Cancelling new car order

Bunbury

My partner and I ordered a new EV from MG back in August with an expected delivery of April 2023. We paid £500 deposit and were going to pay the balance outright from savings.

However, our situation has now changed (including a car crash a few days ago which has written off our current car, plus unexpected additional expenditure unrelated to cars) so we are considering cancelling the order and buying a cheaper second hand car. Having looked at the terms and conditions, I can't see any reference to cancelling at this point, only 14 days AFTER delivery.

So, my question is: is cancelling at this point likely to incur any costs other than loss of deposit?

Obviously we can contact MG directly, but we've a lot to think about first as our life has been turned upside down the last couple of weeks and we don't want to rush into any decisions we may regret.

Many thanks.

MX5huggy

I’m surprised MG have such a long lead time which model was it. 

There’s the contractural reality but talk to them. They maybe completely happy to refund. Maybe they would swap the money to another car (new in stock or used). 

Car_54

Before you talk to them, read your contract!

diystarter7

Car_54 said:

Before you talk to them, read your contract!

OP has read it and "Can't see...'' hence the request for help.

OP, I'm guessing that with the shortage of cars and such a long lead time, they should not have a problem as many people are wanting to buy EV cars, especially those they see as vFM
But see what others say before you call.
Good luck

Bunbury

Thank you for the responses so far.

I've read the contract and there's no mention of these circumstances. Of course I understand ultimately it will mean a discussion with the dealership, just wondered if others have experience before we talk to them. Due to the crash in which we were both injured, and other stuff going on, we are rather fragile and won't be approaching them yet.

Although it would be nice, I wouldn't expect the deposit back anyway.

Keep_pedalling

Bunbury said:

Thank you for the responses so far.

I've read the contract and there's no mention of these circumstances. Of course I understand ultimately it will mean a discussion with the dealership, just wondered if others have experience before we talk to them. Due to the crash in which we were both injured, and other stuff going on, we are rather fragile and won't be approaching them yet.

Although it would be nice, I wouldn't expect the deposit back anyway.

I would not delay the conversation, which will be far more difficult if the car is with them in the near future. Because of the long delay you should have no problem in getting your deposit back.

Herzlos

If there's a waiting list for the car then they'll presumably be happy to give the slot to someone else who'll buy it.
They may also let you transfer the deposit onto something else in stock or ideally refund it.

But the sooner you ask them about it the better. Definitely don't wait for the car to turn up.

The 14 day cooling off period is likely to be for the finance - so you can withdraw from that but you'll still need to fund the car.

diystarter7

Bunbury said:

Thank you for the responses so far.

I've read the contract and there's no mention of these circumstances. Of course I understand ultimately it will mean a discussion with the dealership, just wondered if others have experience before we talk to them. Due to the crash in which we were both injured, and other stuff going on, we are rather fragile and won't be approaching them yet.

Although it would be nice, I wouldn't expect the deposit back anyway.

Personally, I would not delay as your order could easily go to another. EG, if I was buying the model you were going to by, I'm sure they say the waiting times is several months beyond your delivery date but they have a cancellation.  Based on that I'd go for this dealer as earlier delivery.

Give them a quick call to at least pick their brains - they may not come back to you tomorrow. Best to speak with the person that sold you the car.

You sound like a nice and very reasonable person and with the delivery months away and high demand around that date, they may give you a full refund and if they do, it's a good bonus for you.

Good luck.

Bunbury

Thanks again for your responses everyone.
Sounds like no one has direct experience of this so we'll be calling the dealer tomorrow to discuss.

With high demand and long waits, plus nothing in the contract to say we can't, I'd assumed it wouldn't be a problem to cancel at this point. Just didn't want any nasty surprises so thought I'd ask first.

(We haven't decided to cancel, just checking our options).

Cheers.

macman

In theory, they can sue you for the full value of the contract that you now wish to breach. In practice, and in the current market for new cars, they'll just retain your deposit and sell it on to another customer.
You can't cancel a contract without penalty just because the contract doesn't say you can't! Otherwise there would be no point in agreeing a contract.

eskbanker

https://www.gov.uk/government/publications/cancelling-goods-or-services-guide-for-consumers/cancelling-goods-or-services covers the principle that they can only keep enough to cover losses they incur by virtue of your cancellation:

Businesses can keep your deposit or advance payments, or ask you to pay a cancellation charge, only in certain circumstances

If you cancel the contract, the business is generally only entitled to keep or receive an amount sufficient to cover their actual losses that directly result from your cancellation (eg costs already incurred or loss of profit).

Businesses must take reasonable steps to reduce their losses (eg by re-selling the goods or services).

Non-refundable deposits should only be a small percentage of the total price.

Cancellation charges must be a genuine estimate of the business’ direct loss.