Car purchase subject to financing. Do I have to pay cancellation fees?

Questioner

On Thursday (24/10) my partner and I went to look at a second-hand car. After a test drive we signed an agreement subject to financing! Financing €18,000 for purchase of used car. Tuesday (29/10) I had a telephone conversation with X At the time of the phone call I was at work and wanted to discuss the contract with my partner first. If agreed (after consultation) we could sign this. The contracts were then sent by email. On Wednesday (30/10) I called X, but he was not available. I got a colleague on the phone, and I told him that the financing unfortunately could not go ahead (financially not feasible). That colleague at X would pass this on and inform the car company. “After my conversation at X, various missed calls from Y.” Later I had the opportunity to answer the phone! X told me that he was informed today that the financing has been completed. They then started preparing the car (without contacting me about this), which means that cancellation costs of more than €2700 are now being imposed. However, nothing has been agreed yet and I do not understand why the car company started incurring costs without the financing being finalized. My question is, do I have to pay those cancellation costs?

Lawyer

Based on what you describe, it seems that the purchase of the car was agreed upon subject to financing. In such a situation, this means that the purchase agreement only becomes final once the financing has been arranged. Because the financing ultimately turned out not to be feasible and you therefore did not agree to the final financing agreement, the condition (getting financing) would not have been met. In this case, the purchase agreement usually cannot go ahead, and the car company normally cannot charge cancellation fees, unless other agreements on cancellation fees have been explicitly laid down in the signed agreement. The car company may have incurred costs to prepare the car, but the risk of this lies with them until the financing is finally confirmed. If they started on their own initiative without agreement on the financing, this can usually not be recovered from you. It would be advisable to contact the car company again and discuss these conditions clearly. If you have any doubts about your legal position, you can also call on a lawyer or attorney to help you further handle this dispute. Do you need further guidance from a lawyer in this matter?