Loss of deposit
I have paid a deposit for a new motor home, but cancelled after three days.
Have I lost my deposit as it says in the terms & conditions that it is non refundable?
Comments
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If you signed an agreement to that effect, then it's unlikely you'll see the deposit again unless the dealer agrees or if he has broken his side of the deal.
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Depends where you were when you signed the contract. As far as I am aware the 7 day cooling off period does not apply if signed at the dealers normal place of work. It is then a matter of goodwill perhaps. However I suspect that under The Unfair Terms in Consumer Contracts Regulations 1999 - schedule 2 you may be entitled to a refund with the seller retaining money to cover his losses only (including time).
First step is to ask for a refund.
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It could depend on any number of things on whether the dealer refunds the deposit. Even if the dealer is willing to refund part or all of the deposit as a gesture of goodwill might depend on whether the dealer has been involved in any expense between you paying the deposit and your cancellation. If he has it would not be unreasonable to make an allowance for any work done, actual or administration. The reality is that you won't know until you ask the specific question.
David
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I too would take legal advice Wildwood. However should not be a total loss as the contract will be governed by Consumer Contracts Regulations 1999 whether it says non refundable or not. The regulations deal with handling deposits and refunds. The Dealer is entitled to recoup his losses but not to profiteer.
When I put a deposit on my present caravan I think that the dealer wanted £2K as a deposit. However the van was in stock and so I said 'no, I will give a £400 deposit as that should be sufficient to defray any losses were I not to complete.
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I used to work at a car dealership as a salesman; we always kept deposit unless there was a very good reason to cancel such as bereavement or loss of a job.
You have to remember the sales person has spent their time with you and if on a busy day he might have been selling to someone that genuinely wanted to buy and has just lost a chunk of his income for the month and the.
The shop has taken the van of sale depriving them of the opportunity to sell it and make a profit for a few days.
As an ex salesman I am acutely aware of tyre kickers and hopefuls and general time wasting, I am not saying you are one of those but you have to understand the dealerships point of view not just your own, if you look at it in their eyes you can see why they might want to keep some of the deposit pr all of it depending how big it was mine. On my last purchase, a motor home it was £1000 a lot of cash to through away unless sure but the sales team spent about 3 hours on a very busy weekend with lots of people queuing to see a salesman.
If you have a very good reason, an unexpected change of circumstances, something you could not have foreseen at the point of sale then they may well reason with you but talk to the manager not the salesman it is the sales manager that can make the decision not the salesman.
Contact them today explain your reason and state your case and see where they run with it. The weekend is busy and they may sell that van this weekend they can’t if you haven’t contacted them. The sooner you deal with it the better from yours and there point of view
I know this won’t be popular but I have been there and understand their point of view and someone cocking off (what we called it when cancelled) can have a bad effect on a salesman’s commission for a month.
The moral is never ever sign up for something that you are not 100% sure of if only 99% walk away if it is gone next day it is gone.
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Thank you for all your replies.The deposit was £5,000
Motorhome was to be ordered for delivery in 6 months time. I would be more than happy to pay for the time with the salesman and some admin,but they are not interested.
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You need better advice than just 'opinions' on here.
My opinion is that you should get most (if not all) of your deposit back. But it's just my opinion. Although not sure why you have waited 2 months without apparantly doing anything.
As a first step you could try Citizen's Advice Consumer Helpline on 03454 04 05 06
They specialise in consumer issues and are very good.
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My opinion is that you should get most (if not all) of your deposit back.
My opinion also and I stated why in an earlier post: It should not be a total loss as the contract will be governed by Consumer Contracts Regulations 1999. The regulations deal with handling deposits and refunds amongst other things. - whether the contract says non refundable or not the Dealer is entitled to recoup his losses but not to profiteer.
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Whilst I agree that some sort of professional advice should be sought I think the outcome might well depend on the possible loss suffered by the dealer. £5000 seems a large deposit unless the motorhome ordered is a one off special ordered in from abroad where the loss of the sale might involve the dealer in a loss in order to resell and in that case a £5000 reduction might not be out of the question. On the other hand if its a fairly straightforward popular model it might be a different matter. All we can do here is to speculate and its best to get proper advice.
David
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