Used Car Deposit Refund

How Do We Get Our
Car Buying Deposit Back?

How do we get a used car deposit refund after the financing fell through? A car buying question from Sandro of Toronto Canada...

My wife and I recently put a $500.00 used car deposit on a car that was worth approximately $15,800.00. After 3 days we found financing would be virtually impossible.

We also feel the car was a lemon. After the deposit was made the vehicle began leaking approximately 2 litres of fluid. We were told that it would be fixed when we came to pick up the car.

How do we get our $500.00 deposit back?

Answer:

Hi Sandro,

If I'm understanding correctly, the dealer was going to be responsible for arranging the financing and was willing to deliver the car prior to having an actual lender approval.

If this is the case, then this should be 100% the car dealers problem and you should have your entire deposit / down payment returned to you.

If you were to be responsible for obtaining your own financing, then the car dealer may try to make you pay for rental fees and a "restocking" fee to detail the car and perform another safety inspection.

Most dealers will not do this (charge a restocking fee) being that it has only been 3 days, but if they want to be testy they can.

If they try to do this have them show you the official dealership policy regarding returning a car and the fees that they charge. Most dealers don't have anything in writing for this and simply asking to see the policy (that they probably don't have) could cause them to just give in and give your full deposit back.

If you were to keep the car, then you'd want to get something in writing, as detailed as possible, about the repairs they are willing to do to the car. This will give you solid proof if you needed to go to court.

Verbal agreements are very hard to enforce!

If this problem persists and they are not willing to give you your $500 used car deposit back, then please let me know. Since you are in Canada there may be different laws that apply, but I'll see what I can do.
Hope this helps,
Justin

Go to Insider Car Buying Tips home