Refund of new car deposit

StuartMc

Dear Forum users,

I welcome your thoughts and comments about my current situation.

Background

On the 15th January I attended in person at a Volvo dealership to view an XC60, XC40 and test drive a used V60 (it was the demonstrator). I did not enter into any agreement with them, I didn't begin any negotiation.

On the 20th January, I had a call with the dealer and stated I didn't wish to purchase the used V60 I had tested. I went off viewing other cars at garages and online.

On the 25th January, I called the Volvo dealer to express an interest in purchasing a new Volvo V60 on finance. He sent me the quote and terms on 27th January and I signed and returned them on the 28th January. I also paid a £2,000 deposit on 28th January.

At the point of order, the estimated delivery time per the Volvo website was 4-5 months. The order form contained an estimated delivery date of 12 September 2022.

On the 7th April 2022, I noted from the Volvo website that the expected lead times had increased to 12-18 months (potential July 2023 delivery date). I therefore emailed the dealer with my concerns over the lead times. We had a call on the 8th April to discuss my concerns. On that call he confirmed lead times were being significantly delayed, that the 12-18 months were accurate. He also notified me to be alert to a potential price increase that would be passed on prior to the delivery of my order. I asked him what my options were in the event of a long delay, he confirmed that one of my options was a refund of my deposit.

On the 14th April 2022, I emailed the dealer requesting to cancel my order. I have found a suitable used car and cannot wait until July 2023 for delivery.

Issues

• My understanding is that as I only began discussions and negotiations for a new car online, this could qualify as distance selling. That I have the right to cancel up until 14 days after delivery of the car. 
• I am however mindful that I had indeed visited the showroom previously. That by visiting the showroom could negate my rights to cancel under the Consumer Contract Regulations. That this could be an on-premises sale. Though, on my visit we did not begin to negotiate the order I ultimately made. He tried to sell me the demonstrator and I declined. 
• I had also visited the showroom some months previously just to have a look around. I am unclear where you draw the line between on-premises and off-premises. As it would seem obtuse that a visit ever in your life to the premises of a retailer with who you later made any later transaction qualified it as on-premises. However, I did visit only a few weeks before beginning negotiation of the contract I ultimately entered into and I did test drive a different variant of what I later ordered. I sense I'm dancing around some legal line. 
• The contract states that if I cancel, the deposit is forfeit.
• However, it states that if Volvo increase the price, I can cancel for free within 21 days. This might happen, as he has warned me about a price increase.
• The Ts&Cs also state that if the Manufacturer is unable to accept the order for the goods, then the seller may by notice in writing to the purchaser cancel the contract and the deposit returned. I've still not been allocated a build week, so I think this clause may apply. But I'm not sure how they mean the 'Manufacturer is unable to accept the order' to apply? Whether they mean due to some error in the specification they cannot accept it, or simply have not yet done so. As they might not have accepted it yet, but I guess they eventually will.

My Plan

1. I've simply requested a cancellation and a refund, so let's see what they say.
2. If they get difficult, claim it was an off-premises contract and state my refund rights.
3. Try and use the clause in the contract that if the Manufacturer has not given a build week, then that qualifies under the 'Manufacturer is unable to accept the order' clause. 

I'd really welcome everyone's thoughts that I'm thinking about this the right way and haven't missed something.

Many thanks

shiraz99

StuartMc said:

My Plan

1. I've simply requested a cancellation and a refund, so let's see what they say.
2. If they get difficult, claim it was an off-premises contract and state my refund rights.
3. Try and use the clause in the contract that if the Manufacturer has not given a build week, then that qualifies under the 'Manufacturer is unable to accept the order' clause. 

I'd really welcome everyone's thoughts that I'm thinking about this the right way and haven't missed something.

Many thanks

A distance sale contract and off-premises contract are two different things.

StuartMc

Sure, but the only difference is the treatment of refunded delivery costs. Both entitle the purchaser to the same right to cancel within 14 days of delivery of the goods.

iwb100

I think you won’t need to worry and they will refund you. You have official confirmation of an extended wait and this is far longer than the time you were promised at sale. Whilst by the letter of the contract they can keep your deposit I don’t think they will. And I suspect if they did try that raising a fuss on social media would suffice.

Where things are worse is where manufacturers don’t give official lead time updates and thus leave it to a consumer to hear rumour and then try and take that to a dealer,

It’s interesting how some will fix price at point of order and others won’t. I guess as a now premium brand Volvo feel they can get away with not doing so. But that’s pretty rubbish in the current climate I think. Because let’s say you could wait a year and were prepared to…how rubbish would it be for the dealership to have to ask you to pay more for the privilege? 

Thrugelmir

iwb100 said:

It’s interesting how some will fix price at point of order and others won’t. I guess as a now premium brand Volvo feel they can get away with not doing so. 

Premium brands still need to sell cars at a profit. Costs are rapidly escalating. Commercial suicide to sell (fewer) cars at an operating loss. 

iwb100

Thrugelmir said:

iwb100 said:

It’s interesting how some will fix price at point of order and others won’t. I guess as a now premium brand Volvo feel they can get away with not doing so. 

Premium brands still need to sell cars at a profit. Costs are rapidly escalating. Commercial suicide to sell (fewer) cars at an operating loss. 

But that should be built into the pricing. You can’t expect a customer to agree a price for their new car then because it’s taking you a while to make it leave then subject to price rises. At least in my view it doesn’t seem right. 

Brie

We have found Volvo very easy to deal with and would suspect you will have no problems getting a refund.  Just keep the request simple and to the point - "paid £2k on this day, discovered the delay on this day, talked to Bob on this day who confirmed I could have a full refund. Please make it so."  

There's lots of other likely queuing up to get the car that might have been yours so I wouldn't worry too much about them.

StuartMc

I attach for your interest the section of the Ts&Cs below which state they can pass on the price rise. Giving me an option to cancel (which would be quite helpful in the current circumstances). Though, I do find it odd.

Herzlos

The dealer offered the refund so you should be fine. I'd wait to see what happens before worrying.

As to the comments about the price change, I doubt Volvo are too concerned, with a 18 month backlog they'll be able to sell it to someone else if a buyer decides to cancel rather than pay the difference. It'd suck to have to wait that long to not get a car but that's just life I guess.

born_again

Herzlos said:

The dealer offered the refund so you should be fine. I'd wait to see what happens before worrying.

As to the comments about the price change, I doubt Volvo are too concerned, with a 18 month backlog they'll be able to sell it to someone else if a buyer decides to cancel rather than pay the difference. It'd suck to have to wait that long to not get a car but that's just life I guess.

Certainly is especially if you want something that they do not have in stock.

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StuartMc

Update: Volvo have said I cannot have the £2,000 deposit back. Magically, just as I requested it, the factory had allocated a build week and it will be ready June 2022, instead of July 2023!

I have since put down another deposit on a used car, given the undue delay with the first. The manager of the salesman I spoke with told me that I never had a right to the money back and the first salesman was wrong.