Legal Question in Civil Litigation in Virginia

My son was trying to purchase a vehicle from a used car dealership. He was conditionally approved and signed a buyers order and was put into the car. Subsequently he was not approved by the lending institution and was asked to return the car. Upon return, the dealership charged him a "rental fee" of $370 which they took out of his $500 deposit that he had given them. On the back of the buyers order it states in paragraph 9 aht "THIS SALE IS CONDITIONED UPON APPROVAL OF YOUR PROPOSED RETAIL INSTALLMENT SALES CONTRACT AS SUBMITTED TO OR THROUGH THE DEALER. IF THAT PROPOSED RETAIL INSTALLMENT SALES CONTRACT IS NOT APPROVED UNDER THE TERMS AGREED TO WITH THE DEALER, YOU MAY CANCEL THIS SALE AND ANY DOWNPAYMENT AND/OR TRADE-IN YOU SUBMITTED WILL BE RETURNED TO YOU, PROVIDED THAT ANY VEHICLE DELIVERED TO YOU BY THE DEALER PURSUANT TO THIS AGREEMENT IS RETURNED TO THE DEALER IN THE SAME CONDITION AS DELIVERED TO YOU, NORMAL WEAR AND TEAR EXCEPTED, WITHIN TWENTY-FOUR HOURS OF WRITTEN OR ORAL NOTICE TO YOU OF THE CREDIT DENIAL." My son returned the car in the same condition albeit with more miles on it that when he received the car (obviously). I would like to know if they are within their legal rights to keep the "rental fee" or if as I suspect they are legally required as stated on the buyers order to return the deposit as he was denied the car loan from the financial institution the dealer had submitted the deal through. Also, what actions would be deemed appropriate in this case. If my son would sue the dealership for the $370 would it be worth it? Could part of the asked compensation be for the dealership to pay all lawyer fees? Your advice would be greatly appreciated.

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