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Really worried - pulled out of car purchase & dealer threatening legal action

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  • Really worried - pulled out of car purchase & dealer threatening legal action

    Would really appreciate some advice. I had gone to a car dealer and paid £100 deposit on 06/07/13 in relation to used vehicle they currently had in stock. I understand that the previous car sale had fallen through due to `finance issues'. I signed a form thinking that it was some sort of holding form but it was in fact a `Vehicle Order Form'. At the time of signing it the legal implications were not explained nor did I receive a copy. I signed the form on the understanding it would give me time to see if I could get a personal loan approved as I didn't want to take finance from car dealer. I didn't realise the form was legal binding. After personal loan was approved which took approx 1 week I also had surgery. I then had second thoughts about the vehicle and did not feel it was a good deal. I spoke to the Salesman who stated that this was the best deal they could offer and he said he would phone me the next day to discuss it. I contacted the salesman the next day and informed him that I no longer wished to proceed and apologised for any inconvenience this may have caused and stated that I was willing to forfeit £100 deposit as a gesture of goodwill. Salesman became irate stating that it might sound like blackmail but if I didn't go through with the sale his bosses might take action against me. I said that my decision was final. The dealership contacted me throughout the day and I ignored their calls as I was feeling so ill after surgery. I also noticed that the same vehicle was again being marketed for sale on the dealer's website.

    I have now received a strongly worded letter from the car dealer advising me that the vehicle is ready for collection. They have also attached copy of the Vehicle Order Form signed by myself and Terms and Conditions which I have seen for the first time. They referred to a clause in the contract stating `If the Purchaser shall fail to take and pay for the goods within 14 days of notification and the goods have been completed for delivery, the seller shall be at liberty to treat the contract as repudiated by the Purchaser and thereupon the deposit shall be forfeited without prejudice at the Sellers right to recover from the Purchaser by way of damages or loss or expense which the Seller may suffer or incur by reason of the purchasers default'. Letter goes on to state that if the vehicle is not collected within 14 days of this letter, it is XXXXXXXXXXX intention to issue proceedings to recover damages for loss of profit, in addition to any holding and disposal charges XXXXXXXXXXXX may incur due to your default. In addition you will be help responsible for any legal fees incurred by XXXXXXXXXXX in bringing this matter to conclusion.

    I appreciate that the dealer is not happy about my change of mind but this situation is causing me so much stress after surgery. I'm at my wits end! I have since purchased a vehicle from another dealer. Can someone give me some helpful advice how to address this situation. I just want the dealer to stop hounding me.
    Tags: None

  • #2
    Re: Really worried - pulled out of car purchase & dealer threatening legal action

    Hi and welcome to Legal Beagles.

    How much are these Arthur Daleys trying to extort from you?
    Life is a journey on which we all travel, sometimes together, but never alone.

    Comment


    • #3
      Re: Really worried - pulled out of car purchase & dealer threatening legal action

      xxxx
      Last edited by dolly1939; 22nd July 2013, 22:25:PM.

      Comment


      • #4
        Re: Really worried - pulled out of car purchase & dealer threatening legal action

        You agreed to the contract and paid a deposit of £100. The contract states that failure on your part to complete within 14 days will be regarded as repudiation, the deposit being forfeit in consequence. The seller may recover costs incurred.

        So ...

        You have repudiated the contract and forfeited the £100. (something which the contract expressly allows you to do).

        Even so, they now claim that you must complete. However, in between you stating that you did not wish to complete, and them sending the 'ready for collection' note, they readvertised the vehicle (and by so doing would appear to have accepted that the deal is not going ahead).

        Is it still advertised on their website? If so, get a screenshot immediately.

        Have they suffered any demonstrable and quantifiable loss that they may seek to recover? (Very unlikely).

        Write, pointing out the above.

        Comment


        • #5
          Re: Really worried - pulled out of car purchase & dealer threatening legal action

          Hi and welcome.

          This might help you as they seem to have had a similar dilemma
          http://www.justanswer.com/uk-law/7s7...ew-uk-car.html

          Their predicament is slightly different as they had arranged finance, which actually makes it more problematic.
          As the dealers still have the car, and can still sell it on, I find it difficult to envisage what profit they have lost. They talk about "disposal costs"... does this mean they intend to scrap it? Holding charges? It was already theirs, they didn't have to order it in so they have had virtually no costs.
          I think they are trying it on.
          Your options would appear to be (1) to write and confirm your original conversation and then ignore.
          (2) ignore
          I doubt it will go further than more threatening letters.
          I'm sure other posters will be along to give you their advice and help soon.
          Good luck

          Comment


          • #6
            Re: Really worried - pulled out of car purchase & dealer threatening legal action

            xxxx
            Last edited by dolly1939; 22nd July 2013, 22:26:PM.

            Comment


            • #7
              Re: Really worried - pulled out of car purchase & dealer threatening legal action

              In law, the dealer can only ask for actual and quantifiable loss and expense they have incurred and must prove this, otherwise they have no claim.

              The law also requires anyone claiming for loss which they claim is attributable to the actions of another to mitigate any losses as much as possible. If they fail to do so, their claim could be disallowed, either wholly or in part.

              If the vehicle is still available to them to sell, then they are going to have to work hard to convince a court of the veracity of their claim and losses. I have a gut-feeling the clause referred to may be unenforceable, especially if it is a used vehicle.

