A deposit is just that. It is insurance or security that the vehicle doesn’t get sold from underneath you.
You can’t get a deposit back if you back out of the deal. Why would one want to give up the deposit if the buyer backed out and the guy wasn’t able to sell the car because you backed out?
Deposit is nothing different than down payment and if you don’t follow through in finishing payments, you forfeit your funds.
I don’t understand the logic of asking money back on what you backed out of.
Exactly…. handing over $500 for them “hold” only to give back if they decide not to buy ? 
What was lost or gained ? Where is there any “logic” in this ? Another lost art along with the handshake 
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Exactly…. handing over $500 for them “hold” only to give back if they decide not to buy ?
I wonder if Walmart does that with a lay-away program? I sure know that you lose your “earnest” money (deposit to hold) on a house if you back out of it.
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Where is there any “logic” in this ?
My thoughts exactly. I just heard about it through an email from my wife…..
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In this case I would expect to get my deposit back once the item was sold, otherwise the seller is double profiting.
I get the fact that the seller held the item and may have passed on selling to others, but once the item does sell, the deposit should be returned.
IMO
He’s not double profiting, a deposit is placed to hold and item for you. If you back out you loose all or part of your deposit depending on what’s agreed upon. If I sell and item and you want me to hold it and give me money to do so and then back out and I held for x amount of time, I keep the money. That’s what a deposit is or what’s the point of giving one. Canceling the check is BS if you ask me. They owe the guy that money. Your sister told him she was going to buy it, if she doesn’t want to fine, but suck it up and figure you lost the money. The only way he shouldn’t keep the money is if she found something wrong with the car he wouldn’t fix.
I agree 100%. That is the way the hand shake use to work. Now we have to use money.
I think much of this boils down to the type of seller too. As the original post was in reference to a private seller, these types of sellers can and rightfully so, keep the deposit for many of the reasons stated here.
In the case of a seller being in business to create a positive sales experience, one that will generate future business, it would be bad practice to keep a deposit if the original item does sell. Examples could be a hotel/resort or car dealership. These types of businesses gain more by returning the deposit once an item is re-sold.
So you have two different scenarios depending on the type of seller. But as stated before, anything is fair as long as it’s agreed to upfront.
Eric
IMHO, if somebody requires a deposit, then that can only mean 1 thing to me… it is so I am “assuring” myself to that product or service. If I back out, I expect to forfeit my assurance deposit. I also expect that when I pay a deposit, the seller or service provider is guaranteeing me that product or service will be held for a reasonable amount of time, in my name. I really don’t think it matters whether it is for a service or product, if you volunteer a deposit to hold something, then you volunteer it with no strings attached, or why even bother ? I do believe people expecting their deposit returned is part of the whole ME mentality and entitlement… why should “I” be held accountable ??? Because that is how it is getting… if this mentality keeps up, soon the “deposit” will be just like a handshake… worthless. 
In my business I have lots of people who need to go back and measure to be sure equipment fits. I tell them they can leave a small deposit (25% of price) which will hold the equipment for 24-28 hours for them. Or they can take their chances that I still have the piece when they are ready to buy. If the equipment won’t work for them the deposit can be used towards a future purchase from me. If they can’t find anything it’s explained there will be no refund.
I had one gal stop payment on a LARGE deposit one time. She did it to try and negotiate a better deal AFTER we wrote a order for her and delivered the equipment. After failing to come to terms I took her to court. I won. She stated I would never collect a dime. I then placed a lean on her business property. Four years later she tried to sell the restaurant. She couldn’t close until settling my judgement. I collected interest and fee’s in addition to the original debt. 
The whole thing could have been avoided by sitting down and understanding the contract at the time. But, she knew everything and needed to prove to herself how smart she was.
I collect a deposit EVERYTIME I sell a piece of equipment. If something comes up I will work with you but don’t think you will ever get a refund.
When dealing with a private sale it’s 100% buyer beware. Never give your money over until you are ready to take possession.
G,
Everyone’s entitled to their opinion but I disagree with your assumptions.
Many times when deposits are required, there are terms that go with them. The one that I most often run into are for hotels/resorts. Resorts in particular often spell out when you can back out with full refund, often 30 days, then if you get within 2 weeks, your deposit is forfeited unless the unit rents.
I’m not expecting any type of entitlement, I just want to know the terms going in. Plans change, things come up unexpectedly, and I want to know up front how much I stand to lose if something happens out of my control.
The piece that was missing at the beginning of this post was a clear understanding of terms. It’s apparent from this thread that everyone has different ideas of how these transactions should go based on their experiences. What we should learn is that no transaction, even a deposit transaction, should have assumed terms. Cause everyone has different assumptions.
Mine just happen to be right!
When I purchased my last vehicle from Luther Chev, I had no intention of putting down a deposit until I heard back from my insurance company on whether my previous vehicle was going to be totalled. I was pretty certain it would be and I knew the vehicle they had was what I was looking for and the price was reasonable. The sales person begged me to put the deposit on it so it wouldn’t get sold before I heard from my insurance. He made it very clear from the beginning, I would get the deposit back if I walked away from the deal. The benefit to me (buyer) was they didn’t sell the vehicle I wanted. The benefit to the seller (specifically the sales guy) was that it prevented another sales guy from selling the vehicle and he wouldn’t get his commission.
