New car contract withdrawn by dealer

[Glebster01]

A car company has over valued my car at 7.5k. Now saying it's only worth 4.5k.
I signed a contract and gave a deposit on a new car using this 7.5k as a trade in. The company are now refusing the deal and saying I owe them 3k more on top of the 12k cash, otherwise they will renege on contract. Can they opt out after I've signed and paid deposit? I have all the paperwork.
Any thoughts?

[munchkin104]

Re: New car contract withdrawn by dealer

To be honest if you have signed a contract then it should be legally binding, it is their mistake not yours, i would say the law is on your side. do you have the new car in your possession...in which case i would have no more dealings with them, and if they take you to court then produce the documentation they have provided.....you cannot be held responsible for inept staff or their mistakes.
thats only my opinion but please get some info from cab...and well done for a great deal on your new car:tongue2:

[Glebster01]

Re: New car contract withdrawn by dealer

Thanks. No I was awaiting delivery when they realised the mistake. Now they want to give me my deposit back or me stump up 3k more...

[des8]

Re: New car contract withdrawn by dealer

Hi and welcome.

If this was a new car purchase are you sure the form you signed was not just an order for the dealer to supply a new car?
Typically these forms allow the dealer the dealer lots of "wriggle room" and it would be necessary to study the wording of the "contract" before commenting.

[R0b]

Re: New car contract withdrawn by dealer

You simply need to push back on their demand and simply state as above there is a legally binding agreement in place, if they refuse to deliver within the next 14 days you will treat their refusal as repudiation of the contract and you shall seek damages against them as a result. The damages likely being the difference between what you paid so far and the market value of the vehicle.