Deposits on cars

[Pedro_The_Swift]

The money kind,

If someone puts a 1K deposit on a car thats for sale, then 8 days later on inspection say No Thanks,

What are the legal requirements?


Late Edit;; Private car sale.

[Tote]

The money kind,

If someone puts a 1K deposit on a car thats for sale, then 8 days later on inspection say No Thanks,

What are the legal requirements?

Legally, no idea

If it was a private sale I'd give them the money back under all circumstances. It's really just a handshake and some reassurance to the buyer that you aren't going to make them drive a long way and tell them you sold the car to the next bloke, no deposit, take your chances. If its a dealer they absolutely have to give the money back as they have no legal reason to hold it unless you have signed a contract telling them you will take the car, in which case kiss your deposit goodbye. Its not beyon some dealers to make life difficult though and to push the boundaries if they think they can. I've had clowns attempting to get me to sign a bill of sale in order to "hold" the car.

Regards,
Tote

[Tombie]

Unless you very clearly stated “non-refundable” I would be returning the deposit.

[Eevo]

in my experience, a deposit is to hold the car, meaning its unavailable to be sold to anyone else. thats lost opportunity for the seller. deposit is non refundable in that instance.

why would u lose 8 days of selling opportunity for nothing?

[Tote]

In my search for a RRS last year I did put a 1K deposit on a RRS which the dealer said had certain options. When he sent me the photos and I pointed out the options weren't as described the deposit was (almost) cheerfully refunded. Kudos to Duttons in Brisbane for their professional attitude.

Regards,
Tote

[Roverlord off road spares]

if a dealer an the contract is signed there was normally a 3 day cooling off period, check your state regs.

[scarry]

in my experience, a deposit is to hold the car, meaning its unavailable to be sold to anyone else. thats lost opportunity for the seller. deposit is non refundable in that instance.

why would u lose 8 days of selling opportunity for nothing?

You can keep any details of others that call about it,so everything isn’t lost.

But yes it could do you out of a sale,but not necessarily.

[Eevo]

You can keep any details of others that call about it,so everything isn’t lost.

But yes it could do you out of a sale,but not necessarily.

incorrect, those buyers have moved on and purchased another car that was avaliable.

[trout1105]

Hand the 1K back and put it down to yet another "Tyre Kicker" arsehole.
Yes this buyer has wasted your time and selling opportunities for the last 8 days But I am pretty sure that you can't keep the money and have to hand it back unfortunately.

Just relist the vehicle and put this debacal behind you.

[DieselLSE]

The money kind,

If someone puts a 1K deposit on a car thats for sale, then 8 days later on inspection say No Thanks,

What are the legal requirements?


Late Edit;; Private car sale.
Depends entirely what was in the minds of the parties when entering into the contract.
If it was a "deposit", then that means a sale had been made (offer and acceptance) and the deposit was merely a part payment with the balance to be paid at a specified date (or under specified conditions, like a RWC or repair or independent mechanical inspection or whatever). If the condition couldn't be met, then the contract was voidable and the deposit refundable. But if all conditions were satisfied, the buyer owns the car and must pay the balance. If the buyer can't or won't pay the balance, the seller is entitled to retain the deposit, particularly if the seller has suffered financial loss.
It looks like the car was "sold" sight unseen, which means it probably falls under the sale by description category. That is, person A agrees to buy the car "subject to the car being presented as described". Then the deposit (assuming that both parties had in mind that the deposit was a contractual obligation) is always subject to the car's description being accurate. It is an implied condition of the contract. A condition means that it must be satisfied or the contract is voidable by person A. In this case, where the buyer could easily point to the description as being inaccurate, the deposit would be refundable (unless person B suffered financial loss in holding the car and that this possibility was agreed to by A and B when entering into the contract).
So, what was the $1k for? And under what conditions was it forfeitable or refundable?
If there's any doubt about what the $1k was for (a contract can be verbal, but is difficult to enforce without evidence) and unless the seller can demonstrate actual financial loss or if the buyer can say that the car does not present as described, then the $1k should be fully refunded.

[Grumbles]

There is no simple answer. Have a read of this.

Paying a Deposit on your New Car Purchase | Car Loans
| The NRMA (https://www.mynrma.com.au/cars-and-driving/buying-a-car/car-loans/resources/paying-a-deposit)

Other states would have similar regulations but check first before acting.

