January 22, 2018 at 5:22 pm #39211
I ordered a mobility car a few weeks ago and was asked by dealer to put down a deposit. I was not told it was non-refundable and nothing on the receipt he gave me says it is. I want to cancel the car as Ive realised its probably not going to be the right one for me.
Will I get the deposit back?
August 24, 2019 at 6:01 pm #86073
Would you get the advance payment back if you’ve already paid it?August 24, 2019 at 6:35 pm #86074
When I ask merc if they would need deposit the salesman said no what’s the point I you cancel we would have to give it you back anyway plus we’d be able to sell car anywayAugust 24, 2019 at 6:39 pm #86076
Would you get the advance payment back if you’ve already paid it?
Technically, you don’t pay an Advance Payment in advance of collecting the car.
Motability’s take on it is:
”Some dealers do ask for a holding deposit when you place your order, but any deposit paid will be deducted from the Advance Payment you pay when collecting your car.”
So, what you have paid (in advance of collecting the car) is a ‘holding deposit’.
Motability do tend to be quite shy on this matter when asked, for example, what if the dealer goes bust after you have paid a deposit, but before you collect the car? They wouldn’t answer that question!
Simple answer, never pay anything until you collect the car.
DaveAugust 24, 2019 at 8:26 pm #86085
Unless it’s for extras you chose over the standard features you would still get any deposit back.
Some bad salesmen will tell you to pay the AP up front. But this is wrong, you don’t pay that until you have entered your PIN number on collection day.August 26, 2019 at 1:43 pm #86174
The only reason I am concerned is because the manager at the garage gave me this lecture about them being charged £500 by VW to cancel an order. It does seem far fetched to me but I don’t know how the motor industry works. Im contacting them again today , will let you know how I get on Thanks for replies so far and support Steve
Steve what happened did you cancel the car.August 27, 2019 at 2:21 am #86219
Unless it’s for extras you chose over the standard features you would still get any deposit back. Some bad salesmen will tell you to pay the AP up front. But this is wrong, you don’t pay that until you have entered your PIN number on collection day.
Most dealerships/customers settle the AP on the day, but dealerships do have every right to ask for it up-front / before committing to an order (i.e. ordering the car from the manufacturer or registering it to you).
If a dealer asks for the money up front, they are not necessarily ‘bad’. You have to also bear in mind some negative experience (either with Motability or retail customers) that might lead to a dealership wanting to see the funds at the point of ordering. It’s their prerogative to ask for it – and yours to pay it or take your business elsewhere.August 27, 2019 at 5:52 am #86221
You do have to balance the risk in paying any money in advance of collecting the vehicle though, particularly if it is going to be for an extended period.
As I posted in my previous post, and quoted from Motability’s own website, any money paid in advance of collecting the car is not an advance payment but a ‘holding deposit’.
That ‘holding deposit’ is your money, held by the dealer until the vehicle is collected (and PIN entered) and only then does it become a Motability ‘Advance Payment’ and become ‘Motability’s money.
Thus, should the car dealer go into liquidation or cease trading for other reasons, your order would be cancelled and it is upto you to get your ‘holding deposit’ back. If the dealership has gone into liquidation/bankruptcy then you will become just another unsecured creditor in a long line after secured creditors such as HM Revenue & Customs etc. In short, you may not get your money back.
There are some ways you can protect yourself though. That is by paying at least £100 of any such holding deposit on a credit card. That way Sect 75 CCA cover kicks in as the credit card company is jointly liable for making up your total loss (£100 plus the rest of the holding deposit paid by other means).
If you don’t have a credit card, a debit card gives limited protection under the ‘Visa and Mastercard Chargeback scheme’. Although this is not set in law it may work and you could recover the actual deposit paid on the debit card.
As someone on another forum found when a dealership (DeVries Honda) went straight into liquidation about 10 years ago, Motability do not class a holding deposit as money held on their behalf and it is at your risk if the dealership ceases trading.
