Should I refund a deposit for a classic used car sale?

[Silver Ghia]

I'm trying to work out the point in giving a deposit to purchase a car, if there is some belief it should be returned if they change their mind? Maybe I'm missing something here?

I always thought deposits were to seal an agreement for purchase and works both ways, the seller and the buyer. Except where cooling off periods are specified, and/or other conditions agreed to in the sale.

ie. Dont give a deposit if you're not sure about purchasing it.

[Iggle Piggle]

Agree with above.

Him giving you the deposit is him committing to buy the car off you (agreeing to give you the balance within an agreed timeframe). Failure to pay the balance in that time sees him forfeit his deposit.

You accepting the deposit is you committing to not sell the car to someone else while he goes and sorts his finances. Failure to hold it until the agreed time gives him the right to go both bunta and go legal on your ****.

I reckon you have both the legal and moral right to keep the deposit.

I also recognise the potential for the failed-buyer to not accept basic contract law and further potential for him to be a damaging ****wit...so can see that point of view and it is worth consideration.

Hopefully it is all a moot point as he hasn't asked for his deposit back...maybe he knows he is not entitled to a refund.

Myself personally I wouldn't refund his deposit - but only because I would have drunk it by now.

[bingoTE50]

100 dollars a week storage costs . Keep it.

[lucas2]

I would take the expenses out of the deposit and return what's left. If I was buying a car and finance fell through, I wouldn't have a problem with that as I hate stuffing people around.

[ford71V8]

Mainly due to the 5 weeks of time wasting, I'd keep it too.

I could understand a few days, and then I would discuss a fair % of the $500 with him, taking into account the cost of readvertising and loss of 5 weeks rego, etc.

Ask yourself also if you think he would be someone to retaliate.
My guess is if he takes 5 weeks to not buy a car, he's probably too lazy to revisit you for a keygouging

[data_mine]

People need to learn there's consequences for their actions or inactions. Keep the deposit that's what it is there for, and both parties know that.

[Iggle Piggle]

Yep, otherwise why would a seller ever accept a deposit? There would be zero benefit to them...you'd just leave it for sale until the buyer with all the 'promises' actually fronts with the full amount, and be able to sell it to anyone that fronts with the right amount in the meantime.

Look at the OP's very scenario - if he refunds the deposit, how did taking that deposit benefit him in even the slightest way?

[Stefan]

Originally Posted by MrEL

Cant work out if there is a bunch of cowards here or Opera Whinfrey fans...........

Being compassionate and understanding towards a fellow human being is different than being a coward.

One thing I've learnt playing with cars and meeting a lot of people though it, some people will always be c#@ts. I prefer not to be one. I just don't need 500 bucks that bad.

[Uncle_Ken]

Originally Posted by Stefan

Being compassionate and understanding towards a fellow human being is different than being a coward.

One thing I've learnt playing with cars and meeting a lot of people though it, some people will always be c#@ts. I prefer not to be one. I just don't need 500 bucks that bad.

One of the reasons I view this forum is because you get a wide range of ideas and opinions. I hope we have all helped with the original post as to what could / should they do.

UK
If it was me I'd be pis#ed off at the guy but i'd still worry about hi being an Ahole and coming around to me place where my family lives and making trouble. I

[Iggle Piggle]

You're not being a **** though if it is clear what the terms are when you take the deposit.

Sold many cars privately, only once did I take a deposit. Agreed to sell for $9800; guy offered $500 deposit and promised balance by end of day...I wrote receipt that included (paraphrasing):

Received $500 as deposit towards purchase of [make, model, year, rego, VIN]

Purchaser agrees to pay remaining $9300 on or before [date] (I actually put it for one week later even though he said would be back that day)

Purchaser understands and agrees failure to pay balance by agreed date = seller keeps deposit and relists for sale.

Seller agrees to withdraw car from sale until [agreed date] and to transfer ownership on receipt of $9300.

We both signed - we both got a copy.

He came back 4 hours later so receipt/contract was all for nothing...but if he hadn't come back within the week I would have kept the deposit and would not have considered myself a **** for doing so.

