Dealer Deposits - Gone forever?

It’s possible based on your credit report, they think you still have a job. Can you get proof from your previous employer? You probably got a notice about being laid off, a “pink slip”, or you could ask your former manager to write a letter.

The dealer’s being a jerk, perhaps, but he’s within his rights. Go back and try one last time with proof of your recent unemployment. Make an effort to be nice no matter what. Tell him you want to buy this car, from them, when you can afford it, but right now you’d appreciate your money back since you lost your job. Do not mention again that you didn’t get the best financing, since you’re not under any obligation to take out a loan through that dealer.

What was the problem with their “financing”, anyway? The price of a new car really shouldn’t vary much if it’s in high demand, and who uses dealer financing? You should be able to get a better interest rate through a credit union or an online bank. Next time I’d work out the financing ahead of time so you don’t have to worry about it.

There are two sides to agreements. Sit down with pencil and paper. Write down what you paid money for. Write down what you received for your money. Write down what the dealer agreed to do for you. What goods, or services, did he provide? He DIDN’T order the car for you. It was already on order. Once the car was received, did he hold the car for your review, as was HIS agreement. Actually, it breaks down here. Your understanding of the agreement was that you would look at the car, decide whether, or not to make an offer on it, and then finance the car through the dealer? And the dealer’s understanding of the deal? We don’t know. IF the dealer didn’t do his agreed part of the deal, then, it would be null and void. With, possibly, two versions of an ORAL contract, this would have to be arbitrated. // You need to talk to the department of consumer affairs, state , or regional.

Contacted the BBB and am writing the state’s office of Attorney General, regarding consumer rights and the whole matter. I will write this all down for certain, beyond this e-mail posting board too. Thanks to all, and if anyone else has specific advice PLEASE keep helping me out! The state involved is Kentucky, in case anyone knows specific KY laws / regulations. I am researching this myself - however would love an insider’s word! Thanks again.

although i am being nosy, curiosity is getting the better of this cat. how much DID you give as earnest $$?

and at what amount of aggravation is this worth it to recover?

it seems from my read of your post that you were eager to buy, put down earnest $$, changed your mind (even before the already ordered car came into the lot) and wanted to back out of the deal (or the chance to deal) correct?

since you didnt have anything in writing, this is really a good example of a gentlemans agreement gone bad. if the dealership wont ante up, (with even half the earnest$$) then you already made the correct assumption that you should avoid this dealership like the plague. whether the dealership will even acknowledge your point of view is moot. they will either try to even up, or not. you (and I) probably know what their bottom line will be (is already).

next time dont put $$ down as earnest $$ untill and unless the car is on the lot.

Seems pretty clear to me. A deposit is used to insure performance by both the buyer and seller. The seller delivers the car and the buyer buys it. If the seller doesn’t deliver as promised, you get the money back. If the buyer doesn’t deliver as promised, the seller keeps it. Unless something different is written in the contract.

Now what in the world are you talking about “another dealer gave better financing”??? You don’t get financing through the dealer unless you are a credit risk or like paying outrageous interest, unless through GMAC, FoMoCo, etc. You get financing from a bank or credit union. Of course if laid off, the last thing you need is a new car.

The way I read it is that the OP put a deposit down on a new car and then went car shopping at another dealer. They told the other dealer about the previous deal and the 2nd dealer made a better offer, which then led the OP to change their mind and want their money back.
The first dealer sees their feet being yanked out from under them by the OP, as per the credit report, and keeps the deposit.

Somewhere here the OP has lost their job, the new car deal is out the door, and now they want their money back to be used on other things.
The OP is offended by the fact the dealers know their financial history and work history.
There is no violation of privacy issue when the OP attempts to work out a car deal as the credit report and everything on it becomes a legally gained open book.

thats why it’s called earnest money.

but if the OP went to the first dealerhship, and made a deal, then went to the second, why would the first dealership know? would a dealership pull another credit report after the fact? (unless they were out of order, or the OP actually TOLD the first dealership about some vague “better deal”)

but OP, what is the name of this dealership so I dont go there!

If the OP went to another dealer of the same make (or corporation eg GM or Ford) there is every possibility that they know exactly what went on at the other dealership, at least as far as the financing was concerned.

Does the dealer OWE the OP any of their deposit back? NO, it’s considered liquidated damages and kept by the original dealer. THAT’S WHAT A DEPOSIT IS FOR. It means that the OP was going to buy the car or forfeit the deposit. SHOULD the dealer give it back. Maybe, if he wants to have the goodwill of the original poster and everyone they know. Will he? Probably not.

The way I looked at it would be that the OP found a better deal at another dealer. Then they went back to dealer No. 1 and wanted their deposit money back.
The dealer refused, and being curious, they probably took another look at the OP’s credit report AFTER the OP wanted the deposit money returned.
The hit from dealer No. 2 would already be on the credit report and dealer No. 1 now knows that the OP is bailing on them to do business elsewhere.

Dealers see this all the time so why would they not stay on top of things.

Agreed - thus the main reason for the back out, becoming unemployed during the wait for dealer delivery. Yes, last thing I can afford is a new car, so looking way used, and the rest of your bog is also correct - I plan to finance through the manufacturer of a said vehicle… comparing rates - actually found BETTER rate offered through dealership - with regard to young credit through independent searching. Guess I could have done the same or similar if I was persistent - perhaps.