Deposit on car purchase

Tuscan

Hi all

i put a small deposit down £300 on a used car from a dealers that is £7000 and paid by debit card over the phone, no written contract etc.

Car has been taken off the market but we are now having second thoughts.

Totall agree its out fault and not the dealers and can understand that loosing our deposit is likely but can anything else be done to us if we pull out of the purchase.

I have viewed the car then went away then called and paid the deposit by card over the phone but no mention of a contract or paperwork, car needs a service and MOT which the dealer was going to do this coming week when his Technician returns from holiday.

If we pull out would it just be a case of loosing the deposit seeing as we havent signed anything ?

unholyangel

https://forums.moneysavingexpert.com/discussion/comment/42873192#Comment_42873192

the above post may provide useful to you.

Marktheshark

Deposits on used cars are totally at odds with any form if money saving.
You have legal remedies to get a deposit back but enforcing them is near on impossible.

Tuscan

thanks, not too fussed about the deposit as we are the ones backing out simply due to a change of hart, just didnt no if the used car dealer could pursue us for more money if theres no contract other than a phone call

TonyMMM

Don't get too focussed on there being no contract - contracts can be formed in many ways, and verbal is one of them.

Tuscan

sorted it today, no deposit coming back and to be honest im not fighting it as was totally down to us. dealer was ok about cancelling and said if we come back in the future he will knock the £300 of the price...

Marktheshark

Bet he is , he just pocketed £300 he was not legally allowed to do for nothing.

macman

The OP has broken a binding contract to buy a car for £7K, the dealer is entitled to compensation and £300 is cheap-his profit on the sale would presumably be more than £300.
Payment of a deposit clearly confirms the existence of a contract. A deposit is not an 'option to purchase'.

Marktheshark

Not true , the dealer can argue for a provable loss.
The dealer has no right to any compensation only a loss and a court would expect some very water tight receipts to prove that loss and then what percentage counts as a betterment to help the next sale.

If it is within 14 days, if the deposit was paid by phone it is a distance selling issue under the CCR and he can cancel the contract and the dealer can only claim for what has actually been spent.
Which is likely to be nothing.

arcon5

macman wrote: »

The OP has broken a binding contract to buy a car for £7K, the dealer is entitled to compensation and £300 is cheap-his profit on the sale would presumably be more than £300.
Payment of a deposit clearly confirms the existence of a contract. A deposit is not an 'option to purchase'.

Loss of profit isn't a "loss".

Especially when he can still sell the car and make that profit !!!

£300 sounds like a prepayment, not a deposit.

ns_89

I once paid £500 deposit for a Smart Car on finance. It was to secure the order, and a contract was signed.

The salesman delayed the sales process because his wife was in hospital. One evening I called his mobile and demanded a refund because of his delays, it just really put me off. At first, he didn't budge and kept making excuses about his wife and him being busy at hospital everyday.

It was within my right to get a full refund and a few days later he did so.