Should I refund a deposit for a classic used car sale?

[arronm]

I always return deposits if they don't purchase. It just seems the right thing to do. I would like my deposit back if somehow the deal fell through.

[mike_nofx]

What is the etiquette for a seller that's taken a deposit then?

Can you sell to someone else for a higher offer, then give back the deposit?

[b0son]

You mentioned he wanted you to take it off the market, and then dragged it out to 5 weeks! Of course you keep the deposit! Ever heard of opportunity cost?

[Itsme]

Originally Posted by cro142

Over the years I have been on both sides of this issue. Recently I paid a $500 deposit on a car I was buying for a young nephew. His pre-approved finance was withdrawn when they discovered the car (2006 Landcruiser 100 V8), had done 204,000km and their limit was 200,000km. Silly, as we all know that a 200,000km Landcruiser is still very healthy!!

So I had to pull out of the sale for a genuine reason, but the seller would not refund the deposit. In the end I wore the $500 as my nephew was thin on funds and couldn't really afford to cop the loss. It left a very bitter taste in my mouth, and I considered the lady seller to be a pig.

I have also had another sale fall through and I got my deposit back, no questions. Very happy.

As well, I have refunded deposits when others have pulled out of sales for whatever reason. That's just me - it reduces hassles and so has more value to me than arguing over $500.

As for claiming that you should keep deposits for recompense for your "running around", that is just rubbish. This "running around" is all part of the game of buying and selling cars privately.

If you don't like the running around, go to a dealer and get a "free" cup of coffee, a cheesy smile, a fake handshake, and pay $5K more for the same vehicle and get $5K less for your trade-in. No running around though - it suits some people, so you can choose which way to go.

In other words - Yes, do the right thing and return the deposit.

Go to a dealer & see if you can get your deposit back after the cooling off period?

Honestly people should understand the reason of a deposit & why it is forfeited under certain conditions.

[ronwest]

I'd give him his money back and mark it down to "that's life"...

[barrys123]

I'd not give his money back, but let him mark it down to that's life. By placing a deposit you are committing to buy, unless you put on the receipt subject to certain conditions for example mechanical inspection, or the ability to obtain finance.

[ronwest]

Originally Posted by barrys123

I'd not give his money back, but let him mark it down to that's life. By placing a deposit you are committing to buy, unless you put on the receipt subject to certain conditions for example mechanical inspection, or the ability to obtain finance.

I'm not sure if you're responding to the op or to me.

If to the op... no worries, we all have an opinion.

If to me, I get the ramifications of committing to buy, etc, but the truth is that I'm not out to teach someone a lesson, or point out to them that they should take responsibility, or they should word the receipt differently, or whatever it is that keeping the money is apparently doing.

If I really needed the money I'd negotiate out of pocket expenses but otherwise... meh.

[Junkyard-Dog]

Why would you give it back? It's yours.

That deposit was made by the prospective buyer based on the promise that he would later return with the remaining funds to purchase the vehicle. You took the car off the market as part of your verbal agreement, whereas he did not complete his end of the bargain.

There are enough bleeding hearts in the world as it is. No need to become another.

[The Yeti]

All these people saying give it back

Hmmm, I can't help but wonder, why bother taking a deposit if your going to give it back if the deal falls through?

I'll hold a car for 24hrs on a handshake, long than that I want a deposit, if you back out The deposit is stays with me

History has shown me the people hat screw you the hardest on price, are e people who want you to hold the car for longer while they finalise their money and are the most likely the back out leaving you a month later with no sale and little more

Keep the deposit and read readvertise it

Happend to me with a house once they left a 1500 deposit until exchange of contracts, they delayed the exchange 3 times totalling 4 weeks, then backed out, my agent was pushing for me to return, I refused, as I that 4 weeks I had paid interest on my new home I had been dicked around and left in limbo how is that any difference to a car, let's face it, e new buyer not concerned with weather or not you have paid interest on it, lost a month of rego insurance and so on now it's also that car that had a deal fall over and future buyers will ask them selfs why did it fall over? And use that to crunch you more on price

[Sioso]

The purchaser has to take responsibility for his mistake.
He wanted the ad pulled down which you did, wanted the car inspected which you did but then failed to keep his end of the bargain.
Whoever doesn't follow through with their end of the deal wears the costs.
Next time he will make sure he can afford something before mucking everyone around.

[chevypower]

Originally Posted by PridenJoy

I wouldn't keep all of it. Just an amount proportional to the extra time and effort you spent on going out of your way.

This!!! We are all human and unless you have reason to believe the intended buyer was intentionally misleading, it is nice to cut them a break. We all need good karma. Definitely keep what you spent on helping the person.

[davenl5l]

Keep it .the guy lied when he said he had hiis money sorted then he's got you to run around for him and remove your car from sale and clearly bulls#@%£d you for five weeks . Now it could take months to sell your car

[Maka]

The 5 weeks of uncertainty is the clincher for me, old mate would have a big hide to ask for the deposit back lol!

