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View Full Version : Dealer refuses to pay back deposit for vehicle purchase



Ylona
29-04-2008, 04:49 PM
Got huge problem with purchasing a used vehicle.

I saw an ad for a little Uno and after calling the dealer I applied for the finance via standard bank, they gave me the approval and said that they would send the contract to the dealer. I got there and no contract, twas a saturday so i thought it would get there on the monday. I signed the offer to purchase and paid R 3200 deposit to the dealer.

Three weeks later and still no contract, the dealer had to go via another dealer since they didnt have an account with standard bank, apparently the dealer has to pay R 2000 to them so that they can do the work which is silly since I did all the phone calling and I knew at all times much more about the application that they did. The dealer did not follow up or anything and I found his and standard banks service appalling, however I was desperate for a vehicle for certain reasons so kept quiet.

In the meantime i found a dealer who did a deal on another vehicle within two days so i decided to go with them and the other vehicle. Cancelling the old deal is proving difficult since the dealer refuses to pay the deposit back and says he will not cancel the deal at all and i now HAVE to take the car since it was three weeks since i signed the offer and they could have sold it. However it is not my fault the contract got there two days ago only, they never really followed up with standard bank so it is not my fault the deal took so long, did it in fact take two days i would have taken the uno for sure.

What are my rights here?

xrapidx
29-04-2008, 04:51 PM
Seems this is becoming common place:
http://mybroadband.co.za/vb/showthread.php?t=115899

bullfrog
29-04-2008, 04:52 PM
Take the contract with you to a lawyer and see what your options are.

The_Librarian
29-04-2008, 04:54 PM
bleh

I sure paid a deposit on my vehicle in 1999, but the deposit was paid back by the dealer.

Don't know what the dealers are doing nowadays to keep holding the deposit... they should be named and shamed - and lose business.

ToxicBunny
29-04-2008, 05:42 PM
Until such time as you have actually signed the contract with the bank, there is no contract in force as an offer to purchase a vehicle is not necessarily legally binding. Talk to the bank about the contract, get them to cancel it then take the dealer to the Motor Ombudsman.

I have had unpleasant dealings with car dealers, and they usually skrik when talk of the Ombudsman comes up.

The_Librarian
30-04-2008, 09:14 AM
Ahhh... gotta love the Ombudsman :D