Broker trying to get out of a contract 10 August 2022 at 3:00PM in Motoring 9 replies 262 views

Sina1844

Last Sept I bought a new Toyota car from a car broker. Paid £1k deposit, the balance payable on delivery in 4-6 weeks time (Nov 21). (They bulk-buy cars from different manufacturers at a discount, their name goes on the logbook before yours and they pass it on to you on the same day). Since Nov the delivery was put back several times, blaming pandemic. Each time assuring that my order was safe & price-protected & I would get it soon. In March they said it could be by end of year. They’re now saying that the 2021 orders won’t be delivered & offered to refund my deposit. To buy the same car at today’s best discount price would cost me £6k more than my protected-price. I gave them a week to clarify if I’ll get my car. They ignored my ultimatum. I would like to know if I have a case against the broker? Can I recover the difference between my “protected price” & today’s best price? And if so, what are my chances and how much would it cost me roughly (legal expenses). 
I believe they are getting my car and want to sell it at today's price. 
They are now ignoring my emails and are not even offering my deposit back.
Can anyone help?

DanDare999

Sina1844 said:

Last Sept I bought a new Toyota car from a car broker. Paid £1k deposit, the balance payable on delivery in 4-6 weeks time (Nov 21). (They bulk-buy cars from different manufacturers at a discount, their name goes on the logbook before yours and they pass it on to you on the same day). Since Nov the delivery was put back several times, blaming pandemic. Each time assuring that my order was safe & price-protected & I would get it soon. In March they said it could be by end of year. They’re now saying that the 2021 orders won’t be delivered & offered to refund my deposit. To buy the same car at today’s best discount price would cost me £6k more than my protected-price. I gave them a week to clarify if I’ll get my car. They ignored my ultimatum. I would like to know if I have a case against the broker? Can I recover the difference between my “protected price” & today’s best price? And if so, what are my chances and how much would it cost me roughly (legal expenses). 
I believe they are getting my car and want to sell it at today's price. 
They are now ignoring my emails and are not even offering my deposit back.
Can anyone help?

What does your contract say?

As it stands you're entitled to your deposit back. 

Car_54

What does the contract say about cancellation? I'd be amazed if they haven't covered themselves.

Grumpy_chap

Sina1844 said:

Last Sept I bought a new Toyota car from a car broker. Paid £1k deposit, the balance payable on delivery in 4-6 weeks time (Nov 21). (They bulk-buy cars from different manufacturers at a discount, their name goes on the logbook before yours and they pass it on to you on the same day). Since Nov the delivery was put back several times, blaming pandemic. Each time assuring that my order was safe & price-protected & I would get it soon. In March they said it could be by end of year. They’re now saying that the 2021 orders won’t be delivered & offered to refund my deposit. To buy the same car at today’s best discount price would cost me £6k more than my protected-price. I gave them a week to clarify if I’ll get my car. They ignored my ultimatum. I would like to know if I have a case against the broker? Can I recover the difference between my “protected price” & today’s best price? And if so, what are my chances and how much would it cost me roughly (legal expenses). 
I believe they are getting my car and want to sell it at today's price. 
They are now ignoring my emails and are not even offering my deposit back.
Can anyone help?

Does the Broker have the benefit of a "frustration of contract" and / or "force majeure" clause?

Car_54

Grumpy_chap said:

Sina1844 said:

Last Sept I bought a new Toyota car from a car broker. Paid £1k deposit, the balance payable on delivery in 4-6 weeks time (Nov 21). (They bulk-buy cars from different manufacturers at a discount, their name goes on the logbook before yours and they pass it on to you on the same day). Since Nov the delivery was put back several times, blaming pandemic. Each time assuring that my order was safe & price-protected & I would get it soon. In March they said it could be by end of year. They’re now saying that the 2021 orders won’t be delivered & offered to refund my deposit. To buy the same car at today’s best discount price would cost me £6k more than my protected-price. I gave them a week to clarify if I’ll get my car. They ignored my ultimatum. I would like to know if I have a case against the broker? Can I recover the difference between my “protected price” & today’s best price? And if so, what are my chances and how much would it cost me roughly (legal expenses). 
I believe they are getting my car and want to sell it at today's price. 
They are now ignoring my emails and are not even offering my deposit back.
Can anyone help?

Does the Broker have the benefit of a "frustration of contract" and / or "force majeure" clause?

Don't forget the Sanity Clause.

Sina1844

It was done by email. There was no contract. The Terms and Conditions basically said onceI pay the deposit (and the order is placed with Toyota), I'm committed and I can't cancel it. They have since updated their Terms and Conditions , to cover the current situation.
I know for fact that if I had ordered to Toyota directly, they couldn't get out of it. I know Mercedes and BMW tried to cancel old orders after the production delays. But faced with legal actions, they had to back down and honour all contracts. In some cases they had to provide the new higher spec later models to replace the older discontinued specs. 
I believe their (the broker's) order with Toyota is protected and they are getting the car. Don't I have the same protection? Until April they were telling me my car is "price-protected". Now they have changed their Ts & Cs.

