diff --git a/pkg/cloud/instance.go b/pkg/cloud/instance.go
index 10956fc0..62778f17 100644
--- a/pkg/cloud/instance.go
+++ b/pkg/cloud/instance.go
@@ -416,15 +416,22 @@ func findVirtualMachine(
 
 // DestroyVMInstance Destroys a VM instance. Assumes machine has been fetched prior and has an instance ID.
 func (c *client) DestroyVMInstance(csMachine *infrav1.CloudStackMachine) error {
+	p := c.cs.Configuration.NewListCapabilitiesParams()
+	capabilities, err := c.cs.Configuration.ListCapabilities(p)
+	expunge := true
+	if err == nil {
+		expunge = capabilities.Capabilities.Allowuserexpungerecovervm
+	}
+
 	// Attempt deletion regardless of machine state.
-	p := c.csAsync.VirtualMachine.NewDestroyVirtualMachineParams(*csMachine.Spec.InstanceID)
+	p2 := c.csAsync.VirtualMachine.NewDestroyVirtualMachineParams(*csMachine.Spec.InstanceID)
 	volIDs, err := c.listVMInstanceDatadiskVolumeIDs(*csMachine.Spec.InstanceID)
 	if err != nil {
 		return err
 	}
-	p.SetExpunge(true)
-	setArrayIfNotEmpty(volIDs, p.SetVolumeids)
-	if _, err := c.csAsync.VirtualMachine.DestroyVirtualMachine(p); err != nil &&
+	p2.SetExpunge(expunge)
+	setArrayIfNotEmpty(volIDs, p2.SetVolumeids)
+	if _, err := c.csAsync.VirtualMachine.DestroyVirtualMachine(p2); err != nil &&
 		strings.Contains(strings.ToLower(err.Error()), "unable to find uuid for id") {
 		// VM doesn't exist. Success...
 		return nil
diff --git a/pkg/cloud/user_credentials.go b/pkg/cloud/user_credentials.go
index 15d2d22f..2dc6252d 100644
--- a/pkg/cloud/user_credentials.go
+++ b/pkg/cloud/user_credentials.go
@@ -142,7 +142,8 @@ func (c *client) ResolveDomain(domain *Domain) error {
 // ResolveAccount resolves an account's information.
 func (c *client) ResolveAccount(account *Account) error {
 	// Resolve domain prior to any account resolution activity.
-	if err := c.ResolveDomain(&account.Domain); err != nil {
+	if err := c.ResolveDomain(&account.Domain); err != nil &&
+		!strings.Contains(err.Error(), "The API [listDomains] does not exist or is not available for the account Account") {
 		return errors.Wrapf(err, "resolving domain %s details", account.Domain.Name)
 	}