposit on goods you dont have?

Despite the fact you haven't signed anything, your deposit would probably be sufficient to prove a contract has been formed.


What does it say in the contract about them cancelling the contract or anything beyond their control?

Flyboy152

arcon5 wrote: »

No it's not their fault, but the fact the dealer was let down is not ops problem. Unless the terms have a clause to protect themself from situations beyond their control it could still be deemed to be breach of contract.

Although they probaby do have something somewhere.



Despite the fact you haven't signed anything, your deposit would probably be sufficient to prove a contract has been formed.


What does it say in the contract about them cancelling the contract or anything beyond their control?

Oh, I agree, but it depends on what terms are in the contract and what the dealer has stated as their limits of liability. My suspicion is that they are only liable for the return of the deposit.

Flyboy152

ChopperST wrote: »

We were going in to sign the paperwork yesterday. I was led to believe the dealer already had this car. Why take a deposit on goods you dont have?

This happens in all forms of commerce and is not restricted to the motor trade. In fact, there is a whole strata of financial products especially of this; it is called the futures market and hedge funding. That aside though, it is pretty poor form of the dealer to give misleading information regarding the availability of the goods, but I don't think there will be much you can do.

InsideInsurance

"Fault" has nothing to do with contract law.

You need to read the contract to find out what limitations, if any, were placed on the deal. If there are not any limitations then they have breached the contract and could be held liable for the cost of the direct consequences.

I'd speak to the dealer and obviously advise that their failings have now left you without transport. Hopefully they will be reasonable and give you a loan car in the meantime.

Flyboy152

InsideInsurance wrote: »

"Fault" has nothing to do with contract law.

You need to read the contract to find out what limitations, if any, were placed on the deal. If there are not any limitations then they have breached the contract and could be held liable for the cost of the direct consequences.

I'd speak to the dealer and obviously advise that their failings have now left you without transport. Hopefully they will be reasonable and give you a loan car in the meantime.

Fault has everything to do with contract law. :huh:

arcon5

InsideInsurance wrote: »

"Fault" has nothing to do with contract law.

You need to read the contract to find out what limitations, if any, were placed on the deal. If there are not any limitations then they have breached the contract and could be held liable for the cost of the direct consequences.

I'd speak to the dealer and obviously advise that their failings have now left you without transport. Hopefully they will be reasonable and give you a loan car in the meantime.

:eek:



.