Cancelling a new car build.

rachael204

Hi I am hoping for some advice please! 

So in March we ordered a brand new car from a dealership all done remotely. The car is a standard model with a couple of extras added to build but nothing of the ordinary, just standard add one. Wee we paid a £1000 deposit.

It is due to be built 30/04/21 with us taking delivery end of May.

Since placing the order our financial situation has changed (house sale fallen through) and we can no longer commit to buying the car. We had agreed to paying full balance not finance and now we can’t. I don’t have the best credit rating and failed the credit check when we placed the order. 

I have emailed to advise the dealership of this and have been told that they can’t cancel the build so I can expect my new car in a month!

Obviously they can’t force me to the dealership and pay them with cash I don’t have for a car I no longer need/want/can afford. 

What are my options? Have I lost the deposit (not the end of the world but who can afford to just wave goodbye to a grand?) are there distance selling rules that apply to this order? We haven’t physically been to the dealership at all.

Any advice welcome! Thank you 😊 

Grumpy_chap

First thing to check is what any documents say about cancelling

JamoLew

As above  - check your documents- but my gut instinct is that you will at least lose your deposit. (Or a part of)

Some work and resources will have been done and expended which do need paying for

Otherwise why do we pay a deposit in the first place if it doesn’t act as a deterrent/penalty for withdrawing from an agreement and/or contract

AdrianC

rachael204 said:

Since placing the order our financial situation has changed (house sale fallen through) and we can no longer commit to buying the car.

You committed in March.

They are well within their rights to charge you whatever the cancellation costs them - including their financing costs - until they sell it.
In practice, that's likely to be capped at the grand deposit - anything more would require them taking you to court. And, in practice, unless they've got somebody lined up for it, it's going to be all that grand.

BOWFER

We cancelled a new-build Mini years ago, we were fully prepared to lose out deposit but didn't.

Grumpy_chap

Reading the OP again.

The OP ordered a car in March, for delivery end May.
The OP planned to finance the car from a house sale that fell through.  I assume that means the OP had not exchanged on the house sale before placing the order for the car.

It seems as though the OP possibly "jumped the gun" is ordering the car before the house sale was at least at exchange of contracts.

If nothing changes, then the OP has probably lost the deposit, but unlikely to be pursued for more.

Some things that could change the above:

1. If the OP had exchanged contracts on the house sale before it fell through, then the OP may have some redress against the party that failed to complete (ask the Conveyancing Solicitor)?
2. Presumably, the OP will still sell the house and may, therefore be able to sell, exchange and complete in time to still release the funds for the car delivery.

A third option, which is 'high risk strategy' and possibly not possible for the OP is to compete the full new car order, payment and delivery without ever visiting the dealer's showroom and then exercising right to reject under the distance selling regulations.  If part of the deal includes a trade-in, the OP will likely not get the trade-in back but the value-in-lieu.

k3lvc

Grumpy_chap said:

A third option, which is 'high risk strategy' and possibly not possible for the OP is to compete the full new car order, payment and delivery without ever visiting the dealer's showroom and then exercising right to reject under the distance selling regulations.  If part of the deal includes a trade-in, the OP will likely not get the trade-in back but the value-in-lieu.

And that's seriously high-risk given the OP doesn't have the money to pay for the car and won't get credit

Grumpy_chap

k3lvc said:

Grumpy_chap said:

A third option, which is 'high risk strategy' and possibly not possible for the OP is to compete the full new car order, payment and delivery without ever visiting the dealer's showroom and then exercising right to reject under the distance selling regulations.  If part of the deal includes a trade-in, the OP will likely not get the trade-in back but the value-in-lieu.

And that's seriously high-risk given the OP doesn't have the money to pay for the car and won't get credit

Hence why I said "possibly not possible "

Manxman_in_exile

If this is truly an "off premises" sale, what's to prevent the OP taking delivery and cancelling within 14 days like any other distance purchase?

k3lvc

Manxman_in_exile said:

If this is truly an "off premises" sale, what's to prevent the OP taking delivery and cancelling within 14 days like any other distance purchase?

See above - they'd have to pay for it and don't have the funds

The_Fat_Controller

Surely a car ordered with customer specified extras counts as bespoke and therefore falls out of the 14 days to change your mind after delivery.

I am sure one of the experts will know if it applies to a vehicle order and dear @rachael204 please let us know what your contract actually says.

From Citizens Advice 

"You automatically get a 14-day ‘cooling-off period’ when you buy something you haven’t seen in person - unless it’s bespoke or made to measure."