I've been in the same boat & I'm my case old mate old mate put down a deposit & he just never got back to me. No ph number left, so what do I say? Compensation for getting the runaround lol!

cheer's, Maka

[290GTP]

Part of the reason we get mucked around selling cars privately so much these days is because potential buyers don't take any responsibility for their own actions.

Deposits are there for a reason! Don't enable these time wasters by returning their money to them after they have ****** you around. That's part of the problem. Their mindset is "oh well seller A returned my deposit last time so I can muck seller B around next time & he or she will return my deposit. Happy days".

A lot of people out there think its their god given right to make your life as difficult as possible just because you are trying to sell a car privately. I even had one guy ask me what kind of warranty I was offering on my $3000 Falcon wagon. FFS!

[MrEL]

He pulled out of the sale.
The deposit is yours.
You could of missed out on a sale in the period you took it off the market.

[900dukess]

Thanks for everybody's thoughts and comments

He hasn't asked for his deposit back yet, so I will consider it if and when he does.

[Mont5.0]

Just out of interest, what model is it?

[Uncle_Ken]

Originally Posted by 900dukess

Thanks for everybody's thoughts and comments

He hasn't asked for his deposit back yet, so I will consider it if and when he does.

I would be careful. He knows where you live and the car. It doesn't take long to 'key' a car or throw a brick throw a window etc. I would take out advertising costs and give the rest back as insurance. Just my thoughts.

UK

[FairmontGS]

Keep your out of pocket expenses and send the rest back. You'll sleep better.

[Stefan]

I'd give the deposit back.....keeping the deposit to me seems like kicking a dog while it's down....

[ronwest]

The other thing that occurs to me is that if you keep the deposit I hope he's an understanding chappie and takes your reasoning on board.

He knows where you live.

edit: as usual, beaten by Uncle_Ken

[MrEL]

Cant work out if there is a bunch of cowards here or Opera Whinfrey fans...........

[lra]

I got caught about 20 years ago buying a classic Holden ( no smart comments, please ), from a small used car yard.
I paid $200 as a deposit late in the afternoon, went to work the next day, had a think, and decided against it. Called in say ‘No, thanks’ and get my deposit back.
The dealer refused, stating that he could have sold it a dozen times during the day. My reply was that he should then have no problems selling it tomorrow. The conversation became a bit heated ....... he was legally correct in not refunding the $200, and I just had to wear it because I made a hasty decision.
As the car yard was not fenced off during the night, I could have made some alterations to it if I was so inclined.

[ronwest]

Originally Posted by MrEL

Cant work out if there is a bunch of cowards here or Opera Whinfrey fans...........

Can't speak for others but I don't need the 500 bucks.

[MrEL]

Originally Posted by ronwest

Can't speak for others but I don't need the 500 bucks.

Neither do i but i also dont need to be dicked around by people.

[71cop]

No you shouldn't, he should have had his funds sorted before he offered the deposit, that would be the smart thing to do.

[ronwest]

Originally Posted by MrEL

Neither do i but i also dont need to be dicked around by people.

I guess I've figured out that life's a bit like that.

I don't need to be paid for being dicked around.

All part of the service

[Pedro]

Originally Posted by barrys123

I'd not give his money back, but let him mark it down to that's life. By placing a deposit you are committing to buy, unless you put on the receipt subject to certain conditions for example mechanical inspection, or the ability to obtain finance.

That's right. I think you will find in most States that placing a deposit is entering into a legal contract and if it came to a legal stoush the buyer would lose the deposit.

I wealthy friend of mine took a $30k deposit for a high end Porsche from a solicitor. Being a careful businessman he drew up a purchase contract which the solicitor signed. The solicitor's wife threw a fit when she found out he was buying "yet another car" so he reneged on the deal. My friend kept the $30k and there was nothing the solicitor could do about it.

[Pepscobra]

Originally Posted by Pedro

That's right. I think you will find in most States that placing a deposit is entering into a legal contract and if it came to a legal stoush the buyer would lose the deposit.

I wealthy friend of mine took a $30k deposit for a high end Porsche from a solicitor. Being a careful businessman he drew up a purchase contract which the solicitor signed. The solicitor's wife threw a fit when she found out he was buying "yet another car" so he reneged on the deal. My friend kept the $30k and there was nothing the solicitor could do about it.

I don't think anyone would argue the legalities of it. For example, if you were to buy a house and placed a deposit, fat chance of getting your money back.

But I think when dealing with a private car sale, it's a lot different and the type of people you may deal with can vary greatly. $500 is not going to make me a millionaire and returning it could save me a heap of grief if someone decides to be spiteful.

[Ben73]

So you had to take the car somewhere for someone to look at and it also took 5 weeks for him to say he can't buy it? I would keep the deposit in that situation.

If it was just a few days then I would refund it.