With less than a month to go before the 24 number plate is released, The Motor Ombudsman has warned drivers to make all the necessary considerations before they put a deposit on their next car.
The organisation noted that, when selling a new car, many dealerships ask buyers to pay a percentage of the price as a deposit to show that they are committed to purchasing it.
Bill Fennel, Chief Ombudsman and Managing Director of the Motor Ombudsman, advised motorists to avoid letting their anticipation stop them from learning the terms of the deposit to avoid accidentally causing a dispute.
He advised: “It can be easy to get caught up in the excitement of putting in an order for a new car, and to forget the essentials.
“It is important for both buyers and sellers to be clear about the terms of the deposit, as this will help prevent any disputes later down the line if all parties are clear on the terms of the transaction from the very beginning.”
To make sure new car buyers do not break any terms of the deposit, The Motor Ombudsman suggested that drivers should always start by making sure they can afford it.
With a car usually being the second most expensive item that a person owns, deposits are typically several thousand pounds, meaning it is important that motorists are comfortable parting with the money.
The organisation highlighted that drivers should do an affordability health check online, which could show how costly it would be to run the vehicle, taking into account finance repayments, road tax and insurance.
In addition, The Motor Ombudsman recommended that new car buyers take the time to examine the terms and conditions.
Whilst they can be heavy going, the organisation warned that not all deposit agreements are exactly the same.
They added that drivers that are confused by any terms or implications found in the document should get in touch with the sales representative in writing to get a record of any responses they receive.
Finally, the organisation warned that, whilst it is possible to get their deposit back if they are no longer interested in buying the car, opportunities could be limited.
The Motor Ombudsman warned that drivers who pay the deposit shortly before the model is withdrawn from sale in the buyer’s name may not be able to get their money back as it cannot be sold to other buyers.
In addition, paying a deposit before the dealership makes a credit assessment and finds the buyer is eligible for a Hire Purchase or Personal Contract Purchase arrangement could lead to the deposit being lost, unless the contract states otherwise.
