• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Non-Refundable Motorcycle Deposit ... Options?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Lipmonger

Junior Member
What is the name of your state? Colorado

I live in Denver, and recently... ok, actually 3 weeks ago... made a $1,200 deposit on a new motorcycle. I DID sign a form understanding my deposit was non-refundable. However, in the last 3 weeks the dealer has done some things that I think void my obligation to complete the purchase, and I'm wondering if I have a legal basis to get my deposit back.

1) The dealer informed me that the motorcycle would arrive within 7-10 days of the order being place. At the time the deposit was made he informed me he would "try to order the motorcycle today" (which was Thursday Oct. 4th).

2) The following Tuesday (Oct. 9th) I called for an update. The dealer told me, "Good news! It will be 7-10 days from today!" Although he told me 7-10 days the week before, I let it slide. (I have this 7-10 range in a hard copy email sent to me from the dealer on Oct. 10th).

3) In yet another email asking for an update the dealer told me, "You're not alone, I'm waiting for 3 more motorcycles to come with yours!" This indicates to me that the dealer did NOT order the bike when I made my deposit, and that he likely waited for other orders to come in to save on shipping. I cannot prove this, but I'm told it is standard dealer practice to have a minimum number of bikes/cars, etc before placing an order from warehouse. If this is the case, he did not inform me that he'd be waiting to place my order.

3) We are now 12 business days from the documented 7-10 day estimated delivery email, and I still do not have a motorcycle. I called the dealer and he said "Any day now I think!"

4) When I emailed him asking for a discount on the motorcycle assembly fee (as the final price has NOT yet been signed off on), he emailed me back "That's funny!!!!" Very professional.

While I realize I signed a form acknowledging the deposit was not refundable, do I have legal claim to get my deposit back since the dealership has not completed their end of the deal, which is getting me my motorcycle?!?!?! While the 7-10 day time frame is not promised in writing, it was noted in an email from the dealer. I mean - there has to be SOME EXPECTATION of delivery within a REASONABLE time frame... no? Can the dealer just take my money and tell me to **** off?!?

If some one could advise me here, I'd appreciate it. I realize I may be screwed since I signed a form that acknowledges the deposit is non-refundable. And if that's it, that's it. I just want to know if I have any legal options I can pursue here.

THANKS!
 
Last edited:


nolow

Member
I didn't read all of that, sorry.... I know in my state a non-refundable deposit is prohibited for a motor vehicle. A car dealership tried to pull that one on me. Unfortunately, I do not have time to do the research for you today. I'll try and look into it for you tomorrow, unless you figure it out.
 

Lipmonger

Junior Member
NoLow, thanks for the response!

As for my state's laws, from the little I've been able to find, I do know that non-refundable deposits are legal in CO so long as it is in writing. Unfortunately, it is in writing. However, I can't find anything showing that the dealer must complete their side of the bargain.

There is nothing in the original documentation I signed that said the dealer will provide me a motorcycle within a designated time frame, but he told me verbally many times, "It will be here within 7-10 days." Beyond that, I do have an email dated Oct. 4th that says, "7-10 days from today is what I hear." That is the most concrete verbiage I have that he would provide the bike in a certain time frame.

Today (Thursday) is day 12 of that 7-10 business day stated on Oct. 10th. I think that's my only bargaining chip - if any. :( Thanks again for your time!
 

nolow

Member
NoLow, thanks for the response!

As for my state's laws, from the little I've been able to find, I do know that non-refundable deposits are legal in CO so long as it is in writing. Unfortunately, it is in writing. However, I can't find anything showing that the dealer must complete their side of the bargain.

There is nothing in the original documentation I signed that said the dealer will provide me a motorcycle within a designated time frame, but he told me verbally many times, "It will be here within 7-10 days." Beyond that, I do have an email dated Oct. 4th that says, "7-10 days from today is what I hear." That is the most concrete verbiage I have that he would provide the bike in a certain time frame.

Today (Thursday) is day 12 of that 7-10 business day stated on Oct. 10th. I think that's my only bargaining chip - if any. :( Thanks again for your time!
I'll look into it tomorrow. Hopefully, someone will come along and help you out before then. I wouldn't think the time frame would be a breach of contract unless it is deemed excessive by a judge. Usually, you would have had to put something along the lines of "time is of the essence" to make it material.
 

BoredAtty

Member
...the dealer did NOT order the bike when I made my deposit, and that he likely waited for other orders to come in to save on shipping. I cannot prove this, but I'm told it is standard dealer practice to have a minimum number of bikes/cars, etc before placing an order from warehouse.

We are now 12 business days from the documented 7-10 day estimated delivery email

there has to be SOME EXPECTATION of delivery within a REASONABLE time frame...
You noted that the 7-10 day time frame was an estimate, not a guarantee. Therefore, it's not binding.

However, you are correct that the dealer must perform within a reasonable time. How will that be judged? Usually, industry standard is quite important in making that determination. To that end, you noted that it is standard practice for a dealer to wait until he has multiple orders before placing an order. So, he may have been doing what is reasonable within the industry. Of course, there must be some point in time when the dealer must have a bike shipped even if he has no other orders (i.e. he can't let you wait indefinitely). That said, do you think 2 days over the estimated 10 days would be considered unreasonable? I highly doubt it. Unfortunately, the dealer may be within reason to let you wait a month or two.

Give it some more time...
 

Lipmonger

Junior Member
You noted that the 7-10 day time frame was an estimate, not a guarantee. Therefore, it's not binding.

However, you are correct that the dealer must perform within a reasonable time. How will that be judged? Usually, industry standard is quite important in making that determination. To that end, you noted that it is standard practice for a dealer to wait until he has multiple orders before placing an order. So, he may have been doing what is reasonable within the industry. Of course, there must be some point in time when the dealer must have a bike shipped even if he has no other orders (i.e. he can't let you wait indefinitely). That said, do you think 2 days over the estimated 10 days would be considered unreasonable? I highly doubt it. Unfortunately, the dealer may be within reason to let you wait a month or two.

Give it some more time...
BoredAtty,

Thanks for the response. I went into the dealership on my lunch break and made TONS of progress. I kept a cool head, yet made it VERY clear how upset I was. They were more than understanding, admitted the manufacturer was having shipping problems, and offered me MANY incentives to stay.

I could have walked out with my deposit, regardless of the contract I signed ... they just want to avoid the bad PR and an ugly mess. It was nice to see them step up and admit that my wait was becoming ridiculous.

Thanks again!
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top