I have paid a deposit for a new or used car and now want to cancel the order. Can I get my money back?
Usually, if the seller has made you an offer, you’ve accepted it and then paid a car deposit (known as ‘consideration’), you have formed a legally binding contract and won’t be entitled to a car deposit refund except in certain circumstances – for example, the seller has breached the contract or the terms and conditions provide you with a cooling-off period. This is because the deposit allows the seller to cover their costs in the event that you cancel, as those costs can be substantial.
As such, make sure you’re completely happy with your decision before putting down the deposit as you may not be able to get a car deposit refund. Also remember that whilst a finance agreement has a 14 day cooling off period, this may not cancel the entire deal as you have essentially signed two agreements – one with the seller and one with the finance company – so make sure you check this before cancelling any finance on your vehicle.
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