Failure to deliver

[Marc]

I am after some advice regarding a piece of equipment purchased back in August 2015 with a delivery date of November 2015.

 

For unforeseen reasons at the time the original delivery date could not be met, so we waited very patiently until An eventual delivery date of April 2016 was given, on this date it was discovered that the piece of equipment was still not fit for use. For the failure to deliver again a good will gesture was made by offering approx 7% off the price.

 

Unknown to us at the time the finance agreement which had been in place had started even though the equipment had not been delivered.

 

When this was raised with them they were also unaware (which in hindsight I feel is a lie) and assured me it would be stopped and that our equipment would be delivered soon.

 

The finance was never stopped, in fact the finance company had not been contacted.

 

I informed the dealer the delays could be as much as a year with the type of issue they had with our equipment, they assured me it wouldn't take that long.

 

They did eventually source a loan machine but this was not offered willingly and took repeated request resulting in me threatening to pull out of the deal back in July.

 

The machine provided was barely fit for purpose, unreliable and didn't perform as expected, when I complained and again mentioned I would pull out of the deal I was by email precisely as the office closed for the weekend and told if I pulled out I would be charged hire for the loan machine and for the machine we wanted to part ex (even though we still owned it!) leaving me seething all weekend.

 

That was a few months ago in July, its December 2016 and still no date for delivery its unlikely to be this year maybe not even Jan 2017.

 

The loan machine has continued to be unreliable, with collapsed bearing, starter motor failed, engine protection failed, now the emergency stops have had to be passed to keep it running among other faults with this machine, this has cost us in downtime and the associated losses involved.

 

 

We have a large contract starting on the 9th of January 2017 where this piece of equipment will be vital and at present it is not road legal, with safety functions by passed, so we run a risk using the piece of equipment on site.

 

All the while the equipment we purchased and owned yet have never seen depreciates in our asset register and we continue to make finance payments for something we haven't got.

 

What would you do?

 

I have 2 days left at work before taking a long overdue break, normally I would work over Christmas. When I am back we are straight into multiple big contracts with a valuable piece of kit missing essential for these works, and its stand in possibly not up to the task.

[swinny]

Sounds a very rough time there Marc, i would have thought trading standards method, get your old machine back and get solicitor and take them to court for monies owed back to you for finance and potencial works lost etc

[Marc]

Sounds a very rough time there Marc, i would have thought trading standards method, get your old machine back and get solicitor and take them to court for monies owed back to you for finance and potencial works lost etc

 

We still have and own our old chipper (which makes them trying to charge us hire for it more insulting) but that's the point we looked to upgrade to help us efficiently tackle our growing work load.

Our part ex is currently moth balled in the corner of the yard with grass growing out of it, why should I pay our fitter to get it up and running when we have paid for and own a new machine.

 

The other issue is, there is no other option but this piece of kit and that dealer it is the best you can get.

 

The finance is going to be reversed, but I am worried the dealer will become difficult which is causing me more stress.

 

The service has been good and the field engineers are first rate, but the mechanical breaks downs shouldn't of happened and they cost us as a business.

 

I have been asking questions on part of the build that aren't to standard which I have seen in the photos of our kit and all I hear from them is how it will cost them to sort it.

I don't really care how much it costs them, we occasionally lose money on jobs that's just how things go.

[kevinjohnsonmbe]

That sounds like a very unsatisfactory situation. Is the equipment a "special to type" or one-off build?

 

I'm thinking it might to more complicated to resolve if it is, perhaps less so if it isn't.

 

Paying the finance on it before you physically have it sounds odd. So, if you were to default on the finance, fin Co would have to repossess from the manufacturer.

 

Whilst that might adversely effect your credit rating, it might be a relatively low hassle way of cutting yourself free.

 

Refuse to pay any loan fees and let the supplier take recovery action at their expense whilst presenting the circumstances you describe as justification if it goes to court. Win that and counter claim for consequential losses.

 

Is it a big, special, expensive piece of kit?

[Old Mill Tree Care]

I'd have had a strong lawyer all over this a long time ago.

Sorry for your situation Marc.

[Marc]

That sounds like a very unsatisfactory situation. Is the equipment a "special to type" or one-off build?

