Are car deposits refundable?
03-01-2008, 05:57 PM
#1
Thread Starter
Join Date: May 2004
Location: San Clemente
Posts: 34,536
Likes: 0
Received 0 Likes
on
0 Posts
Are car deposits refundable?
Hi all!!
My friend placed an order for an Audi with Dealer A. She signed a form that said that the deposit was non-refundable (The line that stated that the deposit was refundable was crossed out by the dealer).
She then found out that Dealer B could get the car sooner.
She canceled the order with Dealer A who is now refusing to refund her money.
Dealer B says this is illegal and Dealer A cannot do this.
An attorney sent the CA civil code to me that clearly states:
2982.7. (a) Any payment made by a buyer to a seller pending
execution of a conditional sale contract shall be refunded to the
buyer in the event the conditional sale contract is not executed.
Does anyone know (or know someone that knows) whether this dealer is doing something illegal by putting into the deposit form that the down payment is non-refundable??
I remember from my one year of law school that you cannot enforce a contract that is prima facia illegal (illegal "on its face"). In other words, you cannot put something into a contract that is illegal then try to enforce that contract......
Anyone?? Thanks in advance!!!!!!!!
Mike
My friend placed an order for an Audi with Dealer A. She signed a form that said that the deposit was non-refundable (The line that stated that the deposit was refundable was crossed out by the dealer).
She then found out that Dealer B could get the car sooner.
She canceled the order with Dealer A who is now refusing to refund her money.
Dealer B says this is illegal and Dealer A cannot do this.
An attorney sent the CA civil code to me that clearly states:
2982.7. (a) Any payment made by a buyer to a seller pending
execution of a conditional sale contract shall be refunded to the
buyer in the event the conditional sale contract is not executed.
Does anyone know (or know someone that knows) whether this dealer is doing something illegal by putting into the deposit form that the down payment is non-refundable??
I remember from my one year of law school that you cannot enforce a contract that is prima facia illegal (illegal "on its face"). In other words, you cannot put something into a contract that is illegal then try to enforce that contract......
Anyone?? Thanks in advance!!!!!!!!
Mike
03-01-2008, 06:16 PM
#4
Thread Starter
Join Date: May 2004
Location: San Clemente
Posts: 34,536
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Back-cracker,Mar 1 2008, 07:05 PM
If the line was crossed out BEFORE her signing it, then it would be fair game right?
You can cross out or add anything you want UNLESS it makes the form/contract illegal, then I believe it would be unenforceable....
03-01-2008, 06:18 PM
#5
Thread Starter
Join Date: May 2004
Location: San Clemente
Posts: 34,536
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Back-cracker,Mar 1 2008, 07:15 PM
If you say, independents and republican rules, then I might help you 
usually........
03-01-2008, 06:24 PM
#6
Registered User
Join Date: Aug 2006
Posts: 381
Likes: 0
Received 0 Likes
on
0 Posts
I would assume that she did the smart thing and paid it with a debit card, or credit card. Either way, just have her dispute the charge. Done Deal.
The dealership will have to sue your friend to get the money, and I highly doubt they will, because they are violating the above civil code.
The dealership will have to sue your friend to get the money, and I highly doubt they will, because they are violating the above civil code.
03-01-2008, 06:24 PM
#7
Community Organizer
Originally Posted by Nicotunes,Mar 1 2008, 07:18 PM
I'm sorry I cannot be bribed................
usually........
usually........
Trending Topics
03-01-2008, 06:25 PM
#8
Community Organizer
Originally Posted by Rasetsu99,Mar 1 2008, 07:24 PM
I would assume that she did the smart thing and paid it with a debit card, or credit card. Either way, just have her dispute the charge. Done Deal.
The dealership will have to sue your friend to get the money, and I highly doubt they will, because they are violating the above civil code.
The dealership will have to sue your friend to get the money, and I highly doubt they will, because they are violating the above civil code.
03-01-2008, 06:29 PM
#9
Thread Starter
Join Date: May 2004
Location: San Clemente
Posts: 34,536
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Rasetsu99,Mar 1 2008, 07:24 PM
I would assume that she did the smart thing and paid it with a debit card, or credit card. Either way, just have her dispute the charge. Done Deal.
The dealership will have to sue your friend to get the money, and I highly doubt they will, because they are violating the above civil code.
The dealership will have to sue your friend to get the money, and I highly doubt they will, because they are violating the above civil code.
03-01-2008, 06:41 PM
#10
Thread Starter
Join Date: May 2004
Location: San Clemente
Posts: 34,536
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by BoostTed,Mar 1 2008, 07:35 PM
Which dealer?
My friends have put a deposit on a special order Audi and after they placed the order, he changed his mind and they gave him his money back.
Mike look at the contract in much simpler terms. The contract is unilateral, your friend and the dealer came into an agreement. She agreed to pay the dealer $xxx for the dealer to deliver to her a black audi with options xxx. Now if they can not get her hte car exactly as she wanted, she is entitled to a refund. Unless she states in the contract she wants the car by xxx date, another dealer getting the car sooner would not be a valid option to rescind the contract. The original dealer is still able to deliver her the car she originally ordered.
Now if they were not able to deliver her the car and refused to give back the money, then it would be illegal.
My friends have put a deposit on a special order Audi and after they placed the order, he changed his mind and they gave him his money back.
Mike look at the contract in much simpler terms. The contract is unilateral, your friend and the dealer came into an agreement. She agreed to pay the dealer $xxx for the dealer to deliver to her a black audi with options xxx. Now if they can not get her hte car exactly as she wanted, she is entitled to a refund. Unless she states in the contract she wants the car by xxx date, another dealer getting the car sooner would not be a valid option to rescind the contract. The original dealer is still able to deliver her the car she originally ordered.
Now if they were not able to deliver her the car and refused to give back the money, then it would be illegal.
But Dealer B said that he has had people cancel for whatever reason and he always refunded them, per the code.
This says NOTHING about a reason:
2982.7. (a) Any payment made by a buyer to a seller pending
execution of a conditional sale contract shall be refunded to the
buyer in the event the conditional sale contract is not executed.
Dealer B looked up the order and said the car has not even been assembled yet, therefore it CANNNOT arrive by the date that Dealer A claimed......
