Car dealership backs out of deal after I paid deposit

bobbly

Hi,

Just bought a brand new car today... or so I thought!

The dealership has just backed out of the deal and wants to refund the deposit I already paid. But I still want to buy the brand new car at the price we had agreed. What are my rights? Didn't we enter into a contract when I paid the deposit?

Here's what happened:

While the dealership was pricing up the car I was wanting to buy, I was surprised to be told that there was an offer for free metallic paint if I bought the car before the end of January (so basically I had to buy it today).

This offer opened up a few more options to consider, so I said I'd like to go home and double check what my partner thought of the other colours. I was told that I could either pop back in later to pay the deposit and sign the paperwork, or I could pay the deposit over the phone today and sign the paperwork tomorrow.

I said I'd definitely be buying the car anyway, as it was just the colour I hadn't decided on (they would all cost the same, i.e. free), so they did the credit checks while I was still there. They asked whether I was sure about doing that, as it would leave a record on my credit history even if I decided not to buy the car. As I was happy to buy it at the agreed price, I said no problem.

I was told that because of the extras I'd added to the specification (reversing camera, etc.), it could take up to 14 weeks to get the car.

I went home and settled on a colour. I phoned them up, confirmed the colour, specification and total price, and paid the £500 deposit over the phone with my credit card.

A couple of hours later, they phoned me up to explain that they had made a mistake and that the car needs to be registered this month in order to have free metallic paint. They said they can't sell it to me at the agreed price because they would be making a loss.

They offered to refund my deposit, but I said I wasn't happy with the this. We had agreed a price and I had paid a deposit, and if the deal were to be cancelled then I have a needless credit check on my credit history regardless (and I'd have wasted 3 hours of my day!)

If I had changed my mind, they would have kept my deposit. Can they just back out of a deal like this after I've paid the deposit? It's their mistake, not mine.

I have a record of what specification the deposit was laid down for. Are they obliged to sell me the car at the price we agreed earlier today? No paper work has been signed, other than two electronic signatures I provided during the credit application in their showroom today.

I'd be interested to know what my rights are, or what my best options are, because quite frankly I don't want to spend another 700+ just to get the exact same car I'd agreed to buy earlier.

Thanks!

photome

if they refuse to sell it to you, I can't see what option you have other than get the deposit back and start again

AdrianC

Will they split the cost difference on the paint you chose, or can you just change the colour to one of the no-cost options?

JayCartwright

Making a loss if metallic paint costs them £700.

Does anyone really believe that?

Get your deposit back and find another dealer.

motorguy

bobbly wrote: »

They offered to refund my deposit, but I said I wasn't happy with the this.

If I had changed my mind, they would have kept my deposit.

Can they just back out of a deal like this after I've paid the deposit? It's their mistake, not mine.

If it were the other way round, they'd only be able to keep your deposit if they could prove they had unrecoverable costs to the that amount.

I dont think there is much you can do really. You cant "force" them to sell you the car.

bobbly

AdrianC wrote: »

Will they split the cost difference on the paint you chose, or can you just change the colour to one of the no-cost options?

It's available in a non-metallic colour for free anyway. After trying to cancel the deal, they offered to let me have one of the basic metallic colours for about 200 extra, but that still means paying £200 more than I had agreed, for paint that is essentiall worth £250 less than the colour I chose.

Quentin

Move on elsewhere!


There are plenty more deals out there.

AdrianC

bobbly wrote: »

It's available in a non-metallic colour for free anyway. After trying to cancel the deal, they offered to let me have one of the basic metallic colours for about 200 extra, but that still means paying £200 more than I had agreed, for paint that is essentiall worth £250 less than the colour I chose.

It's a colour. No more, no less.

Pick one you like. If it costs you more, then I hope you like it a lot.

motorguy

JayCartwright wrote: »

Making a loss if metallic paint costs them £700.

Does anyone really believe that?

Get your deposit back and find another dealer.

It terms of net profit, quiet probably yes.

Overheads are huge in a car dealership. Depending on the car they could end up with a little as £250-£500 net.

Most dealerships use new cars sales to

• Upsell high profit add ons like tyre insurance, service packs, paint protection, RTI insurance.
• Make money on the finance deal with a kickback from the finance company.
• Generate a healty supply of trade ins that they can resell and make £,£££s on
• Generate future business for the service team, parts team, etc

JayCartwright

motorguy wrote: »

It terms of net profit, quiet probably yes.

Overheads are huge in a car dealership. Depending on the car they could end up with a little as £250-£500 net.

Most dealerships use new cars sales to

• Upsell high profit add ons like tyre insurance, service packs, paint protection, RTI insurance.
• Make money on the finance deal with a kickback from the finance company.
• Generate a healty supply of trade ins that they can resell and make £,£££s on
• Generate future business for the service team, parts team, etc

They have upsold on his car too - optional extras and finance.

motorguy

JayCartwright wrote: »

They have upsold on his car too - optional extras and finance.

It doesnt mean that on paper they're prepared to take a loss on the car itself.