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socrateaser
socrateaser, Lawyer
Category: Legal
Satisfied Customers: 38577
Experience:  Retired (mostly)
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Can a car dealer keep your deposit without a contract?

Customer Question

Can a car dealer keep your deposit without a contract?
Submitted: 1 year ago.
Category: Legal
Expert:  socrateaser replied 1 year ago.
Hello, The general rule is that a deposit is refundable, unless otherwise stated in writing, or where the person or business receiving the deposit has "relied to their detriment" on the depositing party's promise to purchase the ordered item. Example: 1. Prospective buyer orders a vehicle from the manufacturer. Dealer takes the order, and contacts the manufacturer to allocate a vehicle to the dealer. Buyer changes his/her mind, tells the dealer. Dealer contacts the manufacturer, and is told, "it's too late to cancel." Buyer can't recover the deposit, because the dealer is stuck with the car. 2. Same facts, except that manufacturer cancels the order. Buyer is entitled to refund, because dealer has suffered no detriment/injury. There are lots of other possible scenarios, but the key factor is whether or not the dealer suffers an economic loss due to the buyer's promise to purchase. I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!
Expert:  socrateaser replied 1 year ago.
Hello again,I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!