Ask an expert

Hi. My friend put a $500 deposit down to buy a used vehicle from a car dealer. The dealer was supposed to make some repairs before final purchase. My friend is not able to complete the purchase due to unforeseen circumstances. He has requested a refund of the deposit but the Dealer is not responding. I would have thought my friend is entitled to a refund given no goods have been exchanged. What recourse is available should the Dealer not be willing to refund? Thanks

Hi there,
Unless an agreement is formed with a deposit refund clause attached, then the dealer is not obliged to refund it. We recommend talking about the deposit and negotiating the terms of refund before handing over the smallest amount of deposit possible, just in case the deal isn't completed.