Can car dealership keep down payment if no paper work was signed?

[papa gnu]

Jurisdiction

Wisconsin

I live in Washington state and was purchasing a car in Wisconsin. I gave the dealership a down payment. The dealership sent the paper work for me to sign. I have decided not the purchase the car, can the dealer ship keep my down payment? Obliviously I don't have the and it have never left the lot in my possession.

 

[txls]

Did you ask them for a refund?

 

[army judge]

I live in Washington state and was purchasing a car in Wisconsin. I gave the dealership a down payment. The dealership sent the paper work for me to sign. I have decided not the purchase the car, can the dealer ship keep my down payment? Obliviously I don't have the and it have never left the lot in my possession.

What was the value of the DP?

In what form did you give the salesperson the DP?

Were you given a signed receipt to verify your claims?

 

[zddoodah]

can the dealer ship keep my down payment?

Can it happen? Of course. Whether the dealer has the right to do so obviously depends on the terms of the agreement pursuant to which you paid the down payment, which you didn't tell us.

Out of curiosity, if you live in WA, why would you go all the way to WI to buy a car?

 

[papa gnu]

I received 2 CC receipts with paper work that was shipped to me sign and finalize deal, and I also sent a wire transfer with memo paying down payment on the car. Which I did not receive a receipt for yet.
The car was cheaper to buy in Wisconsin then in Washington by good 5k. I would think this dealer ship would refund me since they sell upscale cars. But, just wondering if any one has been scammed like this?I did not need the dealer ship for financing since I was already pre approved my bank.

 

[zddoodah]

I would think this dealer ship would refund me since they sell upscale cars.

Legally irrelevant.

just wondering if any one has been scammed like this?

Nothing you've posted indicates this was a scam.

If you could just back out of the deal and get the deposit back, then there was no point in paying the deposit, so what was the point of paying the deposit? The dealer likely required the deposit as security that you -- a person located upwards of 1,500 miles from the dealership and who presumably had no assets located in the dealer's state -- would go through with the deal. Why wouldn't the dealer be entitled to keep that security when you unsurprisingly backed out of the deal?

And, again, how much was the deposit?

 

[papa gnu]

This was not a security deposit, this is a down payment. I was just about to sign the contract. But, for personal reason which I disclosed to the dealership I didn't and they didn't say anything to fact that they would keep my down payment of 10k, or penalize me for not signing the contract. There is difference between a down payment and security deposit?

 

[army judge]

This was not a security deposit, this is a down payment. I was just about to sign the contract. But, for personal reason which I disclosed to the dealership I didn't and they didn't say anything to fact that they would keep my down payment of 10k, or penalize me for not signing the contract. There is difference between a down payment and security deposit?

Just a guess from another dumb guy on the internet, you'll be lucky to get 50% of that money back.

Maybe the credit card issuers can help you.

Maybe your bank has a solution to the wire transfer.

Here's a tip mate, that any $2.00 street walker or $1.00 street drug dealer knows, don't hand over the product until you get all the cash.

As a buyer, NEVER submit to demands for deposits, especially if you're paying cash, and/or you're sitting on approved financing package(s).

Good luck, mate.

 

[zddoodah]

This was not a security deposit, this is a down payment. I was just about to sign the contract. But, for personal reason which I disclosed to the dealership I didn't and they didn't say anything to fact that they would keep my down payment of 10k, or penalize me for not signing the contract. There is difference between a down payment and security deposit?

Whether you call it a down payment, a security deposit, or a banana hammock, why would you pay money if there weren't circumstances under which it would not be refunded. As I told you in my first response in this thread, whether the dealer has the right to keep the deposit obviously depends on the terms of the agreement pursuant to which you paid the down payment, which you didn't tell us.

Also, you were asked in the second response in this thread how much $$ is at issue. You've posted twice since then but haven't seen fit to answer that question.

 

[adjusterjack]

This was not a security deposit, this is a down payment. I was just about to sign the contract. But, for personal reason which I disclosed to the dealership I didn't and they didn't say anything to fact that they would keep my down payment of 10k, or penalize me for not signing the contract. There is difference between a down payment and security deposit?

Yes, there is a difference.

A down payment means you are buying the car, you've made the first payment and you owe the balance to complete the deal.

A deposit is ONLY refundable if you have something in writing that says it's refundable.

You don't have to sign a contract to have a contract. The written contract is only the formality memorializing the agreement to buy the car. You already had a contract to buy the car when you sent the money ($10,000 if I'm reading the paragraph correctly) and you breached it by not buying the car. The dealer is the aggrieved party, not you.

The only thing in your favor is that the dealer cannot profit from your breach.

If the purchase price of the car was $50,000 and he resells it for $50,000 then he is made whole and you're entitled to your $10,000 back.

However, if he can only sell it for $45,000 through no fault of his own, you'd only be entitled to $5000 back.

If he can only sell it for $40,000 through no fault of his own, you would get nothing back.

Those examples are overly simplified and could have adjustments based on any additional expenses the dealer might have in reselling the car and/or the money he pays for the further extension of his floor plan.

For you to get anything back you would have to wait for the car to be sold and determine the selling price in order to determine what you get back.

 

[papa gnu]

Not are car dealers are same, some are great like the folks I worked with at BMW. I got my refund the same day I stopped the deal. My wife and I a expecting and I asked to stop the deal since we found out we are having twins and did not budget for that. They still tried to make the deal happen by lowering the price but I said no since I need a sedan not a coupe.
Thanks for all advise, I won't be doing that again.

 

[Highwayman]

I got my refund the same day I stopped the deal.

So then why did you bother asking your question?