Are car dealers allowed to keep my down payment if i return my car after having it for 2 months?

Question

I got the car in Las Vegas, Nevada. Since one of my family members wont put the car in their name i have to return it and they will give me back the car i previously traded in for that one. So i just wanted to know if they are allowed to keep the down payment for the car i am returning. They said that they can't give us back the down payment.

Answer 1

I don't know the consumer laws  in Nevada.  I think it depends on what agreement you have reached with them.  If you have written down 'subject to ...'  - like when people buy a house, they always write down 'subject to bank's mortgage approval' - then they should refund to you.  You have to read your purchase agreement with them very carefully to see what conditiions are laid out clearly there.

Answer 2

If they are unwinding the deal, I would think you would get the down back.  

Answer 3

I wouldn't expect any dealer to just let you give the car back at all. They're keeping the down payment because they still want to come out ahead on the deal a little bit, and the car has more miles on it since they sold it to you.

Answer 4

You're lucky they are even doing that.  Be happy you are getting out of the deal.  Most dealers would tell you to take a hike.

Consider the down payment as rent on the car for the amount of time you drove it.

Answer 5

Unfortunately, the answer is yes. They can legally keep your down payment if they want to. A down payment is not a deposit. All deposits must be returned in full if a deal doesn't go through. But down payments become the property of the dealership the moment you give it to them.

If they've backed out the contract and given you your old car back, then you could take them to small claims court. You can claim that since they nullified the contract, that also voids the down payment and it should go back to you. Maybe a judge will side with you.

You best bet is to ask the owner for your down back. If he refuses (and he legally can), file your claim in small claims court but don't let him know. Otherwise, he may dodge the process server and your case can't move forward.

Legally, the down payment belongs to the dealer. But if you find a sympathetic judge, you may get some or all of it back. Good luck.

Answer 6

joche145, Maybe you need a new car. :) I found a nice list of Nevada car dealers. I think someone in your hometown can help assist you. http://www.localnewcar.com/Nevada-New-Ca... Just call one of them or drop by one day when you are not busy. Many dealers can even set up a test drive.