Citroen Berlingo Multispace - DEPOSIT ON NEW CAR

Honest John Back Room » Legal matters
What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
View Threaded
Thu 22 May 2014 11:45
Citroen Berlingo Multispace - DEPOSIT ON NEW CAR - SULLY

A friend/neighbour ordered a new Berlingo from a Citroen dealer.

There was quite a dely in obtaining the spec. she wanted, so they found a car in stock ("the only one") and said they would register and transport it for her. They took £500 deposit.

The next week she saw a new Ford Tourneo for about the same price and much preferred it, so she phoned to cancel. They said they required confirmation of cancellation in writing, which she did the next day.

Citroen are now refusing to refund any of the £500 deposit. Is this normal/reasonable ?

Reply | Report as offensive | Link
Thu 22 May 2014 12:58
Citroen Berlingo Multispace - DEPOSIT ON NEW CAR - Bromptonaut

Normal and reasonable. If they'd got as far as registering it I'd have thought loss would be more as car's potential value was reduced.

Edited by Bromptonaut on 22/05/2014 at 13:03

Reply | Report as offensive | Link
Thu 22 May 2014 13:30
Citroen Berlingo Multispace - DEPOSIT ON NEW CAR - RobJP

She made a legally binding contract, because, whether or not it was in writing, a contract is formed when money changes hands.

If they REALLY wanted to, then they could force her to complete on the purchase, so she has got off very lightly.

Reply | Report as offensive | Link
Fri 23 May 2014 13:38
Citroen Berlingo Multispace - DEPOSIT ON NEW CAR - slkfanboy

Sadly it is too late. Could have got out of it asuming she was purchasing on credit. Had she told the finance company she could noy afford the loan, they could not legally lend her the money. In such cases you can get the deposit refunded

Reply | Report as offensive | Link
Sat 24 May 2014 18:34
Citroen Berlingo Multispace - DEPOSIT ON NEW CAR - Andrew-T

A friend/neighbour ordered a new Berlingo from a Citroen dealer.

Citroen are now refusing to refund any of the £500 deposit. Is this normal/reasonable ?

Seriously, what did she think the 'deposit' means? It confirms a promise to proceed with a purchase, which a buyer can back out of by forfeiting the deposit, which compensates the seller for cost and inconvenience. Most deposits are 'non-refundable', but some generous outfits may ignore that if they are not seriously out of pocket, in the interest of customer goodwill.

Reply | Report as offensive | Link
Sat 24 May 2014 21:23
Citroen Berlingo Multispace - DEPOSIT ON NEW CAR - Brit_in_Germany

My basic understaning of contrct law is that in England, penalty terms in contracts (here forfeit of deposit) are unenforceable and the dealer would only be entitled to the actual damage resulting from the breach of contract. Depending on how advanced the sale was, this could be less than the deposit.

Reply | Report as offensive | Link
Sun 25 May 2014 00:07
Citroen Berlingo Multispace - DEPOSIT ON NEW CAR - Andrew-T

Depending on how advanced the sale was, this could be less than the deposit.

... and perhaps comparable with the cost of invoking the contract law?

Reply | Report as offensive | Link

10 warranty myths exposed

Here’s how to sort the fact from the fiction when it comes to car warranties.

Cheap Car Warranties

From which small car to buy at which price point to the best UK-built cars, our Top 10s have the lot. Click now for your shortlist.

Unsure of what to buy? Our Top 10s are here to help you....