Car return: Refund agreed but dealer says they have no money

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Wed 18 May 2022 18:15
Car return: Refund agreed but dealer says they have no money - Forum cfx

Hi all. I bought a car from what seemed to be a reputable uk dealer. It was a remote purchase, so covered by distance selling regulations. Basically I decided not to keep the car and we agreed for me to return it in exchange for a refund. It’s now been seven weeks since they had it back, and still no refund. Every time I speak to them, they just say that they currently don’t have the money in the bank, but not to worry I will get it. I’m getting really frustrated, and both the AA and Citizens advice say I’ve done the right thing and agree with my case. I have evidence of them agreeing to a refund, but they claim cash flow issues.

my question is what is the best route now? Solicitors and courts are all really expensive and slow – as we are talking around 25K – so is there another way to put pressure on them through legal means? They have plenty of stock, so it’s not like they don’t have options. Thanks in advance

Edited by Forum cfx on 18/05/2022 at 18:46

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Wed 18 May 2022 18:54
Car return: Refund agreed but dealer says they have no money - Falkirk Bairn

Credit card, Debit card or cheque

CC or Debit could have charge back BUT there are time limits on how long you take to tell the bank/CC company

£26K is a lot of money - you need a solicitor pronto

The fact the garage has a lot of cars for sale means very little - dealers can finance stock by loans - the bank/lender has a charge on the cars.

£1m stock might have them paying £000s every month to fill their showroom/website.

Large chains in the UK can sell £Billions of cars in a year and their company worth might be a stock market valuation of a couple of hundred million. Premises rented, stock on credit from leasing company, new car stock for sale owned by the manufacturer - they pay for the car only when they have sold the car.

It's a hot air balloon of borrowing - it could go bang at any time even chains that are household names!

Edited by Falkirk Bairn on 18/05/2022 at 19:01

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Wed 18 May 2022 19:33
Car return: Refund agreed but dealer says they have no money - bathtub tom

Small claims court and then escalate it to a high court, where the high court sheriffs have much more power than bailiffs of the small claims. The cost will be a small fraction of the claim and may be part of the claim.

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Wed 18 May 2022 19:48
Car return: Refund agreed but dealer says they have no money - Brit_in_Germany

25K is too much for the SCC (10K limit in England & Wales). The only way to really progress is through a solicitor.

Edited by Brit_in_Germany on 18/05/2022 at 19:49

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Wed 18 May 2022 22:34
Car return: Refund agreed but dealer says they have no money - bathtub tom

25K is too much for the SCC (10K limit in England & Wales). The only way to really progress is through a solicitor.

I thought I'd seen much higher claims on TV progs, such as 'send in the bailiffs'?

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Thu 19 May 2022 16:23
Car return: Refund agreed but dealer says they have no money - Forum cfx
From what I have read £10k does seem to be the limit for small claims
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Thu 19 May 2022 16:17
Car return: Refund agreed but dealer says they have no money - Forum cfx
Noted - thanks. It was a bank transfer.
I looked up the dealer on line to see what their financial reports were (government website). Despite all those cars they do indeed have limited assets on the books
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Thu 19 May 2022 17:50
Car return: Refund agreed but dealer says they have no money - sammy1

You do not say why you rejected the car but if the dealer still has your car might be better to have it back??

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Thu 19 May 2022 18:06
Car return: Refund agreed but dealer says they have no money - Forum cfx
yes good thought. But that leaves me with a car I then have to shift in this current environment - and take a big hit on resale
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Thu 19 May 2022 19:40
Car return: Refund agreed but dealer says they have no money - bathtub tom

It seems you can start off the procedure in the county court (£30K limit) and proceed from there: www.gov.uk/make-court-claim-for-money

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Thu 19 May 2022 20:13
Car return: Refund agreed but dealer says they have no money - thunderbird

I would think in a situation like this it would be very easy to find yourself with no car and no money.

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Thu 19 May 2022 20:31
Car return: Refund agreed but dealer says they have no money - Brit_in_Germany

It seems you can start off the procedure in the county court (£30K limit) and proceed from there: www.gov.uk/make-court-claim-for-money

Be careful here. The county court is totally different to the small claims court, with liability for costs, barristers etc.

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Thu 19 May 2022 20:51
Car return: Refund agreed but dealer says they have no money - Xileno

I think I would try and get the car back - assuming they've not moved it on. A bird in the hand's worth two in the bush.

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Thu 19 May 2022 22:09
Car return: Refund agreed but dealer says they have no money - Forum cfx
Yes having something of value seems less stressful and safer than a long / risky court battle. Wish me luck

And thanks for the help all, much appreciated
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Fri 20 May 2022 11:48
Car return: Refund agreed but dealer says they have no money - Bromptonaut

As noted above there are cost risks in the County Court.

The other, possibly bigger, risk is that if a business has no money it cannot satisfy a judgement. Even if it's transferred to the High Court, where enforcement tends to be more effective, Enforcement Officers cannot get blood from a stone.

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Fri 20 May 2022 15:38
Car return: Refund agreed but dealer says they have no money - galileo

As noted above there are cost risks in the County Court.

The other, possibly bigger, risk is that if a business has no money it cannot satisfy a judgement. Even if it's transferred to the High Court, where enforcement tends to be more effective, Enforcement Officers cannot get blood from a stone.

A loophole often exploited by closing the business as insolvent and directors (or wives) open up another business with personal funds.

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Sun 29 May 2022 18:37
Car return: Refund agreed but dealer says they have no money - Forum cfx
P

Edited by Forum cfx on 29/05/2022 at 18:39

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Fri 20 May 2022 21:20
Car return: Refund agreed but dealer says they have no money - Palcouk

Peoples have mentioned SC ct, be aware i started proceedings 18 months ago (not motor related) claim of £1,400 hearings have been off by the courts (Not the defendant) I now have a date in October!

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Sat 21 May 2022 16:44
Car return: Refund agreed but dealer says they have no money - galileo

Peoples have mentioned SC ct, be aware i started proceedings 18 months ago (not motor related) claim of £1,400 hearings have been off by the courts (Not the defendant) I now have a date in October!

Such delays may explain why drug dealers enforce payments with baseball bats and illegal firearms instead.?

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Tue 24 May 2022 06:12
Car return: Refund agreed but dealer says they have no money - lordwoody

I don't think drug dealers would ever use the Small Claims Court somehow, delayed hearings or not.

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Sun 29 May 2022 18:38
Car return: Refund agreed but dealer says they have no money - Forum cfx
Small update from me. The dealer has refunded me 20 of the 27k owed, with her promised to pay the rest with next week. A lot of hassling and persistence, but so far haven’t had to use a lawyer. Stressed out to the max , but light at the end of the tunnel. Never again !
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Sun 29 May 2022 22:14
Car return: Refund agreed but dealer says they have no money - Brit_in_Germany

Good news. Also that brings it all within the realms of the SCC should the remainder not be forthcoming.

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Mon 30 May 2022 20:44
Car return: Refund agreed but dealer says they have no money - Forum cfx
Exactly :-)
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Sun 5 Jun 2022 14:07
Car return: Refund agreed but dealer says they have no money - Grenache

Did you pay part by credit card? If you paid a minimum of £100 even just as the deposit, you may have an equal claim against the card company under the "section 75" rules. If you have proof of return and reciept from the dealer then worth considering this route.

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