[iya0yas]

Placed a $500 deposit on a DDHC with a dealer in Michigan. Vehicle was in-transit at the time (not a special order). It has since been delivered and is on the dealer's lot. A day later another DDHC pops up at a local dealer in NC as "being built" so I'm going to stay local. Since I never signed a deposit agreement with the dealer in Michigan am I subject to their terms or am I entitled to an immediate refund upon request? I'm sure the DDHC will eventually sell but am I to rely on the sales guy to track this activity and process the refund as promised? I've since issued a stop payment with the CC company. Niot sure how long this process takes so I'm interested to know if anyone has experience with Michigan dealers/Statutes and if so, what are my options? Thanks-

 

[Slowpoke387]

Deposits without written agreements are basically up for grabs tbh. Youre sort of at their mercy and their policy as far as refunds. I think if you really pushed it they would just refund it anyway. Theyre not getting rich by stealing $500. You mentioned cc so if you dispute it you should be fine regardless.

 

[Unstable Vic]

The LAW is if you didn’t special order the car, and received no product or service for your $500 they have to refund your money. Contact your credit card company and do a charge back.

 

[Slowpoke387]

The LAW is if you didn’t special order the car, and received no product or service for your $500 they have to refund your money. Contact your credit card company and do a charge back.

Not everywhere.

 

[mchart]

I will point out that it's kind of lame you're pulling it. They'll refund it, but generally it's lame to pull a deposit on a vehicle that is being produced/delivered to dealer. Although i'm sure they'll be able to sell it regardless. Understand you have a closer vehicle now, but it's not good manners on your end.

 

[Unstable Vic]

Not everywhere.

According to Master Card Intl it is. You must receive a product or service or the dealership gets not one dime. State law can not supersede what the dealership signed up for when they signed Up with Master Card. Visa is also the same. It’s something a lot of consumers don’t know and as a result get taken advantage of. Sad but true.

 

[Slowpoke387]

According to Master Card Intl it is. You must receive a product or service or the dealership gets not one dime. State law can not supersede what the dealership signed up for when they signed Up with Master Card. Visa is also the same. It’s something a lot of consumers don’t know and as a result get taken advantage of. Sad but true.

Yes cc’s will refund. If he had left cash it could be a different story depending on the state. Credit cards arent the law. They do it because it‘s obviously good business. Maybe with new car orders it’s different than in stock vehicles or if it’s new or used. Laws vary by state and in a few if you change your mind after 48 hrs you forfeit your deposit. Not many dealers actually do it but they have the right. I know this to be the case with used cars and so new car orders may not apply. But many people dont know about the two day thing in those states either. In Massachusetts for example if you go in and leave a deposit on a used (again not sure about new) car and then back out after 48 hrs. the dealer has the right to keep it but it has to be disclosed at the time of the transaction. It’s actually law. But not receiving services when the customer changes their mind isnt 100% always a refundable deal.

 

[Anguish]

According to Master Card Intl it is. You must receive a product or service or the dealership gets not one dime. State law can not supersede what the dealership signed up for when they signed Up with Master Card. Visa is also the same. It’s something a lot of consumers don’t know and as a result get taken advantage of. Sad but true.

I'm certain that circumstances may temper that. For instance, if you pay for a venue or accommodation then don't attend, there are limitations on how much notice you have to give to get your deposit back. I am not a lawyer, but there is a service rendered with a car purchase deposit: the dealer holds that vehicle for you until you complete the transaction. That cuts both ways; the dealer "can't" sell the car out from under you either. Reality is... the art of deposits is a lost one. Personally I'd never ask for a deposit back on a purchase I'm backing out of.

 

[Unstable Vic]

I'm certain that circumstances may temper that. For instance, if you pay for a venue or accommodation then don't attend, there are limitations on how much notice you have to give to get your deposit back. I am not a lawyer, but there is a service rendered with a car purchase deposit: the dealer holds that vehicle for you until you complete the transaction. That cuts both ways; the dealer "can't" sell the car out from under you either. Reality is... the art of deposits is a lost one. Personally I'd never ask for a deposit back on a purchase I'm backing out of.

I agree with you on not asking for a deposit back. I consider it tacky. I was just stating the law as it was explained to me from a retired big wig at Master Card.

 

[mchart]

I'm certain that circumstances may temper that. For instance, if you pay for a venue or accommodation then don't attend, there are limitations on how much notice you have to give to get your deposit back. I am not a lawyer, but there is a service rendered with a car purchase deposit: the dealer holds that vehicle for you until you complete the transaction. That cuts both ways; the dealer "can't" sell the car out from under you either. Reality is... the art of deposits is a lost one. Personally I'd never ask for a deposit back on a purchase I'm backing out of.

