Protocol on deposit for car purchase?
 

I haven't sold a car since like forever, so I don't know how these things work. A nice older gentleman has agreed to buy my wife's C250 and sent me a $1000 deposit via Paypal to hold the car (2 days ago). He was supposed to come tomorrow to pay for the car and pick it up. So, he and his wife go to a MB dealership where they live today (its 2 hours from me) and he says that the wife doesn't like the silver color of my car. So now he wants to cancel the purchase (which hasn't been consumated yet). In the meantime, I've told 3 parties that the car is sold and answered endless emails from him. Assuming the right thing to do is just eat it and return his deposit?

I will refund a deposit if someone shows up and doesn't feel the car is as described, which has never happened. Buyer flakes out and I turn away other buyers in the meantime? I would think very hard about keeping it. After all, showing your commmitment to buy is exactly the point of a deposit.

In my mind a deposit holds the car so you don't sell it to someone else and if the buyer doesn't buy, you get to keep the deposit. I also know that I wouldn't feel good keeping that much money for only holding it for two days, of course in that time you may have lost several buyers as well. so I would agree that the right thing to do is to return the money, but it would annoy me as well.

Second point is could it be a scam where you give him back his money even by PayPal and somehow he pulls his and you pay him yours?

Yes, I think the protocol is to give the deposit back. The silver lining is that if you've had that much interest it won't be hard to sell a second time.

The time to state terms on deposits is before taking one. Non-refundable deposit means crap or get off the pot. The wifey not liking the color is weak.

Give the ball-less wanker back the cash and be better educated on tire kickers in the next go around....GLWS.

I would give the money back only because it's good kharma.

I'd ask for $100.00 for your troubles and refund the rest. I think he should be agreeable to that, under the circumstances.

So what exactly is the point of taking a deposit if you give it back just because the buyer flakes out of the deal without even looking at the car?

I thought the buyer puts down a deposit to hold the car for him. After inspection and the buyer backs out is a different situation than the buyer just changing his mind at some point before even looking at the car.

He gave me a deposit to prevent the possible sale to another party, and after about 100 emails involving service records, photos, etc, he wanted to buy the car. Only the distance from us kept him from buying it immediately. I am even supposed to deliver the car to him and take the Amtrak back home.

BTW, the car is 100% flawless, so there is no viable reason to back out.

Better get top dollar for that sale. Seems like a bunch of loops to jump through

So, basically the guy puts down a deposit, inspects the car (albeit virtually) to his satisfaction, commits to buying, says he wants you to deliver it, then backs down?

I'm thinking there's more to this story. Doan no what, though.

Really tough.

As others have stated the purpose of the deposit is so you don't sell it.

You have turned away other potential sales so really you should be entitled to keep the money.

Returning it is usually contingent on the buyer not being able to purchase it, their financing did not come through would be a reason, vehicle is not as described, stuff like that.

Don't like the color, that is weak.

That said, I'd be inclined to return the deposit.

Don't need the bad karma.

I never take deposits for this reason.

I tell the potential buyer they are first in line, I'll give them x days / hours to complete the deal.

Anyone else that comes along "takes a number" and gets the same offer, no deposit but complete the deal in the agreed time or I move along.

I get contact info from the others and tell them I'll be in touch if the person before them flakes.

Look on the bright side, you could have delivered the car then been told they changed their minds.

That would have sucked more.

Deposit money equals:
-dont sell to anyone else.
-this car is mine.
-if i flake, i lose ALL deposit monies.

"and he says that the wife doesn't like the silver color of my car."
-Then fine.
-Pay a fee and back out of the deal.
-Thank Motion for being a nice guy and wasting his time.

I'm a bit miffed by all of this. I discounted the price quite a bit and dealt with dozens of emails from this guy.

Here is the ad: 2012 Mercedes C250 Sport Original Owner - Mint & Low Miles!

We agreed on a price of $15,900. The guy claims that my photos make the color look blueish. I gave him the paint code 3 days ago and when he brought up the blue tint thing, I told him there was absolutely no blue in the car. So now he's disappointed that the car isn't blue.

How deposits works is the ultimate Kobayashi Maru.

Deposits, in my mind, should be the basis of a contract that works to both the seller and the buyers advantage.

Many years ago I sold a 1994 Defender 90 with a rare aluminum hardtop. Flawless.

I priced it well and received an offer and a deposit within a day, which I accepted. The market was nuts on these things then and later that day I received a number of other offers above and way above my asking price.

One guy got pissed at me because he couldn't believe I wouldn't take his higher offer.

The guy who bought the D90 was from San Francisco. Great guy.

So query the guy when he asks for his deposit back what he would have done had you gotten a higher, less cumbersome offer after you accepted his deposit and decided to take it, leaving HIM disappointed.

