Dealer Not Refunding My 3k Deposit on New Vehicle

Lbaydoti on 04/10/2022 - 22:00
Last edited 10/10/2022 - 21:37 by 1 other user

TLDR: dealership not returning $3,000 deposit after numerous promises that salesman would. Salesman now saying sorry I can't do anything about it and it's with dealer principal.

Hey everyone, long time lurker first time time poster.

Have a bit of an issue with a euro new car dealer in NSW. In early July I saw a car in the showroom that I was very interested in. Newer version of my current car, (4 years old) but top spec model. They had it in white, but I was interested the grey version. Dealer was a young guy maybe 20 maximum, took my details and told me if a grey one was being delivered, he would give me a call. Fast forward a week, dealer calls me, a sale has fallen thorough and has one available, without sound package but with sunroof at $83500 and will be here by end of October. $3,000 deposit would secure it and I could cancel at any time, with no questions asked for a refund, as I hadn't seen the colour in real life and hadn't driven it yet.

I needed to be happy with these 2 conditions for the sale to proceed. I confirmed with the dealer on at least four occasions that I was able to cancel at any time and his answer was yes definitely. Just give us a call and we will refund you. These cars are selling for over retail on Carsales and the wait is a min of 12 months so it will be easy to sell again. No issues, I paid the 3k deposit

I received an invoice for the new car minus the deposit the dealer which I never signed a few days later for the outstanding balance. I didn't sign as i didn't want to be held liable and I had a feeling signing would put me in a contract which I didn't want. He never asked for a signature after that point but gave me monthly updates that the car will arrive end of October. Everything was fine.

It is now 9th September, my situation has changed and I call the dealer. I advise I can't proceed with the sale, and he is very thankful I called to let him know. He sends me a cancellation /refund form which I fill out on the same day with my bank details and he advises it will be paid back within the week. A week later, I email back to confirm if there's a delay no response. I call around 23rd September and speak to the dealer directly, he apologies and says it will be paid in the next pay run every fortnight which was a couple days away. I thank him again and wait for the refund. I now have seen the colour in real life which I'm not a fan of.

It is now 30th September, I call him once again and email requesting an update, he answers and again apologises, saying he will sort it out for me himself. I tell him please do so this time, it's been almost a month now and still no refund. He says he will get it sorted.

It is now 4th October, still no refund. I call the dealership and the same dealer answers. I ask what is happening with the refund, you said this was going to be very simple process, I have provided my details over a month ago and still nothing. He says, "didn't you get the email", i said no, what email? He then tells me his dealer principal has emailed me with some information regarding the refund. I said when did he send it and where u copied? Again, he couldn't answer and then told me his dealer principal will be in tomorrow and he will send it again. I proceeded to tell him that, i bought the car on the premise that i can get a refund of the deposit, he basically said look I can't help, it's with my dealer now. I told him am I getting my refund which he replied. I don't know I'm sorry I can't help

I still haven't received the email, but I'm assuming it will say I can't get the refund. Looking for advice on what I should / can do.

Update:
I went back to dealer the next day demanded to speak to the principal. Conveniently wasn’t there during that time. I spoke to next in charge and explained the situation. Very understanding and said he would take it up personally. He followed up daily and refund has been approved and paid. Original salesman called and apologised personally for the stuff around and explained why he couldn’t talk.

Would I go back to this dealer… maybe.

Automotive Car SUV Volkswagen

Comments

  • Hybroid on 04/10/2022 - 22:03
    +27

    Sounds like a trip to the dealership first thing tomorrow morning to speak to whoever required to get it sorted.

  • AndyC1 on 04/10/2022 - 22:13
    +12

    Ring up the NSW Fair trading and ask them what options you have before you call or go in.

    Tell the dealer you have everything documented and if the refund is not processed within 24 hrs you will be making a formal complaint to the NSW Fair trading and also making a small claim in the NSW court for the money to be returned as per the agreement your dealership entered into with me as per the emails from your salesman.

