Car dealer refusing to refund deposit - can they do this?

drmalloo

Hi,

Would appreciate anyone’s experience/view on this legally.

 I recently found a used car online that I wanted to view on a dealer website and there was a ‘Reserve this car’ option. So I filled in the form and the next morning the company called me to take a £250 deposit. I asked them if the deposit was refundable and they said yes it was. I told them I’d try to get to see the car the following Saturday and left it at that.

When the Saturday came around my day totally fell apart but I still thought I could get to them before they closed. The sales guy called me asking where I was and when I apologised and explained it would be another hour before I could get to them he said he couldn’t wait and had to close. I explained that it was literally the only day for several weeks that I had any chance to view the car and so that he’d better just unreserve the car. He said ok and went on to say he would issue a refund.

Fast-forward 4 days and after many phone calls asking when they would be able to refund me they are now basically saying they are keeping my money because I messed them around. They are also saying that the deposit committed me to buying the car UNLESS I found that they had lied about something or about its condition.

My question is, can they legally do this? Nothing on their website says that I have to physically view the car to get a refund, or that I am committing to buy the car, and the guy also didn’t mention anything like that when I specifically queried if the deposit was refundable. He just said ‘yes it is’ with no provisos.

So if I take it further (legally) do I have a case? 


Cheers

[Deleted User]

Generally, deposits are non refundable as otherwise there would be no point in having them. Although the seller is expected to minimise loss.

Unless you can prove that they said the deposit was refundable for change of mind, it's highly unlikely a court would believe your version.

the_lunatic_is_in_my_head

drmalloo said:

 They are also saying that the deposit committed me to buying the car UNLESS I found that they had lied about something or about its condition.

If that wishes to be their take on things then you should email (not phone) to cancel your distance contract for the goods and the trader would be obligated to refund any money already transferred under the contract in full. 

drmalloo

the_lunatic_is_in_my_head said:

drmalloo said:

 They are also saying that the deposit committed me to buying the car UNLESS I found that they had lied about something or about its condition.

If that wishes to be their take on things then you should email (not phone) to cancel your distance contract for the goods and the trader would be obligated to refund any money already transferred under the contract in full. 

Ok thanks for that, is there anything more than that I'd need to say so it was correctly worded (legally)?

the_lunatic_is_in_my_head

Not really, other than something to say who you are so they know what the email is in relation to. 

They may very well change their story on what the payment was for (unless they told you the part about the £250 forming a contract to buy the car by email or similar, in which case they have less opportunity to go back on that). 

Right to cancel from time contract is entered, end of cancellation period and refunds are detailed below. If they change their story you should ask them to clarify in writing (email, etc) what your payment was for exactly and post back for more advice. 

I assume the payment was by card (if so was it credit or debit?) so there may be some protection there as well.

https://www.legislation.gov.uk/uksi/2013/3134/regulation/29

29.—(1) The consumer may cancel a distance or off-premises contract at any time in the cancellation period without giving any reason, and without incurring any liability except under these provisions—

(a)regulation 34(3) (where enhanced delivery chosen by consumer);

(b)regulation 34(9) (where value of goods diminished by consumer handling);

(c)regulation 35(5) (where goods returned by consumer);

(d)regulation 36(4) (where consumer requests early supply of service).

(2) The cancellation period begins when the contract is entered into and ends in accordance with regulation 30 or 31.

https://www.legislation.gov.uk/uksi/2013/3134/regulation/30

(3) If the contract is a sales contract and none of paragraphs (4) to (6) applies, the cancellation period ends at the end of 14 days after the day on which the goods come into the physical possession of—

(a)the consumer, or

(b)a person, other than the carrier, identified by the consumer to take possession of them.

https://www.legislation.gov.uk/uksi/2013/3134/regulation/34

34.—(1) The trader must reimburse all payments, other than payments for delivery, received from the consumer, subject to paragraph (10).

(2) The trader must reimburse any payment for delivery received from the consumer, unless the consumer expressly chose a kind of delivery costing more than the least expensive common and generally acceptable kind of delivery offered by the trader.

(8) The trader must not impose any fee on the consumer in respect of the reimbursement.

Manxman_in_exile

I think your problem here is going to be determining what the deposit was for.

In your opening post you say it was a payment to "reserve" the car and for the seller to withdraw it from sale for an agreed period until you had seen it.  Then - and the reason is irrelevant - you could not get to see the car on the agreed day before they closed.

If that is the case and they stick to it being a "reserve fee" then I think it's tough luck for you and you can't get it back.  You paid them to (1) take it off the market and (2) run the risk of you not buying it.  They did that but you didn't view it on the agreed date.

However, if they are now saying it was part of the purchase price and you paying it was you agreeing to the purchase, then they may have shot themselves in the foot, as explained by @the_lunatic_is_in_my_head

emmajones1976

Maybe tell us who the dealer is? I once paid a £100 deposit for a dealer to move a car from a branch 100 miles away for me to test drive it, I chose not to buy it in the end and I got the money back.