Deposit return

Lindawh

My son has put a 250.00 deposit on a used car at a garage a few days ago he did not get the deal he was expecting so he has asked for his money back. The garage has refused to give him his money back can anyone tell me where he stands with the refund please

Nail_Lad

He'd paid a deposit to secure the car and then backed out? I think I'm right in saying he has no recourse. The whole purpose of a deposit is to protect the seller in case the buyer backs out.

dzug

I think legally the garage can probably force him to go through with the purchase.

They'll be happy just keeping the deposit though.

That is unless anything specific was agreed at the time of paying the deposit.

hartcjhart

Yes sorry to say they do not have to give the deposit back,however if there is another car they have for sale that he would like you could ask if they would allow the money against it,

again though they do not have to

DealDrivers_company_representative

Surely he wouldn't have handed over a deposit before the price was even agreed?

Or are you saying the dealer changed the price after the deal was struck and the deposit handed over?

Was there a written quote in place he can use as recourse?

zincoxide

I'd tell your son to contact citizens advice - they could probably resolve this with one phone call to the garage owner.

Altarf

Nail_Lad wrote: »

I think I'm right in saying he has no recourse.

Not quite true.

dzug wrote: »

I think legally the garage can probably force him to go through with the purchase.

No they can't.

hartcjhart wrote: »

Yes sorry to say they do not have to give the deposit back,however if there is another car they have for sale that he would like you could ask if they would allow the money against it, again though they do not have to

Again not true.

The OP's son has entered into a contract to buy the car. If they fail to complete the contract by buying the car, then the dealer could sue for breach of contract. A court would never require a person to actually complete the contract by forcing them to buy the car, instead they would award damages to the dealer.

The damages that a dealer would be entitled to is the loss that they have actually, not theoretically incurred. Examples would be the difference between the agreed sale price and what the dealer eventually sells the car for, any additional advertising, loss of interest, but not theoretical costs such as 'storage'. The dealer also has a duty to minimise any losses (i,e, they can't sell the car for 10p) and they would have to prove the loss.

However... as the OP says "he did not get the deal he was expecting" it sounds like they were still discussing price or a trade in, so I would say contract was not fully complete. If so the dealer doesn't have leg to stand on.

Anyway, as zincoxide says, go and see Citizens Advice.

Hintza

My understanding is that you pay a deposit when you have agreed all terms and that deposit ensures the seller holds the car for the specified time.

Assuming the garage has not moved the goal posts and it is the OPs son who has, then he is liable for the deposit.

Assuming this is the case it would be morally wrong for the son to go to the CB. A bit of personal responsibility???

harveybobbles

My words to my customers are "if you're certain you want the car, leave a deposit.."

If they pull out later that day/week, then I keep their doposit (I ask for £100)

One of my customers went to Trading Standards in this situation and they told him to get knotted as he'd left £100 to secure the car and I'd taken it off sale/out of all adverts.

But if he came back a few weeks later I'd let him use his deposit he lost on another car.

hartcjhart

sorry Altarf you have got it wrong, he left a deposit and did not continue with purchase,he is not entitled to money back.

here we go again with the take em to court mob,get a life it does not work like that,

dont call us dodgy dealers when its you customers that are dodgy

CA will not sort it,I must go search some other threads about CA,SOGA,that people try