  • Zapwap on 04/10/2022 - 22:14

    First and last rule 'Get it in writing'

    By the way the contract/invoice must have the clause something like 'subject to test drive and color visuals, deposit to be fully refunded if conditions not met' etc.

    What does your contract say?

    • baydoti on 04/10/2022 - 22:23

      although i never signed the contract it says
      "Special Conditions Pricing includes all current offers and promotions. Not in conjunction with any other offer Customer has been informed collection to take place on site during business hours Monday to Friday only. Subject to Satisfactory Final Inspection & Test Drive "

      • Zapwap on 04/10/2022 - 22:34
        +3

        I am not sure how you paid the deposit but never signed anything. Doesn't it mean you got into a contract when you paid the deposit?

        Anyway, when I put down the deposit in Aug, I got it in writing like this

        I asked the salesman to mention this specifically, their contract didn't have these conditions and hence called 'special conditions'

        • [Deactivated] on 05/10/2022 - 09:27

          This is the right way.

  • pegaxs on 04/10/2022 - 22:15
    +2

    i could cancel at any time, with no questions asked for a refund

    And of course you got this written onto the contract…

  • djkelly69 on 04/10/2022 - 22:17

    I confirmed with the dealer on at least 4 occasions that i was able to cancel at anytime and he's answer was yes definitely.

    Got anything in writing?

    • baydoti on 04/10/2022 - 22:51
      +2

      I have emails from the dealer saying please send bank details so i can process a refund tomorrow ( 11 sep)
      i have text messages from the dealer saying there are no issues in the refund taking place and to fill in the form (11 sep)
      prior to this date all conversations about refund were verbal.

      • djkelly69 on 04/10/2022 - 22:57
        +4

        Better than nothing I guess, certainly tends to confirm what you are saying.

        Don't take any crap from the dealer about how the salesman didn't have authority, etc. Just hold firm that it was always a condition of the contract that you could cancel and receive a full refund at any time.

        If the dealer doesn't like it, let him know your next stop is Fair Trading (and follow through if he doesn't want to play ball).

      • cloudy on 05/10/2022 - 09:15

        That should be good enough to take it up to whomever and get your money back.

  • oscargamer on 04/10/2022 - 22:19
    +1

    What did you sign?
    If you signed something, read it.
    If you didn't sign anything, you need to physically attend and "have a chat" with the dealer principal.

    • baydoti on 04/10/2022 - 22:26

      I only signed the authority to pay deposit of 3k. No other contract was signed.
      The dealer has signed the "contract for purchase for a new vehicle" in his part , but the purchaser part (me ) is blank and has been blank ever since.

      • oscargamer on 04/10/2022 - 22:37

        Time for a face to face 'chat' me thinks. Maybe bring your better half to a) be a witness to the conversation b) tears

  • Downvoter on 04/10/2022 - 22:33
    +2

    Stealership

  • [Deactivated] on 04/10/2022 - 22:55

    Why so shy to include the Euro make & model?

    • baydoti on 04/10/2022 - 23:08
      +2

      wont mention the dealership but its a Tiguan R

      • [Deactivated] on 04/10/2022 - 23:15

        I like it in the blue. Anyways, you should have been down at the dealership the week after 09/09 when the first delay occurred. Get over there post haste & demand your money back in person.

        • jv on 05/10/2022 - 00:26
          +2

          Get over there post haste & demand your money back in person.

          Especially when other prospective customers are in the showroom.

  • spackbace on 05/10/2022 - 03:34
    +23

    Walk in the door and ask for the General Manager or Dealer Principal. Talking to the salesperson over the phone is pointless. Explain to the GM/DP that there is no purchase contract signed by both parties and as such you want your money refunded.

    No doubt he'll then pull the salesperson in for a 'chat' once you've left happily

    Don't bother with ACCC etc unless the DP stalls, which is highly unlikely.

