Car Holding Deposit

soziblewuup

Hi,

This is probably a little different to the usual holding deposit question.

If I put down a £400 holding deposit at a dealership and then followed through with my purchase, do I get the £400 back after I have purchased the car? I have checked and the deposit did not go towards my financing, it's sitting there on the balance sheet as a negative. The dealership has tried to avoid me when I've asked for it's return. I just want to check I'm actually entitled to have it returned.

Thanks.

DUTR

???? Usually the deposit figure is reduced from the final balance , eg purchase £4000, less deposit £400, completion balance £3600.

soziblewuup

The deposit I put down for the car, roughly £5000, was deducted from the sale price of the car, but the holding deposit has not been deducted from the sale price and is just outstanding on the balance sheet. It appears to be just sitting there.

DUTR

soziblewuup wrote: »

The deposit I put down for the car, roughly £5000, was deducted from the sale price of the car, but the holding deposit has not been deducted from the sale price and is just outstanding on the balance sheet. It appears to be just sitting there.

Is the finance amount for the whole asking price of the car?

soziblewuup

It's a PCP. The deposit was deducted off the sale price of the car and I have financed the remainder.

The document looks like this.

Vehicle Price Sub-Total: a
Deposit: b
Sub-Total: a-b
Holding Deposit £400

Finance: a-b
Balance: -£400

soziblewuup

It seems as though the £400 has not been deducted from the finance and they haven't refunded it; so, is it not just sitting in the dealerships account, most likely hoping customers forget about it?

Or am I off the mark here.

Foxy-Stoat_3

soziblewuup wrote: »

The deposit I put down for the car, roughly £5000, was deducted from the sale price of the car, but the holding deposit has not been deducted from the sale price and is just outstanding on the balance sheet. It appears to be just sitting there.

Ask for it back before you sign the finance agreement

soziblewuup

I have already signed the agreement. It was made out as if the £400 was being put towards the finance when he orally went through the finance documentation. Being a naive 20 year old I took his word for it. The holding deposit is not mentioned anywhere in the finance agreement as well, apart from on the balance sheet.
I really just need to know if I'm entitled to have that holding deposit returned. If so, I will make sure I have it returned.

Foxy-Stoat_3

Speak to them about it, you will have the receipt for the £400.

soziblewuup

Eventually got through. Apparently it was a mistake there end, and they have refunded me the full amount.

Still dubious. I wonder how many of these 'mistakes' they make a month.

Foxy-Stoat_3

soziblewuup wrote: »

Eventually got through. Apparently it was a mistake there end, and they have refunded me the full amount.

Still dubious. I wonder how many of these 'mistakes' they make a month.

As long as there are eagle-eye'd customers like you they will not profit from their mistakes.