Paid deposit to buy a car from a dealer, changed my mind, am I entitled to my money back?

_random_user_name

Hi all

As topic title, 2 days ago i paid a deposit by bank transfer to a dealer for a car i've only seen on the internet which was to be delivered to me via a car transporter, i've now changed my mind, am i entitled to my money back?

I've seen one source that says i am https://www.themotorombudsman.org/distance-sales-faqs but i'm not sure if this applies only to traders who are part of this organization/ombudsman that the site refers to (they are not).

It's a distance sale, i've not seen the car in the flesh, i've only spoken to the dealer over the phone, so afaik i have the right to return the car within 14 days of receiving it, correct? So if they refuse to refund my deposit I can return the car for a refund but i'd have to pay for the car in full 1st and then pay for delivery and collection charges for the vehicle which aren't refundable (it stipulates this on the dealers website).

I've not asked the dealer for my deposit back yet as i want to know my rights before contacting them.

tightauldgit

I think there are a few little grey areas but the short answer to the facts as you describe them is that if it's a true distance sale then you can cancel and get your deposit back. 

I think the potential glitch arises if the dealer classes it as a reservation fee rather than a deposit and the sale only occurs when you receive and accept the vehicle. 

If its definitely a deposit for the purchase then the sale took place remotely and you are entitled to your deposit back

DullGreyGuy

Assuming they are a dealer and it's not a private sale and it was all conducted remotely then you can reject the goods under the consumer contracts regulations. 

Assuming its what the dealer said beforehand and they have followed the requirements of the CCR then the cost of transporter to return the vehicle may be yours to cover.

Aylesbury_Duck

Are you absolutely sure this is genuine in the first place?  Paying by bank transfer for an unseen car to be delivered by transporter is a known scam.  I'm heartened that you've only paid a deposit, so be absolutely clear that if the dealer insists on completing the sale before you reject it, you don't send any more money until you have the car in your possession.

the_lunatic_is_in_my_head

Hello OP

As above if it's a deposit a contract is formed and you would be entitled to cancel and the trader may not impose a fee on the refund (except for diminished value which doesn't apply here). 

If it's a reservation fee then a contract hasn't been formed by paying that fee.

It would depend on what the trader said and the amount paid, with regards to the amount a prepayment which is set low enough that it merely reflects the ordinary expenses necessarily entailed for the trader could be a reservation fee, not an advance payment, and may legitimately be kept in full, as payment for the reservation. 

Easiest thing to do is clearly state you are "cancelling the contract by exercising your right to withdraw from a distance sale" and if that doesn't see the money returned and you feel it's not a reservation fee pop back for more advice  

DullGreyGuy said:

Assuming they are a dealer and it's not a private sale and it was all conducted remotely then you can reject the goods under the consumer contracts regulations. 

Just to be pedantic, OP would be exercising the right of withdrawal or cancellation rather than rejecting (which implies there's a fault and they are entitled to a remedy under the CRA) 

The CCRs require the consumer to

(a)use a form following the model cancellation form in part B of Schedule 3, or

(b)make any other clear statement setting out the decision to cancel the contract.

Mentioning rejecting may not be a clear statement.  

Wonka_2

Aylesbury_Duck said:

Are you absolutely sure this is genuine in the first place?  Paying by bank transfer for an unseen car to be delivered by transporter is a known scam.  I'm heartened that you've only paid a deposit, so be absolutely clear that if the dealer insists on completing the sale before you reject it, you don't send any more money until you have the car in your possession.

And here's why Dealer will not accept return of online purchased car — MoneySavingExpert Forum

_random_user_name

Great responses all thanks, this forum always impresses me with the quality of responses i get to consumer problems i've had. I've been in touch with the dealer to explain i was having 2nd thoughts and he offered to refund me before i even asked so no problems there.

I'm about 40/60 in favour of not going ahead with the deal, i've asked the dealer if he'd agree to an independent inspection of the car at my expense at the cars current location. It's a £10K 20 year old car so i have to be extremely careful. Thanks again all.

Grumpy_chap

_random_user_name said:

It's a £10K 20 year old car

! ! !
What type of car is it?
Are you buying it to use as a daily driver or expecting it to be an appreciating asset / future classic? 

_random_user_name

Grumpy_chap said:

_random_user_name said:

It's a £10K 20 year old car

! ! !
What type of car is it?
Are you buying it to use as a daily driver or expecting it to be an appreciating asset / future classic? 

It's a mercedes benz SL55 amg that's on the HPI register so it's actually quite cheap. yes it should appreciate in future. absolute nightmare if certain things on it malfunction though, hence my caution.

Grumpy_chap

An 03 plate AMG - wonder if it was only sold out to avoid emissions taxes  / CAZ?

The growth of CAZs could mean that the market is proportionately "flooded" with these just too old cars for the next few years.  London ULEZ seems to be petrol cars from 2004 that are compliant.

If course, if you located a 2003 car that is CAZ compliant and not a lot of people know that, you may have a real gem.

Pollycat

Grumpy_chap said:

An 03 plate AMG - wonder if it was only sold out to avoid emissions taxes  / CAZ?

The growth of CAZs could mean that the market is proportionately "flooded" with these just too old cars for the next few years.  London ULEZ seems to be petrol cars from 2004 that are compliant.

If course, if you located a 2003 car that is CAZ compliant and not a lot of people know that, you may have a real gem.

The car in the link given by Wonka_2 is a 10 year old Range Rover priced at 20k.