Can a dealer cancel your order and return deposit?

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Blackrock1

Registered User
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My mum ordered a new Audi Q4 etron for june / july delivery, they are now saying they wont get it til 2023 so they are cancelling the order and returning the deposit as they cant honour the trade in.

Is this within their rights? i assume so, but then read the simi website as to how they view it the other way around!

If I change my mind am I entitled to my deposit back?​


A deposit is a payment that is made to a retailer by a consumer which indicates an intention to buy a product or a service. The amount of the deposit and the timing of payment of the balance are a matter between the consumer and the supplier. When you pay a deposit for goods, a contract is created between you as a consumer, and the supplier of the product or service. If you change your mind and no longer wish to purchase the product, legally you will be seen as not fulfilling your part of the contract. You are not entitled to your deposit back if you simply change your mind. It will be up to the supplier as to whether they will refund any deposit paid.
 
Am I missing the point or what's the problem. Surely the garage is doing the right thing.
The simi website quote has nothing to do with this situation
 
My folks orderered a car, they paid a deposit, 3 months ago. The dealer is now saying they wont have the car when they said they would and will be returning the deposit and not honouring the trade in / price agreed.

The link from the SIMI website is the same situation but where a customer backs out.
 
You will probably find that is is covered in the Terms & Conditions of the contract your parents signed.
 
Blackrock1 said:
where are you getting that from?
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You cited something that shows how the dealer may keep the deposit if the customer reneges on the contract. So I wondered if you were implying that in the opposite case the customer should get the value of the deposit (plus their deposit back)? Otherwise why quote it?
 
Car manufacturers are restructuring their dealership networks. Many are increasing their prices and returning deposits. It's all changing. I wouldn't like to be one of the older main dealers.
 
ClubMan said:
You cited something that shows how the dealer may keep the deposit if the customer reneges on the contract. So I wondered if you were implying that in the opposite case the customer should get the value of the deposit (plus their deposit back)? Otherwise why quote it?
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I quoted it because it states when a deposit is paid a contract is created.
 
Blackrock1 said:
I quoted it because it states when a deposit is paid a contract is created.
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So your parents want to enforce the contract and get their car in a year's time? Is that it?

I'm a bit confused... :confused:

As another poster said the terms and conditions of the contract might be worth checking.
 
ClubMan said:
So your parents want to enforce the contract and get their car in a year's time? Is that it?

I'm a bit confused... :confused:

As another poster said the terms and conditions of the contract might be worth checking.
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yes, exactly, they would like the car.
Reading a thread on boards.ie it seems like there are a lot of people in the same situation unfortunately.
 
If a contract exists, you can enforce its terms. If the other party is unable to meet their obligations, you can claim compensation.

A contract probably does exist, but who knows what the exact terms of that contract are.

Ask the dealer which term in the contract allows them to refund your deposit and back out of the deal. If they can point to a clause which allows this, then there is little you can do. If they are unable to point to such a clause, if the answer is waffle and bluster then perhaps they are in fact obliged to perform the contract or compensate you for failing to do so.

It is easy for a business in this situation to repay your deposit and say 'well that's it" it costs them nothing. You can let it go or challenge it.
 
Blackrock1 said:
yes, exactly, they would like the car
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I commend them for not dragging this out any longer, and calling it a day with the sale.

What if, this time next year, there is still a difficulty with the garage in sourcing the vehicle, where do you draw the line in ending the sale.

They made the right call, others may not have and held your deposit for an indefinite amount of time.
 
cremeegg said:
You can let it go or challenge it
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Seriously!!


Due to unforeseen circumstances, they cannot produce the vehicle in a reasonable time frame... What else could they have done here.

Do you think they are happy to loose out on a substantial sale like and Audi Q4!
 
I am sure they are not happy, but if you enter into a contract you have to fulfil it even if things change and it becomes difficult.

If it becomes impossible the other party has every right to feel aggrieved and to be compensated for any loss they suffered. I would say not having a nice new car is a loss, not getting the agreed values also a loss.

Of course the terms of the contract may allow the dealer an out.
 
Hello,

Is the concern, that your parents are losing out on the value they were getting for the trade in, here (ie that they'll get a lesser amout if they sell it, or trade it in, in 2023)?
 
LS400 said:
I commend them for not dragging this out any longer, and calling it a day with the sale.

What if, this time next year, there is still a difficulty with the garage in sourcing the vehicle, where do you draw the line in ending the sale.

They made the right call, others may not have and held your deposit for an indefinite amount of time.
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i agree to a certain extent, the dealers are in a terrible position, people looking for cars and they cant get their hands on them, but if there is a contractual obligation (which im not sure if there is or not) then that is their problem.
 
MrEarl said:
Hello,

Is the concern, that your parents are losing out on the value they were getting for the trade in, here (ie that they'll get a lesser amout if they sell it, or trade it in, in 2023)?
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Blackrock1 said:
Partly yes.
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In all fairness, if they're hoping to avail of an opportunity to profit from a market shortage, they can hardly complain too much when another dimension of the same shortage stymies that opportunity.

And in any event, you can take it as given that any main dealership will as a matter of course protect themselves from being bound under an onerous contract in the event of a temporary or permanent scarcity in their market.
 
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