We went to look at a car and agreed to buy one and left a £100 deposit on Mon 5^th May and where due to pick it up Fri 9^th May. Since then we have found one 6months newer and £500 less. I phoned the guy and told him I didn't want the car, obviously he wasn't too impressed (quite aggressive on the phone to be honest – I was shaking when I put it down!) as he had serviced and MOTed it. It needed MOTing as he has to sell it in a road worthy state, but the service was offered and not requested by me.

He has informed me that I will have to pay a 10% (£400) cancellation charge or give him written confirmation of a reasonable reason why I’m not buying the car – redundancy etc. I have signed an order form saying that I agree to buy the vehicle, the £100 deposit being taken and to pay the balance as soon as the vehicle has been completed for delivery. No mention of cancellation or cancellation charge though.

I’m sure the £100 deposit will cover the MOT and service, and I don’t see why I should give him the reason. Any advise please?

Hi --- Legally he can keep your deposit if he can show that you changing your mind has put him out of pocket, that means the cost of the MOT at roughly £40 & the service £60 total £100 that you have paid, he could justifiably keep to recover his costs.

He would have had to make the car road legal anyway.... to sell it to anyone else, so the expenses he has incurred are not 100% attributable to yourself.

You can realistically say Goodbye to the £100 deposit you have paid though.

The further £300 cancellation charge he is not entitled to, he simply cannot add further conditions to an existing contract just because he feels aggrieved at the loss of the sale..... for which the £100 loss you have incurred should reimburse him fully. I think no matter how you explain the withdrawal from this purchase, he will still not be happy.....so be prepared to set the £100 loss against the savings made on the other vehicle, there is no further point in making what he will only want to see as excuses to him. !!!

TIt was from garage.

Thanks for your reponse it's greatly appreciated. This is basically what I thought - I am quite willing to forego my £100 deposit but wasn't prepared to give him anything more. I have got an apt at the CAB on Tues so hopefully they will help me pen a letter to him telling him in the nicest possible way to go whistle for the extra £300. Hopefully that will be the end to it - I don't like the thought of someome chasing me for money - I always pay bills & credit cards straight away.

Thanks again!