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Used Car Deposit Guidance

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  • Used Car Deposit Guidance

    Hi All,

    I wonder with a little more knowledge than me may kindly have a read of my position and offer any thoughts or guidance.

    My youngest son (20) was a little too keen for his first used car purchase and set out to try to secure a car without my help.
    In short, a garage in the advertising on Autotrader website listed a used car that my son liked the look of so he placed a call to the garage to ask some questions. This resulted in my son paying a 'deposit' of £500 shortly after his enquiry phone call. The payment was made via mobile banking - bank transfer. I was not privy to the call but when my son called to excitedly tell me he had bought a car I was a little uneasy from offset as when I asked what kind of receipt or paperwork he had received, he said nothing.
    Payment made following a telephone call on the 13th of July.
    After I encouraged him to chase for a receipt, toward close of play on the 13th he received an invoice that detailed a car price of £3500, £500 deposit but also with some notes around additional work to be done - MOT, Service, Cambelt and Waterpump change. How relevant this is may be a factor as I explain further. A note on this is the advert at the time detailed this as all being done, it was a selling point and I can evidence the MOT had just been done not post deposit via the .gov website.

    My son was committed to buy and I actually drove him up the the dealer 2 day's later on the 15th July. As we set-off I checked that my son had made necessary changes with his insurance, where I saw the penny just dropped look on his face with his reply being no.
    He promptly set-out to arrange cover and literally it took so long, I pulled over just a few hundred yards away from the dealer where my son received the news that the insurance would simply not cover him at all. We sat and tried to work out options to help secure the car, another policy, waiting for 8 weeks for his current policy lapsed to try and retain the no claims for the year but we could not make it work.
    I may have made a mistake here (hope not) but I drove him to the dealer and physically entered the office to support my son in explaining. We did not and have not ant any time actually seen the car with our own eyes and we did not leave the office other than leaving the dealers.
    My son explained and I supported him and at that point the salesman who had been speaking to my son was polite, friendly and very understanding stating that he would arrange a refund. I know, I know but It didn't feel right to try to camp out and wrestle an immediate refund there and then.
    On the drive home, my son followed with an email to provide his bank details for the refund and to explain again.
    This was followed up with another email and phone call the 21st July.
    Today another email was sent but to which we had our first ever response and it read verbatim " Hi, Thank you for your email. The deposit you placed on the vehicle was nonrefundable deposit as the works have now been completed. We will keep your deposit on our file for future reference if another vehicle comes up that would take your interest"

    I can share this email and the invoice and any other information that may help provide more information.

    At this point, I'm not interested in talking further as it looks clear they will not play ball.
    With this in mind, based on the above would this satisfy the small claims route as either distance selling or off premises?
    Touching wood, I've never found myself in this kind of position so I'm quite green. It's also hitting home that I will ultimately have to guide my son too which I'm keen to but I'm not comfortable with my current level of knowledge around this.

    Thanks kindly in advance for taking the time to read this and again further thanks for any input, suggestions or guidance.

    Derek
    Tags: None

  • #2


    Ahh youth!

    As the purchase was made over the phone your son has 14 days after delivery of the goods in which to cancel the contract.
    As the goods were never delivered he is entitled to receive a refund of his deposit.

    There's a template letter here https://www.citizensadvice.org.uk/co...by-mail-order/

    Amend as required, send first class with free certificate of posting.

    Comment


    • #3
      Des, thank you. I would have slipped in a quick thanks sooner but as I noticed your input, I was on the phone to the CAB, who took a view that the fact that we physically entered their premises and verbally cancelled, the distance selling element is void
      I can't get my head around this personally but that was their position and as such, they politely said it's a lost cause. Payment made remotely, best intention and endeavour to actually complete the sale evident but now potentially let down according to the CAB for stepping into their premises to offer the courtesy of explaining why he had to cancel...

      I had sort of prepared for this aspect now that I've started to read up a little but it's a hard pill to swallow nonetheless....

      Comment


      • #4
        IMO what a load of b******s.

        The contract to purchase was completed over the phone.
        The regulations do not state how the deal is to be cancelled, so it can be done verbally in person

        In any event i suspect the dealer never acted in accordance with the regulations anyway (just have a look to see what his responsibilities are)

        I note your son has already confirmed the position by email, so I would be writing again as suggested, requesting a refund and stating that if it is not forth coming within two weeks your son reserves the right to initiate a court claim without further reference to themselves

        Comment


        • #5
          Thanks again, I think I'll take my chances with the letter and small claims route. I'll swallow my sons costs and no doubt help him with the financial gap (£500) now and in the long run if needed. I'm quite driven too now as I can see the dealer for what they are and it's generally a terrible practice from them, even when I distance myself from being dad on this one ! I'll let you know how we get on....

          Comment


          • #6
            Please let us know how you get on, and if you want further advice just ask
            Good luck

            Comment

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