New car deposit refund?

[mk1salami]

Without naming names, I placed a £3000 deposit on a car from a small-volume car manufacturer in July this year. Lead time is around 2 years on the car, and I have not yet signed any build-specific order form (I haven't been asked to spec the car).

Long story short, my circumstances have changed, and would like the cancel the order and have the £3k refunded.

I contacted the car manufacturer and was told as per their T&C they do not refund deposits, but could cancel the order and keep my money if I like!

Where do I stand legally with this? Can I push them for the refund or simply suck it up and keep the order in place?

[Wacky Racer]

Seems a bit harsh but that's the whole point of a "contract".

The ball is in your court.

Hopefully they will relent, as production has not yet started.

[PositronicRay]

Challenge it in court, they're only allowed to retain costs incurred.

[OverSteery]

PositronicRay said:

Challenge it in court, they're only allowed to retain costs incurred.

IANAL but I don't think that's right; subject to what is in the contract, of course.

I believe if they were to expecting to make a £3k profit on the sale, they can keep the full £3k, as they are entitled to put themselves back in the position they would have been in had OP not wished to back out of a contract.

They are not allowed to make excess or 'penalty' profit from the default.

[alscar]

If it’s a car with a 2 year wait then I can’t believe they would particularly object irrespective of value.
If you have got nowhere verbally put your request politely in writing and see what happens.
If your request was in writing then go higher up the chain.
I have had to cancel 2 factory orders from different manufacturers and whilst not direct from the manufacturer and not technically within the t and c of the contract neither was an issue.

[MustangGT]

Some manufacturers will allow you to sell your deposit to a third party, taking your place in the queue.

[AdamIM]

mk1salami said:

Without naming names, I placed a £3000 deposit on a car from a small-volume car manufacturer in July this year. Lead time is around 2 years on the car, and I have not yet signed any build-specific order form (I haven't been asked to spec the car).

Long story short, my circumstances have changed, and would like the cancel the order and have the £3k refunded.

I contacted the car manufacturer and was told as per their T&C they do not refund deposits, but could cancel the order and keep my money if I like!

Where do I stand legally with this? Can I push them for the refund or simply suck it up and keep the order in place?

Question. How exactly did you enter into the purchase? Remotely or in person? And what if anything did you sign?

[Caddyshack]

I have always felt that a deposit is a promise to buy and if you don’t then you forfeit the deposit….if not then what is the point?

If I have a car for sale and a punter turns up and agrees to buy, they could leave a deposit so I don’t sell it to someone else then complete the deal one they transfer the rest of the money…if they change their mind then the deposit is lost as compensation for me turning away the other buyers, lost time etc.


The devil is in the detail of the contract and would specify if it is non refundable or not.

[Aluminati]

If there is a two year wait, I would be surprised if your place in the queue didn’t have value…

[boyse7en]

If you can get the £3k back, what is the point of having a deposit at all?

You can try and negotiate some sort of agreement, but ultimately you're the one trying to renege on a contract.

[The Selfish Gene]

hmmmmm - that doesn't sound like a reputable company to me.

I've never not had a deposit refunded, with literally zero quibble.

Not based in the North West of England are they by chance?

[JimmyConwayNW]

Go through with the purchase, have it delivered, check T and C of distance sale, return car within 14 days.

[Sebring440]

JimmyConwayNW said:

Go through with the purchase, have it delivered, check T and C of distance sale, return car within 14 days.

How does that help with:

mk1salami said:

My circumstances have changed, and would like the cancel the order and have the £3k refunded.

[TheDrownedApe]

What exactly have you signed? What does your reciept say? Sounds weird that they've asked for a 3k deposit but you haven’t said what spec you want..

If there is a 2 year wait, the price you pay is likely to increase. Does your deposit state a price? Everything will be in the T&Cs but if you've just thrown 3k at them without understanding your rights then it sounds like a hard lesson learnt

[C70Rev]

The Selfish Gene said:

hmmmmm - that doesn't sound like a reputable company to me.

I've never not had a deposit refunded, with literally zero quibble.

Not based in the North West of England are they by chance?

Wow that’s a broad generalisation

Got a problem with the North West?

Help is available

[QuickQuack]

C70Rev said:

The Selfish Gene said:

hmmmmm - that doesn't sound like a reputable company to me.

I've never not had a deposit refunded, with literally zero quibble.

Not based in the North West of England are they by chance?

Wow that’s a broad generalisation

Got a problem with the North West?

Help is available

No, it isn't. There isn't a huge list of low volume car manufacturers, he's just trying to work out if it's one particular low volume car manufacturer. Possibly associated with Blackpool and the history of PistonHeads itself, is my guess about the intent of his attention.

Help is available when questions have been worded carefully to avoid the naming and shaming ban, but it goes over your head...

[stemll]

QuickQuack said:

No, it isn't. There isn't a huge list of low volume car manufacturers, he's just trying to work out if it's one particular low volume car manufacturer. Possibly associated with Blackpool and the history of PistonHeads itself, is my guess about the intent of his attention.

Help is available when questions have been worded carefully to avoid the naming and shaming ban, but it goes over your head...

It's doesn't sound like TVR as their FAQ says

"Is my deposit refundable?

Yes, until you place your formal order (once specifications and options have been announced), you will be able to apply for a refund. There will be no deductions for administration fees or the like by TVR,"

[mk1salami]

• REMOVED NAME OF CAR COMPANY as per forum rules*

A few emails exchanged back and forth and they basically say when signing on the dotted line you accepted the t&c’s which were available to read separately.

I guess I should have paid more attention to them and lesson learned - don’t assume anything.

Edited by mk1salami on Saturday 2nd November 17:41

[Davie_GLA]

You mentioned you hadn't signed anything but looks like you might have in the process (and the excitment of it i couldn't blame you!) - if you can challenge it and not incur any further costs then i'd give it a go even if I had to pay a small fee to a legal body to help draft the words. Any legal cover you're in possession of that might help?

£3k is a hard pill to swallow. Especially if you might not need it for something more pressing. Good luck.

[Sheepshanks]

mk1salami said:

It’s Ariel (deposit for a 4r).

A few emails exchanged back and forth and they basically say when signing on the dotted line you accepted the t&c’s which were available to read separately.

I guess I should have paid more attention to them and lesson learned - don’t assume anything.

Do the T's and C's allow them to cancel without penalty?

Car sales contracts are generally better now, but they used to weighted in favour of the seller and this can make them "Unfair Contracts" if they're unbalanced between the seller and the buyer and they may not be enforceable.