Can Car Dealers Keep Your Deposit?

It can be disheartening to put down a deposit on a car, only to find out that the dealer won’t be able to honor the terms of the agreement. Unfortunately, it’s a common occurrence in the car industry, and it can be difficult to know what to do if you find yourself in this situation. The good news is that there are ways to protect yourself and your deposit when dealing with car dealers.

Know Your Rights

The first step in protecting yourself is to know your rights when it comes to deposits. In most states, dealers are not allowed to keep your deposit if they can’t honor the terms of the agreement. However, there are some exceptions, such as when the terms of the agreement are not clear or when the dealer has not provided you with all the necessary paperwork.

Take Legal Action

If you have put down a deposit and the dealer refuses to honor the terms of the agreement, you may be able to take legal action. This can include filing a complaint with the state’s Attorney General’s office or filing a lawsuit for breach of contract. You may also be able to get your deposit back through mediation or arbitration.

Understand the Dealer’s Policies

Before you put down a deposit, it’s important to understand the dealer’s policies regarding deposits. Many dealers will require a minimum deposit in order to secure a vehicle, and they may also have policies regarding refunds and returns. Make sure you understand these policies before you put down a deposit, so that you know what to expect.

Check Your Credit Report

If you have put down a deposit and the dealer refuses to honor the terms of the agreement, you should check your credit report to make sure that the deposit has not been reported as a debt. If it has, you should contact the credit reporting agency and dispute the information.

Talk to a Lawyer

If the dealer refuses to honor the terms of the agreement, you may want to consider talking to a lawyer. An experienced attorney can help you understand your rights and advise you on the best course of action.

It can be frustrating when a car dealer won’t honor the terms of the agreement and refuses to return your deposit. However, by knowing your rights and taking the necessary steps, you can protect yourself and ensure that you get your deposit back.