Looking for some advice please...
I put a holding deposit down on a car last Thursday over the phone. I saw the car on the website and phoned the dealer. They took a holding deposit which acted as security for me buying the vehicle subject to a test drive and being in the described condition.
The £1000 was taken out of my Visa account on Friday morning. I called to confirm everyhing was OK with the payment. I arranged with the dealer to visit them on Sunday.
I had a call on Saturday the day before I was due to see the car. The salesman said there had been a mix up and the car has been sold to someone else who is in the trade.
This is a main dealer network with brands including Aston Martin, Mercedes, BMW..
The dealer principal will not be back until after the Bank holiday Monday so I have not spoken with him yet.
This car was a great deal and I cannot find another one trade or private for at least £3000 more.
What are my rights? What can I realistically expect from the dealer, compensation, they source a simialr vehicle for the same price?
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What paperwork do you have, as this will tell you the extent of the contract you have entered into which they have beached.
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It may be worth getting onto your credit card company. If they took money out and it was not the deposit for this car what was it for? Could nearly be construed as theft. A similar thing happened to me privately some years ago so nothing I could really do apart from have a good swear once I had my deposit back. It did happen to my mother twice a long time ago - strangely both Riley 1.5s (the big Minor model). She suspected she was gazzumpted on both occasions.
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I have no paperwork as everything was done over the phone....
However as I understand it by taking my money the dealer have entered into a legally binding contract, and all the important terms have been agreed on, including the price. If they back away from the deal, they will be in breach of contract, and I think i should be entitled to claim compensation, over and above the return of the deposit.
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The dealer should refund your deposit. That's all.
When buyer pays deposit, if he doesn't buy later, he loses the deposit.
If dealer can't supply the car, he would simply need to refund your money.
Theoretically, you can claim whatever it had cost of not having the car as agreed - but that would require a help from solicitor and since you have no paperwork etc. it is hardly worth it.
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I put a holding deposit down on a car ... which acted as security for me buying the vehicle subject to a test drive and being in the described condition.
They've behaved badly but all you are likely to get back is your deposit (although you could try to play on their guilt).
If you hadn't liked the car on test drive, you would (I infer) not have bought it. You might argue that your "deposit" was paid to persuade them not to sell the car, and that your loss is of the chance of such a good bargain, but it will be difficult (they would no doubt say the car was fairly priced; you hadn't seen it and were therefore in no position to assess whether the price was fair for that particular car ...)
No, play on their feelings; maybe get head office involved, or the Chairman, or similar - you might get a better deal from them on another car (but I doubt it).
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Important to distinguish between a deposit as part of a sale or a deposit, as you call it, of the 'holding' variety. The former implies an agreed sale, the latter a notice of intent on your part & agreement not to sell to another party in the meantime, for them.
They obviously broke that agreement, but without paperwork (especially noting any time frame for agreement to buy/sell) it seems to me, rather moot. They probably had a better and/or confirmed sale before you got there - so not really surprising, though a little unfair on you.
Presumably, if it came to court as 'breach of contract' of some kind , they would suggest it was a mix-up in 'good faith' & maybe that the car fell short in some way & was disposed of alternatively & that either party could withdraw at that stage without penalty. You might wring a little compensation from, either via a small claims court or informally - but wouldn't you rather just retrieve your deposit & go in search of a better dealer - they've 'shown their hand' to some extent already in the way they've treated you thus far, why give them more opportunity to shaft you post-sale?
Do try the guilt-trip approach, it may work - perhaps a bit of travel & hassle-time will be thrown in - although I doubt it.
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Your experience - and I suffered it once many years ago after agreeing a deal with a local outlet to part exchange my then car for a used vehicle on offer, only to find it had been "sold" when I arrived next day - highlights the reason why the general public generally lumps car salesman in with estate agents etc as being a detested group of individuals.
In my case the "deal" had been made with a junior salesman late in the day and I arranged to go back next dinnertime; seems the PX for my car had been way too high, so the car was quietly made to disappear before I got there.
However, it's an ill wind as they say; at another dealer in the town a few days later, I found not only an identical model with a similar mileage, but also in the colour I had wanted and at the price I wanted to pay.
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> When buyer pays deposit, if he doesn't buy later, he loses the deposit.
> If dealer can't supply the car, he would simply need to refund your money.
And you don't see that as ever so slightly one sided?
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> When buyer pays deposit if he doesn't buy later he loses the deposit. > If dealer can't supply the car he would simply need to refund your money. And you don't see that as ever so slightly one sided?
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Yes it's one-sided.
AKA capitalism!
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Advice: be nice to the dealer and you may play on his better nature the next time a similar motor comes in.
If you swear at him, you'll never be able to buy from him again.
It's not as though you've lost anything, is it?
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Wish soe of you dealers would bear the above comment in mind when the boot goes to the other foot, and return deposit ................ after you haven't lost anything either.
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Sounds like he may have undersold the car ???
Ask him for details of the dealer that now has the car after all he will be wanting to sell it on if has a dealer.
Edited by Pugugly on 06/05/2008 at 20:02
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typo corrected
Edited by Pugugly on 06/05/2008 at 20:02
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The best advice I can give, now that I hope the DP is aware at the garage, is to phone asking for a face to face meeting. Meanwhile take a letter (always keep a copy) stating that if they do not return your money, or supply a similar spec car, you will see him in court. Try also to get a printed copy of your credit/debit card statement.
Keep the letter in your pocket as plan B if he does not offer you your deposit back.
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