Refund of deposit on cancelled motorbike order

I paid a deposit of £100 on a secondhand motorbike from a dealer about a month ago. I then made a part payment of £900 towards the full cost of the bike (£3000) about 2 weeks afterwards.

Due to financial reasons I'm unable to pay the balance and have had to cancel the purchase. The bike dealer said they will only refund £700 of the part payment.

I have a sales order from them which states £100 as deposit and £900 as 'payment'. The sales order says deposits on cancelled purchases are non-refundable. Surely, then, they are only able to keep the £100 deposit and should refund the £900 part payment in full?

Does anyone know if there is any legal basis for keeping £300? I've accepted the refund of £700 over the phone under duress just to get my money back. However, I'm considering trying to recover a further £200 from the dealer. After all, they will be selling the bike to someone else soon enough.

Comments

  • pia98jf wrote: »
    I paid a deposit of £100 on a secondhand motorbike from a dealer about a month ago. I then made a part payment of £900 towards the full cost of the bike (£3000) about 2 weeks afterwards.

    Due to financial reasons I'm unable to pay the balance and have had to cancel the purchase. The bike dealer said they will only refund £700 of the part payment.

    I have a sales order from them which states £100 as deposit and £900 as 'payment'. The sales order says deposits on cancelled purchases are non-refundable. Surely, then, they are only able to keep the £100 deposit and should refund the £900 part payment in full?

    Does anyone know if there is any legal basis for keeping £300? I've accepted the refund of £700 over the phone under duress just to get my money back. However, I'm considering trying to recover a further £200 from the dealer. After all, they will be selling the bike to someone else soon enough.

    Contract law allows them to recompense for damages- they have a duty to minimise them.

    Ask them to quanitfy a £300 loss by your withdrawal.

    Ultimately I doubt you will have much case as you shouldnt have entered into a contract you couldnt afford and they have lot stime and potential sales due to it.
  • Thanks for the reply. What if I had simply changed my mind about the purchase? I paid the £900 part payment in good faith. They didn't actually ask me to, I offered (stupid of me, I know). If I had only paid the £100 deposit that's all they would have been able to keep and I would have accepted this, since it clearly states on the sales order the refund is not refundable. It seems to me they are taking advantage of the situation.
  • pia98jf wrote: »
    Thanks for the reply. What if I had simply changed my mind about the purchase? I paid the £900 part payment in good faith. They didn't actually ask me to, I offered (stupid of me, I know). If I had only paid the £100 deposit that's all they would have been able to keep and I would have accepted this, since it clearly states on the sales order the refund is not refundable. It seems to me they are taking advantage of the situation.


    They could have sued you for more than £100 if they had lost that.

    However, I would suggest you insist they quantify their £300 charge for damages due to breach and state that unless they can you will sanction small claims action to recover the difference between what they have paid and can quantify.
  • Takoda
    Takoda Posts: 1,846 Forumite
    Yeah it seems harsh but they've now got a bike on their hands that they could've perhaps sold during that month when you were making your mind up whether you could afford it or not.

    Firms are strapped for cash now - they can't afford to have stock on their hands.

    Might be worth your while asking them to perhaps give you the £200 off another bike at some point in the future when your finances have picked up.

    Or take them to the small claims court to get it back. Some years ago I returned something to a dealer and they refused to refund me as promised. Took them to small claims and they apid up before it went to court - in fact within hours of receiving the summons.

    I'm a bit confused though about why you offered them more money after 2 weeks...looking back it wasn't wise but you couldn't have known that at the time.

    My advice go and talk to them again and take a witness with you.

    There are also a couple of bike sites that you might ask for advice https://www.visordown.com and https://www.therevcounter.com

    Bet you're gutted you can't have the bike. God luck with getting it sorted.
  • Takoda, thanks for you helpful and understanding reply. You summed up exactly how I feel - gutted at not being able to buy the bike and facing a £300 loss to boot.

    I understand the economic climate is making it hard for many firms but when I placed the order the salesman said they were selling 3 bikes a day!

    The reason I offered more money is because I had half the money and knew I wouldn't be able to get the rest until the end of this month. That would be 6 weeks after I paid the deposit and I wanted to show I was a serious buyer (and also so they wouldn't sell the bike to someone else).

    I understand I'm largely to blame for the situation but I also feel I'm being taken advantage of somewhat. I might consider the small claims route. I certainly would't be comfortable buying another bike from them. It might just be a case of a lesson learnt the hard way...
  • sarahg1969
    sarahg1969 Posts: 6,694
    First Anniversary Combo Breaker First Post
    Forumite
    "They could have sued you for more than £100 if they had lost that."

    It depends what the T&Cs on the contract say. If they say the buyer will lose £100 on cancellation of an order, then that's how much the buyer should lose.
  • Takoda
    Takoda Posts: 1,846 Forumite
    pia98jf wrote: »
    Takoda, thanks for you helpful and understanding reply. You summed up exactly how I feel - gutted at not being able to buy the bike and facing a £300 loss to boot.

    I understand the economic climate is making it hard for many firms but when I placed the order the salesman said they were selling 3 bikes a day!

    The reason I offered more money is because I had half the money and knew I wouldn't be able to get the rest until the end of this month. That would be 6 weeks after I paid the deposit and I wanted to show I was a serious buyer (and also so they wouldn't sell the bike to someone else).

    I understand I'm largely to blame for the situation but I also feel I'm being taken advantage of somewhat. I might consider the small claims route. I certainly would't be comfortable buying another bike from them. It might just be a case of a lesson learnt the hard way...

    Cool - thanks for explaining the extra payment. Small claims is a good solution I think and it doesn't cost the earth. I know exactly where you're coming from with the bike and how you feel. I've had bikes since I was 18 (which was a fair old while ago!) Currently got a black Honda CBF250, little single cylinder commuter bike - does loads to the gallon and road tax and insurance is peanuts!

    I can understand you not wanting another bike from the people who it appears are trying to shaft you. As I said good luck and let us know how it turns out.
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