 

I'm thinking it might to more complicated to resolve if it is, perhaps less so if it isn't.

 

Paying the finance on it before you physically have it sounds odd. So, if you were to default on the finance, fin Co would have to repossess from the manufacturer.

 

Whilst that might adversely effect your credit rating, it might be a relatively low hassle way of cutting yourself free.

 

Refuse to pay any loan fees and let the supplier take recovery action at their expense whilst presenting the circumstances you describe as justification if it goes to court. Win that and counter claim for consequential losses.

 

Is it a big, special, expensive piece of kit?

 

Yes it requires an IVA which is currently being dealt with, and is the reasons for delay. The IVA process was started in April as apparently the person in charge of our build hadn't realised it required one.

 

I informed the finance company in July about the situation after the dealer threatened to charge us hire on his un fit for purpose loan machine.

We decided to give them a fair chance to deliver as they assured me it was only "weeks away" but that was from the IVA test and providing it passed.

 

We are liaising with the finance company now to reverse the finance, the initial deposit made in August 2015 will remain and when the machine is fit to be delivered the finance will be started again less the offered discount.

 

And yes it's big and special to us, the issues surrounds engine option pushing weight up something unforeseen at the time.

 

We only want supplier to do the right thing, and arrange finance on delivery less agreed discount. Initially they wanted to pay us this sum on delivery which makes me suspect they knew all along that the finance started contrary to what they said, trying to account for a cash payment into the account is difficult.

[njm]

Yes it requires an IVA which is currently being dealt with, and is the reasons for delay. The IVA process was started in April as apparently the person in charge of our build hadn't realised it required one.

 

I informed the finance company in July about the situation after the dealer threatened to charge us hire on his un fit for purpose loan machine.

We decided to give them a fair chance to deliver as they assured me it was only "weeks away" but that was from the IVA test and providing it passed.

 

We are liaising with the finance company now to reverse the finance, the initial deposit made in August 2015 will remain and when the machine is fit to be delivered the finance will be started again less the offered discount.

 

And yes it's big and special to us, the issues surrounds engine option pushing weight up something unforeseen at the time.

 

We only want supplier to do the right thing, and arrange finance on delivery less agreed discount. Initially they wanted to pay us this sum on delivery which makes me suspect they knew all along that the finance started contrary to what they said, trying to account for a cash payment into the account is difficult.

 

I would not be happy with the finance situation , if the equipment is lost ect accidental or otherwise you are liable to repay the finance , if you have been paying finance for over a year that also makes the machine a year old , insurance nightmare .

[woody paul]

After reading this though it was the 1st April. Why let it carry on so long with out stopping finance if no goods no payment.

[Marc]

After reading this though it was the 1st April. Why let it carry on so long with out stopping finance if no goods no payment.

 

Good will, and good faith in them to deliver, even after the managing director threatened to pursue me for hire costs for the loan machine and against our own machine.

 

There also exists no other alternative at this time.

 

The finance company are fully aware of the situation and have been for a while, the supplier assured them as they have me that the equipment will be delivered soon.

 

I am venting here, also stressed and concerned we have a big contract to start in Jan the current loan machine is not fit for this job.

 

I must also make clear our situation is not representative of how supply usually goes about from this dealer and is quite possibly an exception and I in no way mean to defame their reputation but feel that going public may cause action "soon" and by that what most of us would consider as reasonably "soon"

[njm]

Good will, and good faith in them to deliver, even after the managing director threatened to pursue me for hire costs for the loan machine and against our own machine.

 

There also exists no other alternative at this time.

 

The finance company are fully aware of the situation and have been for a while, the supplier assured them as they have me that the equipment will be delivered soon.

 

I am venting here, also stressed and concerned we have a big contract to start in Jan the current loan machine is not fit for this job.

 

I must also make clear our situation is not representative of how supply usually goes about from this dealer and is quite possibly an exception and I in no way mean to defame their reputation but feel that going public may cause action "soon" and by that what most of us would consider as reasonably "soon"

 

TBH there managing director has some balls making threats to pursue for hire costs ect , just remind him YOU are the one financing there delays