Tips on Buying Cars: Refund on Car Deposit of $1,000 without signing contract

Question
QUESTION: Hello,

I made a deposit of $1,000 on a used SUV pending approval from Bank for funding. I decided later that I don't want the SUV again and the dealer said I cannot get my refund back. Please what is my right on this deposit without signing a contract.

Thanks,

Nikky

ANSWER: Hi Nikki sorry to hear about your problems,

A dealer is not allowed to keep a deposit on a vehicle the customer did not buy. You didn't say what state you're in but this rule applies to all 50 states. And it doesn't matter what the dealer tries to call the deposit i.e. an option to buy or a nonrefundable deposit... If you don't buy the car you get the deposit back.

If I were in your position I would find out whose name is on the dealer license by looking it up at your local DMV website and then I would follow up with a demand letter to the person named on the dealer license of the dealership where you didn't purchase the car... I would call the dealership and ask for that person's e-mail address and I would e-mail him the demand letter and follow it up with a hard copy in the US mail sent certified with return receipt requested. I would be more than glad to read your demand letter and make any necessary adjustments before you send it if you would like.

It does no good at all to go into the dealership and yell and scream for your money back to some sales manager who couldn't give it back to you anyway because he can't sign checks. Send the letter to the guy whose name is on the line and if you don't get a positive result in the proper timeframe which is 5 to 7 days then I would file in small claims against the dealer.

Make sure in your demand letter that you imply or suggest the very real likelihood that you will be posting the story of your experience on every car buying review website you can find. My personal e-mail is roadloans@Gmail.com... Send me your demand letter with the persons name address and name of his dealership I will make the necessary adjustments if any and get you your money back. Don't despair this money is coming back!

Roger The Car Guy

PS check out my blog for the answer to these types of questions and more at http://thecarguyz.wordpress.com/



---------- FOLLOW-UP ----------

QUESTION: Thanks for your answer Roger. I am from Calgary, Alberta in Canada. Does the same demand letter apply. I will so much like to write the demand letter.

Thanks,

Nikky

Answer
Nikki I have been on vacation and just spotted this email in my que ...did you get your money back yet? please get back to me asap if you haven't and we will go after this POS and... my personal email is roadloans@gmail.com ...contact me there for fastest response thanks Roger