Deposit: Should they cash it or hold it?

On asking my salesperson the same question regarding return of deposit, I was told that consumer protection law requires that the refunds be returned by the dealerships.

When I ordered my car in November, my dealer cashed my $1000 deposit (received the car in March). I asked on this forum if this was the norm. Virtually everybody answered then that their deposits were $500 and that their deposits were NOT cashed by the dealerships.

You might want to check with the BBB to see what their expectations are with regard to cashing deposit checks, especially with the very long waiting periods these days. I was about to do that myself but I didn't want to do anything that could possibly screw up my order.

 

Walser Toyota who treated us quite well during our first Prius purchase in March (their TRAC car) never asked for a deposit. With our second Prius order, this one new, told $500 deposit, guaranteed MSRP, 12-18 month wait, and they did cash the deposit. However, they have been otherwise so good to deal with so far, we haven't complained.

Jon

 

My dealer required $1000 up front. I used a credit card which they immediately tapped. They did, however, indicate that my deposit was refundable. I'm certainly glad it never came to that because the sales order indicated otherwise.

 

I had visited two dealerships in trying to buy a Prius. At one, I used a $1000 credit card charge as a deposit. When it became clear that I needed to explore other options, I returned to that dealership and had them specifically write on my sales agreement that the deposit was "fully refundable". Having obtained that, I went to a second dealership and gave them a $1000 check as a deposit. They told me they would not cash it, and they did not. I would be wary of a dealership that did not call you to tell you that they were, indeed, cashing your check. I bought from the dealership who held my check, and received a full refund from the one who charged my credit card.

 

My dealer stated that the 1000 deposit was refundable but the sales slip stated that it wasn't so I made them change that before I left the dealership. They stated to me that they would "hold" my deposit until they had a car. They immediately cashed my deposit. I was going to make a stink but as I was weighing the pros and cons a car arrived and I took ownership.

 

I paid my $500 deposit by credit card, which was charged to my account immediately, and then deducted from the amount due when I took possession of the car. All I got was a receipt saying that I had given them the $500. No mention of whether it was refundable or not.

It is perfectly legitimate for a dealer to cash the check. But if he told you he would not cash it, and then did cash it, he has committed a breach of promise, which may be actionable in court.

Legally, they are bound by their promise to refund the deposit. If they deny having made such a promise, you could get other people to testify they were told the same thing. If you establish a pattern, that they always told people the deposits were refundable, you have a good case.