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Good afternoon. Yes, it should be. The $500 was consideration to hold the car and allow you to see it and not sell it to anyone else. If you ended up buying the car, it should have been applied but if you decided to not buy it, they could not just keep it, unless it was agreed upon ahead of time. There is a difference between asking for a deposit, if you wanted to buy it and simply putting up money in good faith, for them to hold it, to show that you are serious but need time to look a it, to see it was as represented.
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