Under-charged for purchase

worthy1

I was recently under-charged a significant amount of money on the purchase of a new car. At the dealership, when coming to pay the final balance, instead of being charged £10,000 the dealer put £1,000 into the hand held credit card machine and then gave it to me to type in my pin number.

I didn't notice, the purchase was completed, I was given a receipt for the full amount & drove the new car home. I only noticed a few days later when I checked my bank statements, and when I checked back to the cc receipt I realised the error.

Morally I know I should contact the dealer and let them know the mistake, but I wondered what my rights are legally. Can they force me to pay the shortfall? Can they charge my debit card for the shortfall without my permission? Could they in any way re-possess the vehicle? If they don't notice, am I obliged to inform them of the error?

Any advice appreciated...

Firefox1975

Hi

You owe them the money.

£9,000.

regardless of what value they took your contract was for £10,000

However, if they do not reconcile correctly it might never come to light. (Don;t know how big the dealership is and how good their finance staff are!) If they contact you they will request immediate settlement, they shouldn;t really just push the payment through in your absence (Although they can and the salesman will probably try to preserve his reputation).

I would think of it as a £9,000 interest free loan. (until the time comes to settle!(possibly indefinately), i would say that after 12 mths if youve heard nothing you are probably in the clear.

But the top and bottom is, you owe them £9,000.if after they have contacted you to settle you decide not to pay then yes, they can and will repossess the car.

Don;t spend the £9,000 for 12 months!

mo786uk

I do not think you are under an obligation to tell you but they will fidn out when they balance the books - prob at the end of the month.

As you agreed a contract for 10,000, you will have to pay that and they can chanse you for it.

They will probably just charge your card for it when they notice - if they cannot do that then they will prob chase you through the courts.

I cannot see any recourse for them to (legally) take the car back. But I am not sure.

mambo69

You owe it so ring them up and let them know, if they had charged you more i am sure you would have been on the phone instantly

Firefox1975

No

you aren't obliged to inform them of the error. It is a moral judgement. Personally I would wait for them to find it. (I don;t think that makes me a bad person so please don't flame me! :-) )

Jakg

I wouldn't tell them BUT I would put the money aside straight away and not spend a penny of it for 6 years (...but of course cream the interest off).

JimmyTheWig

You could look at it as an interest free loan and stick it in a savings account for a while. But then if they try to take the money it might scupper your current account.

So I'd contact them and tell them about the mistake - and ask what percentage they'll waive as a goodwill gesture.

garth549

Crazy not to tell them IMO. If they realise in 5 years time you'll still be liable for the full amount (plus potentially interest at 8% each year for 5 years). You'll have no argument to counter as no judge in the land would believe you didn't notice a £9000 underpayment.

DCFC79

Id tell them asap, if you had your own business OP i bet you would expect customers to be honest if the same happened.

nomnomnom

I would tell them. they will notice and chase you so would you rather have to lie and say you didnt notice or know youve done the right thing and own up?

pinkshoes

As you had an agreement to pay £10k, then have 6 years to chase you for the rest of the money.

Personally, I'd phone them up and point out their mistake.