New Car on Order delayed due to Covid-19 - I want to cancel what are my options?

rhysadams

I've ordered a new car and have signed a contract to supply with a cancellation charge should I decide that I don't want it.
It was supposed to have been delivered 1st April, but due to the lockdown the dealership and suppliers cannot now get the car to me, so I have decided I want to cancel.
The company have been really good and have charged me a small fee and not the full cancellation charge, which I was happy about at first until my legal friend said that I am due to the full amount back as the company could not delivery.
I have spoken to the company today, who again, are really helpful and have said that the car is in stock and ready to deliver, but due to current restrictions this has been delayed but if I wanted the car still I could, as they have paid for the vehicle ready for me to have it.

I don't want the car but I want my money back, what should I do?

sharpe106

How much is the small fee they have charged?

rhysadams

£150, the cancellation fee is £1800.

Jeremy535897

It seems to me that you either pay the £150 with goodwill on both sides, or you say you won't pay anything based on a legal analysis and they sue you for the £1,800. Personally I'd go for the first option, as you have no idea how likely you would be to win the argument on whether you are liable for the full cancellation charge.

sharpe106

I would pay the £150 to they have been fairly fair. Probably not worth the hassle of trying to get that back.

Galloglass

If you wish to push the matter, the garage could withdraw the discretionary offer and insist on the contractual £1800. 

Is you legal friend offering advice covered by his/her legal insurance if he/she turns out to be wrong?

rhysadams

Galloglass said:

If you wish to push the matter, the garage could withdraw the discretionary offer and insist on the contractual £1800. 

Is you legal friend offering advice covered by his/her legal insurance if he/she turns out to be wrong?

I wish! No they aren't. I think I'll stick with the lower amount.

NitroBN

rhysadams said:

Galloglass said:

If you wish to push the matter, the garage could withdraw the discretionary offer and insist on the contractual £1800. 

Is you legal friend offering advice covered by his/her legal insurance if he/she turns out to be wrong?

I wish! No they aren't. I think I'll stick with the lower amount.

I would assume your legal friend is someone you know quite well that has had access to the contract to make their advice more informed than a bunch of whoever on the internet ? Perhaps you have legal advice with some insurance ie house insurance that covers breach of contract ?

If I was you and you decide to pay the lower fee at least do it formally as 'paid under duress', that way if you decide in the near future the fee was not actually contractually lawful you have a much better recourse to claim the fee back.

Galloglass

If I was you and you decide to pay the lower fee at least do it formally as 'paid under duress', that way if you decide in the near future the fee was not actually contractually lawful you have a much better recourse to claim the fee back.

What a great idea. Pay and then try to reclaim by forking out £100 in court fees and run the risk of losing due to the judge deciding it was "buyers remorse". If the "legal friend" won't step up to the plate and guarantee to back their advice, it will because they fully understand how the small claims process works including litigation risk.

I forgot to add the hours in preparing the paperwork for a £150 claim as well as the court fees.

NitroBN

Galloglass said:

If I was you and you decide to pay the lower fee at least do it formally as 'paid under duress', that way if you decide in the near future the fee was not actually contractually lawful you have a much better recourse to claim the fee back.

What a great idea. Pay and then try to reclaim by forking out £100 in court fees and run the risk of losing due to the judge deciding it was "buyers remorse". If the "legal friend" won't step up to the plate and guarantee to back their advice, it will because they fully understand how the small claims process works including litigation risk.

I forgot to add the hours in preparing the paperwork for a £150 claim as well as the court fees.

Show me any lawyer who will guarantee an outcome from their own pocket, let alone a legal friend. They don't exist, the best you can get is no win no fee. I take it you've seen this contract to back your own advice ?

I take it speaking to an insurers free legal advice line is also a bad idea if thats available to the OP.

Also under the circumstances of the current environment it is very difficult right now to speak to professionals on such matters so yes if your going to pay anything that your unsure should be paid because you are not sure on the law of the contract in your hand, then you should absolutely make that payment formally made under duress.

If it should go that far in the future a Judge will certainly take the reason for it being paid under duress into account. You would hope a simple letter would get it back if it was not a lawful demand. If not then any additional costs can also be recovered under the clause of 'unreasonable conduct'. If the OP has legal protection in their house insurance then they will determine whether the demand was contractually lawful or not and if it wasnt it will be worth pursuing which rarely ends in court anyway.

edit: Oh and if you have a cheque book make the payment by cheque accompanied by a letter stating payment is made under duress.

Edit 2 or better yet, place the agreed cancellation fee into escrow pending legal ratification it is actually due.

sharpe106

I think the company has been fair, they will have had expenses anyway getting the car. So it is also unfair on them.