Car_54

Sina1844 said:

It was done by email. There was no contract. The Terms and Conditions basically said onceI pay the deposit (and the order is placed with Toyota), I'm committed and I can't cancel it. They have since updated their Terms and Conditions , to cover the current situation.
I know for fact that if I had ordered to Toyota directly, they couldn't get out of it. I know Mercedes and BMW tried to cancel old orders after the production delays. But faced with legal actions, they had to back down and honour all contracts. In some cases they had to provide the new higher spec later models to replace the older discontinued specs. 
I believe their (the broker's) order with Toyota is protected and they are getting the car. Don't I have the same protection? Until April they were telling me my car is "price-protected". Now they have changed their Ts & Cs.

You definitely have a contract, it's just not enshrined in a single document.
You say they've updated their Ts & Cs, which implies that there must have been Ts & Cs in force when you placed your order. Is there any reference to those Ts and Cs in the exchange of emails? Or in the advert/brochure/website which led you to place the order?
Others may have different experience, but I don't recall ever agreeing to buy a car without having to sign the dealer's standard order form.

DanDare999

Car_54 said:

Sina1844 said:

It was done by email. There was no contract. The Terms and Conditions basically said onceI pay the deposit (and the order is placed with Toyota), I'm committed and I can't cancel it. They have since updated their Terms and Conditions , to cover the current situation.
I know for fact that if I had ordered to Toyota directly, they couldn't get out of it. I know Mercedes and BMW tried to cancel old orders after the production delays. But faced with legal actions, they had to back down and honour all contracts. In some cases they had to provide the new higher spec later models to replace the older discontinued specs. 
I believe their (the broker's) order with Toyota is protected and they are getting the car. Don't I have the same protection? Until April they were telling me my car is "price-protected". Now they have changed their Ts & Cs.

You definitely have a contract, it's just not enshrined in a single document.
You say they've updated their Ts & Cs, which implies that there must have been Ts & Cs in force when you placed your order. Is there any reference to those Ts and Cs in the exchange of emails? Or in the advert/brochure/website which led you to place the order?
Others may have different experience, but I don't recall ever agreeing to buy a car without having to sign the dealer's standard order form.

I bet you also don't recall buying a pre registered car and having to wait for it to be built. 

Car_54

DanDare999 said:

Car_54 said:

Sina1844 said:

It was done by email. There was no contract. The Terms and Conditions basically said onceI pay the deposit (and the order is placed with Toyota), I'm committed and I can't cancel it. They have since updated their Terms and Conditions , to cover the current situation.
I know for fact that if I had ordered to Toyota directly, they couldn't get out of it. I know Mercedes and BMW tried to cancel old orders after the production delays. But faced with legal actions, they had to back down and honour all contracts. In some cases they had to provide the new higher spec later models to replace the older discontinued specs. 
I believe their (the broker's) order with Toyota is protected and they are getting the car. Don't I have the same protection? Until April they were telling me my car is "price-protected". Now they have changed their Ts & Cs.

You definitely have a contract, it's just not enshrined in a single document.
You say they've updated their Ts & Cs, which implies that there must have been Ts & Cs in force when you placed your order. Is there any reference to those Ts and Cs in the exchange of emails? Or in the advert/brochure/website which led you to place the order?
Others may have different experience, but I don't recall ever agreeing to buy a car without having to sign the dealer's standard order form.

I bet you also don't recall buying a pre registered car and having to wait for it to be built. 

Indeed. it seems a strange arrangement.
I can understand the punter (unwisely) relying on an exchange of emails, but I'm surprised that the dealer/broker/whatever didn't insist on a signed purchase order with its associated small print.

DanDare999

Car_54 said:

DanDare999 said:

Car_54 said:

Sina1844 said:

It was done by email. There was no contract. The Terms and Conditions basically said onceI pay the deposit (and the order is placed with Toyota), I'm committed and I can't cancel it. They have since updated their Terms and Conditions , to cover the current situation.
I know for fact that if I had ordered to Toyota directly, they couldn't get out of it. I know Mercedes and BMW tried to cancel old orders after the production delays. But faced with legal actions, they had to back down and honour all contracts. In some cases they had to provide the new higher spec later models to replace the older discontinued specs. 
I believe their (the broker's) order with Toyota is protected and they are getting the car. Don't I have the same protection? Until April they were telling me my car is "price-protected". Now they have changed their Ts & Cs.

You definitely have a contract, it's just not enshrined in a single document.
You say they've updated their Ts & Cs, which implies that there must have been Ts & Cs in force when you placed your order. Is there any reference to those Ts and Cs in the exchange of emails? Or in the advert/brochure/website which led you to place the order?
Others may have different experience, but I don't recall ever agreeing to buy a car without having to sign the dealer's standard order form.

I bet you also don't recall buying a pre registered car and having to wait for it to be built. 

Indeed. it seems a strange arrangement.
I can understand the punter (unwisely) relying on an exchange of emails, but I'm surprised that the dealer/broker/whatever didn't insist on a signed purchase order with its associated small print.

They have a grand and the OP has an email address. Maybe they'll just disappear.