Legal Question in Consumer Law in Pennsylvania

Re: deposit on a used car

You asked about refunding deposit on car.

You would be correct to keep the deposit, but be prepared to be sued.

A deposit secures future performance. When the deposit included a time clause (even verbal) then it is difficult to attempt to assert breach on the part of the seller when the buyer fails to perform. There are caveats that aren't applicable here as it is obvious you are not a regular dealer in such goods.

Hopefully you can document your diligent attempts to contact the buyer in breach (letters, old phone bills, etc.). Had you sold the car for less than the agreed purchase price (including costs of sale) then you would have had a valid claim against the defaulted buyer for any deficiency.

There really is no good reason to return the deposit.

Regards,

Roger