Frustrated contract?

GDB2222

I contracted to buy a new MG S5 from a fairly large dealership. The price agreed was about 70% of list price, as the manufacturers are subsidising sales for cars registered this quarter. 

The dealer took a deposit, and generally acted in a way to signify that they had accepted my order. 

They have now (several days later) told me that they are unable to fulfil the contract because the car they intended to offer me has been damaged and cannot be sold. They are offer no evidence that this is actually the case.

They say I can have the car specified, but I'll have to pay 100% of list price, as it will be a factory order. That's around £10k more.

The order form includes T&Cs that don't cover this situation. The order does not specify that registration must be this quarter, although this was understood and agreed by all concerned. 

I was sent an email by the dealer: "Price increases only apply to factory-ordered vehicles where there is a significant manufacturer price change. As the vehicle you’re purchasing is physical stock already in the country, this won’t be an issue."

I am a bit annoyed that the dealers seem to be expecting me to take a £10k price hit on the flimsiest of pretexts. 

What's a sensible course for me to take, please?   

   

cymruchris

Ask them are there any other subsidised cars available? Otherwise walk away and get something from another manufacturer?

Aylesbury_Duck

Find another car elsewhere.  Do you really want to spend c.£20k somewhere thst you don’t trust and will presumably have to have a relationship with for the next few years?

user1977

Are you sure about your interpretation of the T&Cs (both about when the contract is formed and cancellation by the dealership)? I would expect any sensible dealership to cover the possibility of them being unable to get hold of the vehicles for one reason or another.

the_lunatic_is_in_my_head

user1977 said:

Are you sure about your interpretation of the T&Cs (both about when the contract is formed and cancellation by the dealership)? I would expect any sensible dealership to cover the possibility of them being unable to get hold of the vehicles for one reason or another.

Would they not find it hard to take a deposit but state no contract was formed (regardless of terms)?

Grumpy_chap

GDB2222 said:

I am a bit annoyed that the dealers seem to be expecting me to take a £10k price hit on the flimsiest of pretexts. 
   

Presumably you would not want the car if it was damaged and repaired as, after all, you thought you were buying another brand new car.

The Dealer cannot supply the car from stock (and undamaged / repaired) if they do not have it.

You don't want to pay list price for a brand new car.

The first thing I would do is read in detail the terms & conditions of the order and what clauses it has for cancellation (by either party).  That may set out clearly what the remedy is here.  It may guide your next steps.

Ultimately, if the current dealer is able to cancel the sale, then the best thing to do might be to take the cancellation (at which point the dealer's hunger for a sale might kick back in), but then simply keep looking for the same car again at the same price as you originally intended to pay.  There will be another dealer with another financial target to meet in not very long that can offer the same deal again.  You might even find that same deal again very quickly - look on Autotrader or Carwow.

That £10k discount does not seem that rare:
https://www.autotrader.co.uk/car-details/202504171448642?
https://www.autotrader.co.uk/car-details/202504121258126?

user1977

the_lunatic_is_in_my_head said:

user1977 said:

Are you sure about your interpretation of the T&Cs (both about when the contract is formed and cancellation by the dealership)? I would expect any sensible dealership to cover the possibility of them being unable to get hold of the vehicles for one reason or another.

Would they not find it hard to take a deposit but state no contract was formed (regardless of terms)?

No, I think that's feasible. I'd prefer to see the contract though.

GDB2222

TERMS AND CONDITIONS

Nothing in this document is intended to affect, nor will it affect, a consumer's statutory rights.

1. This order and any allowance in respect of a used motor vehicle offered by the purchaser are subject to acceptance and confirmation in writing by the seller.

2. Accessories fitted as new to the vehicle will be entitled to the benefit of any customer warranty given by the manufacturers of those accessories.

(a) The Seller will endeavour to secure delivery of the goods by the estimated delivery date (if any) but does not guarantee the time of delivery and shall not be liable for any changes or claims of any kind in respect of delay in delivery. (Seller shall not be obliged to fulfil orders in the sequence in which they are placed.)
(b) If the Seller shall fail to deliver the goods within 21 days of the estimated date of delivery stated in this contract, the Purchaser may by notice in writing to the Seller require delivery of the goods within 7 days of receipt of such notice. If the goods shall not be delivered to the Purchaser within the said 7 days the contract may be cancelled.

1. If the contract is cancelled under clause 3, the deposit shall be returned to the Purchaser and the Seller shall be under no further liability.

2. Failure to take the vehicle and pay the balance within the agreed time will allow the Seller to consider the contract repudiated and, where the sale is not the subject of a prospective regulated agreement under the Consumer Credit Act 1974, the sum deposited shall be lost. This will not affect the Seller's rights to recover damages for loss or expenses arising from the Purchaser’s breach.

3. The goods remain the property of the Seller until the price has been discharged in full. A cheque is not treated as payment until cleared.

