Dealer Refuses to Refund New Car Deposit.

Hi,

We are researching our options here and wanted input from others as
this has never happened to us before.

We visted a car dealer earler this month and reached a price on a new
car that we were very clear had to be a specific color and have
specific equipment. This dealer did not have that exact car on their
lot, but we had found it online elsewhere and they said they would get
it if we left a $1,000 deposit. We did using our MasterCard.

We called back the next business day to check on the locating the car
and were told they could not find the car we wanted elsewhere (we
could!) but they had decided to sell us a car of the same model and
color from their lot and just add the other options themselves in their
shop (moonroof, DVD player, etc.)

We said NO. We only left a deposit for the car in the color we wanted
with the FACTORY installed options we wanted, not for them to take one
of the same color off their lot and cut into it adding items. We told
them to cancel the sale, we would go elsewhere.

We did go elsewhere and found the exact car we wanted at another local
dealer and made the purchase.

We called the first dealer THREE times and even spoke to the sales
manager. They claim they can keep our deposit and are refusing to
refund our credit card. The only receipt we were given was from their
credit card machine we signed and it says nothing about deposits being
non-refundable.

Are we correct that they MUST refund us? They refused to deliver the
vehicle we asked for.

Thanks!

Just write a letter to your credit card company saying you dispute the
charges. By law they must remove that charge from your bill until the seller
can provide proof of it's validity.

I hope you at least have a copy of the buyers agreement on the car. If there
was one, then the dealer has to abide by it or they can not keep your money.
If there was no agreement then they still can't keep your money.

Hell, even if you had taken possession and closed the deal on the car you
still have 72 hours to resend the sale in most states.

Just my opinion based on the information you provided.

Kevin


"Ryan" > wrote in message
oups.com...
> Hi,
>
> We are researching our options here and wanted input from others as
> this has never happened to us before.
>
> We visted a car dealer earler this month and reached a price on a new
> car that we were very clear had to be a specific color and have
> specific equipment. This dealer did not have that exact car on their
> lot, but we had found it online elsewhere and they said they would get
> it if we left a $1,000 deposit. We did using our MasterCard.
>
> We called back the next business day to check on the locating the car
> and were told they could not find the car we wanted elsewhere (we
> could!) but they had decided to sell us a car of the same model and
> color from their lot and just add the other options themselves in their
> shop (moonroof, DVD player, etc.)
>
> We said NO. We only left a deposit for the car in the color we wanted
> with the FACTORY installed options we wanted, not for them to take one
> of the same color off their lot and cut into it adding items. We told
> them to cancel the sale, we would go elsewhere.
>
> We did go elsewhere and found the exact car we wanted at another local
> dealer and made the purchase.
>
> We called the first dealer THREE times and even spoke to the sales
> manager. They claim they can keep our deposit and are refusing to
> refund our credit card. The only receipt we were given was from their
> credit card machine we signed and it says nothing about deposits being
> non-refundable.
>
> Are we correct that they MUST refund us? They refused to deliver the
> vehicle we asked for.
>
> Thanks!
>

Thanks Kevin,

In fact, we made the deposit on a Saturday. On Monday, they told us
they couldn't find the car and were going to add the missing equipment.
We immediately told them we were cancelling the sale unless they did
locate the car. Tuesday, they tried to force this option on us again
and we cancelled via phone with the sales person. We then called back
to confirm the deal was over and explained we had found the EXACT car
they were "unable" to locate 20 miles away.

It was when we asked about the deposit that we were forwarded to the
sales manager who told us he "doesn't have to" refund the deposit. It
has been two weeks now and no credit on our credit card (we thought
maybe he was bluffing about no refund to get us to buy from them.)

We wrote the credit card company today to dispute the charge and are
crossing our fingers. My husband signed the credit card slip (which we
have) and some one-page form that detailed the car, color and eqipment
we wanted and the price. We didn't realize until later they didn't give
us a copy of anything but the credit card receipt.

We PRAY the other document didn't have small print somewhere that said
"no refund of deposits" but we believe that would be illegal in our
state anyway. We think we had 3 business days to cancel the "contract"
(has been that way with other cars we bought, but we never did it) so I
hope the dealer doesn't have something up their sleeve.

Sorry to hear this, another black eye for the business by an idiot
dealer. what State are you in? Also, read my new book "The Insider".
Read about it, the author(me), and readers reviews at theinsiderbook
dot com. You'll learn alot and never have a problem buying cars
again.See the table of contents! I spent 27 yrs. in the business and
what I reveal is true, valuable and being greatly approved of by users.
Still have a problem? First call your credit card co. and then call the
dept. of motor vehicles in your state. they have the power to revoked
his license. he won't want to deal with them also, is the dealer an
independant or franchise. you can e-mail me
. Bill. Good luck.Also kevin is wrong.
most states you dDo Not have a 72. hour rule! anothe rmyth people
believe. thats only for door to door sales contracts.if offered by
dealer it is soley at his discresion. He needs my book too!

