Legal Question in Consumer Law in New Jersey

Can I receive a deposit back from a car dealer?

About 1 week ago, i went to a new/used car dealer. I took a used car out for a test drive and I discovered that there was some noise and movement coming from the botton rear of the car. I informed the salesman and he stated that they will repair that before I buy the car. That same day I sat with the sales person and went over some information such as what amount I could spend on a monthly basis. I signed the sheet stating that they would get as close to that amount as possible. The next day I went back b/c I wanted to let them know that I would like to leave a deposit so if they could figure out my payment based on that also. He suggested that I leave the deposit so that way they can cash it to show the bank that I'm leaving money down. I asked him that if I leave the money, but then I decide that I no longer want to purchase the car or if I'm not satisfied with it will I get my money back. He stated, ''Sure, no problem''. To make a long story short, I decided not to purchase the car and they want to keep my full deposit, stating they satisfied their end. It states in the contract that any repairs are dealers obligations. Can I argue that the salesman verbally told me I would get my money back I'm meeting w/the owner.


Asked on 12/08/04, 2:31 pm

2 Answers from Attorneys
Adam L. Rothenberg Levinson Axelrod, P.C.

Re: Can I receive a deposit back from a car dealer?

You should defintiely tell them that yu want your money back. Further, I would not trust nor do business with anyone who uses tactics such as this to consumate a sale.

I suggest you advise them that if they do not return the money that you intend on pursuing a consumer fraud claim. If successful, you would be entitled to treble damages and attorneys fees. Also, put your version of events in writing to document the complaint, the demand etc.. The more that the issues are documented, the better.

If they persist, make sure to get any documentation you can as to why they are keeping the money.

If they do not return the money after discussing it with them, I suggest that you contact an attonrney to discuss this. Hoepfully they will act reasonably and you can resolve this. However, I can be reached at 800-34-NJ-LAW. Adam L. Rothenberg

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Answered on 12/09/04, 11:07 am
John Corbett Corbett Law Firm LLC

Re: Can I receive a deposit back from a car dealer?

To give a good answer to this question, more information is required. You don't say whether there was a written agreement to buy the car and, if there was, what the agreement says about application of the deposit. If the car cost more than $500, the sale falls within the class of sales that must be evidenced by something in writing and signed by you. If you signed nothing that says that you were going to buy the car, then you can avoid the sale entirely and should get your deposit back. However, if there is a written contract to buy the car or if there is wording in the credit application on which the dealer can rely on to establish the fact of sale, there may be a contract that the dealer can enforce.

That does not mean that all is lost, only that you need to check the wording of any written documents affecting the sale or get a lawyer to check it for you.

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Answered on 12/08/04, 5:41 pm


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