4. Part‑exchange conditions:
   (a)
   (i) The used vehicle must be the absolute property of the Purchaser and free from restrictions; or
   (ii) If subject to finance, the allowance will be reduced by the settlement amount.
   (b) The vehicle must be delivered in the same condition as examined (fair wear and tear excepted).
   (c) The used vehicle must be delivered on or before delivery of the new goods.
   (d) The used vehicle must be delivered within 14 days of notification that the new goods are ready.
   (e) Glyn Hopkin may review and adjust part‑exchange values if information is incorrect or delivery is more than 6 weeks from order. All valuations depend on market conditions, usage, final inspection, and settlement figures. Finance acceptances are valid for 90 days. Deposits are part‑payment and non‑refundable.

5. If any of the above (other than 7(e)) is not fulfilled, the Seller is discharged from accepting the used vehicle and the Purchaser must pay the full price in cash.

6. The Purchaser may arrange for a finance company to purchase the goods within 7 days of notification that the goods are ready. If so, earlier clauses cease to apply, but the Seller will buy the part‑exchange vehicle at the agreed allowance and account to the finance company.

(a) For used vehicles sold in consumer sales:
(i) They are sold subject to conditions and warranties implied by the Consumer Rights Act 2015.
(ii) The Purchaser must examine the vehicle before signing; defects that such examination ought to reveal are excluded from the implied condition of satisfactory quality.
(iii) Defects notified before signing are excluded from the implied condition.
(b) In non‑consumer sales, all statements, conditions or warranties as to quality or fitness are excluded.

(a) VAT payable is the amount legally due at the time of taxable supply.
(b) If the manufacturer changes the recommended price before delivery:
(i) If increased, the Seller will notify the Purchaser within 7 days; the Purchaser may cancel within 14 days.
(ii) If reduced, the Seller will notify the Purchaser of the reduction allowed; if not equal to the full reduction, the Purchaser may cancel within 14 days.
(c) If the manufacturer ceases to make the goods, the Seller may cancel the contract without further liability.

1. Fuel consumption figures supplied by the manufacturer are not warranted by the Seller and depend on driving style, traffic, and loading.

2. Motor insurance is the Purchaser’s responsibility. The Seller does not provide or sell insurance. Free 7‑day cover (if available) must be arranged directly with the insurer.

(a) If you withdraw from a Santander Consumer Finance agreement, the decision is irreversible and you must find alternative funding, including any Finance Deposit Allowance.
(b) If you withdraw or repay within six months, the vehicle becomes ineligible for free servicing and you must repay any Finance Deposit Allowance or deposit contribution.

---

GDB2222

I won't post the order form to which these T&Cs were attached, but it specifies the make, model, colour of the car. There was no specific car ordered, and the car is still easily available for factory order. The dealer's concern is obviously that the agreed price was based on incentives they would receive for sales completed this quarter.  They don't know what the incentives will be next quarter, but probably much lower for this particular model. 

The order form specifies an expected delivery date of 31 December. 

GDB2222

Grumpy_chap said:

GDB2222 said:

I am a bit annoyed that the dealers seem to be expecting me to take a £10k price hit on the flimsiest of pretexts. 
   

Presumably you would not want the car if it was damaged and repaired as, after all, you thought you were buying another brand new car.

The Dealer cannot supply the car from stock (and undamaged / repaired) if they do not have it.

You don't want to pay list price for a brand new car.

The first thing I would do is read in detail the terms & conditions of the order and what clauses it has for cancellation (by either party).  That may set out clearly what the remedy is here.  It may guide your next steps.

Ultimately, if the current dealer is able to cancel the sale, then the best thing to do might be to take the cancellation (at which point the dealer's hunger for a sale might kick back in), but then simply keep looking for the same car again at the same price as you originally intended to pay.  There will be another dealer with another financial target to meet in not very long that can offer the same deal again.  You might even find that same deal again very quickly - look on Autotrader or Carwow.

That £10k discount does not seem that rare:
https://www.autotrader.co.uk/car-details/202504171448642?
https://www.autotrader.co.uk/car-details/202504121258126?

I was aware of those other offers, and indeed I am in the process of buying from a different dealer. Sadly, it's not the same colour, but it's cheaper. 

saajan_12

GDB2222 said:

TERMS AND CONDITIONS

(a) The Seller will endeavour to secure delivery of the goods by the estimated delivery date (if any) but does not guarantee the time of delivery and shall not be liable for any changes or claims of any kind in respect of delay in delivery. (Seller shall not be obliged to fulfil orders in the sequence in which they are placed.)

(b) If the Seller shall fail to deliver the goods within 21 days of the estimated date of delivery stated in this contract, the Purchaser may by notice in writing to the Seller require delivery of the goods within 7 days of receipt of such notice. If the goods shall not be delivered to the Purchaser within the said 7 days the contract may be cancelled.

1. If the contract is cancelled under clause 3, the deposit shall be returned to the Purchaser and the Seller shall be under no further liability.

2. 
   

This part of your terms seems to cover it, namely if they don't provide the vehicle then they must refund the deposit and have no further liability. Everything about the vechicle availability and incentives provide context but don't seem to actually affect the above.