Legal Question in Civil Litigation in Texas

If the dealership accepts the car back from you because financing could not be arranged or because you decided to cancel under a cancellation provision then no, it cannot keep any portion of the deposit under normal circumstances. However, there may be some abnormal circumstances. The cancellation provision may have some sort of return or restocking fee you would have to pay. If you are returning the car with damage or an unusually high amount of mileage then they may try to retain the deposit to cover the damage (whether or not they are legally entitled to do so might be a different story). If you are beyond any cancellation period and try to surrender the car then the dealership is not obligated to take it back or take it back at the price you paid. If your car is being repossessed then an entirely different set of rules will apply.

If you are returning the car under a cancellation provision the dealership cannot keep the deposit or any part of it unless the contract specifies a certain amount as a fee and the dealership can only keep as much as the contract states. That provision may not be valid but that is something separate to review. The dealership cannot make up fees that do not exist in the contract but it is very common for them to do so.

You should speak to a local attorney about your options. I would be happy to speak to you. You can email me directly at [email protected] or call my office at 817-857-1123.