[NavyDiver]

The money kind,

If someone puts a 1K deposit on a car thats for sale, then 8 days later on inspection say No Thanks,

What are the legal requirements?


Late Edit;; Private car sale.

Great question and great answers. If the keen person put the $1000 deposit down the wording of want they wanted for that and what you said for that is a legal contract according to my VCE/TEE legal studies on Verbal or Written contracts[biggrin]

Devil is in exactly what was said not on what was thought or implied I think.

[DieselLSE]

Great question and great answers. If the keen person put the $1000 deposit down the wording of want they wanted for that and what you said for that is a legal contract according to my VCE/TEE legal studies on Verbal or Written contracts[biggrin]

Devil is in exactly what was said not on what was thought or implied I think.
To a point, James. Your legal studies would have emphasised the differences between contract terms and conditions. And just because an agreement is written down doesn't necessarily make it "legal" or enforceable. Think silence and acceptance.
When deciding on the nature of a given contract the courts may well consider what was in the minds of the parties at the time the contract was made. But we're not going there for $1k!
We can't really give valid advice until the OP gives us all the details.
Decades ago we rented our house out to an interstate company who paid the first months rent and then decided not to proceed. As we had taken the house off the market and changed some things at their request, we declined to refund the "deposit" as we had lost that amount in opportunity costs (i.e. not renting to someone else). They had no choice but to accept our decision.
A couple of months ago I paid in full on arrival on-site for a used kitchen I was planning on chopping and channeling (to suit our tent on the Island - you'll know what I mean). My son and I came prepared with all the tools and ability to remove the kitchen on the same day as agreed with the seller. But after having a closer look we realised that we would never be able to make it work and had made a mistake. Although the kitchen was "legally" ours (offer, acceptance, consideration) the seller understood the situation and immediately refunded the money, thus cancelling the contract. Mind you, we pointed out to him that the period Baltic pine flooring he was planning on dumping was actually quite valuable if lifted properly, so we more than made up for wasting his time.

[NavyDiver]

To a point, James. Your legal studies would have emphasised the differences between contract terms and conditions. And just because an agreement is written down doesn't necessarily make it "legal" or enforceable. Think silence and acceptance.
When deciding on the nature of a given contract the courts may well consider what was in the minds of the parties at the time the contract was made. But we're not going there for $1k!
We can't really give valid advice until the OP gives us all the details.
Decades ago we rented our house out to an interstate company who paid the first months rent and then decided not to proceed. As we had taken the house off the market and changed some things at their request, we declined to refund the "deposit" as we had lost that amount in opportunity costs (i.e. not renting to someone else). They had no choice but to accept our decision.
A couple of months ago I paid in full on arrival on-site for a used kitchen I was planning on chopping and channeling (to suit our tent on the Island - you'll know what I mean). My son and I came prepared with all the tools and ability to remove the kitchen on the same day as agreed with the seller. But after having a closer look we realised that we would never be able to make it work and had made a mistake. Although the kitchen was "legally" ours (offer, acceptance, consideration) the seller understood the situation and immediately refunded the money, thus cancelling the contract. Mind you, we pointed out to him that the period Baltic pine flooring he was planning on dumping was actually quite valuable if lifted properly, so we more than made up for wasting his time.

I defer your clear knowledge to my smarty pants commercial law at a Perth Tafe not T.T.E. Recalled that now my brain has enjoyed a kick start from a run and a coffee :)

Devil is in details "tent on the Island"- details sounds like lovely Sunday to me [bigwhistle]

[loanrangie]

On a private if he took 8 days to decide not to proceed i would be keeping at least 10%.

[Tombie]

On a private if he took 8 days to decide not to proceed i would be keeping at least 10%.

Sounds like it was subject to inspection though from first post…

[W&KO]

Buy a cartoon of beer and refund the remainder.

[V8Ian]

Buy a cartoon of beer and refund the remainder.
Or give him the slab and keep the change. [bigwhistle]

[scarry]

incorrect, those buyers have moved on and purchased another car that was avaliable.

Guesswork,many spend weeks,even months searching around before purchasing,depending on circumstances.

Eight days is bugga all in the whole scheme of things.

[Eevo]

Guesswork,many spend weeks,even months searching around before purchasing,depending on circumstances.

Eight days is bugga all in the whole scheme of things.

not the average person.

[RANDLOVER]

To a point, James. Your legal studies would have emphasised the differences between contract terms and conditions. And just because an agreement is written down doesn't necessarily make it "legal" or enforceable. ..................

