So further to this, I had to cancel my order with my dealers due to losing my entitlement but whilst they have cancelled, they have refused to refund my AP. Instead, they have informed me that they will hold it for 6 months to be used as a deposit should I be able to order again. If I can’t, they’ll keep the money. There doesn’t seem to be any inclination to discuss this further from their end so does anyone have any suggestions? Or do I just swallow the loss of £365 and move on?
As @kezo says, they have to refund your deposit.
It is important to note that with Motability we never enter into a contract with a dealership. The only contract that you enter into is with Motability Operations, and that only becomes binding at the point that you enter your PIN on the day that you collect.
Although it is advisable not to pay a deposit (to avoid situations such as this), dealers are at liberty to ask for one. However, I am assuming that they didn’t inform you when asking for the deposit that it would be non-refundable, and you didn’t sign anything to that effect?
I would go back to the salesperson and say that you have taken advice on this issue and would like your deposit refunded. You agreed to pay a deposit in good faith as a statement of intent, but it wasn’t a legally binding contract. Through no fault of your own, you are now unable to proceed with the order. The dealership has no right to retain your deposit when the item that you paid the deposit for is no longer being provided. They also have no right to insist that, should you subsequently be able to order, any replacement vehicle must be sourced by them. If the salesperson won’t budge say that you will be writing to the Dealer Principal.
Good luck and let us know how it goes. Personally I would use a different dealership next time. I have ordered an extremely expensive private car and the dealer has agreed up front that, if for any reason I need to cancel the order prior to delivery, they will absorb it into stock. There are plenty of good dealerships and sales persons out there so that we can avoid the bad ones.