Thread: Used car deposit refund - Possible invalid contract

Hi,

I would be grateful for any advice on getting a £500 refund for a deposit on a used car.

On Sat 14/03 My wife and I visited a main dealer to purchase a used car that was for sale on its forecourt.

Following a satisfactory test drive we agreed to purchase the car.

The salesman filled in a Used Order Vehicle Form, entering my wifes full name on the document and subsequently asked me to sign the paperwork.

On the "Sellers Declaration" section of the document, the salesman did not sign or date the contract. There was a section which stated "SalesMan", which was filled in with his name.

We paid a £500 deposit on credit card with the balance due when we picked up the car some 7 days later. On Monday morning we phoned the dealer to request cancellation of the purchase as we had changed our mind. At present the dealer is not willing to refund the deposit.

Looking through the contract, I was wondering if we had a case on the basis that the contract is invalid, since it details my wifes name yet is signed by myself. Plus it has not been signed or dated by the salesman.

Would be grateful for any advice on whether this invalidates the contract, and if so how we should proceed.

Thanks dx100uk for your advice.

I contacted my cc company following your advice and was informed that
a cashback can be invoked under the following reasons:

1. The goods are faulty on delivery
2. The goods were not received.

I was informed by the cc company that as this was a case of 'a change of mind', they could only proceed if in the Dealers terms and conditions it explicitly states that a refund is available - which it does not.

I would be grateful for any suggestions on how to proceed.

It would appear that you enteredinto a contract to purchase the car and paid the deposit as part payment and so they would not sell it to anybody else. in effect it was now your car subject only to you not paying the balance. Whether you signed a form is probably immaterial as a contract would certainly be deemed to exist, just the small print would now need to be determined by a judge; as I would imagine the only way of getting your money back would be to take them to court. I would think you be entitled to get some or most of it back as their costs would be minimal. did you ask or agree for them to do any work on it etc.
Suggest you write to them asking for deposit back less any reasonable expenses, suggest say £50 and see what happens, if no response or negative you will have to take them to court.

Thanks raydetinu for your reply,

The car was due for an annual service, which they said had been planned in any event. Plus they were going to valet the car aswell.

As I contacted them on Monday monring, they had not actually carried out the work. They did say they had withdrwan the car from Autotrader and would now have to post it again. However, I know that the add had expired a day before I went to view the car.

They did state that they had received a couple of phone queries which had to be turned away. However, I am a little sceptical about this claim.

Do you think think I should send them a letter requesting a return of deposit, followed by action in the small claims court? am I likely to be successful? An advice is much appreciated.

Yes I believe any court action would be succesful to a degree as I said.
Before any court action you must ( common sense ) demonstrate to the court you have tried all avenues and have been reasonable in your requests for a settlement to the dispute. Definetly write to them requesting the return of your deposit and as I said acknowledge they have had some inconvenience, which you would consider £50 as being reasonable compensation and If received within 7 days then that will be an end to any considered court action to recover the deposit.
They may come back and say they want more; but up to you then if you want to persue further. just see what thay say. no more phone calls though, just letters or emails.

Nmm you should start your own thread really otherwise gets confusing!
Your course of action is write and ask for refund, or will start legal proceedings ( no phone calls ) send recorded or special.

If you signed the loan details on the premises then there is no cooling of period and you are deemed to have read and understood all the details of the loan; however I would check that the dealer is in fact a licensed credit brooker and is registered with the council as such. If not you are entitled to all you money back and if you had bought the car, you keep that aswell. The council may well prosecute. Report him to trading standards as well if misselling loans.

Thanks raydetinu

I have started another thread as per your suggestion.
The name of car dealer is "The car shop" and i don't know he is licensed or not.

The agreement to purchase was made on the premises of the dealer. Paying a deposit is a commitment for them to sell to you, and you to buy for them. Because you are pulling out under a 'change of mind' the dealer is not bound to return your money, and I see a Small Claims action being defended, and you being made to pay the cost of raising the action, and their fees should the case against them fail.

I think the secret is, if you are going to change your mind - DON'T make a binding commitment by paying money to secure the purchase. Trying to get out of it subsequently will be problematical, and no guarantee that legal action will bring the decision you want.