              If it was a new vehicle on order from the manufacturer, then you would be in a pickle and the dealer would be in a stronger position.
              Life is a journey on which we all travel, sometimes together, but never alone.

              Comment


              • #8
                Re: Really worried - pulled out of car purchase & dealer threatening legal action

                Originally posted by dolly1939 View Post
                I had already taken screenshot of the vehicle which I noticed advertised on the dealership website after I informed them that I wasn't proceeding. I feel really foolish about signing something which I didn't realise was a legally binding contract. My husband was with me and can verify my version of events. At no time was I informed that it was a legally binding contract. I feel that the dealership is trying to bully me into proceeding with the vehicle purchase. I'm trying to recover from surgery and have drafted a letter to the car dealer which I have yet to send. Is the content of my letter suitable?

                I refer to your correspondence dated 18 July 2013 and the enclosed XXXXXX Vehicle Order Form which I only received a copy of for the first time. This was also the first occasion I had been made aware of the Terms and Conditions which were not brought to my attention earlier.
                I was shocked and surprised to receive your correspondence and was under the impression that my intention not to proceed with above purchase was made very clear during a telephone conversation I had with (Name of Sales Executive on Tuesday 16 July 2013. I also made (Name of Sales Executive) aware on Tuesday 16 July 2013 that I was unwell due to undergoing surgery on Sunday 14 July 2013 and considered the matter final and as a gesture of goodwill on my behalf was agreeing to forfeit my £100 deposit.
                Having informed (Name of Sales Executive) of my intention not to proceed you swiftly advertised said vehicle on the XXXX website and it was my understanding that the matter was then closed.

                I am no longer in a position to continue with the purchase due to a change in personal financial circumstances and do not wish for any more telephone calls etc. As you can appreciate I want to make a full recovery from surgery and dealing with unwanted phone calls from XXXXXX Motors is not conducive to my recovery and this practice may also be of interest to Trading Standards.


                I also have not taken delivery of the vehicle and signed any financial hire purchase agreements..

                I would be grateful if you could taken a common sense approach to this issue and consideration be given to my current health situation.

                Yours sincerely
                Seems perfectly okay to me.
                Life is a journey on which we all travel, sometimes together, but never alone.

                Comment


                • #9
                  Re: Really worried - pulled out of car purchase & dealer threatening legal action

                  Really appreciate the quick response from everyone. I've been so stressed since receiving letter. I'm assuming if dealer pursues matter it would be through Small Claims Court?

                  Comment


                  • #10
                    Re: Really worried - pulled out of car purchase & dealer threatening legal action

                    Originally posted by dolly1939 View Post
                    Really appreciate the quick response from everyone. I've been so stressed since receiving letter. I'm assuming if dealer pursues matter it would be through Small Claims Court?
                    Putting bullies like this on what is known as Strict Proof often brings about a rapid change in attitude as they have to be truthful and anything not capable of proof is likely to result in any claim being disallowed, struck-out or truncated.
                    Life is a journey on which we all travel, sometimes together, but never alone.

                    Comment


                    • #11
                      Re: Really worried - pulled out of car purchase & dealer threatening legal action

                      Perhaps referring them to the Roberts v Bank of scotland ruling if they are harassing you by telephone may help?
                      I work for Roach Pittis Solicitors. I give my free time available to helping other on the forum and would be happy to try and assist informally where needed. Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide is without liability.

                      If you need to contact me please email me on Pt@roachpittis.co.uk .

                      I have been involved in leading consumer credit and data protection cases including Harrison v Link Financial Limited (High Court), Grace v Blackhorse (Court of Appeal) and also Kotecha v Phoenix Recoveries (Court of Appeal) along with a number of other reported cases and often blog about all things consumer law orientated.

                      You can also follow my blog on consumer credit here.

                      Comment


                      • #12
                        Re: Really worried - pulled out of car purchase & dealer threatening legal action

                        Originally posted by pt2537 View Post
                        Perhaps referring them to the Roberts v Bank of scotland ruling if they are harassing you by telephone may help?
                        http://www.bailii.org/ew/cases/EWCA/Civ/2013/882.html

                        Comment


                        • #13
                          Re: Really worried - pulled out of car purchase & dealer threatening legal action

                          You have fulfilled your contractual obligations as far as I read them. As above, sending a copy of the case law may make them think twice about pestering you by phone too much when you've specifically asked them not to - I'm sure you could find a way to spend £7500!

                          What makes you think you may not have met their contractual obligations - the T&C's read pretty clearly to me.

                          Comment


                          • #14
                            Re: Really worried - pulled out of car purchase & dealer threatening legal action

                            xxxx
                            Last edited by dolly1939; 22nd July 2013, 22:26:PM. Reason: additional info

                            Comment


                            • #15
                              Re: Really worried - pulled out of car purchase & dealer threatening legal action

                              I think you need to speak to Trading Standards about this motor dealer asap. It sounds like this lot are cherry-picking which bits of law they are going to use and may well be putting themselves in breach of the law in the process. During my time as a policeman, I came across businesses and traders who misrepresented the law. In certain circumstances, misrepresentation of the law can constitute a criminal offence.
                              Life is a journey on which we all travel, sometimes together, but never alone.

                              Comment

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