DazW

iTrader: (1)

Bit of a problem.

I recently thought I had sold my car - The guy who bought it was the first to view and put down a deposit to hold it (£100) and I basically turned all other interested parties away (without keeping their no.s - DOH!). Turns out now that he hasn’t got the money in the bank and cant get a loan - grrrr, I’m a bit pissed off as I’ve got to re-ad, and I’ve lost 2 weeks worth of interest - So do I have to reimburse him his cash, or can I tell him to naff off!

I’ve always viewed deposits as non-refundable but what does everyone else think?

DazW

ian_sadler

If I was in your possition I'd take my expenses out i.e advert & re-advert costs and give him any change thats left.

Ian

Scott WT

When the guy made an offer for your car and you accepted it (all can be verbal only) then that is a contract! He is now in breach of contract, and you could seek a remedy by taking action against him to either i) force him to buy the car as originally agreed, or ii) pay you compensation for the losses you sustained (missed opportunities to sell included).

You are well within your rights to keep the £100, and could go further IMHO if you wanted to. This is how I understand the law anyway.

Scott

Reidy

you are entitled to keep it - that is the nature of a deposit.

chiark

Be very careful, this could backfire on you.

A deposit does not mean "non-refundable".

At risk of sounding like a cracked record today, I'd get onto Citizen's Advice Bureau.

MattN

very much depends on the situation.

I 'sold' my car last december 3 times!!

First person saw it agreed a price but I didn't take a deposit - next week he called to back out.

A month later someone else bought it and I took a £100 deposit. He to backed out. Luckily when someone else phoned I turned them away but took details, just as well as like I said he backed out.

He asked about his deposit but by now I was a bit pi55ed off. The agreement we made was if I sold the car quickly (within 2 weeks) and for a similar figure he could have his deposit back.

As it was I sold it 3 weeks later for £650 less, so as far as I was concerned I was more out of pocket than him so kept the deposit.

But... it's not always a simple case. A deposit in this situation shows your intention to buy the goods at an agreed price. If your situation changes you are entitled to a refund. But every case is different.

Is he demanding his deposit back?

DazW

iTrader: (1)

Matt,

No, he hasnt asked for it back - but I think he will, Im just a little peeved that I turned people away who may/may not have now bought a car.

I just dont get people who say yep Ill buy it, without having the cash or at least going through the process of finding out if they can get a loan.

If the boot was on the other foot, as in - I take their 'holding' deposit and then just sell the car anyway and give the deposit back to them - imagine how pi$$ed he/they would be!

Ill probably go down the Mr Sadler route which sounds not too unreasonable.

Mental note - do NOT cross Scott WT ...ever!

Cheers anyway Guys,

DazW

mik

My views are purely ethics - not legal.

If he pulls out 'cos he's rung HPI and they say it's a write-off ~ he's entitled to his deposit back.

If he's had problems.....tough t1tty. You keep it if you can justify re-advertise costs and suspicion this raises potentially affecting the resale value (which in this case you can). This obviously depends how much he left. £100 fair enough. If he left you a grand I'd be unable to justify keeping it all....

carl

I'm with you DazW. If I was looking to buy an Impreza around (say) 15k I would:
1) Borrow 15k straight away. If I get one for 14k I've got an extra grand to play with, if it's 16k I have to make up the shortfall.
2) Phone insurance company and get a quote for insurance (in writing)
3) Start to look for a car...

I had to take out a loan to buy my Scoob, but because it was a Dutch import I had to put 4k down as a deposit and the rest on delivery (5 months later). I borrowed the lot and had the remainder sitting in the bank for 5 months as it seemed safer to me than getting a loan for 4k then possibly being refused a loan for the remainder.

Alpine

Been stung on this a few times in the past. I always write a receipt for the deposit with the words 'None refundable' on it..

Was once selling a race spec mini -- looked the dogs nuts and went like stink... got loads and loads of young kids coming to look.. After several backed out 'cos of the insurance I started to warn people that insurance on it was expensive and took four further none-returnable deposits of 100 notes...

