Car dealer sold the car i put the deposit on and refuse to give the money back

[magdalene]

Hello Everyone and Welcome,

Very annoying but real. I have put £300 deposit for a car with local car dealer (which we have used before). I had a test drive, the car was good, I have spend more than 2 hours checking it up and down, browsing papers, checking previous owners etc. I do have challenges with my credit score but still wanted the finance for the car. Before approaching the dealer I have contacted several finance companies and been approved by one for any car for up to £18K. So when I decide that car at this dealership is good enough I did not hesitate to put the deposit. I have told the dealer that the car will be taken on finance so I will need a week to have a things sorted. As I have mentioned we have already used the same dealer 6 months before and we have bought from him car for cash similar value so he knew we are serious buyers.
sadly the next day I found out that the car will not be accepted due to big mileage. I have inform the car dealer about the issue, told them that I am still taking the car but simply need to organize the money elsewhere. But there were some challenges and simply I could not get approval for the car I have chosen even. The dealer called my partner (even if my phone number was on the agreement) asking what is the situation. he told him that I am organizing the money and we are taking the car, just need few days more. We have decide that I will use some of our savings and take a payday loan for a half of the amount as nowadays cash is very important for us due to have own company and facing cash flow challenges. I have process and signed up for payday loan on 86% for 24 months, got the 50% for the car, withdraw the remaining 50% and called the dealer first thing Monday morning. To my surprise he said that he sold the car on Saturday!!!. He mentioned that he was calling my partner and can not get him answer the phone!!!. My partner said he has no miscall from him and anyway I was on the agreement, that was my money and my car. We ended up with very rude conversation over the phone as he said that he has the terms and conditions on his website and the deposit is not refundable. There was no such a T&C on the paper I received after deposit payment. Also being aggressive and abusing over the phone.
To be honest it is not about the £300 but about my pride. I had a feelings that I am not the only one treated this way and probably noon has show this guy what is his place. He is aggressive, Russian, i assume he is "well connected" as all his cars has one or max 2 previous owners. I am just preparing the letter but thinking if I have a right to put my loan expenses toward this guy now? Are there any paragraphs I can include in this letter please? Also is there any way I can not put my home address on the letter simply for security reason?
Will be grateful for an advice
Regards
M.

[des8]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

Hi and welcome to LB
I'm sorry but I don't think this is what you want to read
IMO legally you have very little chance of recovering your deposit.
You saw the vehicle, you examined it and agreed to purchase it.
You sealed the contract with a deposit and agreed to complete within a week.
You failed to complete and so were in breach of contract, and so it would be normal practice in the car trade for the deposit to be forfeit.
I appreciate you advised the dealer that you were having problems raising the finance, but I suspect you would have problems showing he had agreed to extend the contract and hold the vehicle indefinitely.

You could try approaching Trading Standards to see if they can help, or see if the dealer will allow your deposit against a different vehicle.

[nemesis45]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

I think you are right des8.
Continued promises to complete the sale were broken, the dealer getting a viable offer has quite reasonably taken it and sold the car.

[magdalene]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

Dear Des8,
Thank you for your reply.
Firstly I have never give the final date to complete the agreement.
Secondly, the dealer were assured I am taking the vehicle no matter what, even if the I have to borrow the money elsewhere. Only 6 months before we have give him £5000 cash for another vehicle so he knew I am not messing up.
I kept him updated and never had any of suggestions that he might want to sell the vehicle.
He has never bothered to contact me to inform me that he is going to sell the car, he said he was trying to speak to my other half!! Why? I was on the agreement, it was my money I put on the deposit and he simply ignore that.
In my opinion the one who broke the agreement was the dealer. I was in contact and I was taking steps to fulfill my promise what he was aware off.
Please advice

Hi and welcome to LB
I'm sorry but I don't think this is what you want to read
IMO legally you have very little chance of recovering your deposit.
You saw the vehicle, you examined it and agreed to purchase it.
You sealed the contract with a deposit and agreed to complete within a week.
You failed to complete and so were in breach of contract, and so it would be normal practice in the car trade for the deposit to be forfeit.
I appreciate you advised the dealer that you were having problems raising the finance, but I suspect you would have problems showing he had agreed to extend the contract and hold the vehicle indefinitely.

You could try approaching Trading Standards to see if they can help, or see if the dealer will allow your deposit against a different vehicle.

