Car Finance Query

[malagabob]

My son visited a used car dealer today enquiringly about finance on a car. He’s turned up now to see me with doubts. He’s told me he’s paid £100 which he’s been told is non refundable. Possibly I think is for them to hold the car. Is this legal.

[ummmm]

Yes...what if someone came in 5 minutes after him and wanted to buy the car but they didn't sell it because your son has put his deposit down.

It's not just car dealers that do this.

[gingejbee]

If he's been told that the deposit is non-refundable before he's handed the money over, I don't see the problem. If he handed the money over, and didn't know (ie wasn't informed by spoken or written word) that it was non-refundable...then he could argue the case.

[Peter Pedant]

CAB - where's Ubasses - are VERY good at car finance and he should go and see them.

On what grounds are they hanging onto the money? - umm dont even try to answer that, blah blah blah yap yap yap - it must be contract - so what did he get in return for his moolah ?

Contract Unfair terms act and credit consumer and the rules for rolling back contracts and coolingoff periods spring to mind.

finally
rnment/publications/...or.../cancelling-goods-or-services
Jump to Consumer law may help you - Don't just accept the business can keep your deposit and advance payments or ask you to pay a cancellation charge if you cancel the contract. ... A cancellation charge is not fair just because it's in the contract you signed – it needs to be reasonable.

so a trip to the CAB seems to be in order

Note - good example of advice on this site being of VERY variable quality.

[sapelesam]

Malagabob, is your son having doubts about the finance or the car? and if so, what are his doubts.

[malagabob]

Sapelesam its a case of a youngsters head ruling his reasoning. He’s coming to the conclusion he can’t afford the payments. The dealer is doing a check to see if my son can get the credit, but has taken a £100 fee of him. Hard sell by the dealer didn’t help.

[atalanta]

My son was in exactly the same position, but a number of family members managed to persuade the dealers to give the money back. It helped that quite a few of the cousins are solicitors. All the sources I consulted, including CAB, assured me that the dealers cannot keep the money. They didn't half argue,though.