If he hadn't agreed to those terms I wouldn't have taken his deposit and wouldn't have pulled the ad.

Obviously different story when you just say "Received $500 as deposit for [car]"...just got to be clear to avoid any confusion (clear on both seller's and purchaser's rights/responsibilities).

[data_mine]

why is a deposit for a private sale any different to the deposit you pay for

a rental car
a house


maybe for those that want to give it back, call it a 'bond' instead.
e.g. a rental bond - cash held as security until the mutual agreeance of both parties to release it back - or it's use to cover outstanding expenses.

[Itsme]

Originally Posted by Stefan

Being compassionate and understanding towards a fellow human being is different than being a coward.

One thing I've learnt playing with cars and meeting a lot of people though it, some people will always be c#@ts. I prefer not to be one. I just don't need 500 bucks that bad.

Wow....how compassionate is it for the purchaser to put you out of pocket & wasted time even to the extent of you losing other potential buyers who were interested in the vehicle for sale & expects to get their money back.

If you are in the hunt for another vehicle you should have had your finances sorted out beforehand especially for private sales, got no time for knuckle dragger's who dick you around.

[Stefan]

Originally Posted by trublu

Wow....how compassionate is it for the purchaser to put you out of pocket & wasted time even to the extent of you losing other potential buyers who were interested in the vehicle for sale & expects to get their money back.

If you are in the hunt for another vehicle you should have had your finances sorted out beforehand especially for private sales, got no time for knuckle dragger's who dick you around.

You're right.

refer to this bit

some people will always be c#@ts. I prefer not to be one.

How YOU deal with it is up to you...

I had a buyer back out once on my Audio A3 sale (I took no deposit)....yeah it sucked a bit, but I was smart enough not to pull the ad before the car left my driveway and cash was in my hand. The Car sold the following weekend, for 1,500 more than to the dude that backed out.....

I don't buy into the deposit cr@p, car is sold when it rolls out my driveway until then ad stays up and anyone that wants to look, be my guest.

[CyberWasp]

+1 for keeping the deposit.

I wonder what the record is for the number of times in a row, a deposit was placed on a vehicle and the buyer lost it by not purchasing the vehicle?

[.:4:.]

The only times I have ever had a refundable deposit is when I have rented cars. A holding deposit is one payed to hold the item and take it off the market. If it makes you feel better then do what you feel. You asked for opinions, no body can force you to do anything. Maybe the guy will come back with cash in hand and buy it. But what about the 5 weeks off the market and all those that may have bought other cars because yours wasn't on the market. It's not like a house where you see deposit taken on the sign then wait around to see what happens because it's the one you want. No other prospective buyer knew that, or waited around to see if it fell through.

[MITCHAY]

I wouldn't pull the ad until it's sold regardless of what they say. It ain't sold until you've paid for it in full.

If you get other inquiries then simply say I already have a buyer but will let you know if it falls through. It doesn't seem that hard to me.

[.:4:.]

Originally Posted by MITCHAY

I wouldn't pull the ad until it's sold regardless of what they say. It ain't sold until you've paid for it in full.

If you get other inquiries then simply say I already have a buyer but will let you know if it falls through. It doesn't seem that hard to me.

Thats so simple it's genius. Make 2 copies of a document stating that, throw some terms on it to cover yourself if time draws out and get both to sign both. Both the seller and the buyer have proof if either party is dishonest, and it's still out there in the mean time. For a private sale I don't think it has to be a legal contract, but if that's the case it probably wouldn't be financially viable

[b0son]

Originally Posted by Stefan

some people will always be c#@ts

like the ones that string you along and waste 5 weeks of your time?

[xisled]

I would give the guy back his money.

I think about like this,what have I lost a couple of hours of my time, holding the car for a few more weeks. It's not a massive lose.

is it really worth keeping $500, to me it wouldn't be and I would feel better in my self giving it back, even if he didn't ask for it back.

[Beastie]

I'd head to the Casino and but it on black...

[b0son]

Originally Posted by xisled

I think about like this,what have I lost a couple of hours of my time, holding the car for a few more weeks

Potentially, the opportunity to have sold it to a buyer who was willing to pay the asking price.