I think asking for a deposit back on a vehicle that the dealer hasn't actually inputted an order on for you is fine. (No allocations, etc) However, if you've got money down with a confirmed allocation / dealer order you are 'reserving' and you want the deposit back.. That's pretty lame. Only caveat to this would be if the dealer tries to screw with you at time of actual paperwork and adds on ADM or some crap that wasn't in the original agreement.

 

[Hellcatski]

According to most people the market is so hot it will sell five minutes after it hits the lot above sticker anyway so don’t worry. I don’t know why the dealer is worried people are lined up around the block to buy $100K challengers.

 

[LVSRT10]

According to Master Card Intl it is. You must receive a product or service or the dealership gets not one dime. State law can not supersede what the dealership signed up for when they signed Up with Master Card. Visa is also the same. It’s something a lot of consumers don’t know and as a result get taken advantage of. Sad but true.

Merchants sign up with processors, not the credit card company directly. State law is what governs here, not Visa/MC/Amex etc. That said, they all know the law in every state they do business in, and whether or not they have standing to charge back.

As a guy in the car business 28 years I can tell you this, it's a damn shitty way for the dealer to do business. Our deposits are 100% fully refundable, no questions asked. The last thing we have to worry about in this market, or any time in the past honestly, is whether we can sell the car to someone else or not.

--Jeff

 

[iya0yas]

Appreciate everyone’s feedback. I’ll just have to let the dispute process run its course over the next 30 days. Not the ideal solution as I don’t like to have any loose ends but it is what’s it is for now. Interestingly, the dealer has since added a $10k ADM after I pulled my deposit. It’s a free market so more power to them. MSRP is $97k..,

 

[snobrdrdan]

All you had to say was the financing was gonna fall thru or something stupid like that, or you simply changed your mind and you didn't want to proceed & they refund the deposit.
There shouldn't have been any games or anything, pretty straight forward.

Just went thru this with Golling in Bloomfield on a Pacifica a month ago. I put a deposit to hold one (over the phone) and then we found another van instead and I went back (had to be in person to give him the card) and he refunded it no issue.

Side question....which dealer was this? (I'm in Michigan)

 

[iya0yas]

All you had to say was the financing was gonna fall thru or something stupid like that, or you simply changed your mind and you didn't want to proceed & they refund the deposit.
There shouldn't have been any games or anything, pretty straight forward.

Just went thru this with Golling in Bloomfield on a Pacifica a month ago. I put a deposit to hold one (over the phone) and then we found another van instead and I went back (had to be in person to give him the card) and he refunded it no issue.

Side question....which dealer was this? (I'm in Michigan)

Feldman CDJR

 

[Hellcatski]

It’s only $107,000 Challenger on sale for 24 hours It’s probably already sold. I would definitely keep checking that lot so you know when to expect your money. They don’t seem like the type that’ll let you know ASAP.

 

[camarochevy1970]

It’s only $107,000 Challenger on sale for 24 hours It’s probably already sold. I would definitely keep checking that lot so you know when to expect your money. They don’t seem like the type that’ll let you know ASAP.

you keep calling it a challenger, but pretty sure he is talking about a Durango Hellcat

 

[Hellcatski]

you keep calling it a challenger, but pretty sure he is talking about a Durango Hellcat

Thanks I see DDHC missed that. In that case it’s definitely sold. Those are hotter than the challengers.

 

[18WIDECAT]

Things on the dealer side of things, particularly issuing refunds/money back can take a while. Its not like the 5 minute loan approval process. It has to go thru several steps, approvals & offices. Give it a while.

I also thinks its a jerk move to cancel the purchase ,simply in order to buy the identical vehicle elsewhere.
That original car was most likely removed from the dealers avail inventory when you claimed it, and they may have lost other potential buyers, not to mention the work involved to reverse all of it.

Sorry OP, but I wonder why anyone willing and able to plop down $100k + for a car purchase, is publicly sweating what they feel should be an immediate refund of a measly $500.........

 

[Germansheperd]

This makes me LOL. Everybody doesn’t think twice when they stroke a dealer or back out of a deal but they are all up in arms when the dealer fires back and makes the customer jump through hoops for stroking them.
Good for this dealer. Seems like now a days agreements are only good for the ‘other guy’ to abide by but not me.