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I've ordered a new car but the delivery date has been put back. Can I cancel it?

On 27 June I ordered a new car over the phone from a main dealer. I used an internet broker to get the deal but am still paying several hundred pounds more. I was happy with this as the dealer is close by. Since then I've had to do all the chasing to to try and get a delivery date. Despite all this chasing the best info I have is that it will be early November or, at best, late October before the car is ready. I am selling my current car to my sister and she needs it in September, which will leave me without a car for a period of time. I did mention cancelling the order but was told I would lose my £500 deposit, as it would cost this much money to take the order off of the main computer order system. I have still not signed anything in writing regarding this order, just the £500 taken off my credit card for the deposit. Where do I stand?

Asked on 29 August 2010 by cescsrightfoot

Answered by Honest John
To cancel your order would be a breach of contract, so the dealer could actually sue you for more than the £500 deposit. What is it? A German car? Volkswagen/Audi is holding back a lot of cars to the UK market because it makes much more for them on other markets due to the lousy exchange rate.
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