Not one asked for their money back as it was clear where they stood from the start. This clarity is all important and so rare in 'hand-shake' deals.

seejay555

Daz,
When he gave you the deposit, did you/he think that he had agreed to buy the car? Did you write anything down?

MattN

Daz,

Know exactly where your coming from. If you got a better offer and gave the deposit back I bet he'd be as annoyed as you are now.

Unfortunately it's a buyers market and if the hundred doesn't bother him it's just you that gets the aggro.

All I can say is take other potential buyers details. And don't cancel any outstanding adverts, trying to save £50, just not worth it, most people reckon they're a bit good at buying second hand motors, they watch Mr Wilson on Top gear or such and reckon they know it all.

DazW

iTrader: (1)

Seejay,

I wrote him a receipt for his deposit along the lines of "£100 received as deposit, £xxxx to be paid upon collection" and then just signed it.

From now on Ill definitely keep hold of contact info, but it still doesn’t help if your kept waiting say a week - as they will probably have bought elsewhere - they'll all want to know why its back up for sale again as well, I know I would!

DazW

seejay555

Daz,
Sounds to me like you had a contract. If he decides not to buy he has broken the contract. The law wouldn't force him to buy the car from you but would let you recover any losses you suffer as a result - re-advertising costs perhaps, that sort of thing. ScottWT is right.
I suspect the interest charges are too "remote" (don't want to get too technical!!) but it might be worth off-setting them against his £100. Best advice I can give you is to write to him telling him exactly what you are doing and why you are doing it. If you haven't got his address, 'phone him and ask for it and then write!
Even if your re-advertisisng and extra interest amounts to more than his £100 it's not worth chasing him for the difference. Chalk it down to experience.

matt.bowey

When I see my Scoob, they aint even gonna get a test drive unless they can prove to me that they have the cash!

I've had experience of test pilots b4!

MrDBM

legally there are a few issues to contend with, but I'm pretty sure that it would be illegal to keep the money entirely. To form a contract you need, offer, acceptance and consideration - as far as I can see, money has been handed over but there is no consideration; i.e. the guy has nothing from you.

i would take out costs, provide a reciept and give him the change, this would be 'fair and equitable'.

i could be wrong here, it's been a while since I did contract law!

banshi

My recollection of elementary contract law is also somewhat hazy. But surely the car was the consideration. If you had an agreement to install a network which was cancelled before work commenced the contract would still be enforcable.

But it's irrelevant, unless on a point of principal, surely no one would take this court. Risk of losing, potentially unrecoverable cost & inconvenience of having to hold onto the car until the hearing would not be woth it.

If he asks for his deposit to be returned, do as MDB suggests. If he objects give him back his cash, a keyed wing costs more to rectify!

Stueyb

Just a thought. If he is a "mr nasty" he could well come round at 2am and put a big dent in your bonnet if you dont return it. You know what people can be like if they feel they have been cheated.

Not that im saying give it him back, but just weigh it up against potential problems.

Alpine

Under contract law you have given 'consideration' in that you have held the car for a certain period for the deposit money...

Edited to say... 'Possibly???'

[Edited by Alpine - 5/17/2002 11:09:00 AM]

seejay555

****, I'd better go back to law school with all you "barrack room" lawyers around. All that training....


[Edited by seejay555 - 5/17/2002 11:05:42 AM]

[Edited by seejay555 - 5/17/2002 11:06:03 AM]

Jolly Green Monster 2

Personnaly in your situation I'd keep it unless he asked for it back and then I'd suggest that he pays for your readvertising as you have lost potential buyers and he has wasted your time.
If he gets nasty and is sounding like he is going to get nasty you have two options. Hand it back.. or not.. then anything happens to the car you have reasonable proof of intent and you could report him. I doubt he would be charged with anything but you might have enough to get him a visit from the boys in blue and his name logged.
Although then you'd still have to repair the car..
I doubt it will go that far anyhow.
I say keep it...

JGM