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Getting a Dealer Deposit refunded.

Discussion in 'Other Off Topic Forum' started by Swancoat, Apr 17, 2008.

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  1. Swancoat

    Swancoat Karting

    Jul 26, 2007
    145
    Houston
    #1 Swancoat, Apr 17, 2008
    Hi, I know I mainly lurk here and don't post much (9 posts! wooo!). Anyway, I thought the membership here may have some input on a situation.

    Ok, so I'm trying to help out a coworker, and figure some people here may have some experience.

    Co-worker is looking at buying an AM Vantage, so he eventually finds a car that looks pretty good on the DuPont Registry. He phones the dealer, they tell him about the car and all is looking good.

    He figures this may be the car. Dealer says something to the effect of "to go any further, we need to get your credit approved and take a deposit" (he planned on financing with their finance co.). So they send him a form, he signs up, and faxes it back.

    Well, on further inspection, he finds the car isn't quite what he wanted. (Wrong transmission, etc...), so he emails them back, and says, Thanks, but it's not quite what he wanted.

    Well, the dealer emails him back and says, "Hey - what are you talking about? You're BUYING this car."

    CW is basically flabbergasted, but they say it's a done deal, and they've already charged his credit card for the deposit.

    Well, after much back and forth, here's the status:

    -CW has contacted the credit card company. They refunded HIS money, but have yet to charge back the dealer. They are giving the dealer 45 days to make their case. Currently, CC company is holding the risk.

    -CW has had a lawyer send the dealer a letter. Dealer basically replied with, "Deposits are non-refundable".

    -Dealer is in FL, CW is in TX.

    Basically, it seems like CW is definitely in the right, but the dealer is betting that he won't go through with travelling to FL to go to court, or whatever it takes and just gives up. I think that's all of the details. If more are needed, I can ask and post them.

    Anbody here have any experience with this kind of thing or advice regardless?
     
  2. Schatten

    Schatten F1 World Champ
    Owner

    Apr 3, 2001
    11,238
    Austin, TX
    Full Name:
    Randy
    #2 Schatten, Apr 17, 2008
    Which dealership in Florida? That could be the telling story. If you don't want to disclose it, search for it on here and see if anything comes up.
     
  3. white viper

    white viper Karting

    Feb 10, 2004
    144
    w.p ny
    Full Name:
    jon
    #3 white viper, Apr 18, 2008
    my brother went threw the samething
    federal law states you have 3 days to " change your mind " and a dealer ship can not keep a deposit no matter what they tell you
     
  4. James_Woods

    James_Woods F1 World Champ

    May 17, 2006
    12,755
    Dallas, Tx.
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    James K. Woods
    #4 James_Woods, Apr 18, 2008
    If this is in Florida, then it cannot be the same people from Missouri that tried the old "you have to give us $2000 before you can have a PPI done on this Testarossa". "But don't worry, we will give it right back if there is anything wrong with the car".

    Right. Do not ever fall for such BS.
     
  5. jungathart

    jungathart Guest

    Jun 11, 2004
    3,376
    NoVA, AmeriKa
    Full Name:
    Komrade Jung
    #5 jungathart, Apr 18, 2008
    Should always get such things in writing. If what he signed does not legally commit him to purchase, then dealer has no legal merit.
    BTW, what the h--- is "wrong" transmission, was it a mystery what tranny the car has??
     
  6. DrStranglove

    DrStranglove FChat Assassin
    Owner Rossa Subscribed

    Oct 31, 2003
    31,457
    Google Maps
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    DrS
    #6 DrStranglove, Apr 18, 2008
    F1 vs 6 speed maybe?

    Oh and yes who is this that he is dealing with.
     
  7. jungathart

    jungathart Guest

    Jun 11, 2004
    3,376
    NoVA, AmeriKa
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    Komrade Jung
    #7 jungathart, Apr 18, 2008
    Doc, just noticed that you're now back on US soil. Welcome back, and thank you for your service!:cool:



    ...anyway, is this not info that anyone can find out over the phone?
     
  8. neilhellr

    neilhellr Karting

    May 30, 2004
    106
    Central IL
    Full Name:
    Neil H.
    #8 neilhellr, Apr 18, 2008
    There is no blanket three day "right to back-out" law. States differ on how they handle this situation...

    My question is this...

    How long did he take to tell them he wasn't taking the car? Did he know what transmission it had and then change his mind? Did the dealership Misrepresent the car? But the most important question to ask is; did the dealership lose an opportunity to sell the car to another buyer while all this rigamorol (sp?) was going on?

    Depending on the answers to these questions, the dealership may be entitled to keep the deposit. After all, my understanding is that a deposit is given in good faith so that the dealership KNOWS their car is SOLD and the customer KNOWS the dealership WON'T sell the car to someone else...

    If I gave a deposit and my word to buy a car, then I changed my mind, I wouldn't expect my deposit back, I would however expect more if the car was misrepresented...
     
  9. JamesSimpson

    JamesSimpson F1 Rookie

    Jun 29, 2005
    3,629
    Toronto,CANADA
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    James Simpson
    #9 JamesSimpson, Apr 18, 2008
    I know up here in Ontario unless it's specified on the bill of sale that the deposit is refundable they don't have to give back anything, i always write it on the bill of sale out of good faith but lot's and lot's of dealers will simply keep the deposit out of sheer spite for "wasting" their time...
     
  10. Swancoat

    Swancoat Karting

    Jul 26, 2007
    145
    Houston
    #10 Swancoat, Apr 24, 2008
    Hi. Sorry for the delayed response.

    Just to answer a few of the questions:

    -I don't think the dealer missed out on any opportunity to move the car. This whole thing went down over the course of a day, maybe a day and a half.
    -'Wrong transmission' is exactly as stated above. CW wants conventional 6-spd - turns out the car has the F1-style transmission.
    -There was no 'commitment to buy' as far as I know. CW signed what he signed as he was told it was a necessary step for financing approval, and was told they couldn't move ahead without that.

    Now, that being said - I've had some tips via PM, and some helpful member even volunteer to help out. I put them in touch with CW, and he's offered some additional advice. At the end of the day, it looks like the dealership is just going to make him work to get the deposit back, and it's going to take some time. (Credit Card co. gave the dealership 45 days to explain their side, and it looks like they're going to want to take every one of those days to do so).
     

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