I agree with most that have posted that for a private party purchase, there really isn’t a benefit to the seller if they are expected to refund a deposit. Regardless, it should be crystal clear up front before money is exchanged.
I read the posts and replies on this question with amusement. It appears absolutely NO ONE understands contract law. When you contract to purchase a car and put down a “good faith deposit” or “earnest money”, that means you are assuring the seller you will follow through. If its at a car dealership where people make a living and feed their families by selling you vehicles, there is paperwork to be prepared, usually prep and cleaning to assure a car’s ready for delivery, holding the car for several days while the buyer gets their act together, etc. If you then break faith, and do not complete the sale, there isn’t a state in the USA that says you can expect to be repaid earnest money. You have broken a legal agreement. If you ask someone to hold and prep a vehicle for you in exchange for a deposit and then do not follow through, you do not deserve to be refunded anything, and it’s ignorant to even ask. Do not put a deposit on a vehicle you are not prepared to purchase, period.
A few vehicles ago we had a situation where the salesman put down his own money to hold a car for us. We NEVER hinted or requested that he do it, but apparently it was a “cherry ” car that they had not put on there website yet. Ultimately, it was in great shape mechanically, but my wife and I thought that it did not feel as strong as others that we have driven. We ended up passing on it. Who knows if the sales guy actually put his own money on the line? I do know that he turned around and told three other sales guys that we were passing and those guys all ran to their phones.
FDR
We’re talking about a private party sale here.
In that case, I always ask for a deposit for anything that the buyer wants me to hold until they get their finances in order or whatever.
I totally understand that it can take time to get thousands of dollars in CASH. Which is the only way I accept payment. So I’m willing to give anyone a couple of days on a bigger ticket item.
But the point of a deposit is to make sure the buyer is serious. When I’m selling on Craigslist, I don’t peddle junk, so I’ve usually got multiple buyers lined up. Taking it off the market for one guy means those other guys move on and buy other stuff. So that’s a lost sale and a ton of wasted time if a guy leaves a deposit and then backs out.
I have a deposit reciet that I ask them to sign that makes it clear the deposit is NOT REFUNDABLE if they back out.
But you’d be AMAZED at how many people are never heard from again after they say they’ll buy it AND give me a deposit (usually $100 or so).
I had a guy last year that put $100 down on my dad’s boat (I was selling it for him) and never heard from him again. Left texts, VMs, called him. Etc. He just disappeared.
Then finally he texted back saying wife killed the deal. He didn’t even ask for the money back.
So at that point I had had the boat off the market for a week and could have sold it 10 times over. I wasn’t too happy to say the least, so there’s the answer about what the deposit is for. At least I got something for his wasting my time.
Grouse
Question for everyone. I have sold stuff on Craig’s and I keep my word. Recently was selling something and the guy that wanted it called on Sat. aft. I promised to hold it at the asking price till Mon. Buyer also was 5 hours away. So 2 more guys call and want the item and are willing to drive 5 hours and offer to pay $50 more just to get it before the first guy. I told them give me your number if first buyer falls through I will call you. One buyer offered extra $100 must for me to sell out from first caller. Some buyers are just as bad as bad sellers. The second and third guys would probably be guys who don’t keep they’re word if they were selling. So my question is would most of you on IDO sell out for an exfra $50 on the first caller?I keep my word and if you talk to most people awhile you can tell if they are a standup person. I held for the first guy got a cashiers check and a big Thanks for holding it. Just my 2 cents.
No, I wouldn’t sell something if I had told a guy I’d hold it for him.
But that’s never an issue for me because I won’t hold things if the phone’s riging off the hook. Sorry, but if you want ‘er, you better get off the couch and come and get ‘er. I’ve had too many no-shows to be holding stuff that’s obviously in demand.
I sold my dad’s 17 foot Alumacraft last spring and I could have sold that boat 10 times over. The phone was on fire. No way was I going to take it off the market on a Saturday so some guy could maybe show up on Wednesday.
3 years ago when I sold my big water rig, I had guys calling from Wyoming and the freaking Northwest Territories wanting to pay more than asking price if I’d hold it. Sorry, no-go. Use the $500 on gas on drive yourself down here.
I’ll “hold” stuff in terms of if I know a guy is comming out right now. But no way am I going to pass up 4 potential sales because a guy from Ontario is allegedly going to come down in two weeks.
Now if a guy calls after an item’s been listed for a couple of days, I might consider a hold for a couple of days. Also, it helps if you come off well on the phone. I had a guy call from northern MN on an outboard I was selling and he was desperate. He was a firefigher from the Range and he had a training session down in the Cities starting on the weekend. He was really nice and so I told him OK, I’d give him 2 days, but I needed to hear from him when he got to the cities on Friday by noon or the motor was getting sold to the next guy in line. Needless to say he called and we did the deal that afternoon.
