I am talking about the real world not 'contract law theory'. No VW dealer keeps a deposit for an early cancelled order - they just dont do it. The order just gets changed to the specs for the next Golf order (which probably comes in the next day) and you get your deposit back.
Maybe they're playing to rule (absolute terms of the letter of the law) because money is tight right now.
On pick-up of my R from Pulman yesterday, they were essentially operating from a very large gazebo as the dealership is undergoing a £500k refit on VW's orders. He said that all the dealerships worldwide were having to do this and pay for it themselves and 32 dealerships in the country have stopped being VW dealers because they haven't got the volume to cover that kind of expense.
Benfield Silverlink (where GeordieSPG had placed his deposit) have just finished their refit - perhaps they're clawing back every penny they can as a result of it?
I've always found Silverlink very tight when negotiating. When I was a Benfield customer, I got far better discounts and p/x values at their Scotswood road branch.