Depends on the contract. Some state that the deposit is refundable. Others do not. Also, it differs from your scenario because in your scenario you did all the work and purchased customer parts and there's no one else to sell it to. There is no alternative. Here, the dealer could potentially sell to a third party and not be out anything. So there is a win-win. You are correct though that if the deposit is not refundable the dealer does not have a big incentive to do the buyer any favors.
Well I agree that "it depends". But my point is that a contract was signed, a car was delivered to the owner's spec, and they have your deposit. If you have a legal leg to stand on its pretty slim. Yes it may very from state to state but generally, a contract is a contract. And you assume the dealer could sell the car without costs. Rather unlikely given today's 296 Market. 2 years ago, yes. Today.... no. There are 96 296 GTS's on cars.com right now. Probably double that if you look at the private market and what dealers have in inventory. I go back to what I said earlier. Have a heart to heart talk with the dealer and try to work something out. All deals are different BUT, the dealer has the advantage if they want to play hard ball.
So tell us, how many states exactly allow someone to walk from a signed contract with no penalty just because they changed their minds? And is the dealer required by law to sell this person another new car in the future? Is there no legal "penalty" for backing out of an binding agreement?
Not a clue. I know California in one (but that shouldn't surprise anyone). I practice in Florida and can tell you that non-refundable contracts are enforceable. No laws require a dealer to sell you car in the future and you are 100% correct that the bridge would be burned. Especially in Ferrari world, that bridge would be burned and bulldozed. Some states have very consumer friendly laws that have cooling off periods or right to cancel laws, without penalty. Every state is different and those consumer friendly states can harm businesses. while this is off topic, but I'm sure you've read about the states where people occupy a vacant house (or when the owners go on vacation) and the police are powerless to evict them. There are some crazy laws out there.
The only trouble with the cooling off period is that you sign the contract when you place the initial deposit. Or at least I did. That is the actual contract to sell. There is then an addendum that tells you want to do about the deposit and when the contract goes refundable. I believe Washington has a 3 day right to cancel in certain consumer contracts but I am not sure about Oregon.
it's funny how Florida does not have a cooling off period but people buy cars from states where they do have it and they think Florida does as well. They return to the dealership on day 2 and want to return the car and void their loan. Unfortunately they are out of luck but the customer just leaves the car and doesn't make payments. Case goes into collections, credit is affected, lawsuit gets filed, etc.... (we've handled a ton of those for the dealerships.)
You have no honor. Cowboy up. Honor your obligations. If values had gone up, your second thoughts would not exist.
For Ferrari and 296 - I got a used 296 GTB late last year and loved it enough to order a new one for $400k though used sorta equivalent would realistically be $350k now. The deposit on that one (vs some others with Ferrari) is nonrefundable, with a defined config set. I've also heard in my state that isn't enforceable but I wouldn't plan to leverage that. Barring something changing personally (hope not of course), the only reasons I'd cancel and ask for refund is if MSRP adjusted wildly at port. Due to tariffs or just generally, as Purosangues seem to have; or if I never get a confirmation of the order and one to my spec pops up used. In both cases I'd try to get the deposit back but expect there could be a fight. I think that my dealer would let me sub someone else in if I had them ready and the dealer DIDN'T think they could sell above MSRP. If it was going to be worth more immediately, they'd probably still do it if the candidate would pay ADM on some other stuff in inventory so they could capture that value. But I don't know in either case really since it hasn't come up. And if I canceled for any reason, I expect I'd only ever get cars they were desperate to sell, used or new. Generally for non-Ferrari - With other brands I have explicitly discussed deposits both refundable and non-refundable and that I want to do a drive to confirm whether I'll take delivery (always have in those cases, even in 2 cases which the drive told me I didn't love it enough). Topically, I have a 992.2 GTS coming on theoretically a nonrefundable deposit, not started production yet but confirmed by Porsche. If there's a large tariff uptick and I don't get an easy walk, that may get me looking at my state's enforced refundability of deposits, or getting agreement about some future models at low or no ADM to take the one I ordered.
Curious as to OP. Since everyone is arguing about the deposit being refunded. Why the second thoughts? Did you order thinking you could drive it and not take a loss? Cooled on the car?
By the way, I was ready to bail on my deposit (my car hasn't started production) if Ferrari told me I had to eat the entire tariff....afraid to buy while it's on and have it come off. That's different than ordinary depreciation. But I kept my order in.
Tariffs do change the calculus. However, Ferrari is honoring pre-tariff pricing on the 296. No excuses. A deal is a deal. If his 296 went up in value, the OP would gladly accept delivery What a snowflake.
Why not just have a conversation with your dealer. If you have someone willing to take over your allocation and are willing to buy a CPO car from them, that seems like a big win for a dealer. They get to bring in a new customer for the 296, make a commission on selling the car and warranty, make the customer selling the car happy, and keep you as a customer. A lot can change in 3 years and I don’t see why you have any obligation to keep the car. The dealer is just a middleman and the contract gives you the right to walk away for $25k in the worst case scenario. Just because you’re not a customer now doesn’t mean you aren’t one in the future. I cancelled my order and still get invited to events and new car orders. However, I hadn’t even spec’d my order.
No need for extremes. I acknowledge the agreement I made with the dealer, someone I have dealt with multiple times before. The decline in market value isn't the primary reason for my “second thoughts”. Ultimately, I can sell the car myself, just as I did with my F8 and recoup my investment. I genuinely enjoyed my 488!! My intention in posting was to gather suggestions and hear about others experiences, not to imply I would back out of my agreement. My original post was focused on finding a solution that benefits both myself and the dealer.
After waiting three years for this car, the excitement has faded a little. I keep finding myself thinking about the 488. I have no doubt I'll enjoy the 296 GTS, but I built this one pretty differently than my last. Sometimes, too much time gives you time to overthink!
I understand you are having second thoughts. I took delivery of my GTS this past November and I have to say its probably been the best Ferrari purchase I have ever made. The car is the best mix of everything in my collection (F12, Speciale, etc.). It truly is a "fun to drive" car. The sound is great, I love the fact that its a convertible, the shifts are quick and exciting, and it rides really really well. I have driven both the 488 and F8 and it tops both cars by a long shot. I suggest hoping in the dealer's demo and giving it another whirl to jog you memory and then make a decision. I hope this helps!
I told my dealer I had cold feet and he let me drive the 296 for well over an hour and mash it several times.
I'm headed over to my dealer as he has a used GTB that's close to my spec and I'm excited to see the color I ordered in person. I will agree that the wait does a lot to squelch the excitement....After registering interest in 2021 I got the call over a year ago and got all excited over again...and now I'm doing more waiting. At this point it looks like a Summer 2025 build but I might punt to Fall to get a 2026 car. Taking delivery of a 2025 MY Ferrari in December in Chicago seems like a losing proposition vs taking delivery of a 2026 in March!
I am glad I am not in the US. I put a first deposit in July 2023 after test driving. I firmed the order in April 2024 ( second deposit) it went 10 R in late June 24 and I got it 5 weeks ago including the summer shutdown , 4 layer paint at a nasi and a 12 weeks ago including transit. The US market seems to suffer in many ways , reading here there seems to be inconsistent dealer experience , a large depreciation compared to some markets coupled with delays in delivery. Is it because there are too many dealers ? Who knows , however as the largest single market you would think that FNA would be ensuring a better, consistent experience .
