Can I terminate the sale of a car and keep my deposit?
QUESTION
Hi there John,
I recently had agreed a price and paid a deposit for a used BMW M140i at BMW Sydney.
They have come back now saying they made a mistake and the price is too low and they won't go through with the deal.
I have written evidence of the car, agreed price and the deposit paid.
Wondering if you can help with getting the dealership to honour the deal?
Many thanks,
Tony
Hi there John,
I recently had agreed a price and paid a deposit for a used BMW M140i at BMW Sydney.
They have come back now saying they made a mistake and the price is too low and they won't go through with the deal.
I have written evidence of the car, agreed price and the deposit paid.
Wondering if you can help with getting the dealership to honour the deal?
Many thanks,
Tony
Hi there John,
I recently had agreed a price and paid a deposit for a used BMW M140i at BMW Sydney.
They have come back now saying they made a mistake and the price is too low and they won't go through with the deal.
I have written evidence of the car, agreed price and the deposit paid.
Wondering if you can help with getting the dealership to honour the deal?
Many thanks,
Tony
My AutoExpert AFFORDABLE ROADSIDE ASSISTANCE PACKAGE
If you’re sick of paying through the neck for roadside assistance I’ve teamed up with 24/7 to offer AutoExpert readers nationwide roadside assistance from just $69 annually, plus there’s NO JOINING FEE
Full details here >>
ANSWER
Tony,
OK, so presumably when you paid this deposit you also signed a contract? That would be conventional. Especially if a considerable sum is involved.
The contract is binding on both parties - and it explains exactly what happens if one or more of the parties wants to back out.
I suspect the place to start here is: Read the contract - especially the termination clauses.
If you need help with this, sit down across from a solicitor and get them to tell you what it means. The contract will define whether they are within their rights to back out of the proposed deal or not. It really is that simple.
You could try to play the ‘ethics’ card. Like, you thought their word was their bond. We had a deal, etc., but we are talking about a car dealer here. The star of ethics often doesn’t shine all that brightly in that universe.
Worst-case scenario: They hand you back your deposit; you don’t buy the M140i. It’s not the same thing as being interrogated by the CIA in Guantanamo.
Hope this helps.
JC
LIVESTREAMS
Don't forget to join me for my 'Ask Me Anything' Q&A livestreams on YouTube (Sydney time).
Subscribe to my YouTube channel and hit the bell icon to get an alert you every time I go live.
More reports
The all-new Kia Tasman 4X4 dual-cab ute is finally coming to Australia in mid-2025. The covers are off, too. Here’s everything we know so far