Car deposit

[ljmd]

I wanted to help my daughter buy a car. She lives in orlando. Dealer said I could put deposit on the car to keep them from selling the car before she gets there. They didn't say it was nonrefundable, I didn't sign any purchase contracts, told them she needed to approve the car. Started loan application process to speed things up in case she wanted the car. Daughter wasn't able to make it down before they closed. Told them to give the deposit back and I would release hold on car for them to sell it. They said it's their policy not to refund deposits. Can I put a stop payment on the check?

 

[quincy]

I wanted to help my daughter buy a car. She lives in orlando. Dealer said I could put deposit on the car to keep them from selling the car before she gets there. They didn't say it was nonrefundable, I didn't sign any purchase contracts, told them she needed to approve the car. Started loan application process to speed things up in case she wanted the car. Daughter wasn't able to make it down before they closed. Told them to give the deposit back and I would release hold on car for them to sell it. They said it's their policy not to refund deposits. Can I put a stop payment on the check?

You can ask the dealer to show you the agreement you signed that says the deposit is nonrefundable.

One thread is all that is needed. Please add any additional questions and comments to this thread. Thanks.

 

[quincy]

Here, by the way, is a link to Florida’s law, stating that it must be written “clearly and conspicuously” under what conditions any deposit held is refundable or nonrefundable -see 501.976(10):
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0500-0599/0501/Sections/0501.976.html

 

[zddoodah]

I'm sure you can. The problem is that it appears clear that the whole point of giving the deposit was to compensate the dealership for refraining from selling the car to someone else. What was the point of the deposit if the dealership couldn't keep it if your daughter didn't end up going through with the sale?

 

[Zigner]

I'm sure you can. The problem is that it appears clear that the whole point of giving the deposit was to compensate the dealership for refraining from selling the car to someone else. What was the point of the deposit if the dealership couldn't keep it if your daughter didn't end up going through with the sale?

...the law be damned, right?

 

[zddoodah]

...the law be damned, right?

No.

 

[quincy]

If there is to be a deposit collected, the terms governing this deposit must be clearly stated.

Obviously they weren’t, if nothing was in writing and signed by ljmd and the dealer did not tell ljmd that the deposit was not refundable.

These are the possible penalties the dealer faces:
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0500-0599/0501/Sections/0501.2075.html

There is a civil penalty up to $10,000 - but this can be avoided with reimbursement/refund.