Vehicle Deposit

[jrl22820]

Jurisdiction

Pennsylvania

Vehicle buyer put down $200 towards the agreed price on a vehicle I'm selling. A relative of mine took them on a test drive and accepted the deposit on my behalf because I was at work. I disclosed everything wrong with the vehicle and we agreed on a price. My relative drafted up a quick receipt which the buyer printed their name. The receipt stated that they gave my relative $200 towards the purchase of the agreed price of the vehicle. Myself and the buyer had a conversation about transferring the vehicle the next week when the notary was open.
I then called the buyer 2 days later and informed them that I can't find the title and they could back out of the deal if they wanted to and I would give their deposit back. I told them I was getting a duplicate sent from the state and it would take ten days to arrive. The buyer said that it was fine and to call whenever I get it.

Six days later the buyer calls and asks me for their money back. I stated I already gave them that option and they declined. I had turned down several people interested in the vehicle and took the car off the market the same day the buyer gave my relative the deposit. I said I'll have the title in the middle if the week and we can transfer the car. The buyer became irate and even threatened me twice over the phone and started naming things wrong with the car; which I disclosed and they admitted I did. They are clearly having buyers remorse for some reason. I told them they can either walk away or buy the car and they wouldn't accept that as an answer. I filed a police report due to the threat just to cover my end a little bit. Now the buyer is taking me to civil court and stated that they are "coming after me for even more than the $200".

At first I thought returning the money would be ok but it's a pain to sell a car. This buyer came for two test drives and talked me down several hundred dollars on the final price (more than I wanted to).

Advice is needed.

 

[adjusterjack]

the buyer is taking me to civil court

What does that mean? Have you been served with a summons and complaint? If not then my advice is give him back his $200 and start all over again trying to sell the car. You've already made bonehead mistakes. Don't make it any worse.

This time DON'T market it without your title in your hand. You should have made sure you had it before you put the ad out.

DON'T get your relatives involved. Deal face to face with potential buyers.

And DON'T take any deposits. If somebody wants to buy your car they bring the whole amount in cash and pick up the car. No matter what price you agree on, there is no deal until the buyer brings the whole amount in cash. Until then you sell it to anybody else who comes around with cash.

Make sure you write up duplicate bills of sale and both of you sign both and you keep one.

Make sure you fill in the buyer's space on the title. Don't leave it open. Make a copy of both sides of the completed and dated title.

Make sure you file your sold notice with the DMV immediately after the car goes down the road and keep a copy.

 

[jrl22820]

What does that mean? Have you been served with a summons and complaint? If not then my advice is give him back his $200 and start all over again trying to sell the car. You've already made bonehead mistakes. Don't make it any worse.

This time DON'T market it without your title in your hand. You should have made sure you had it before you put the ad out.

DON'T get your relatives involved. Deal face to face with potential buyers.

And DON'T take any deposits. If somebody wants to buy your car they bring the whole amount in cash and pick up the car. No matter what price you agree on, there is no deal until the buyer brings the whole amount in cash. Until then you sell it to anybody else who comes around with cash.

Make sure you write up duplicate bills of sale and both of you sign both and you keep one.

Make sure you fill in the buyer's space on the title. Don't leave it open. Make a copy of both sides of the completed and dated title.

Make sure you file your sold notice with the DMV immediately after the car goes down the road and keep a copy.

I understand I made mistakes and the buyer did as well. I'm not in the business of taking anyone's money for no reason like this. I want them to keep their word and buy the car. I've had deposits given to me on many occasions for past vehicle sales with no problems or threats or anything like that. If I give back the deposit what's the point if even giving me a deposit in the first place? Not to be a jerk to the buyer and get technical but they never asked about the title when the deposit was made. I haven't been served yet but the buyer seems like they want to take it to court. I don't see how it's worth their time when just filing the paperwork is around $100.

 

[army judge]

I understand I made mistakes and the buyer did as well. I'm not in the business of taking anyone's money for no reason like this. I want them to keep their word and buy the car. I've had deposits given to me on many occasions for past vehicle sales with no problems or threats or anything like that. If I give back the deposit what's the point if even giving me a deposit in the first place? Not to be a jerk to the buyer and get technical but they never asked about the title when the deposit was made. I haven't been served yet but the buyer seems like they want to take it to court. I don't see how it's worth their time when just filing the paperwork is around $100.

Is $200 THAT important to you?

You were given some wise suggestions by "adjusterjack".

You are free to ignore them, and keep doing things your VERY special way.

If the victim does file a small claims case against you, when he prevails, you'll be paying his filing fees, too.

In the future, be smarter.

Fully disclose everything, especially if it relates to the title.

Not disclosing something could lead to criminal charges being filed against you.

As far as deposits, why bother?

Sell the car, don't waste time collecting deposits.

If the person wants the car, get FULL payment, otherwise if the potential buyer needs time to think it over, that's cool.

Don't collect a deposit, simply say, "I can't guarantee it'll be available when you make up your mind. I'm selling to the first person that forks over in cash my asking price."

 

[txls]

$200 is not worth fighting over. Give it back and move on.

 

[Disabled Vet]

Also.... bear in mind. If you lose in small claims court there will be a judgement on your credit report. Plus you will also have to pay the filing fee for small claims court. You offered him/her their money back when you couldn't find the title. So.... That will disclaim ANY offers you had on the table prior to that fact. Since at that point all offers would have been wiped out. Also in your own words.... You had numerous offers for the car. So why not just say " OK " here is your money back. Have a great day and be done with the issue.

 

[adjusterjack]

Jim, you are very naïve and are trying to rationalize a bad decision. Calm your ego down, give the guy back his money, move on.

 

[jrl22820]

Update

I agreed to give back the money to the buyer today but they said they are proceeding with the civil suit anyway. Nothing I could really say at that point. I wonder what the judge will say when I tell him I tried to meet to give it back.

 

[army judge]

Update

I agreed to give back the money to the buyer today but they said they are proceeding with the civil suit anyway. Nothing I could really say at that point. I wonder what the judge will say when I tell him I tried to meet to give it back.

I suppose the judge will be more interested in TITLE related issues.

 

[adjusterjack]

Update

I agreed to give back the money to the buyer today but they said they are proceeding with the civil suit anyway. Nothing I could really say at that point.

But there is something you can do.

Mail him a money order for the $200. Keep a copy. Send it priority mail with tracking and a delivery confirmation (not a signature request - people duck those).

Do it TODAY and stop screwing around with this.

Chances are, once he gets the money he'll stop whining and leave you alone.

 

[txls]

I was going to make the same suggestion. It's one thing to claim that you agreed to a refund. It's a different matter to actually refund the money.