People do try it on, even attorneys, last year I was presented with a contract which I forwarded to my attorney, and he had to tell the other party that their contract was so unreasonable that it would not stand up it court. When things to go to court a lot of weight is placed on "reasonable" as in what would a reasonable person have done, expected, etc. This is why one can't (and shouldn't) kill a burglar in one's house, even though they've broken the law, they can't be summarily executed.

[Tombie]

People do try it on, even attorneys, last year I was presented with a contract which I forwarded to my attorney, and he had to tell the other party that their contract was so unreasonable that it would not stand up it court. When things to go to court a lot of weight is placed on "reasonable" as in what would a reasonable person have done, expected, etc. This is why one can't (and shouldn't) kill a burglar in one's house, even though they've broken the law, they can't be summarily executed.

No. But they can fall over a lot trying to run away [emoji56][emoji38] often bumping into things [emoji48]

[RANDLOVER]

No. But they can fall over a lot trying to run away [emoji56][emoji38] often bumping into things [emoji48]

Yes and jump with fright when a warning shot was fired over their head.

[Pedro_The_Swift]

Deposit will be returned.


though to do that I will need his banking details,,
which I dont have, and our Bank cant give us.

[Saitch]

Deposit will be returned.


though to do that I will need his banking details,,
which I dont have, and our Bank cant give us.

I'll PM you mine, Pedro.
Will that help?

[NavyDiver]

I'll PM you mine, Pedro.
Will that help?

Great point- why not give it to a charity then let the depositor to ask for it back from them[biggrin][biggrin][biggrin] Just kidding. That could bite you!

[DieselLSE]

Deposit will be returned.
Damn! I was hoping to follow this all the way to the Supreme Court.

[POD]

Not a legal experience but a considered opinion after many vehicle sales and purchases over the years; there is absolutely no point in a deposit unless it is non-refundable. In fact, the first LR I bought many years ago, the seller had taken a deposit from another bloke a few hours earlier, that buyer had wanted to go and get a mate to have a look at the car before he committed to buy. The seller sold me the car, the other buyer came back while I was still there and was irate when the seller handed him back his deposit. I felt the seller had done the wrong thing- not in selling me the car, but in taking a deposit when there was no commitment from either party. Just stupid.
If I give a deposit, I am saying "i have decoded to buy this car. We have agreed to the sale. You can't sell it to someone else, and I can't back out of the purchase without losing my deposit'.

I put a deposit down on an Alfa GTV when I was 21 years old, then could not get insurance on it at any price so could not proceed with the purchase. The seller refused to refund the deposit, said it would not even compensate him for his time spent getting a RWC. I wore it. I had made a commitment and then backed out for my own reasons.

Upshot is, do your homework, inspections, investigations etc BEFORE committing to buy i.e. giving a deposit.

[Tombie]

Recent similar example.

I was advertising my M109R Cruiser for sale.
Adelaide bloke was interested, I sent more details/photos etc.

Came down to “bring it down, if it’s as per pics I’ll take it.”

I asked for a $500 non-refundable deposit as I needed to get a trailer, drive 900km return, and if he changed his mind I’d be out of pocket both financially and time.

It was very clear, and decision left with the buyer - who turned out to be a tyre kicker and purchased a cheaper/smaller bike.

[RANDLOVER]

Not a legal experience but a considered opinion after many vehicle sales and purchases over the years; there is absolutely no point in a deposit unless it is non-refundable. In fact, the first LR I bought many years ago, the seller had taken a deposit from another bloke a few hours earlier, that buyer had wanted to go and get a mate to have a look at the car before he committed to buy. The seller sold me the car, the other buyer came back while I was still there and was irate when the seller handed him back his deposit. I felt the seller had done the wrong thing- not in selling me the car, but in taking a deposit when there was no commitment from either party. Just stupid.
If I give a deposit, I am saying "i have decoded to buy this car. We have agreed to the sale. You can't sell it to someone else, and I can't back out of the purchase without losing my deposit'.

I put a deposit down on an Alfa GTV when I was 21 years old, then could not get insurance on it at any price so could not proceed with the purchase. The seller refused to refund the deposit, said it would not even compensate him for his time spent getting a RWC. I wore it. I had made a commitment and then backed out for my own reasons.

Upshot is, do your homework, inspections, investigations etc BEFORE committing to buy i.e. giving a deposit.

Confusing I know, but t there is a difference between a non-refundable and a conditional deposit.