Right to cancel - Need help

Honest John Back Room » Motoring discussion
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Sat 30 Apr 2011 19:38
Right to cancel - Need help - neworder12

I placed an order for a new car last week and signed the vehicle order form and paid a deposit of GBP 600. Its a new factory order due by mid-end June and the dealer told me that I can change the specs till a few weeks before the delivery (though not cancellation- actually we never discussed it) basically he told me he'll share 2 dates with me..one by when specs can be changed (model, color etc..)...this is generally a few weeks before delivery....and one by when the car will be delivered... he has shared none with me yet though my VOF mentions mid June as delivery (highly unlikely given parts problems all over the world)

I have had a change in my circumstances and wish to cancel the order

What are my rights to cancel..I do realise I may lose the deposit (though would love to get it back: a part if not all)...or can it get even worse? like paying some penalty in addition..

need some urgent advice so can act quickly...the order was placed last Monday i.e. 18th Apr,11

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Sat 30 Apr 2011 20:28
Right to cancel - Need help - Talking Hoarse

For what it is worth, my advice is to go & see the sales manager asap and tell him the story, apologise and ask if the deposit can be refunded.

They are most likely to smile and agree. If and when they do, of course you will be eager to do business with them as and when your circumstances iprove, if they hedge, then you are most unlikely to recommend them or deal with them again. And if it does get sticky then ask Lucy. Good luck.

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Sat 30 Apr 2011 20:53
Right to cancel - Need help - outlier

For what it is worth, my advice is to go & see the sales manager asap and tell him the story, apologise and ask if the deposit can be refunded.

They are most likely to smile and agree. If and when they do, of course you will be eager to do business with them as and when your circumstances iprove, if they hedge, then you are most unlikely to recommend them or deal with them again. And if it does get sticky then ask Lucy. Good luck.

That 600 pds probably is probably the sales guys commission which he probably already banked and spent. So I agree it is worth a shot and I think the salesman might well agree...if you are expecting a smile in the bargain I would say that is somewhat less likely :-(

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Sat 30 Apr 2011 20:33
Right to cancel - Need help - outlier

Normally a deposit is precisely there to establish a contract to buy. Worse, if you don't have the delivery date or "time is of the essence" in the contract then you could not just a walk away if the dealer did not meet the delivery date.

So the dealer could theoretically sue you for the full amount... just like if you exchanged contracts on a house and didn't complete. Of course it would depend exactly what is in the contract.

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Sat 30 Apr 2011 20:53
Right to cancel - Need help - neworder12

there are no T&Cs mentioned on the vehicle form...its just a one pager Order Form that lists the specs of the car I ordered and the total agreed price and the breakdown of the various price elements e.g. excise duty etc..

The payment receipt has a note : "Cancellation of this order will result in a charge for the internal costs"

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Sat 30 Apr 2011 22:25
Right to cancel - Need help - NARU

So the dealer could theoretically sue you for the full amount... just like if you exchanged contracts on a house and didn't complete. Of course it would depend exactly what is in the contract.

No, they can only recover their losses, which they're also under duty to mitigate. So if they can sell the car to someone else they couldn't sue for the full amount.

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Sat 30 Apr 2011 22:59
Right to cancel - Need help - Gagan

Given that its so early in the order process, isnt it simply possible for the dealer to cancel the order with the manufacturer?

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Sun 1 May 2011 15:48
Right to cancel - Need help - outlier

So the dealer could theoretically sue you for the full amount... just like if you exchanged contracts on a house and didn't complete. Of course it would depend exactly what is in the contract.

No, they can only recover their losses, which they're also under duty to mitigate. So if they can sell the car to someone else they couldn't sue for the full amount.

You have a contract to buy something and you don't buy it you are in breach of contract. The fact there is another buyer out there makes no difference: you got one sale where you could have two, so the dealer has the same loss either way.

The main caveats are that a business may not be keen to sue a customer. Or in the case of a "reservation fee" which may or may not be refundable.

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Mon 2 May 2011 08:51
Right to cancel - Need help - NARU

>> You have a contract to buy something and you don't buy it you are in breach of contract.

Correct.

So the discussion is then about remedies for breach of contract. If the dealer is able to cancel the order with the manufacturer (or use it to supply a car for another customer) then he will be mitigating his losses. He will still have incurred some cost however.

A "reservation fee" is not allowed to be a penalty - if it does not represent a good approximation of the actual loss then it is not an acceptable remedy.

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Mon 2 May 2011 16:51
Right to cancel - Need help - neworder12

Thanks for all the responses...

Spoke to the dealer..mixed bag..more good I think...unfortunately the deposit cannot be returned...order has been cancelled..but the dealer provided the flexibility to adjust the deposit for any new car ordered through him within next 12 months..

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