So no, I wouldn’t sell it out from another guy if I gave my word. IMO you’d have to be a real piece of work to do that. But I wouldn’t hold it either.
I’m on the side of the coin… My husband and I got a verbal contract on our 5th wheel… Gave us half and promise to buy it. I had it on different sites and she keeps telling my husband they will pick it up and give us the rest of the money. She has never texted me and doesn’t know my phone number well I got a text from her about my 5th wheel… I’m like your the lady 3 our 5th wheel? She told me she spread brought one and then texted my husband she will buy it on next weekend. Stress and we spent 40 hrs cleaning and fixing it up for her… Im a good person but she’s playing games… When we got half the money I took it off the web site and til 4 buyers it was sold…. What ya think?
Talk to text?
DT
What do you think of the flip side? If you give a private seller a deposit so you can line up the rest of the money and pick it up the next day……. Next day you show up and the seller sold it to somebody else and just gives you your deposit back…….
For all the people that say deposits should be returned if the buyer backs out of the deal, wouldn’t the exact opposite also have to be true? Shouldn’t it also be perfectly ok for the seller to NOT hold the item and just return the deposit?
If the deposit does not actually have any binding meaning, then it should not bind from either direction, not just from the buyers view………
What do you think of the flip side? If you give a private seller a deposit so you can line up the rest of the money and pick it up the next day……. Next day you show up and the seller sold it to somebody else and just gives you your deposit back…….
For all the people that say deposits should be returned if the buyer backs out of the deal, wouldn’t the exact opposite also have to be true? Shouldn’t it also be perfectly ok for the seller to NOT hold the item and just return the deposit?
If the deposit does not actually have any binding meaning, then it should not bind from either direction, not just from the buyers view………
This was my thoughts when reading everyone’s comments saying the money should be returned.
I for one would never ask for a deposit back and I’d feel like a jerk for backing out of the deal. Plus I don’t feel the seller should give it back, it’s a deposit, your saying you will return with full payment. If you decide not to, well at least the seller got something for dealing with your wishy washy self.
In this case I would expect to get my deposit back once the item was sold, otherwise the seller is double profiting.
I get the fact that the seller held the item and may have passed on selling to others, but once the item does sell, the deposit should be returned.
IMO
I respectfully disagree totally. If someone gives me a deposit and then backs out the deposit is mine for the missed opportunities of a sale. The deposit from the buyer says “I am buying this widget from you and to hold it until (specified during negotiations) such a date that I will be back with the final funds to complete the deal”. The seller that you point out that is “double profiting” will be turning away buyers until this transaction is fully complete or they call back and say they don’t want the vehicle. The deposit is for the sellers time and energy and lost opportunities. I just sold a vehicle last evening. They came and looked at it on Saturday and left a deposit check. I was very clear that they will lose the deposit if the sale does not go through. I had three other people wanting to come look at it (thats a lot this time of year in N MN) and I told all three that it is sold unless the deal falls through.
bzzsaw
you buy another Yukon?
I love when these three-year old threads get bumped back to relevance. 
Listen people. When you are out to buy a car, and tell the dealership you ARE INDEED going to purchase that vehicle, most will require a deposit. There are VERY FEW reasons why a dealer should give this deposit back. One would be, if the customer was unable to secure a bank loan. the other would be if the dealer misrepresents something regarding the car or the sale. THAT IS ALL. If you tell the dealer you are buying that vehicle but you need them to wait a week or two or whatever until you do whatever, and then change your mind, you are out of luck. You have to understand that a dealer may have been able to sell that car 3 or 4 times and lost the opportunity because they were holding it for you as you committed to buy but did not. They also could have used that money from the car sale, which they missed holding it for you, to buy other cars, and sell them as well, all in the time frame of holding the car for you. To say it’s unfair, or get a lawyer because you changed your mind and want your deposit back is asinine. Often times, as mentioned in this post, people will leave a deposit, and then go shop around until they were supposed to buy your car, and then come back after they bought something else and want their money back. In what world is this either fair, or ethical by the customer? There isn’t one. Bottom line, if you have the funds to buy a car, and commit to buying the car, and change your mind, after a deposit was made, don’t expect to get your money back, and if you have the gonads to request it, good luck, but for the sake of ethics, I hope they don’t give it to you
So if you leave a deposit because you intend to buy the car, and then you went and found of different one a few days later you liked better, you would expect that other dealer to give you a refund, because nothing took place? Really?
If I sell something to somebody and decide to carry paper on it they can pay me 3/4 of the agreed upon amount and then default. I’ve been paid plus interest but no way in heck giving them the money back. Sis defaulted on her agreement to buy the vehicle, end of story.
I love when these three-year old threads get bumped back to relevance.
Let’s make that 4 year old threads. (well close enough) lol
we run into this in the puppy biz all the time. what i do is take the deposit which is a guarantee to hold the pup until the agreed time (usually 2-5 days). i pull it off the market. IF i get a full pay offer in that period i will take it and return the deposit check. IF they decide after the deposit period that they do NOT want the pup (it’s often a husband looking for permission from the wife to buy) AND i’ve not gotten any other offers, i keep the deposit.
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