Well known car dealership and "refundable" deposit

[Logg1e]

Last week we were encouraged to pay a £100 refundable deposit on a car.

We went to buy this car this week, but they had made a mistake with the tax disc, apologised when I spotted it, but said they wouldn't recompense me for it (I didn't even expect them to change it - said I would if they covered the extra cost!!).
I said in that case I didn't want the car. I play straight and expect them to. Fair enough they said.

They said they won't return the £100 deposit as the V5 is already on its way to us (I doubt it as they only had two hours' notice that we would buy the car). They said they will only return the deposit when we take the V5 in.

Can anyone shed any light on this situation?

Update!!

Viva it wasn't a car we loved, and I was happy to walk away over the principle of £10.

Santas no haggling - this is what I mean, we played it straight, researched the car, it was a fair price. I'm happy to pay a little bit more for the sake of 3 months come back should anything go wrong and knowing we're getting a car that's been serviced etc.

Piglet it was a new salesman, and I do believe he was going to get it checked, because he was getting everything checked - how to use the computer etc.

So, update got through to the principle dealer as Livvy advised. He wasn't happy with the situation and said not only would I of course get the full refund and should have got in then and there, if I'm still interested the car is ours (on the terms agreed re tax) and they'll sort it problem-free.

So, after feeling really emotional about it all and the amount of wasted time, it looks as though it will be sorted out brilliantly by the company.

That's good. Hopefully the staff involved get a rocket up the arse.

I can't see how they benefit, as it's itemised.

The mistake was perfectly understandable (although the salesman told me it would be him personally going to the Post Office to tax the car). I didn't have any problem with the mistake, I had a problem with their attitude of "we made the mistake, we apologise, but you're going to pay for it".