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When does a 'fully refundable' deposit become non-refundable?

I enquired about a car I had seen online. The dealer was some distance away and I could not visit for a test drive for 2 or 3 days and was told that a 'fully refundable' deposit would secure the car until the weekend.

I asked for the registration so that I could organise an HPI check and insurance. I was initially given the registration of a totally different car. I asked when the car had last been serviced (it was advertised as 'recently serviced'). It was serviced 12 months or 10,000 miles ago, but the dealer did offer to organise a non-dealer service.

I decided to pull out of the deal at this point as I had lost all confidence in the dealer. At this point my deposit became non-refundable, in fact it never had been.

I admit that I should have got everything in writing, and would never have put down a non-refundable deposit on a car I had not seen or driven. Where do I stand? Am I covered by the distance selling regulations?

Asked on 3 October 2011 by CMW2175

Answered by Honest John
You were dealing with a liar from the word go. But generally a deposit is not refundable if you back out of a contract, which you did. Lesson to be learned here is not to even contemplate putting a deposit on an unseen car.
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