Can a dealer cancel your order and return deposit?

Blackrock1 said:
Is this within their rights?
Click to expand...
Under clause C, Delivery By The Dealer, the standard SIMI contract that most will sign when ordering states;

c) If the dealer is unable to deliver the vehicle for reasons beyond his control within 3 months of the estimated delivery date, the dealer is free to inform the customer of the termination of the contract in writing and return the deposit to the customer leaving the dealer with no further liability.’’

Looks like the dealer is within their rights if they genuinely cannot get the car. That's fair enough, but how does the customer know the dealer genuinely cannot get their car ?

Given the high demand and limited supply of electric vehicles, do you think the dealer has now decided he could do better and is using clause C as an escape from this contract ?
 
T McGibney said:
In all fairness, if they're hoping to avail of an opportunity to profit from a market shortage, they can hardly complain too much when another dimension of the same shortage stymies that opportunity.

And in any event, you can take it as given that any main dealership will as a matter of course protect themselves from being bound under an onerous contract in the event of a temporary or permanent scarcity in their market.
Click to expand...
they arent hoping to avail of anything apart from the car they ordered. If there is profit in changing your car every few years then i must have missed that memo.
 
twofor1 said:
Under clause C, Delivery By The Dealer, the standard SIMI contract that most will sign when ordering states;

c) If the dealer is unable to deliver the vehicle for reasons beyond his control within 3 months of the estimated delivery date, the dealer is free to inform the customer of the termination of the contract in writing and return the deposit to the customer leaving the dealer with no further liability.’’

Looks like the dealer is within their rights if they genuinely cannot get the car. That's fair enough, but how does the customer know the dealer genuinely cannot get their car ?

Given the high demand and limited supply of electric vehicles, do you think the dealer has now decided he could do better and is using clause C as an escape from this contract ?
Click to expand...
to be honest probably not, i have heard of multiple cancellations, also my folks are buying down the country where demand is lower for EVs.
 
Blackrock1 said:
to be honest probably not, i have heard of multiple cancellations, also my folks are buying down the country where demand is lower for EVs.
Click to expand...

When I upgraded recently I did notice that the dealer trade in value was only valid for a set period. To answer your question, yes it looks like the dealer can cancel the contract based on delivery delay. If the delay was only going to be a few months, I'm sure they wouldn't have completely cancelled the order.

However, given they are quoting a 2023 delivery date that puts them into the next years production where pricing, specs etc will change has forced them to cancel the order. Also, perhaps they don't have the facility / authorisation to hold the deposit long term both from a regulatory perspective, infrastructure and cost.

Given the issues with semi-conductors unlikely to clear up until end of this year, it leaves those needing to upgrade this year in a tricky spot.
 
T McGibney said:
Then why did you answer "Partly yes" to the question I quoted?
Click to expand...
as in their car will be a year older and worth less (albeit they will have the extra use out of it) but the price of a new car wont change, thats nothing to do with the current market it would always be the case.
 
I think the price of the new car, may actually increase... In addition to the value of the trade in, reducing.

Depending on how often they need the car, it may be prudent to either select an alternative car with an earlier delivery date, or just sell the current car now (and borrow a car, or use GoCar occasionally, if that's an option).
 
New car sales is all about volume, not the margin on an individual car. This shortage doesn't suit anyone.
 
You must log in or register to reply here.
Back
Top