new car buying - garage in administration, ... ?

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new car buying - garage in administration, ... ?

21 posts & 14 voices | Started 6 months ago by scaredypants | Latest reply from joemarshall

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scaredypants - Member

So, deposit paid on the weekend and literally about to make the payment on a "new" car today (nearly brand new ex-dem) when the geezer at garage tells me they've gone into admin this morning

They don't even know if they're allowed to sell the car now but, assuming they say they can, do I want it?

Warranty is national so OK there, I believe (except I'm reliant on another garage to act as intermediary??)

What else do I lose ?
(say it turns out to be a total lemon - I'd normally take back to the retailler wouldn't I ?)

Would you ?

Posted 6 months ago #
sharkbait - Member

Lots of cars out there. I'd get my deposit back and walk away.

Posted 6 months ago #
aracer - Member

If there is still the option to buy it, I'd check what the situation is with your deposit if you don't. I doubt it's in a ringfenced account, or that you'll be very high up the list of creditors.

I'd get my deposit back and walk away.

Except he probably can't.

Posted 6 months ago #
camo16 - Member

Can you get your deposit back?

If so, I'd be looking elsewhere. As sharkbait says, you can get a good car in this environment without this hassle

Posted 6 months ago #
scaredypants - Member

Can I get deposit back if they say they still want to sell me the car ?
Dep was on credit card so I think it's protected if they go tits up
(also wasn't massive so nobody would starve if I lost it)

Posted 6 months ago #
aracer - Member

Can I get deposit back if they say they still want to sell me the car ?

Probably not, unfortunately.

Dep was on credit card so I think it's protected if they go tits up

Ah, well that's a lot better then.

Posted 6 months ago #
joolsburger - Member

You may have lost your deposit as it's part of their assets now. Good luck..

Posted 6 months ago #
midlifecrashes - Member

The reason to buy from garage rather than private is for consumer rights/someone to sort out problems etc. You usually pay a premium for that, you're fairly likely to get none of that, so I'd try to get the deposit back, or alternatively buy the car at trade rates. If you are buying, you might want to check the administrator has given the OK to sell it, it might belong to the garage's finance company who might claim it if their bills haven't been paid. Sensible money is on walking away, even if losing the deposit if it's not too big.

Posted 6 months ago #
missingfrontallobe - Member

Warranty, did they sell you it as an add on, if so it is probably with someone like Warranty Direct. If it is a younger car it may be balance of manufacturer warranty, in which case you should be okay with any main dealer, and you won't even need main dealer servicing, just servicing as per manufacturer schedule.

Posted 6 months ago #
slowoldgit - Member

Not really my subject, but wouldn't the administrater be keen to sell the car as agreed, getting the price with minimum fuss, rather than take the deposit and still have a car sitting there?

Posted 6 months ago #
scaredypants - Member

Update:

They can't sell it to me
Am phoning to "arrange return of deposit" at 2

Thanks !

Posted 6 months ago #
ourmaninthenorth - Member

Not really my subject, but wouldn't the administrater be keen to sell the car as agreed, getting the price with minimum fuss, rather than take the deposit and still have a car sitting there?

Depends who actually owns the car. Garage may only pay for the car once they've sold it (though I doubt that), and so manufacturer/importer would have a retention of title.

I'm amazed that a deposit is going back if the business is genuinely in administration - that's illegal..!

Posted 6 months ago #
FunkyDunc - Member

Basically the company has to seize trading as the administrator gets a grasp of the accounts, and basically the administrator now owns the company.

If they think it is viable they will allow the company to begin trading again whilst looking for a buyer, but at the administrators risk.

Your deposit too will be frozen as it is held within the company accounts. The administrator may be nice and allow you to take the deposit back, but I'd be surprised if its as quick as today, it usually takes them a few days to get their heads round the accounts.

Any cash in the business (your deposit) will be paid to creditors in order of preference. Oh and a large sum will be kept to one side for the administrators fee. You may be lucky or unlucky to get anything back...

I wouldnt buy an ex demonstrator anyhow...

Posted 6 months ago #
project - Member

I bet they offered you a good deal, free servicing, ,discount and a few more freebies, that happened to me twice, and was due to buy the car the folowing day, and thats when both garages went bust, they obviously know theyre bust, just looking for enough cash to pay their wages etc.

Posted 6 months ago #
scaredypants - Member

they tell me that the manufacturer does indeed still own the car, hence no sale

can they refund my cc over the phone?
how long would it take to appear if they did?

(was a pretty good deal but oddly I tried to get "services in kind" as a bit better deal and he wasn't budging on that - I think he didn't know (was 3 days ago))

Posted 6 months ago #
geoffj - Member

Get on to your credit card company pronto. The sooner you raise it with them, the sooner it'll be sorted. IMHO I'd forget about chasing the company for it now.

Posted 6 months ago #
FunkyDunc - Member

"can they refund my cc over the phone?
how long would it take to appear if they did?"

Read what I put above!

The company workers will be wondering just as much as you what the heck is going on. The administrator will have just told them to do nothing until told to do so. You will not get to speak to the administrator, they have more important things to worry about.

As others say, just speak to your CC company.

Posted 6 months ago #
scaredypants - Member

Yeah, I read your post FD

reason I ask is because they "did" refund me while I spoke to them and wondering how long before I should see the cash on my card a/c

(ex-dem is a bit of a misnomer - delivery mileage pre-reg)

Posted 6 months ago #
FunkyDunc - Member

Good result then, I'm surprised to be honest, as I've been an accountant in a company that went in to administration, and worked for administrators.

Posted 6 months ago #
hora - Member

Which marque is it?

Posted 6 months ago #
joemarshall - Member

If you phone your credit card company, they often seem to know the moment a transaction goes through. It takes time to come up on your account, but I know I've queried things and they've known it was incoming, even though it only popped up on the account a couple of days later. Also potentially a company may just take an authorisation for payment (which locks the money) and take the actual deposit out later, in which case they would be fine to refund.

You haven't paid the company anything anyway, you've agreed to pay the credit card company something, and the credit card company have agreed to pay the garage on your behalf, so it is only their money that is potentially at risk. In theory anyway.

Whatever, you need to talk to the credit card company right away anyway, either to find out you've had a refund, or to tell them that the company have gone bust so they can sort you a refund.

Posted 6 months ago #

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