Changed mind about buying a second hand car - need help!

Artheas

Artheas

Artheas

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I have a friend who initially wanted to buy a 1 year old Corsa for just under £8000, and signed the contract, leaving Arnold Clark with a £100 deposit.
But afterwards, he found out how high his insurance premiums were going to be, and since it was much more than he was willing to pay, he decided he didn't want the car anymore.

The dealer then said the deposit was non refundable (which is fine) but they also said they'd charge a cancellation fee of 10% (minus the deposit). If not, then they would take him to court.

How likely is this to happen? And where does he figure of 10% come from? It doesnt appear to be on the contract that he signed.

Also, i did some brief research myself and read that in situations where a buyer decides not to buy, a seller can 'sue' for an amount which is equal to the contract price minus the market price. For new cars, the deposit will usuaully cover this amount, and in my friend's situation, the contract price is less than the market price (according to AA anyway). Is this of any significance?

Any help/advice is very much appreciated!
 
That sounds really dodgy. 800 quid just to press a "cancel" button on his computer is taking the wee. And if there's no mention of it in the contract, I'd say he's a greedy bar-steward trying to trick your friend.

Edit: that said, what species of idiot doesn't check how much insurance will cost before paying a deposit on a car?
 
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It was a face-to-face deal so where the idea of a "Cooling Off Period" comes from I'm not sure.

In a face to face situation there is no cooling off period.
You sign a legally binding contract and pay a deposit (usually) which is recognised in law as an undertaking or intention in good faith.
Therefore by attempting to rescind the contract, the seller has no obligation to return the deposit and could even chase you for the remainder of the cost of the car.
The only way you could rescind the contract and get your money back was if you felt that you were misold or were not in possession of all the facts so as to make an informed decision when you signed the contract.
Alternatively you simply appeal to the dealers better nature.

Considering you could have to pay for the whole vehicle and yes, legally it could be that situation, I guess he should be happy with 10%.
 
stoofa said:
It was a face-to-face deal so where the idea of a "Cooling Off Period" comes from I'm not sure.

In a face to face situation there is no cooling off period.
You sign a legally binding contract and pay a deposit (usually) which is recognised in law as an undertaking or intention in good faith.
Therefore by attempting to rescind the contract, the seller has no obligation to return the deposit and could even chase you for the remainder of the cost of the car.
The only way you could rescind the contract and get your money back was if you felt that you were misold or were not in possession of all the facts so as to make an informed decision when you signed the contract.
Alternatively you simply appeal to the dealers better nature.

Considering you could have to pay for the whole vehicle and yes, legally it could be that situation, I guess he should be happy with 10%.
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10% + 100 and no car
or 100% and a car that he wants apart from high insurance costs.
I'd take the car and use the 900 quid to help with insurance
 
monkeyspank said:
Not sure if that counts if you actually sign something. I thought that definitely applied to over the phone contracts etc. could be wrong
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14 day cooling off period comes under the Distance Selling Act, so phone, mail and internet orders come under this but not face to face unless a cooling off period is written into the contract.
 
monkey_boy said:
14 day cooling off period comes under the Distance Selling Act, so phone, mail and internet orders come under this but not face to face unless a cooling off period is written into the contract.
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DSA has a 7 day period in which you can return things, not 14. I don't know about the face to face law.

Stoofa, I take it you have some knowledge about what you posted? What you have posted seems weighted a bit too far towards the seller. Is this situation enforcable, has it ever been enforced?
 
How old is your friend?

2 things.

1. He's daft for buying/or nearly buying an £8000 Corsa.
2. He sounds really young if the insurance on a Corsa is too much. Sounds like the insurance is going to be expensive on any car. Assuming the Corsa is a 1.0 or 1.2.
 
osc89er said:
DSA has a 7 day period in which you can return things, not 14. I don't know about the face to face law.

Stoofa, I take it you have some knowledge about what you posted? What you have posted seems weighted a bit too far towards the seller. Is this situation enforcable, has it ever been enforced?
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It's standard law - once a contract is formed then one party cannot recind on the contract without penalty.
OK, big difference in price, but if I sign up for a 12 month phone contract, if I want out after 1 month I have to pay off 11 months.

When the contract was formed the friend of the OP agreed a contract with the seller.
Now if both parties agree to recind on the contract then all is well, and in effect that is what they are offering.
Agree to pay 10% of the cost of the car and we'll write the whole contract off, you want out, we want out, everyone happy.
If however only one party (OP friend) wants out then the original contract stands.

As in my other post, if the buyer feels that they were unable to make an informed decision on the purchase or they were misold the item then there is a good case for full refund including deposit.
However I'm assuming the buyer had ample opportunity to look at the car and the car is what the dealer says it is.

The only other option would be to take the dealership to court and claim that having to pay 10% of the value of the car is unfair and does not correctly reflect the amount the dealership actually lost.
They will argue that they lost potential sales while the car was being "held" for the OP friend.

The OP is breaking contract, so going to court under the dealerships terms might not be the best way forward.
However if he was feeling brave he could pay the 10% and then take the dealership to court and attempt to claim the charge was unfair.
 
They're probably legally in the clear; but I think it's very, very unlikely they'd actually pursue through the courts. I'd just ignore it.
 
latercomer2 said:
He should have a copy of all the documentation regarding the sale so I suggest he reads it all very carefully to see what he has signed.
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He does, and i took a look at it. The paragraph i found to be relevant said that if within 14 days of the buyer being told the goods are available, the buyer doesnt pay, then the deposit if forfeited (fine) and also needs to pay any expenses/losses suffered by the seller as a result of the cancellation.

I do not see how it would total £800. I asked for a list of what these costs are, and they said £100+ for servicing, plus costs for adverts etc. Didn't say how the 10% figure came about, other than 'it's what head office says'


peterattheboro said:
How old is your friend?

2 things.

1. He's daft for buying/or nearly buying an £8000 Corsa.
2. He sounds really young if the insurance on a Corsa is too much. Sounds like the insurance is going to be expensive on any car. Assuming the Corsa is a 1.0 or 1.2.
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He's in his 30s. The main problem causing the high insurance premiums is a 6 point penalty he has for recently driving without insurance.
Corsa is a 1.2, 1 year old.
 
a) What is a 30-something year old man doing buying a childs learner car anyway? He will look ridiculous in it.
b) Even with an apalling driving record the insurance on a Corsa is going to be as cheap as they come. Just what does he expect to buy for his £8000 that will offer a significant insurance saving?
 
[TW]Fox;13935297 said:
a) What is a 30-something year old man doing buying a childs learner car anyway? He will look ridiculous in it.
b) Even with an apalling driving record the insurance on a Corsa is going to be as cheap as they come. Just what does he expect to buy for his £8000 that will offer a significant insurance saving?
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a) he originally wanted a BMW 31x but the insurance was too much on that or something. so i think he chose a corsa pretty much for the relatively cheap insurance. he did a quote with it originally but missed something out i guess.

b) I checked for him earlier on confused.com, the cheapest was £1k+, which went down to £500 if the 6 point penalty offense was omitted.
 
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