    Even if there was a contract signed, that "subject to satisfactory test drive" has left the door wide open for you to tear up the contract after driving it and saying you don't like it

    Source - I'm a salesperson

  • Euphemistic on 05/10/2022 - 07:45

    Go and visit them. Sort it out on the spot in person. Might be worth ringing first to determine if the manager is in.

  • BewareOfThe Dog on 05/10/2022 - 08:17

    Owned by city Ford?

  • Typical16-bitEnjoyer on 05/10/2022 - 08:34

    Common misconception. Just because you didn't sign doesn't mean the contract is not binding. You paid the deposit and acted in a way (at the time) to be bound by the terms.

    In any event the contract says "subject to satisfactory test drive", so you have an out there. If the dealer really wants to be a prick they will hold your deposit until the vehicle arrives and for you to reject the vehicle.

    Go down there and speak to them in person. Don't leave until resolved. Also, don't move from the front counter when resolving it (don't make a scene, but don't be invisible either) ;)

  • DarkOz on 05/10/2022 - 09:02
    +1

    Cancelling a $85k car at anytime with no questions asked and no deposit penalty is too good to be true. When something is too good to be true it's usually not true.

  • CalmLemons on 05/10/2022 - 09:03

    Normally these days the dealer would be happy to give back your money as they have so little stock and don't want to deal wtih the hassle, albeit I know there are lots of tiguans around atm as that i the only thing vw have in stock.

    My ford and vw dealers even refused to accept my deposits as they couldn't be bothered dealing with the hassle of refunding if the car doesn't get here on time.

    • GordonD on 05/10/2022 - 09:52

      This is the bit I find hard to believe about the story. You can understand that if there were lots of cars in stock and few buyers the dealer would be unhappy they were stuck with a car they couldn't sell. But there are no cars and lots of buyers at the moment. And I would suspect that like in a lot of other areas, consumer protection laws would say they can only hold onto as much of a deposit as it cost them.

    • parsimonious one on 05/10/2022 - 15:59

      Yeah I had a similar situation with Subaru

      They didn’t even bother asking for/ taking a deposit. They said that if we don’t take it they just pick the next person off the waiting list

  • parsimonious one on 05/10/2022 - 09:48
    +1

    I don’t really understand how there can be a “fully refundable” deposit

    Surely the point of the deposit is that you are committing money to the purchase!?

    If they are allowing you to cancel and get all your money back at any time, why bother having a deposit?

    • CalmLemons on 05/10/2022 - 21:05

      Yes this very point.

      Grown ups, need to make grown up decisions. Otherwise we start living in a world where peole can go backsies on anything.

  • JimmyF on 05/10/2022 - 09:58
    +1

    So much drama….. OP stop calling and emailing, head into the dealership and stay put until its all sorted out. Any forms or questions can be done on the spot, no chance of 'missing' emails ;)

  • GordonD on 05/10/2022 - 10:12
    +1

    Me, I don't have a lot of sympathy for people who agree to do something, like purchasing a product, that requires the other party to go to some expense and trouble, then think they can just walk away from the deal. It is appropriate there should be a penalty for that, unless they have a good genuine reason that they could not reasonably have anticipated when they made the deal that they can't go ahead with it. That's the point of a deposit, to cover the other party's expense and trouble if you welch. They shouldn't try to charge any more deposit than it costs them, and you shouldn't agree to any more than you are willing and able to pay for the right to renege.

  • adam on 05/10/2022 - 19:11

    If the salesman promises you a refund then you are entitled to a refund, regardless of what the contract says. Of course, the salesman can always deny what they said so its wise to get appropriate terms in contract, which it appears you did. You are totally entitled to a refund and would no doubt win in small claims court.
    * Talk to the dealer principal OR put it in writing, whichever you are most comfortable with. If you put it in writing give them a deadline to pay refund
    * If they won't refund with immediacy start filling out the small claims forms & tell them this is what you're doing
    * Submit small claims forms

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