Help with deposit return for car purchase

Ruthious

Hi, I'm new to the forum and wondered if I can get some help. I had a test drive in a used car and after a long drawn out time with the salesman I told him I had to was in a rush to pick up my child so I ended up handing over £500 to 'secure the car' so I could return the following day to sort everything out. I did sign a form which I stupidly didn't read which said deposit is non refundable, I thought it was a receipt for the money. I went home and after much thought decided against the car so called the car company (Very large dealer - not a small company) within 8 hours of handing over money and they refuse to return it. I spoke to my bank who were very surprised when they saw who I was dealing with that such a renown company wouldn't return the money. They advised me to continue to pursue those higher up in the company to try to settle this. I have tried and as yet not been able to speak to the owner - have just had middlemen palming me off. This has been 4 days now and I wonder if I could have any advice - my next step would be to ask my bank to start a 'dispute proceedings' but they advised this as last resort. Any advice would be appreciated. Thanks

bluphoto

Isn't the whole point of a deposit that it is a commitment to buy a product?

Aylesbury_Duck

Ruthious wrote: »

Hi, I'm new to the forum and wondered if I can get some help. I had a test drive in a used car and after a long drawn out time with the salesman I told him I had to was in a rush to pick up my child so I ended up handing over £500 to 'secure the car' so I could return the following day to sort everything out. I did sign a form which I stupidly didn't read which said deposit is non refundable, I thought it was a receipt for the money. I went home and after much thought decided against the car so called the car company (Very large dealer - not a small company) within 8 hours of handing over money and they refuse to return it. I spoke to my bank who were very surprised when they saw who I was dealing with that such a renown company wouldn't return the money. They advised me to continue to pursue those higher up in the company to try to settle this. I have tried and as yet not been able to speak to the owner - have just had middlemen palming me off. This has been 4 days now and I wonder if I could have any advice - my next step would be to ask my bank to start a 'dispute proceedings' but they advised this as last resort. Any advice would be appreciated. Thanks

What does your copy of the signed agreement say you are committed to?

Your bank are probably telling you what you want to hear rather than giving an informed view. If you committed to buying the car and put down a non-refundable deposit, why should the dealer refund you, even if they are "renowned"? Why can't you proceed and buy the car anyway? Presumably you need a car or was it an impulsive thing to go and spend ages at the dealer?

chili1496

So went to negotiate a car purchase at a time you knew you would be rushed,and to top it all

I did sign a form which I stupidly didn't read which said deposit is non refundable

i think that say's it all, am on the side of the salesman this time

Ruthious

Thanks for points of view. I know it was impulsive and stupid but I put the money down thinking I wanted the car but changed my mind and prefer a car from another dealer. I suppose I feel like it is unfair as I let them know very quickly and am I supposed to just walk away having handed over £500 for nothing. I can't change my impulsive decision but obviously don't want to just walk away putting it down to stupidity...

Aylesbury_Duck

What makes you think the other car is better? Are you sure it is? You may have secured the right car after all, especially now that the other one is effectively £500 more expensive!

There are lots of people on here with good car knowledge (I'm not one of them) so post a few details of the two options side by side, give a summary of what sort of use/mileage you have and perhaps people will give you some views on which is the better fit to your circumstances and which therefore is the better deal.

Ruthious

Thanks, it's hard to put into a quick post all the ins and outs, whys and wherefores. I guess I found out my answer and am devastated to be in this position. I guess I came on here to see if I could find some help but thanks anyway for taking the trouble to reply...

davidmcn

What would the point of the deposit be if it were refundable due to you changing your mind?

Aylesbury_Duck

Ruthious wrote: »

Thanks, it's hard to put into a quick post all the ins and outs, whys and wherefores. I guess I found out my answer and am devastated to be in this position. I guess I came on here to see if I could find some help but thanks anyway for taking the trouble to reply...

What is it about the other car that makes it so much better though? I think you're perhaps unnecessarily devastated and going through with the original purchase might be the right thing to do after all. No one is going to be able to say definitively whether you can get your deposit back without knowing precisely what you signed up to. People might be able to help but you have to give them something more to work with that "I've been daft, how do I get my non-refundable deposit refunded?"

JJ_Egan

Ruthious wrote: »

Thanks, it's hard to put into a quick post all the ins and outs, whys and wherefores. I guess I found out my answer and am devastated to be in this position. I guess I came on here to see if I could find some help but thanks anyway for taking the trouble to reply...

The key is what was the deposit for .
To reserve the car and if they sold it to someone else you would be more than upset.


However rather than ask on a forum i would seek proper legal opinion for any get out .
Salesman can usually transfer deposit to another car they are selling .

unholyangel

bluphoto wrote: »

Isn't the whole point of a deposit that it is a commitment to buy a product?

No, payment isn't a necessary element to a legally binding contract and never has been.

A true deposit is a reservation fee. However we also use it to describe prepayments/advance payments - which cannot be retained unless the "deposit" is an accurate pre-estimate of losses incurred by the breach of contract.

5.13.3 Where customers bring the contract to an end without any justification, and
the trader suffers loss as a result, they cannot expect a full refund of all prepayments. But a term under which they always lose everything they
have paid in advance, regardless of the amount of any costs and losses
caused by the termination, is at risk of being considered an unfair financial
sanction – see paragraph 6 of the Grey List, discussed in paragraphs
5.14.1 of the guidance onwards.

5.13.5 Fairness is more likely to be achieved for such a term by ensuring that it
does not go beyond the ordinary legal position. Generally, where the
contract comes to an end because of the fault of the consumer, the
business is entitled to hold back from any refund of prepayments what is
likely to be reasonably needed to cover either its net costs or the net loss of
profit resulting directly from the default (see paragraph 5.14.3 below on the
need to avoid double counting). There is no entitlement to any sum that
could reasonably be saved by, for example, finding another customer.

5.14.4 Potentially penal terms. A disproportionate financial sanction involving
requirement to pay a fixed or minimum sum, in all circumstances, will be
open to challenge if the sum could be too high in some cases.