We are in Connecticut. I always shy away from giving exact locations
because ya never know how much you should post on a public group, but I
will share the state as I realize that comes into play here. I am
certain with other cars I have bought the dealers told me I had 3
business days to cancel the deal by law, but since I never used that I
am not 100% certain what applies.

Actually, this dealer is a large multi-brand dealership that should
know better. Not a small place by any means. The very next business day
they knew we were not going to accept their "take something off the lot
and add to it ourselves" plan and we would cancel. Since we discovered
the car we wanted (exactly) was available at a few other dealership, it
seems clear they were playing games when they said they couldn't locate
one! That's what we get by going to the closest dealer!

I just REALLY hope there was nothing on the pricing document we signed
that said no refunds on deposits. Some people here have said they can't
keep the deposit at all, some have said they can only keep it on
special order vehicles (which this wasn't) and some say if they put in
small print "no refunds" we're screwed.

The credit card company should have our letter by mid-week (they told
us it had to be in writing) and I am thinking of filing a claim with
motor vehicles also. Just stuns me that the dealer would do this if the
law is on our side.

You know, I HATE car dealers (actually furniture salespeople too) and
since I had a good experience elsewhere last time, I foolishly THOUGHT
dealers were hard up for sales these days and would't try and screw
peoole. Sad.

If you didn't get it in writing, you are screwed usually. Normally
deposits are not refunded....

Yours 'was' a 'special order' by the way.

Mike
86/00 CJ7 Laredo, 33x9.5 BFG Muds, 'glass nose to tail in '00
88 Cherokee 235 BFG AT's
Canadian Off Road Trips Photos: Non members can still view!
Jan/06 http://www.imagestation.com/album/pi...?id=2115147590
(More Off Road album links at bottom of the view page)

Ryan wrote:
>
> Hi,
>
> We are researching our options here and wanted input from others as
> this has never happened to us before.
>
> We visted a car dealer earler this month and reached a price on a new
> car that we were very clear had to be a specific color and have
> specific equipment. This dealer did not have that exact car on their
> lot, but we had found it online elsewhere and they said they would get
> it if we left a $1,000 deposit. We did using our MasterCard.
>
> We called back the next business day to check on the locating the car
> and were told they could not find the car we wanted elsewhere (we
> could!) but they had decided to sell us a car of the same model and
> color from their lot and just add the other options themselves in their
> shop (moonroof, DVD player, etc.)
>
> We said NO. We only left a deposit for the car in the color we wanted
> with the FACTORY installed options we wanted, not for them to take one
> of the same color off their lot and cut into it adding items. We told
> them to cancel the sale, we would go elsewhere.
>
> We did go elsewhere and found the exact car we wanted at another local
> dealer and made the purchase.
>
> We called the first dealer THREE times and even spoke to the sales
> manager. They claim they can keep our deposit and are refusing to
> refund our credit card. The only receipt we were given was from their
> credit card machine we signed and it says nothing about deposits being
> non-refundable.
>
> Are we correct that they MUST refund us? They refused to deliver the
> vehicle we asked for.
>
> Thanks!

"Yours 'was' a 'special order' by the way."

Mike,


Actually, we spoke about this to two other dealers, including the one
we purchased from because our ability to get out of the deal was
important to us moving elsewhere. We have been told more than once that
a "special order vehicle" is ONLY one that "must be ordered from the
factory because it can not be located in any other dealer's inventory".

Locating a car from another dealer's lot and doing a swap is NOT a
special order. Where did you get that impression from? How do you see
this as a special order?

IT'S OBVIOUS YOU'VE NEVER SOLD CARS IN THE STATES. FIRST IT WASN'T A
SPECIAL ORDER IT WAS A DX OR DEALER EXCHANGE AND SECOND , DEPOSITS ARE
MOSTLY REFUNDABLE!

I agree.But it was probably more a case of bad management more than bad
dealer. dx's or dealer exchanges can cost one dealer a loss of holdback
money,or maybe couldn't get the other dealer to agree to exchange.also,
it takes additional people (drivers to make the switch, office
personnel for paperwork, and often involves using salesmen) to complete
the exchange. Then if there is ANY flaw in the car he gets in return
and the customer backs out, he has loss money via labor.I hope you take
time to visit my web site theinsiderbook dot com. it will make all your
future dealings easier, safer , faster and you and the salesman will
actually enjoy making the deal. good luck, william kelbaugh

dealmaster,

While I appreciate your insight, MUST you insert a plug for your book
and web site into EVERY reply?