[ssparks2003]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

From placing the deposit how long was it till he sold the car? also reference your statement "Firstly I have never give the final date to complete the agreement." in your first post you said "I have told the dealer that the car will be taken on finance so I will need a week to have a things sorted." so which one is it, a week or some time never?

[des8]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

I'm sorry you don't like the advice, but it was pragmatic, and it is telling no one contradicted it.
You could write to the dealer, and on receipt of his rejection you COULD issue a court claim.
IMO you would likely lose, so instead of just losing £300 deposit you would also incur costs and stress.

You now say you didn't give a final date for completion, but earlier you said you told the dealer you would need a week to complete.
Do you really think this meant you had an open ended agreement to complete whenever you were able?
It is not completely clear from your posts how long it took to actually raise the finance, but I suspect the dealer has often had would be customers find themselves unable to raise the finance. Because of that if a customer fails to complete within the original agreement parameters he will act in accordance with the original agreement.
You had a week, you did not complete.

Your past dealings with him are of no consequence regarding this deal. However , using that as a starting point you might get him to allow the deposit against another vehicle you might purchase from him.
Presumably he called your partner because either you or your partner gave him the contact details!

I'm sorry I can't be more positive for you, but others might have a different viewpoint so keep an eye on your thread.

[MissFM]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

What was the agreement you signed and what were the T & C's on it? Could you post it up, removing all identifying personal details?

[MissFM]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

Crossed with Des :tinysmile_twink_t2: x

[nemesis45]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

IMO there is no realistic chance of remedy other than that put forward by others.

[ncf355]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

I'd agree with Des

Any term allowing them to retain the deposit would in my view fall foul of UTCCR - dealer would have to prove genuine loss of the £300 to enable retention of the deposit

Neighbour had a similar issue where his son had placed a deposit and the changed his mind about a week later

They took it to court and the dealer paid up a few weeks prior to the hearing

[des8]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

Whilst there may be possibility of making a claim under the UTCCR (and it is only a possibility as the financial penalty may be deemed fair if it applies equally to both parties)
I personally would not think it worth the candle for £300.
But that's me!

[magdalene]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

Dear All,
Thank you for all comments and impact into the case.
Few things that I need to explain.
1. When I have choose the car I have provisionally approved finance for any vehicle I will choose from respective dealer up to £18K.
This makes me feel comfortable enough to promise a week time but I made him aware that this is third parties as this is finance and always something can happen while closing the deal.
2. The finance did not approve the mileage of the car, they said any other with lower mileage after I have send them the details of the car I have chosen. Sadly I was not aware of the mileage restriction when choosing the car.
3. I have informed the dealer about the decision and told him that I still want the car so will organize money from different source and he was fine with that. That means that he knew I will be borrowing to money on higher rates or from friends.
4. he was braved enough to tell me "fu.. off" when I called him and asked if he could transfer the money towards other vehicle. very professional considering fact that we bought from him before and he got over £5K cash on Sunday afternoon when we were buying previous vehicle 6 months before. This is also how he had a contact details of my partner.
5. This time my name was on the agreement and my phone number so he could easy call me and KINDLY INFORM that he is going to sell the car. I will not sign then the cash loan for 24 months which I did.
6. I have process at the end with the finance company that has accepted me as a lender on the first point and simply choose the other vehicle.
7. Now still needs to pay the cash loan and live with "taste" after dealing with such an ignorant. My question is how many more people did he rated the same way? Why he did not accepted to transfer the deposit towards different vehicle? Why he did not contacted me? Because I am a woman? This is my pride that suffer the most, also my time to travel there, almost 2 hours spend while examine the vehicle, checking previous owners etc. Very frustrating.
7. I will be trying to post the agreement I have signed while paying the deposit but have just move hose so please allow 48 hours for me to have it sorted.
In the meantime all comments will be highly appreciated.
Best Wishes
M.

Whilst there may be possibility of making a claim under the UTCCR (and it is only a possibility as the financial penalty may be deemed fair if it applies equally to both parties)
I personally would not think it worth the candle for £300.
But that's me!

[des8]

Re: Car dealer sold the car i put the deposit on and refuse to give the money back

Look forward to seeing the agreement, meanwhile good luck with the house move.

I'm afraid that in this life we meet all sorts, some a lot more unpleasant than most.
I just think that for the sake of possibly regaining £300 it will not be worth pursuing this creep.
No matter how good your case is, nothing is certain and I could see that even if you were to win in principle there would be costs and expenses he will have incurred which could be deducted from that sum.