M.G. - We don’t want to go down this route and have asked for our deposit to be refunded which has been refused.

It's just a shame he refused to return it in the beginning, otherwise he was only prolonging the inevitable i.e. He knew full well that you had the right to have the deposit refunded in your circumstances and was hoping to string you along into another deal. (Commission?)

They can but try I suppose... it must work in the majority of cases. !

Good luck & stay well ahead. : -- )

A result. Politely spoke to the salesman once more and reminded him that we were still looking to buy but not until earlier next year and would appreciate our deposit back in the mean time; I also voiced our disappointment that we had to go along the Trading Standards route. Just about to launch into the legal stuff and he says that the dealership values our custom and he sees no reason why we can't have our deposit back!

I don't know what's happened, perhaps someones had a word or he's read this forum. Anyway I won't get ahead of myself until I've seen the refund in black and whte.

Thanks for your help and who knows, someone in the same boat might find this info useful.

M.G.

Read this thread, a comment quoted by member, "Huckster" in his post, read the bold paragraph below from Lincolnshire trading standards regarding deposits left for a car that is to be purchased on finance.

http://www.moneysupermarket.com/community/forums/ShowThread.aspx?ThreadID=36246&PostID=154855&PermaPostID=154855&#154855

This is from Lincolnshire Trading standards report about Motor Trade Sales

"Deposits are usually considered to be non-refundable. However, if you are in breach of contract, or if
you agreed that the deposit would be refundable as an express term of the contract, then you should
return the customer’s deposit. You would also be under a duty to mitigate your losses - i.e. only take
from the deposit any losses that you have actually made.
If the deposit was taken as part of a sale which was to be completed via a finance agreement, then the
deposit must be refunded if the finance agreement is cancelled."

conmankiller:

Bear in mind though that S75 of the consumer credit act only applies to breach of contract or none delivery of goods, through bankruptcy etc.. therefore you don't have a case against the card issuer as no breach of contract or failure to deliver goods has occurred yet....and you did also give your card details vouluntarily....

Chase the garage instead, it's their responsibility to refund. !

OK conmankiller, I'll take your advice.

On the credit card front I believe that the dealer breached the contract by selling the original car from stock, as it was this particular car that I had agreed to buy.

I'll go for the dealer and let you know the outcome.

Really pleased with all your responses, many thanks.

Master Gunner - Have I missed anything?

Indeed not, in fact you should have no problems ...you seem more than capable of standing up for your own rights.!

Good luck, let us know the outcome.

Master Gunner - Under the Consumer Credit Act 1974, Section 75, I am entitled to look to them (the Credit Card Company) for a refund, as this law makes them equally liable with the trader for any breaches of contract.

Bear in mind though that S75 of the consumer credit act only applies to breach of contract or none delivery of goods, through bankruptcy etc.. therefore you don't have a case against the card issuer as no breach of contract or failure to deliver goods has occurred yet....and you did also give your card details vouluntarily....

Chase the garage instead, it's their responsibility to refund. !

conmankiller:

Master Gunner - Tell the dealers unless they refund your deposit you are taking the case to your local trading standards, and do so if needed, as you will win.

Where a deal was dependent on finance being obtained through the garage (Three party finance agreements) and for any reason the finance deal does not proceed then the intended sale collapses, the prospective buyer is then entitled to withdraw from the deal without loss of the deposit.

Thanks for the replies. Your feedback has pointed me in the right direction and my plan of action is as follows:

I’ll remind the Dealer that the sale was also based on the need to complete a regulated consumer credit agreement, which would only become ‘executed’ when signed by the debtor and creditor. As we have not received any paperwork or signed anything we are entitled to withdraw from the prospective agreement under section 57 of the Consumer Credit Act 1974.

Under Section 57 our notice to withdraw from the sale cancelled the credit agreement which means that any linked transaction to buy the car should be treated in the same way as a cancellable agreement i.e. we are entitled to a refund of our deposit.

If no movement I will inform Trading Standards.

I will keep the delivery clause in my back pocket until after the 30 days has expired (why draw the dealer's attention to it).

I also intend to write to the Credit Card Company informing them that I have tried to get a refund from the dealer but they have refused to uphold my statutory rights. Under the Consumer Credit Act 1974, Section 75, I am entitled to look to them (the Credit Card Company) for a refund, as this law makes them equally liable with the trader for any breaches of contract.

Have I missed anything?

Shame it’s come to this but hey, I suppose that’s the world we live in.

Master Gunner - Tell the dealers unless they refund your deposit you are taking the case to your local trading standards, and do so if needed, as you will win.

Where a deal was dependent on finance being obtained through the garage (Three party finance agreements) and for any reason the finance deal does not proceed then the intended sale collapses, the prospective buyer is then entitled to withdraw from the deal without loss of the deposit.

Master Gunner:

does the dealer have a defence?

Depends on the T&C but from what you have said, no.

The issue is how to enforce the agreement rights. I realise that credit card companies can be hassle but a bigger hassle than a car dealer???????

Take your point and in hindsight a lower deposit would have been less risk but at the time the deal was on the table and we were keen to proceed with no problems envisaged after all the car was supposed to be in stock.

I am focussed in that I want the deposit refunded.

A new factory build car and the waiting time conflicts with work commitments and we would prefer to hold back until Jan next year. Given the stance by the dealer (big german concern) I am bitterly disappointed and can do without the hassle of claiming back through the credit card Company. They say they are prepared to hold on to my deposit until I am ready to buy but why should they?

I am also aware that if I make a claim through my credit card Company that it will go down as a dispute amount and that interest will not be a factor but does the dealer have a defence?

Thanks for your reply by the way.

Master Gunner:

Focus, focus, focus. Do you want your £1000 back or are you fixated on the interest?

What does the dealer say when you point out the 30 days mentioned in the T&Cs. You need to note that and then make a claim from your credit card company. Forget the interest (for the moment).

For the benefit of others, when I ordered a new car I only paid £100 deposit. You should have walked at the £1000.

I would like some advice regarding my rights to a refund of a £1,000 deposit paid for a new car.

The story goes:

Saw a nearly new demo car at a dealership and took it for a test drive. Liked it but the dealer said it might be better to order a new one as there are some good deals on at the moment.

He checked the stock list and said they had the exact spec of car available, if I wanted it I could put down a deposit on it. The deal would be financed by a credit agreement. Apart from the monetary savings the deal also included an estimated delivery date within two weeks, which suited our personal circumstances. I signed the order form for the car and paid the deposit with my credit card.

Unfortunately the dealer rang the next day to say that the car had been sold and was now unavailable but no problems "I’ll order you a new factory build one to the same spec but the lead time will be about 8 to 10 weeks."

We don’t want to go down this route and have asked for our deposit to be refunded which has been refused.

Am I entitled to this refund? My understanding was that the dealer had broken the contract by selling the car that was in stock as this was the car I had agreed to buy. . Are they able to wriggle by providing the exact spec of car albeit with a longer lead time?

The T&Cs make no mention of offering an alternative other than for accessories. It does say I can pull out of the deal if delivery extends beyond 30 days of the estimated delivery date but that means I will incur interest charges on my credit card.

Any advice would be appreciated.