Help! Rejected Car from Dealer, now not paying refund... Small Claims Court?

[TunX]

Hi All,

I’m looking for some advice on an ongoing case of which I’ve already posted some of this history here: http://legalbeagles.info/forums/show...ht=#post738938

I’m posting separately now as I think I may have to take this to the small claims court and have a few question. In short however, my situation is as follows:

Purchased a used car from a Dealer in April 17, for £1,500.

5 Separate faults over following 2 months. Dealer tried to put right but faults returned / were not solved.

When I purchased the car, I also purchased a £100 warranty through the dealer (3^rd party warranty company). 2 months after purchase I had a letter from warranty company saying that the dealer had not made payment and so they can had cancelled the warranty. I phoned the dealer who claimed that he had been told the company would not pay out unless he sold a certain number of warranties and so he had decided to end his partnership with them, and hadn’t got around to telling me yet….

At this point I told the dealer I was rejecting the car. Had to use my own breakdown cover to get it towed back to him. After a heated phone call and his sob story about being a small dealer and can’t afford just to refund a car, he eventually agreed to refund £1,400. It took him another week before he wrote me a letter via email to state he accepted the car was faulty and had agreed to refund £1,400 which would be paid within 7 day, but to allow for up to 14 days.

I called after 8 days and he told me sales had been poor but I would have my money by the 14 day deadline he had set.

Called after 15 days and he told me sales had still been really poor and that he might need to pay in part payments, but he was hoping for a sale very soon to be able to make payment.

It’s now been 21 days and still no payment from him. I’m getting really worried as he’s now had the car back and sold it at auction and still has my £1,400. I don’t want to faff around with part payments, I just want my money back as was agreed and as I am entitled to.

I will contact him again today and will threaten Small Claims Court, Trading Standards and Social Media campaign to let others know to avoid this rouge trader, however I am worried that he will then just decide not to pay, and await the outcome of SCC. I am 100% I would win the case, but am worried

1. About the length of time the process will take
2. Often when ordered to pay, people get away with making ridiculous payment plans over the space of years
3. He “might” be able to pay the full amount next week but I don’t trust that and can’t keep taking his word…

If it went to SCC, would they award anything above and beyond the agreed £1,400 refund? We have a 16 week old baby and I’ve had no car now for almost 4 weeks and no money back from the dealer.

Does the fact I purchased a warranty with the car, that he did not submit / file / pay for, override the rule that says after 1 months my refund would be subject to a deduction for fair usage? After all, I made my purchase decision on the basis I was getting a warranty with the car, so it has technically been mis-sold to me? If I were to threaten SCC, could I say I will be claiming for the full amount? £1500 + £100 warranty? Or even more?


Is it likely he will be able to get away with a payment plan if / when he loses the case?

Any other advice would me much appreciated!

Many thanks,

[jaguarsuk]

Re: Help! Rejected Car from Dealer, now not paying refund... Small Claims Court?

Hi All,

I’m looking for some advice on an ongoing case of which I’ve already posted some of this history here: http://legalbeagles.info/forums/show...ht=#post738938

I’m posting separately now as I think I may have to take this to the small claims court and have a few question. In short however, my situation is as follows:

Purchased a used car from a Dealer in April 17, for £1,500.

5 Separate faults over following 2 months. Dealer tried to put right but faults returned / were not solved.

When I purchased the car, I also purchased a £100 warranty through the dealer (3^rd party warranty company). 2 months after purchase I had a letter from warranty company saying that the dealer had not made payment and so they can had cancelled the warranty. I phoned the dealer who claimed that he had been told the company would not pay out unless he sold a certain number of warranties and so he had decided to end his partnership with them, and hadn’t got around to telling me yet….

At this point I told the dealer I was rejecting the car. Had to use my own breakdown cover to get it towed back to him. After a heated phone call and his sob story about being a small dealer and can’t afford just to refund a car, he eventually agreed to refund £1,400. It took him another week before he wrote me a letter via email to state he accepted the car was faulty and had agreed to refund £1,400 which would be paid within 7 day, but to allow for up to 14 days.

I called after 8 days and he told me sales had been poor but I would have my money by the 14 day deadline he had set.

Called after 15 days and he told me sales had still been really poor and that he might need to pay in part payments, but he was hoping for a sale very soon to be able to make payment.

It’s now been 21 days and still no payment from him. I’m getting really worried as he’s now had the car back and sold it at auction and still has my £1,400. I don’t want to faff around with part payments, I just want my money back as was agreed and as I am entitled to.

I will contact him again today and will threaten Small Claims Court, Trading Standards and Social Media campaign to let others know to avoid this rouge trader, however I am worried that he will then just decide not to pay, and await the outcome of SCC. I am 100% I would win the case, but am worried

1. About the length of time the process will take
2. Often when ordered to pay, people get away with making ridiculous payment plans over the space of years
3. He “might” be able to pay the full amount next week but I don’t trust that and can’t keep taking his word…

If it went to SCC, would they award anything above and beyond the agreed £1,400 refund? We have a 16 week old baby and I’ve had no car now for almost 4 weeks and no money back from the dealer.

Does the fact I purchased a warranty with the car, that he did not submit / file / pay for, override the rule that says after 1 months my refund would be subject to a deduction for fair usage? After all, I made my purchase decision on the basis I was getting a warranty with the car, so it has technically been mis-sold to me? If I were to threaten SCC, could I say I will be claiming for the full amount? £1500 + £100 warranty? Or even more?


Is it likely he will be able to get away with a payment plan if / when he loses the case?

Any other advice would me much appreciated!

Many thanks,

The only extra you'll get are your costs for filing and hearing the claim, plus any witness expense you incur (travel, loss of earnings) for attending a court hearing I think.

I would claim for £1,500, the refund he agreed and the warranty you never had, unless you know for sure the deduction for fair use wouldn't be applied or would be less than £100.

He may ask the court for a payment plan. In a claim I was involved in I knew the defendant couldn't afford to pay in full and asked them to order a payment plan, because the chances are the defendant would just ignore the debt and hope you won't enforce if they see no way out. By putting an affordable plan before my defendant they have begun repaying.

If you win a judgement you'll have it against the business so there's no possibility to attach earnings as enforcement. You could instruct bailiffs or high court sheriffs (if you escalated it to HC and obtained a writ) to remove goods if he doesn't pay, but this will incur further fees and time. And might end with a payment plan anyway.

It might be worth sending him a letter offering a repayment plan without the need to go to court and after another thread I'm involved in on here taught me you need to entitle the letter "Without Prejudice Save As to Costs." The chances are that even if you get a judgement enforcing it will be a nightmare from the sound of it, it seems his business is hanging on by a thread. You can't just hang on for whenever he might sell another car to someone else and equally he can't just keep you hanging on, perhaps a repayment plan would make him start paying up.