Rights after paying car deposit/reserve

Grecian123

I have been looking for a used car and took a particular car for a test drive. I really liked the car, but needed to have a think before buying. I asked if I could put a reserve down so others couldn’t buy it while I considered my options. I paid £100 and the receipt said “hold for 2 weeks”.

Since then, I have done a lot of research and the car year and engine has so many bad reviews. My view was I was not going to buy the car. I was aware the deposit was non-refundable. Today I received a call saying my car is ready for collection. I was confused as I hadn’t agreed to buy the car, but it seems they had prepped it for collection.

Looking online I have seen some say that a deposit makes a contract legally binding. However, I have not seen any contract or terms and conditions. I was just told verbally the £100 was non-refundable when I took it for test drive. I’m now worried I have entered into a contract to purchase a car where I only intended to put a reserve on whilst I considered my options.

What rights do I have? Can they try to get the full amount off me? Will they charge me for vehicle preparation? I accept I won’t get the £100 back, but can they try to get anything else? I was unaware they were prepping the car and I haven’t signed anything.

the_lunatic_is_in_my_head

What you said doesn’t form a contract, at least not for anything more than an agreement of here’s £100 not to sell to anyone else for two weeks whilst I think about it.

Problem is if that was verbal it’s he said, she said but worst case scenario is a few quid for costs which a busy car dealer shouldn’t have the time to bother chasing via small claims. 

If you had a contract and breached it the CRA prevents them taking full payment, the ordinary position would apply, costs of reselling when they find another customer. 

The reserve fee come up here recently, I’m not sure if you’d be entitled to it back but did note a fair few car dealers say on their website it’s refundable.

Not sure if that’s because they have too or to encourage you through the door.

user1977

Grecian123 said:

Today I received a call saying my car is ready for collection. I was confused as I hadn’t agreed to buy the car, but it seems they had prepped it for collection.

But they haven't said they think you've entered into a binding contract to buy it, or demanded more money? Think you're worrying about nothing.

born_again

Did you sign anything.
How did you pay?

pinkshoes

You just correct them and say you haven't bought a car, you just paid a £100 non refundable deposit to hold the car for 2 weeks whilst you do some research to see if the car was right for you. Just tell them that you have decided against the purchase so they're free to sell to someone else now.


Did you sign anything? Did they give you a copy?

nyermen

Any contract and wet signature is key - I always have had to sign that I'm buying the car etc.

worst case scenario is a few quid for costs which a busy car dealer shouldn’t have the time to bother chasing via small claims. 

Hopefully they haven't gone and done the V5 (or there's another owner on the counter)

Tucosalamanca

It would be common sense to tell them that you no longer want the vehicle.

You put down a deposit, the expectation is that you're going to purchase, unless you tell them otherwise.

macman

The chances of them sueing you for breach of contract are negligible. What was the price of the car? £100 is hardly a sizeable deposit. 
Most likely they will just retain your deposit and sell it on.

Grumpy_chap

Grecian123 said:

I have been looking for a used car and took a particular car for a test drive. I really liked the car, but needed to have a think before buying. I asked if I could put a reserve down so others couldn’t buy it while I considered my options. I paid £100 and the receipt said “hold for 2 weeks”.

Since then, I have done a lot of research and the car year and engine has so many bad reviews. My view was I was not going to buy the car. I was aware the deposit was non-refundable. Today I received a call saying my car is ready for collection. I was confused as I hadn’t agreed to buy the car, but it seems they had prepped it for collection.

Looking online I have seen some say that a deposit makes a contract legally binding. However, I have not seen any contract or terms and conditions. I was just told verbally the £100 was non-refundable when I took it for test drive. I’m now worried I have entered into a contract to purchase a car where I only intended to put a reserve on whilst I considered my options.

What rights do I have? Can they try to get the full amount off me? Will they charge me for vehicle preparation? I accept I won’t get the £100 back, but can they try to get anything else? I was unaware they were prepping the car and I haven’t signed anything.

The devil is in the detail here.

Did you agree a contract to buy the car for £X and the £100 was a deposit amount to be deducted from £X when the car was collected?

Did you pay £100 for the Dealer not to sell to any other party for the two-week period?

Does the Trader have the same understanding of what the agreement was as you do?