[Itsme]

Originally Posted by MITCHAY

I wouldn't pull the ad until it's sold regardless of what they say. It ain't sold until you've paid for it in full.

If you get other inquiries then simply say I already have a buyer but will let you know if it falls through. It doesn't seem that hard to me.

Learned that mistake many years ago, rang back two potential buyers after someone paid deposit then pulled out, guess what they declined as they found other vehicles.

My motto these days is no deposits taken, first one to show with full amount $$$ gets the deal, this stops the crap.

[.:4:.]

Originally Posted by trublu

Learned that mistake many years ago, rang back two potential buyers after someone paid deposit then pulled out, guess what they declined as they found other vehicles.

My motto these days is no deposits taken, first one to show with full amount $$$ gets the deal, this stops the crap.

Cod, that was one of the options on the carbon copy receipts my firm did years ago. Cash on delivery. Makes it hard for those that want to finance a purchase though.

[Silver Ghia]

In Vic you need the deposit so you can then get a RWC that costs around $200, which is only good for four weeks.

You wouldn't want the buyer come back a week later asking for his deposit back would you?

I normally ask for a deposit that approx. covers this expense, so my conscience would be clear if I keep the deposit in the event he pulls out from the sale.

[Stefan]

Originally Posted by .:4:.

Cod, that was one of the options on the carbon copy receipts my firm did years ago. Cash on delivery. Makes it hard for those that want to finance a purchase though.

Private sale, sort finance, then come look at my car....very easy.

The key is don't get yourself in a stupid position (by accepting a deposit)....That way your options are open and buyer has to get his finger out if he wants car. All buyers I have dealt with will

A. Look and buy..car is gone there and then

B. Look and pick up the next day, if they want to wait their risk..it might be gone by the time they get their sh!!!t together.

Other TIP is never change YOUR plans to accomodate an inspection...they turn up when I'm home...lesson learnt VERY quickly..

Do the above and you have eliminated all methods a potential buyer has to mess you around. Simples.

[cro142]

Originally Posted by MITCHAY

I wouldn't pull the ad until it's sold regardless of what they say. It ain't sold until you've paid for it in full.

If you get other inquiries then simply say I already have a buyer but will let you know if it falls through. It doesn't seem that hard to me.

That's a good way to go. I never would pull an ad until the cash is in my account. That's the true meaning of sold!

[chevypower]

You could tell the intended buyer that you will hang on to the deposit until the car is sold. You will then give back the deposit less any extra expenses incurred. That way you don't lose in the short term or the long term, and you are not taking advantage of the situation. Also agree with cro142. When you have a deposit, it's not "sold," but there is a "sale pending." This is what you tell people who call and express interest. You get their details and call them back if the pending sale falls through.

[cro142]

Wow, this question has really raised some broad issues and differences of opinion, with merit on both sides.

Probably need to assess the situation according to 3 scenarios:

1. The buyer is genuine and has a genuine reason to withdraw from the sale, so give him back his deposit and sleep well.

2. If the process drags out a bit, but still genuine, maybe keep your costs and refund the rest.

3. if the buyer is a dick and stringing you along - no refund.

Just another idea to add to the mix of opinions!!

All the same, don't pull your ad until the cash is in your account, so you don't miss secondary buyers and create further advert costs.

[xr8cam]

A deposit is given to the seller as a deposit to hold the item for required time stated by buyer. The deposit is always given as part payment with the full knowledge if the buyer falls through, the deposit is lost. This system has been operating perfectly well for thousands of years without any problem. Why start now? The guy is obviously paying you off out of his wages or something dodgy. What would you expect a business to do? To the people who say give it back or karma etc, The car may well have sold in the 5 weeks the seller took it down for and those buyers have gone elsewhere. Especially with a classic which are always tough to sell.

[The Yeti]

To those saying they'd give it back

I'm curious, if you take normally a deposit before finalising the sale of a car?

If so and you would give it back, why do you bother taking a deposit?

What purpose does the deposit serve?