Deposit paid to dealer - but now cannot supply car

tickedon

I've been looking for a good deal on a new or used car (less than 3 years) for the past couple of weeks. On Friday, I found a used Volvo car I liked on autotrader at a main dealer, with the high spec I was after, in a colour and interior options I liked. Over a few phone calls with a salesperson, we had some discussions about either a finance deal through them or a cash price, and then agreed on some extras and a small discount for cash, nothing huge (about 5%) but I was happy with the price and deal. Following that, I arranged finance separately yesterday evening and after that was approved, I phoned back and agreed with a manager that depending on when my finance appeared in the bank, I would either collect over the weekend, or if it only appeared on Monday then I'd collect on Friday. As it was approaching closing time and my salesperson had gone off to collect another car, he said they'd call back tomorrow morning to take my deposit.

My salesperson called this morning and after we clarified a few details, they took my deposit by credit card and we agreed I'd collect on Friday morning and they'd pick me up from the train station. An order form was to follow by email. I then arranged an advanced (non-refundable) train ticket for Friday morning as it was the cheapest option so I could go collect. An hour later, I got a call back saying that the mileage on the advert on autotrader (and also on their own website) was wrong and he'd noticed this when he'd gone to take the advert down - it was listed at 20,000 rather than 51,000 on the actual car. The sales person had previously asked where I'd seen the car, so he knew I had relied on the autotrader information and that this would be a problem! He said they'd arrange a refund and cancel the transaction. I said that wasn't really appropriate given the arrangements made, so we agreed the sales manager would call me back (who is also more senior than the other person I'd spoken to yesterday evening). Based on the prices of other cars I'd seen and had discussions with dealers about, in my opinion the car was priced as if the mileage was 20,000 and not 50,000.

The sales manager offered to refund my deposit and train ticket. But, I have also arranged financing and so will have lots of cash now sitting in my bank account and raised this with him. I believe I have 14 days to cancel the loan without penalty, but I've no idea how that will look on my credit record and if I will then find it more difficult to arrange another loan or dealer finance later? It is a Volvo and there aren't many in the spec I'm looking for around, so I've no idea how long it'll take to find another car or even if they will be able to without it being a newer car (and thus worth/cost more).

Any suggestions on what I should do in this situation? What should the dealer do? I suggested that what I really needed was a car and we had a contract for a car, so as they were a dealer couldn't they source one - he thanked me for that opportunity and hadn't expected that, so we've left it that they are going to look for me and get back to me no later than Monday. But if they can't find something suitable, what then? And what should I do about my financing?

Iceweasel

If this is a truly scare model with the spec you really want - go for it!

Go see the car - if the only negative thing is the mileage, ask for a sizeable discount. 30K miles on a Volvo is not so important as on a small engined hatchback for example.

Quentin

Your credit status won't be adversley affected by this. (They would be in trouble black marking everyone who cancelled during the cooling off period!)

OddballJamie

The dealer is doing the right thing by putting you back in the position you were pre deal. Refund of deposit, imo he's also being generous by refunding your train ticket.

Take the refunds and phone the bank and transfer back the loan or keep it until you find another car.

This time go and view the car before you put a deposit down.

Or negotiate a discount for the excess miles.

tickedon

Quentin wrote: »

Your credit status won't be adversley affected by this. (They would be in trouble black marking everyone who cancelled during the cooling off period!)

I wasn't concerned about a black mark, more that I'll now have something on my credit record showing I'd applied and then very quickly settled. If I then apply again for a similar figure in 2-3 weeks, surely having that on my record is a bad thing (as it'll look like I'm looking for lots of credit in a short period of time, even if it was settled? I'm not sure how banks evaluate that?).

Quentin

No, it won't be an issue (or "bad thing/black mark" etc, however you want to describe it).

But if you are worried, and the money is a loan, not tied to the proposed purchase, why not just keep it for the next 2/3 weeks whilst you make your mind up over what to buy?

[Deleted User]

tickedon wrote: »

I wasn't concerned about a black mark, more that I'll now have something on my credit record showing I'd applied and then very quickly settled.

It's not been settled.

It's been cancelled.

tickedon

Bedsit_Bob wrote: »

It's not been settled.

It's been cancelled.

Is that better or worse?

Quentin

Are you a born worrier?

There is no stigma in cancelling s credit agreement during the cooling off period.

But if you are so worried phone them first and ask!

tickedon

Quentin wrote: »

Are you a born worrier?

There is no stigma in cancelling s credit agreement during the cooling off period.

But if you are so worried phone them first and ask!

Yes! My biggest worry is cancelling and then having to pay a higher APR later due to what is perceived to be a less good credit report and history, due to the extra recent activity.

[Deleted User]

tickedon wrote: »

Yes! My biggest worry is cancelling and then having to pay a higher APR later due to what is perceived to be a less good credit report and history, due to the extra recent activity.

Then keep the loan, and stick it in an Instant Access ISA, until you need it.