Hi everyone. Need some advice on the following (I appreciate that it is a long post)
I telephoned a local car dealer on Wednesday with a view to part-exing my current car for a used vehicle that they had advertised on the internet.
To cut a long story short....
Wednesday Week 1:
The dealer provided me with details of monthly payments, deposit and part-ex. Initially the numbers were too high but they came back with a better offer. Booked a test drive for Saturday
Finished work early and managed to get to dealership in the evening. Test drove car. Was advised by dealer that they could get me a cheaper car to the same spec but would have to order it in. He said that if there was any problem with the car that they ordered in or I didn't fancy it then I could have the one I had just test driven but he would have to sell it to me at a higher price.
I informed them that I could hand back my current car and asked if this would make a change to the finance. Dealer recalculated figures and provided me verbally the monthly payment figures.Dealer asked what he had to do to get me into the car.
I said I would think about it.
Friday Week 1:
Dealer telephone and re-iterated that there was a vehicle available as per the spec of the test driven car and would need to order it in. I was told that he needed a £500 deposit to put an order in with the supplier as he had to buy it. I agreed to pay a deposit and did so by credit card. I was not told that the deposit was refundable or not refundable and accept that I did not ask. They also took some details to prepare the finance quote. They asked for bank details but I didn't have them. They said that they didn't need them at that time.
Dealer called back later in the day and confirmed that they had ordered to car and that the finance had been approved (didn't say by whom - I thought it was the finance manager, but, it was actually the finance company - I didn't realise that they were actually submitting a proposal).
I was told that when I come in on Saturday that I should bring my driving licence and I would have a chat with the finance manager.
Saturday Week 1:
Went to the dealership with my family as I intended to make sure that the wife was happy with the car.
Took the car out on a test drive. Dropped the family back home and then went back to dealership as I knew I had to talk to the finance guy. When I got back I was told by the salesman that the finance manager had left for the day. I was told that he would call me.
Monday Week 2:
Telephoned the dealership to ask them to fax me the finance quote as I had not seen any paperwork (this included terms and conditions and neither had I signed anything). I also wanted a breakdown of what I was expected to pay and whether there were any hidden charges and what the APR was.
The dealer called me back and told me he didn't know what the APR was but the monthly payments were X, deposit Y and that there was a Z option to purchase fee (this had not been mentioned before).
I was also told the car would be with them on Thursday.
I did my own calculations and found that the APR was something like 15%. I also checked the marques website and found out that the finance being offered by the same finance company for similar vehicles was nearer 12%, the option to purchase fee was less and so were the monthly payments.
I telephoned the dealer and informed them of this and told them that if they couldn't get the finance down that I would not be proceeding.
(ok - hang on in there)
The salesman told me that I would need to talk to the finance manager and he was not around till Tuesday.
Later the salesmanager called me and provided details of a better deal for me and outlined the payments. I stated that this would save me N and was a better deal for me. Salesmanager re-iterated that he had ordered the car.
Tuesday Week 2:
Based on the numbers I had been provided I worked out what the finance would cost me and what my minimum liability would be to the finance company if I needed to terminate the finance.
Based on my figures my view was that I couldn't commit to such a large liability given the current job security and economic situation. The deal was over 5 years and I would have to pay back at least 50% of the finance to terminate.
Emailed the dealer informing them that I would not be pursuing a purchase.
Wednesday Week 2:
Called dealer and explained situation. I was then told that I would not get my deposit back.
Thursday Week 2:
Dealer called me back offering a different finance deal. I explained that I could not commit as previously explained.
Dealer kept trying to offer me different finance deals.
Got home in the evening to find out that I had a letter from the finance company telling me that my application had been approved.
Friday Week 2:
Emailed the dealer explaining that I didn't know anything about a finance application and outlined what I wanted them to do. I was also concerned as to what my financial liability was as a result of this.
Called the dealer to be told that I was told at the time that a proposal was being made. They confirmed that I had no financial liability other than my deposit as I had not signed anything.
Regarding my deposit I was told that I would not get that back as he had ordered the car for me from the manufacturer used car pool and that he was now left with a vehicle he didn't need and would lose money as a result.
The best he could do was offer to repay the deposit if he did not make a loss.
We agreed to leave it at that and not have any further discussion. He stated that he still wanted my business and I could use the deposit against another vehicle.
(ok - thanks for keeping with it - this is the home straight)
It is now Saturday Week 2:
Whilst I do want my deposit back - I appreciate that the dealer may lose money on this. Whilst I had not committed to purchasing a vehicle (my belief was that they were getting a vehicle for me to consider for purchase - remember I hadn't actually seen the vehicle, I had not signed anything and had not been presented with Ts&Cs either verbally or in writing) some form of contract must be in place as I have paid £500 deposit (on credit card - paid over the phone - customer not present - no receipt provided).
My concern is this: If it is viewed that I canceled and am therefore in breach of whatever contract may exist am I liable for anything else financially? Is my deposit sufficient to cover any claim that the dealership may be able to make against me? OR am I actually legally entitled to a full refund?
As I said, I'd like my deposit back. However, my big concern is whether the dealer can claim against me for loss of earnings etc.
Unfortunately, they don't have any other vehicle available which would suit my requirements otherwise I would have agreed to purchase another vehicle from them.
Thanks in advance.