Dealer issue “Non refundable” deposit
12-16-2018, 03:09 AM
#1
Dealer issue “Non refundable” deposit
Found a car out of state. Made a call and negotiated a price verbally, and put a $2000 deposit by credit card. I’ve since decided to not purchase the car. Dealer says deposit is non refundable. No sales agreement or paperwork was signed by either party. It was all just verbal negotiation. I haven’t seen anything hit my card statement. But should I contact my credit card and put a hold of some sort just in case?
12-16-2018, 03:43 AM
#3
12-16-2018, 04:18 AM
#4
Pro
If it was only verbal, I don't know how it can be non refundable. Was the dealer going to send you paper work to sign after your negotiations with them?
12-16-2018, 04:28 AM
#5
My understanding was that the credit card was a “hold” and wouldnt be charged until I got there to sign the contract. No contract has been written or signed by either party at this point.
12-16-2018, 04:57 AM
#6
Pro
From what you have said, the dealer will not be charging your credit card for the non refundable deposit until you sign the papers, but that means they can sell the car to someone else until you do.
12-16-2018, 06:59 AM
#8
Burning Brakes
There was a verbal agreement. He gave them his credit card number which indicated his acceptance of the terms. If he simply changed his mind, which is what it sounds like, they can keep his deposit. He can hope they won't keep it, or see if they will take a lesser amount.
Disclaimer: rules governing purchases by consumers vary from state to state, please check your state of residency for accurate information!!!
Disclaimer: rules governing purchases by consumers vary from state to state, please check your state of residency for accurate information!!!
12-16-2018, 07:25 AM
#9
I don't get it. When you agree to a deal you give a deposit so the dealer doesn't sell the car out from under you. This also gives the dealer something to fall back on if you back out of the deal. It sounds like you want the deposit to only work in your favor. What would you have posted here had you traveled to the dealer to buy this car only to find out he sold it for more money to another customer? I'll bet you would be pretty mad and be crying that you gave a deposit and he still sold it.
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rogergcam (12-16-2018)
12-16-2018, 07:54 AM
#11
Race Director
I don't get it. When you agree to a deal you give a deposit so the dealer doesn't sell the car out from under you. This also gives the dealer something to fall back on if you back out of the deal. It sounds like you want the deposit to only work in your favor. What would you have posted here had you traveled to the dealer to buy this car only to find out he sold it for more money to another customer? I'll bet you would be pretty mad and be crying that you gave a deposit and he still sold it.
I had a similar situation in purchasing my GS from an out of state dealer. We negotiated over the phone agreeing on a price and that I would come examine the car, complete paperwork and pay for it in one week. He promised to put the car on hold pending my checking it out and did not ask for a deposit and I didn't offer one. He did send me an e-mail confirming our agreement and that car would not be sold. Salesman didn't request it, however I did send him a copy of my airline reservation just to insure him I was coming to inspect the car.
I arrived they picked me up at the airport (about 40 miles from dealership), car was as represented, I paid for it and arranged transport. No issues what so ever.
Having said the above, I expect you can get your deposit back if you put enough effort into it.
12-16-2018, 07:55 AM
#12
Melting Slicks
If you don't want the car and you're afraid the dealer is going to charge your card then call you're CC issuer and say it was stolen. From that point on no charges can be made on that card.... I don't see the problem here!
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defaria (12-16-2018)
12-16-2018, 08:03 AM
#14
Race Director
No problem to anyone who doesn't mind lying and reneging on an agreement.
12-16-2018, 08:18 AM
#16
Burning Brakes
If the card hasn't been charged and no paperwork has been signed there really isn't any way they can keep your money. Other than the time you wasted of the dealership personnel, didnthey incur any costs like bringing the carcin from out of state?
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Maxie2U (12-16-2018)
12-16-2018, 08:24 AM
#17
I called my CC and they can’t do much until it posts to my account. At that point I can file a dispute. They recommend that I call the dealership management directly and try to obtain a refund first. I guess the lesson here is don’t give a deposit of any kind without a signed receipt or contract stating terms.
12-16-2018, 08:35 AM
#18
Advanced
If there was not a signed contract agreement, and the card has not been charged it may go away on its own? Mind you, I have very good friends who own dealerships, so my reply has nothing to do with any negativity towards the dealer, it is just you never signed anything. Some on here think you should eat this 2k. What if it was 10k, or 20k? It is the principle, and you simply had a change of heart. The dealership still can sell the car...
I would however not let it slide if they do charge the card. I'd politely let the dealership know that in advance, politely....
best of luck
Bruce
I would however not let it slide if they do charge the card. I'd politely let the dealership know that in advance, politely....
best of luck
Bruce
12-16-2018, 08:52 AM
#19
I sold vehicles for GM for years and really there is no such thing as a non refundable deposit unless it was some crazy special order and even then it’s not cut and dry that they can keep your deposit. Some dealers handle thing poorly in my opinion in an attempt to save/force the sale. Life happens and things change so if they didn’t go get the vehicle, ie a Swap, they shouldn’t be playing this game with you. And without a signed buyers order they have no firm ground to stand on. Feel free to pm me and I’ll be happy to give you some tips via phone or pm. And as people have said above, once the charge hits your card you can simply dispute it.
12-16-2018, 09:04 AM
#20
Safety Car
Member Since: Dec 2009
Location: Oro Valley Arizona
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Gotcha Moment
It is illegal in most states for a car dealer to take a non refundable deposit. Dealer knows that so push a little and they will fold their losing hand. I'd file a BBB complaint just for fun. When you get your refund, make a post 'outing' this dealer to the C7 Forum.