Help with deposit - AGC2021

I'm looking for some advice regarding a deposit I placed on a car.

The car was advertised on Autotrader and called the dealer (not a main dealer but has a highly rated 2021 award) and placed a deposit on the car of £1000

Due to various reasons I decided not to purchase the car.

I have never seen the vehicle or been to the dealer.

I am told that the deposit is not refundable, I have also never signed any paperwork and only have a picture of a receipt.

Struggling to know what I can do about this.

Any advice would be welcomed.. ..

Help with deposit - badbusdriver

The purpose of the deposit is to secure the car for you. That gives the dealer confidence to turn away anyone who subsequently asked to buy the car, and as such, I'm not sure why you think you should get the money back?. Bottom line is, you shouldn't have put the deposit down unless you were 100% certain you were going to buy it.

Not sure where you stand legally, but if I put a deposit down on a car then decided against buying, I wouldn't expect the money back unless the circumstances were exceptional and outwith my control. Even then, I wouldn't expect all of it.

Help with deposit - AGC2021

I've written the money off but was curious to get feedback.

With online purchasing apparently the rules are different but im unsure under what circumstances they apply or are even enforceable.

Help with deposit - Brit_in_Germany

I imagine the distance selling regulations might be of help here, giving you a right to a full refund.

Help with deposit - SLO76
Can’t really help here but I will say that this was a common occurrence when I was selling and a major annoyance. I was stunned by the number of people who reserved a car with a deposit then expected to cancel it and get a refund. The word deposit would have no meaning if it was always refundable. We would take the car off sale, do the relevant paperwork and carry out any repairs or servicing required. It costs money and time to get a car ready for pick up or delivery so don’t pay a deposit unless you’re 100% certain you want to complete the deal.
Help with deposit - sammy1

Trading standards should be able to give you free legal advice. You we perhaps unwise to put such a large amount down. The comments above are a bit one sided. The dealer would have had to do any repairs or servicing in any case> I also doubt if they would complete any paperwork before the sale was complete. Any loss stated by the dealer would be negligible. Best of luck I would not give up without a fight as the retailer is bound by laws on distant selling.

Help with deposit - sammy1

If you paid by Credit Card maybe your card company can help.

A reasonable dealer cannot expect a customer to buy a car without seeing it and test driving it.

Help with deposit - catsdad

My daughter in law put a deposit down on a car which she had seen and then changed her mind. It was a diesel and she is a low mileage driver so it wasn’t suitable, She had established before putting it down that it was refundable. She got it back without an issue. I don’t understand this but it happened.

I think the OP will be covered by distance selling regs as has already been suggested.

Edited by catsdad on 12/12/2021 at 22:52

Help with deposit - Engineer Andy

My daughter in law put a deposit down on a car which she had seen and then changed her mind. It was a diesel and she is a low mileage driver so it wasn’t suitable, She had established before putting it down that it was refundable. She got it back without an issue. I don’t understand this but it happened.

I think the OP will be covered by distance selling regs as has already been suggested.

Moral of both stories:

1. Always do a decent amount of research first after coming up with a list of 'red line' criteria but be realistic with them - it is highly likely that no car will fit your needs perfectly.

2. For the less mechanically-minded, get help from trusted friends/family/colleagues who are to guide you on the research and search;

3. Never, ever put a deposit down unless the car meets all your red line criteria and you can affor to buy/finance and run it (all associated costs) over the time you believe you'll own it - including wear and tear repairs, tyres, etc - not just fuel, VED and insurance.

4. Always include a decent margin for payment of unforseen bills and above (current) inflation price rises in certain costs when considering the longer term cost of ownership. Many people who move jobs a lot often do not factor in changes in location to the insurance and fuel/servicing costs where they can significantly increase them.

5. Never buy a second hand car you've not checked out personally (or had someone who knows how to spot problems with them to help) and driven (for a reasonable test drive) first. Even with new cars, you always need to check them out for comfort, space, ergonomics and the driving experience before committing.

6. As you say, check to see what Ts and Cs come with the purchase and deposit. The OPs large deposit was unusual, as it sounds like a second-hand car.

Admitedly I bough my new car (via Motorpoint) 15-16 years ago, but I only paid a £250 deposit for mine (credit card) for a car costing £10k. £1k for a second hand one sounds pretty steep to me. Maybe that's the current market?

Most of the time, a deposit isn't refunable, but sometimes can be transferrable - not so bad if you change you mind on a new car and just want something different from the same make, not so good when buying second hand from an all-makes indie seller.

Help with deposit - joegrundy

From the information given it would appear that this was a 'distance sale' covered by the Consumer Contracts Regulations. Under those regulations you have the right to cancel the contract for any (or no) reason at any time from when the contract was made until 14 days after the goods are received and receive a refund of any monies paid. (Some provision for return costa etc.)

If you paid the deposit by credit or debit card you should contact your card provider. If a credit card, the card provider is jointly liable with the dealer (s.75 CCA); a debit card provider can issue a 'chargeback'.

More info here: www.which.co.uk/consumer-rights/regulation/consume...k

Help with deposit - Jamie3141

Agreed. If the deposit was placed over the phone or online, without you visiting a brick-and-mortar premises, you're entitled to a full refund within 14 days. This is regardless of reason and should NOT be subject to a deduction if the dealer has spent money on the vehicle.#

These statutory protections are provided by CCR '13 and CRA '15.

I'm unsure what loss the dealer could claim, other than inability to advertise. It's most likely that servicing, paperwork and so on would be completed after the full transaction had taken place. If dealers aren't aware of these laws and/or unfair contract terms, they should consider a different profession where they can be more unconscrupulous. If they get irate, like others have in this thread, tell them to contact their local MP to change consumer protection laws. Nobody is in favour of that.

You will have to use MCOL (Money Claim Online) to file for a money claim against an organisation, if they are stubborn and won't return the funds. You can instruct a solicitor to do that for you or do it yourself. Your claim can be written in plain English and doesn't need to include legalees.

If you stepped foot on the premises at any point during the sales process, your claim will be invalid.

P.s. if you've paid the deposit (or any fees) by credit card, then you're covered by Section 75 and your credit card issuer will refund you, or chargeback the amount.

Edited by Jamie3141 on 21/12/2021 at 22:41