I was just lucky at the time this happened, as I was all set to order a Honda Civic VR but had to wait for the ‘3 month point’ to order it. I made an appointment with DeVries Honda for the following week and 2 days later they ceased trading. There had been no rumours or word of them going under, but they went straight into liquidation and closed down that day.
Dave.August 27, 2019 at 10:01 am #86226
Most dealerships/customers settle the AP on the day, but dealerships do have every right to ask for it up-front / before committing to an order
I spoke to Motability about this a week ago and was told under no circumstances should I pay any “Advance Payment” to the dealer before I am totally happy with the car and are ready to input my “Pin”, any money asked for by the dealer would be classed as a holding deposit and can be taken off the total advance payment on the day or refunded(depending on the dealer), most only ask if you have added “extra’s” to your order and the majority don’t require a deposit with a Motability order.
She then once again stressed that the advance payment can’t be taken as a deposit and to ring them immediately if a dealer asks for this and they would contact the dealer straight away and correct them on their duties as a “Motability Dealer” and the policies and procedures they have to adhere to(she got quite heated about this) and said she had had several dealings with certain dealers in the last few days trying to do just this and one had been suspended while the reps were to be re-trained on Motability policy(she seemed quite a fierce lady) ??August 30, 2019 at 10:22 pm #86481
I ordered my car two weeks ago, but a change in my personal circumstances mean i can’t afford to change my car just now, are dealers really awkward about cancellations? Can i do this via the phone?August 30, 2019 at 10:33 pm #86482
They’re sometimes a bit sore at losing a sale but there’s nothing they can do about it.
Ring motabilty first and let them know and then call the dealer and make sure you mention that you have already spoken to motabilty about it.August 31, 2019 at 9:46 pm #86540
They’re sometimes a bit sore at losing a sale but there’s nothing they can do about it. Ring motabilty first and let them know and then call the dealer and make sure you mention that you have already spoken to motabilty about it.
All sorted. Thanks for the advice. No penalties because I cancelled so soon after order was placed, dealer was courteous and understanding to my position.September 1, 2019 at 12:40 am #86544
Happens to us all at some time, hopefully by the time you’re in a position to change they will have lots of good new stuff to choose from.October 21, 2019 at 8:49 pm #92675
I am rather annoyed that having ordered our new car on 23rd July for a 26th October changeover, and not being advised of any possible delays, I am now told I have to wait another 3 weeks .. after the start of a booked holiday.
I was told they did not start to build the car until this month!
Not sure I want to but do I have the right to cancel the order? There is a hefty AP which I have not yet paid.
Maybe I could get another vehicle from stock
PaulOctober 22, 2019 at 9:30 am #92760
You can cancel the order anytime up until you enter your pin. Even wen the car arrives and you are about to take delivery if you changed your mind you could cancel as long as you haven’t entered your pin. Also you can call around a few other dealerships in the mean time to see if they have any stock available before cancelling straight away. What car is it out of curiosity?October 22, 2019 at 12:04 pm #92787
I thought you could cancel up to the pin going in but motability tells me that a dealer can charge you a fee as they have a factory order that may have extras and even may have had the adaptions fitted you may have to have a very good reason why you need to cancel at such a late time so maybe things have changed now.October 23, 2019 at 12:28 am #92891
Car ordered was a Citroen C5 Aircross, top of the range Flair Plus with 2l diesel, plus descent control etc.
I understand that the delay is caused by them wanting to do a run of the same car combination, never mind the customer. No adaptions other than standard listed options.
just so infuriating
PaulOctober 23, 2019 at 6:54 am #92903
to be fair oldenstar having seen some of the horendous wait times and delays in other threads on here 3 weeks aint that bad, annoying though as it certainly is.October 23, 2019 at 10:23 am #92937
Hi i had to wait over 3 months for a seat leon a while ago and i think some people over 6 months for some models.