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Nicola-mod
Nicola-mod, Moderator
Category: Law
Satisfied Customers: 21
Experience:  Moderator
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I recently looked at an ex-demo car at a car dealer. I asked

Customer Question

I recently looked at an ex-demo car at a car dealer. I asked if I would be able to get credit for the vehicle as I only had a fair credit history and was told that they would try and find credit for me. They asked what my maximum monthly payment would be and I told them £135, they then asked me to sign a form giving them permission to apply for credit on my behalf. They then requested £250 to insure that the car would not be sold whilst they were trying to get credit - I said that I was not willing to give them more than £50, which they accepted. They then said that they would let me know when when/if they had found a suitable lender. I have not heard from them for 9 days but have had several text messages and letters from different finance companies saying that I had been approved for a, conditional, loan. On checking the websites of these companies I found that the monthly payments for the amount I needed would be over £200 per month. Am I obliged to buy the car if the payments are more than the stated maximum monthly payment I said I was able to pay and am I entitled to get the £50 refunded as I did not buy the car?
Submitted: 4 years ago.
Category: Law
Expert:  Ash replied 4 years ago.

AlexWatts2013 : Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return.
AlexWatts2013 : How did you pay for the deposit on the car please?
JACUSTOMER-2mqzkf3b- :

It was just a 'holding' deposit. I paid for it with my debit card.

AlexWatts2013 : If it was on the basis that they would ty
AlexWatts2013 : If it was on the bais that they would try and get credit and repayments would be up to £135, if they fail to do this then yes you are entitled to a refund.
AlexWatts2013 : This is because by agreeing to the above they accept that if they fail the deposit must be returned.
AlexWatts2013 : If not then you would be entitled to sue them in the small claims court for that loss.
AlexWatts2013 : Can I clarify anything for you about this?
JACUSTOMER-2mqzkf3b- :

I am just worried that I may be 'forced' into buying the car just because they had found me a loan at all.

AlexWatts2013 : No.
AlexWatts2013 : Deposit was on the basis they try to find credit to max £135 pm
AlexWatts2013 : If this answers your question, please take a moment before you leave and rate my service, it only takes a second and is an important part of the process. Otherwise if you need more information or help then please click reply. Alex
AlexWatts2013 :

Can I help you further about this?

Expert:  Nicola-mod replied 4 years ago.
Hello,

Just a quick reminder, there is an unrated answer waiting for you here from the Professional.

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Thank you,
Nicola