How to get deposit back from car dealer?

born_again

gjmpugwash said:

How do I get my 'refundable deposit' back from the car dealer?
Tesla take a deposit to reserve one of their cars. This is refundable at any time and they honour that commitment. Kia appears to have followed Tesla and also ask for a deposit to order their EV's. From September 2019 to September 2020 all my local dealers were saying the same, their EV's were 6 months delivery, no price discounts and a refundable deposit was needed to reserve a car. One dealer also pointed out the cancellation policy in their T's & C's and said it does not apply for 2 reasons; 1. there are more customers than cars and 2. there is such a long time from deposit to delivery situations might change. I asked before signing for the car in September that the deposit was still fully refundable. The sales representative said it was and then gave me the deposit receipt, a copy of the order, and a copy of their T's & C's. At no point did he go through the T's & C's or say that the deposit was now not refundable Currently, there are no cars available until January 2021. I have now changed my mind and asked for the deposit returned. The main dealer has refused saying breach of contract. As all the garages in September were saying the deposit was refundable I did not get it in writing. Does anyone know how to get the deposit back? I have believed the deposit was refundable for more than a year, time enough for dealer sales supervisors and managers to correct the misunderstanding. By trusting the sales representatives it looks like I will lose the deposit while the main dealer is laughing all the way to the bank, he's got my deposit, has no expenses and a much sort after car arriving early next year. 

So which dealer is not refunding the deposit?
As you quote 2 manufactures. 

Herzlos

AdrianC said:

Herzlos said:

AdrianC said:

Herzlos said:

Dr_Crypto said:

Or ask them to roll the £900 into your new PCP deal. Shouldn’t be a massive increase in monthly repayments. 

It's much cheaper to just forfeit the deposit than roll the £900 into a new deal.

Almost certainly not - not without a truly usurious APR on the new PCP.

Assuming 5% interest, £900 is only going to cost fifty quid or so per year of the term - and the £900 gets repaid via the monthlies over the term, rather than going on the balloon, so probably half that in total.

+ the cost of the new car for the 3 months.
So she could lose the £500 and run the car for the 3 months before it needs to be handed back, or she can borrow £900 (which will need to be paid back and have interest paid) now, and then pay 3 months of the new PCP.

The contract for the new car isn't three months longer. And they're paying monthlies now.

The length of the contract doesn't matter. She's still got £900 to pay until the PCP end, which would otherwise get her 3 months of payments. If she rolls that £900 into the new deal, she's borrowing that money to pay off the first PCP, and then making 3 months of payments. The first 3 months of payments don't magically go away, so she's in essence paying 2 sets of monthly payments for the first 3 months (+ interest on that £900 until it's paid back in full). Admittedly it'll be paid off in installments so would likely only add £20ish to the monthlies.
If she just walked away and lost the deposit, she'd only need to pay £900 once and could then take out a new PCP in 3 months time.

photome

Am I just old school?
I would never dream of paying a deposit and expect to get it back if I backed out

Flight3287462

photome said:

Am I just old school?
I would never dream of paying a deposit and expect to get it back if I backed out

You and me both.

To the extent that I think dealers should change the name from deposit to "Option" thereby fixing the deal for a pre agreed price for a pre agreed length of time with the option fee becoming part of the deposit upon exercising the option.

I would never ever leave a deposit unless all I was doing was arranging full payment or awaiting delivery.

AdrianC

Herzlos said:

AdrianC said:

Herzlos said:

AdrianC said:

Herzlos said:

Dr_Crypto said:

Or ask them to roll the £900 into your new PCP deal. Shouldn’t be a massive increase in monthly repayments. 

It's much cheaper to just forfeit the deposit than roll the £900 into a new deal.

Almost certainly not - not without a truly usurious APR on the new PCP.

Assuming 5% interest, £900 is only going to cost fifty quid or so per year of the term - and the £900 gets repaid via the monthlies over the term, rather than going on the balloon, so probably half that in total.

+ the cost of the new car for the 3 months.
So she could lose the £500 and run the car for the 3 months before it needs to be handed back, or she can borrow £900 (which will need to be paid back and have interest paid) now, and then pay 3 months of the new PCP.

The contract for the new car isn't three months longer. And they're paying monthlies now.

The length of the contract doesn't matter. She's still got £900 to pay until the PCP end, which would otherwise get her 3 months of payments. If she rolls that £900 into the new deal, she's borrowing that money to pay off the first PCP, and then making 3 months of payments. The first 3 months of payments don't magically go away, so she's in essence paying 2 sets of monthly payments for the first 3 months (+ interest on that £900 until it's paid back in full). Admittedly it'll be paid off in installments so would likely only add £20ish to the monthlies.
If she just walked away and lost the deposit, she'd only need to pay £900 once and could then take out a new PCP in 3 months time.

The three payments on the car that's going back DO "magically disappear".

Herzlos

AdrianC said:

The three payments on the car that's going back DO "magically disappear".

They don't, they still need paid. It's £900 to get out of the contract, however you account for that money.

Unless I've missed something and she's getting those 3 payments waived.

gjmpugwash

In my case Kia.

burlingtonfl6

photome said:

Am I just old school?
I would never dream of paying a deposit and expect to get it back if I backed out

Completely agree.
People today look to blame others for their own mistakes and personal responsibility seems to be on it's way out.

AdrianC

Herzlos said:

AdrianC said:

The three payments on the car that's going back DO "magically disappear".

They don't, they still need paid. It's £900 to get out of the contract, however you account for that money.

Unless I've missed something and she's getting those 3 payments waived.

Yes, she is. By settling the finance. Which will cost £900.

Herzlos

AdrianC said:

Herzlos said:

AdrianC said:

The three payments on the car that's going back DO "magically disappear".

They don't, they still need paid. It's £900 to get out of the contract, however you account for that money.

Unless I've missed something and she's getting those 3 payments waived.

Yes, she is. By settling the finance. Which will cost £900.

Exactly. It'll cost her £900, like I said.