A COMPLAINT I often hear is from consumers who look to buy a car at a garage, sign all of the paperwork and pay a deposit, but later change their mind and ask for a refund. It comes as a great shock to the customer that the garage does not have to pay back the deposit.
When you buy any goods at the trader’s place of business, you have no legal right to change your mind or ask for a refund, unless that trader has a specific policy saying otherwise. When buying in store or at any business premises, the trader doesn’t have to offer you any time to change your mind about the goods purchased, either.
If there is a cancellation or returns policy in force, it can be as wide or as limited at the dealer chooses, because they are not legally obliged to provide this. More importantly, the garage could not keep the deposit and ask buyers to pay extra to cover their loss of profit; I have never known a garage to do this.
Motorists buying on finance must also beware. When signing a contract that requires you to purchase the car at the end of the deal, if you cancel your payments you may still be liable to buy the car outright. Always read the small print to know what you’re signing up to.