Car dealer: breach of contract

Glenncarter

We collected our brand new BMW on Monday from the dealership in Southampton.

We have taken out a new PCP agreement against the car, which matched an offer advertised on their website. Approximately 2 weeks ago we paid a £1000 holding deposit to keep the car because we were happy with the agreement as the dealer added GAP insurance and paintwork protection into the deal.
We also agreed to trade in our old car and agreed for a cash back value for that car. 2 weeks ago we signed the agreement and the dealer counter signed.

On Monday we collected our new car, signed the contracts and the dealer counter signed. We exchanged V5 on our old car and drove off in our brand new BMW. We were told we would receive our cash back for our car in a couple of days along with the return of our £1k holding deposit. Great.

On Tuesday we get a phone call from the dealer explaining that they made a mistake with the valuation of our old car and now couldn't pay the agreed amount to us. Over the last couple of days we have been bullied by the dealership by basically telling us to accept the new offer (several thousands less) or offering us the chance to cancel the deal.

Basically, we don't want to. We are happy with the signed contract deal and fully expected our cash back. But we don't know where we stand?

Any advice would be greatly received.

m0bov

Write and give them 7 days to pay you the money or you will take them to small claims court. Not uncommon for dealers to try it on.

waamo

Obvious mistakes in an agreements can nullify a contract. There isn't enough information in your post to say if this is applicable in your case. Is the mistake obvious? Did you see the valuation of your old car and walk away laughing?

In saying that you appear to be in a good position as you have the new car that the dealer won't want back with mileage on it.

Say you are minded to cancel the deal and hand back the car with huge mileage on it and see what the dealer says.

mattyprice4004

Can we have the details and valuations?
If they offered you £10k for a 20 year old Micra it’s pretty obvious, but say £13k instead of £10k for a 2013 Phaeton is less obvious

greatcrested

I had a similar experience.

Ordered a new car from dealer with part exchenge (down-grading).

I'd made it clear from the start I did not want to pay anything ie wanted the trade-in value to match/beat the new car price.


Salesman did all his back-of-office calcs, cecking with manager etc and came back with an offer for the trade-in, and an offer for the new car. He wanted an extra £500, which I agreed to pay if he included 2 years servicing, some kind of wheel damage insurance an a couple of other extras..


All agreed and contracts signed. Waited 3 weeks for delivery the got late-night call "Sorry, your new car was damaged in transit, we'll refund your £500." I suggested he source a similar car in-country and/or re-order and I'd wait.


Following night "sorry, no similar cars in country, and lead-time is 4 months. We'll refund your £500."


Contacted his General Manager and turns out car was fine, no damage, but salesman had over-valued the trade-in and was desperate for his bosses not to find out!


Long story short, I picked up the new car and all ended well.


(well, not sure about the salesman........)

marlot

m0bov wrote: »

Write and give them 7 days to pay you the money or you will take them to small claims court. Not uncommon for dealers to try it on.

Except the dealer has already offered to unwind the contract, so has offered his legal obligation.


I don't like dealing with people and organisations that don't keep their word. I'd cancel the deal just on principle.

spiro

Also remember the dealer now has a 2nd hand BMW if you return it not a new one, that will cost him a lot of money.

sheslookinhot

spiro wrote: »

Also remember the dealer now has a 2nd hand BMW if you return it not a new one, that will cost him a lot of money.

Yep, exactly right. You would imagine that the BMW is now worth less than a "few grand". Of course, could be dealer trying it on.

DoaM

marlot wrote: »

Except the dealer has already offered to unwind the contract, so has offered his legal obligation.

Loss of bargain?