What Car? Q&A - Can I recover my deposit?

Q: I paid a deposit of a £1000 over the phone for a used Audi A4, subject to seeing the car. However, two weeks later, due to a change in my financial circumstances, I had to cancel the deal. The dealership then refused to refund all of my deposit stating that it had incurred some costs. I had not been to the dealer to sign any paperwork. In the end it only refunded £800 of the £1000 I had paid. Can the dealer refuse to refund all of my deposit?
MS

A: It’s important to remember that when you place a deposit on a car you should expect to lose it if you pull out of the deal. Because you left it two weeks before cancelling, the dealer could argue that he could have sold the car to another customer and so has lost a sale through no fault of his own.

When you place a deposit on a car you should go and check it as soon as possible and complete any paperwork. Make sure you sign the sales contract, which will set out the terms and conditions of the sale, including what should happen in the event that either party cancels.

In cases where the customer decides that they simply don’t want, or can’t afford, the car the dealer usually keeps the entire deposit – so you were lucky to get most of your deposit back.

However, if you refuse to take delivery of the car because it is not exactly as you ordered, you can expect a full refund.