Can a car dealership cancel my order

Teme9

Placed a reservation on a used car and signed an order form on my end however the car dealership came back to say they had a pricing error and forgot the VAT on the car and thus cancelled my order.

Is there any consumer rights I have to fight my case? Or do I just accept it?

Manxman_in_exile

What does the order form say about when a contract is formed?  

user1977

If it was merely a reservation rather than a binding contract to buy it, then I expect it can be cancelled, yes. And if it was a contract, errors can (if they're obvious enough) be corrected.

Teme9

i had signed this:

Teme9

I mean i had signed the order form and had also paid a deposit

Keep_pedalling

Clause 5.2.2 would seem to cover them. Had you paid in full they would not have had that get out.

user1977

Keep_pedalling said:

Clause 5.2.2 would seem to cover them.

Clause 2.4 also covers them.

Teme9

So no point taking this any further then i guess?
Shame, managed to get an absolute belter of a car haha

Grumpy_chap

I am not sure I agree with the other posters.

This was a used car purchase, not a new car.  Is that correct?

Did the Dealer ever come back and fulfill clause 1.1 (acceptance in writing by the Seller on the order form)?  If so, a contract was formed.  If not, there was no contract to be cancelled.

Assuming 1.1 was fulfilled, is the statement that VAT was omitted plausible?  
Is this a car or van (commercial vehicle)?  Cars are rarely presented for retail sale at a price excluding VAT
Was the car of a type that would be VAT-qualifying?  That usually means a very nearly new car.
Was the price so different that it was obvious that VAT at 20% had been left out?
If this was a used car, then omitting VAT would be a much smaller amount if the car is on the margin scheme.

How good was the deal?
Is it still worth buying and paying the VAT?  Might be a valid option if the car is used under the margin scheme as the VAT is only 20% of the difference between the garage's buy and sell price, not the full value.  
Obviously, if the car is new (including pre-reg), then the VAT is 20% on the whole price and likely not an uplift the OP can stomach.

Back to the contract, clause 2.4 is not applicable for a used car (the whole of clause 2 only applies to new cars)

Also, as I read it, clause 5.2.2 only applies if the purchaser fails to make payment when payment is due.  In this case, having paid the deposit, the balance is not yet due.

Finally, given this is a major dealer, it is worth pursuing some goodwill...

Teme9

Grumpy_chap said:

I am not sure I agree with the other posters.

This was a used car purchase, not a new car.  Is that correct?

Did the Dealer ever come back and fulfill clause 1.1 (acceptance in writing by the Seller on the order form)?  If so, a contract was formed.  If not, there was no contract to be cancelled.

Assuming 1.1 was fulfilled, is the statement that VAT was omitted plausible?  
Is this a car or van (commercial vehicle)?  Cars are rarely presented for retail sale at a price excluding VAT
Was the car of a type that would be VAT-qualifying?  That usually means a very nearly new car.
Was the price so different that it was obvious that VAT at 20% had been left out?
If this was a used car, then omitting VAT would be a much smaller amount if the car is on the margin scheme.

How good was the deal?
Is it still worth buying and paying the VAT?  Might be a valid option if the car is used under the margin scheme as the VAT is only 20% of the difference between the garage's buy and sell price, not the full value.  
Obviously, if the car is new (including pre-reg), then the VAT is 20% on the whole price and likely not an uplift the OP can stomach.

Back to the contract, clause 2.4 is not applicable for a used car (the whole of clause 2 only applies to new cars)

Also, as I read it, clause 5.2.2 only applies if the purchaser fails to make payment when payment is due.  In this case, having paid the deposit, the balance is not yet due.

Finally, given this is a major dealer, it is worth pursuing some goodwill...

I had signed the order form on my end, but the sales executive cntacted me via phone to say the VAT had been missed. And ye the VAT was omitted in the receipt. 
The deal was good without the VAT but not good with it on.

It was a major dealer, i suppose I should try to pursue it further. Not sure how much goodwill they'll actually offer. 

Grumpy_chap

So the garage have not accepted the order.  A contract requires offer (by the OP) and acceptance by the garage.  Without acceptance, there is no contract and the rest of the Ts&Cs are irrelevant.

Was this a new car?  VAT-payable in full.
Was this a very nearly new car?  Pre-reg?  Demo?  Likely that VAT payable in full.
Was this a used car?  Unlikely that VAT-payable in full - it will be on the margin scheme.

Exactly how was the car advertised?