starbai

My cousin went into the dealership.

North Shore Honda Saab
Glen Head, NY


She went in to look at an 06 CRV. She looked at it wasn't sure but the sales guy pushed her into putting a deposit on it so that when she came back with her mind made up it would "still be there" (remember its used)

So she goes back THE NEXT DAY, and decides she really isn't too excited about the styling (you know the most important thing about a used car ) and decides she would rather wait until she could afford a barely used 2007 CRV (the new body style)

Any way its been about a month and a half now and shes still fighting with them to get her deposit credited back to her card. They refuse to do it, the sales person told her the owner said no, that thats what a deposit is for, but they'd be "willing to" credit it towards the 2007 CRV when she's ready.

I told her to have them fax her a copy of the agreement that allows them to hold her deposit, but they wont.

So right now shes stuck they wont give her her deposit back. First of all, can they do that? I mean isn't it generally accepted to recieve that back if she decides not to buy a that particular car?

Does she have any recourse? can she call corporate honda? They wont even produce the contract stating the details of the deposit to her.

any help on where to proceed from here and what the general policy is?

Thanks.

SheDrivesIt

I don't think they have to return her deposit. The deposit is a hold on the car with a promise to buy. You back out, they keep the deposit. Of course in real practice if they would have had a buyer for the car, they would have sold it and given her the deposit back. The deposit is "earnest money". It is to show the dealer you are serious about buying the car. It means, "hold this car, I intend to buy it if we can come to terms."

Now it seems to me that the key part of this is to get them to refuse her offer. If that is the case, then they are obligated to return the deposit. If they already came to terms on price, I think they can keep it. If they do, however, they will lose her as a customer. If she buys a different car from them, I am sure they will apply the deposit money.

Sorry, I'm with the dealer on this one.

Cubs2k

There are state specific rules.....In MASS....they have to give any deposit back.....even if you sign the papers. The second you take delivery, the deal is done.

GrandMasterKhan

why not have her do a chargeback?

starbai

well thats just it, they didn't come to terms on pricing. they wanted damn near as much for the 06 as it woulda been for an 07 which is what made her say ya know what i'll wait until i can afford the 07 and then go that route.

i didn't think about the chargeback thing, she did the deposit on her amex and i'm sure they'll take care of it for her.

i'll tell her to try that route.

and it was barely even 24hrs. she didn't even wanna put the deposit on the thing; the sales guy did one of those "nudge nudge conme on lemmie get a deposit before the boss gets mad at me and we'll make sure the car is here tomorrow for ya"

when she came back the next day and they started talking price, thats when she realized she didn't want an 06. when its a few bucks more to find a 07.

Jay2000

Any reputable dealer will refund a deposit, typically the only time they can keep it is if they do something to a car that is additional to it. For instance, putting a tow hitch on, roof rack, new tires at the customers request, they are allowed to keep and recover that cost. Unless they stated it was none refundable and wrote something up to that effect.

starbai

i completely agree..

the the car didn't even move from the same spot it was in within the period of about 20 hrs from when she left and came back.

SheDrivesIt

I've thought things over and I agree with you guys. While they might technically be able to keep it, it would be bad business practice... especially considering the circumstances.

chris2002

It is against the law in NJ and I believe it is also the same in NY. Consult an attorney, or check with the better business bureau about this dealership.

RedY2KS2k

The laws on this kind of thing are all over the place, depending on the state. Advice from someone in Ohio, NY, NJ is likely meaningless if you're in FL.

If she gave a deposit on a car without agreeing on a price first, the loss of this money might a good learning experience.