Keep a $100, you know, for the effort:cool:

Good ad, btw.

Nice lookin' car. But a bit too blue for me. I prefer more gray.

I suspect the right thing to do is give the guy his money back, but only because I almost always choose to take the high road, and generally, I do not fight for anything in this short life. But if the roles were reversed, I would call myself an idiot and not expect anything back for wasting someone's valuable time.

I should ask this on my motorbike racing forum. Those guys are hardcore. I suspect they would not be as nice and understanding as this group :)

I should go out and rattlecan the car with blue and tell the guy to come get his $#$#$ing car!

Hahaha!

I actually like the color. Shame it's not a 4matic.

_

+1 on the point of a deposit.
The point of a deposit is that you lose it, if you don't follow through.

If you can get a deposit back, you could just put a deposit on anything and everything, including a at my local Lambo dealer, with no repercussion.
"Sorry, just kidding, can I have my $20 back?"

You do not get the deposit back unless there is misrepresentation or fraud.
Be Careful When Leaving A Vehicle Deposit | There Is No Automatic Right To A Refund - Consumer Reports News

I would give it back, but only b/c I I'd feel bad for the guy.
If you feel bad, you certainly can give it back, but you don't need to.
Is there even a contact? I wonder what Paypal would do.

If you are the curious type, call Paypal and ask them what they will do if he disputes a refund that you refused.

PS: The dozens of emails were the red flag. More questions means more neurotic.

I think he should take the Amtrak over to pick up his deposit. So, wait for him to show.

Don't know about you..
But I looked at that GREY, unblemished, mint, cut leather, factory interior trim advertisement and liked everything.
All was perfect.
I committed to a sale.

But then I saw only pure sparkly fuchsia colors.

Rainbows and unicorns.
Oh lawdy.
What I be seeing right here right now is certainly not as advertised!

Tell the guy to get a set of balls and tell his Wife "Look, you said you liked it, I put down a grand and now it's yours. You don't like the color? Tough, get used to it!".



And then, he lives out the final years of his life in eternal damnation..... :D

IMO, they (deposits) are not worth the hassle when it comes to selling cars. Way too many flakes and potential issues if/when an interested party backs out.
Even with legitimate/committed buyers, a deposit can be used as an excuse to drag final payment and/or pick-up out for days/weeks/months (unless specific terms and time-lines are stipulated up front).
On the same token, not offering the option for a deposit or other means to "hold" the car may create a sense of urgency with those that are actually interested.

For me it's first-come-first-served, no deposits, no warranties, as-is/where-is, cash or bank wire only. YMMV...

Excellent idea. :cool:

Tell him there are just too many PayPal scams out there.
If he wants the deposit refunded, he can pick up a check, in person, with a valid photo ID.

Sorry, the buyer is out his $1000 dollers, no matter how old he is or his wife does not like the color. You are out selling it to someone else. IF you sell it for what you're asking for it later, then you can refund the payment. Ask 10k, get 10k, refund, ask 10k, get 8k, keep deposit.

I emailed the guy back and strongly suggested he come tomorrow and complete the deal. I made no mention of the deposit. I only clarified that the color issue was put to bed 3 days ago.

His response: "The color is not as it is depicted in the web page."

So, if the guy continues to be a clueless idiot, will I feel better about keeping his deposit? :D

This.

And I like this.

Agree with many. Deposit is to keep the car from being sold.

Keep the deposit until you get at least $15.9K from someone else, then return it.

Life is all about finding a happy medium.

Your choice isn't:
A) Keep the deposit
B) Give it back

Your choices are:
A) Keep the deposit
b) Give it back
C) Keep a small percent (10%) for your troubles and refund the balance

Choosing (C) is the FAIREST choice for BOTH parties.

Sales 101.

You're welcome!

Did he express any apology for taking up your time, the "misunderstanding" about color; or is he just shoulder -to-the - door wants his deposit back?
These little details would be what would color the way i respond with the deposit.
The man needs to humble himself at least a little bit out of respect for the time and energy you put forth for him.
good luck.

As others have stated, I would be worried about some kind of PayPal scam where it ends up costing you $1k!

Yeah check PayPal policy on disputes for the type of transfer you received.

He sent the money as 'friends and family', so he has no protection or ability to dispute the payment.

As umgang correctly states, this is really more a matter of character. The guy has not only not apologized for wasting my time, he has gone on the offensive, insinuating that I misrepresented the color in my Craigslist ad. All this while I have still not made any mention of the deposit to him.

I am still leaning towards refunding the entire thing to him, but will see how this plays out. My wife is a huge believer in karma, so we'll talk about this tonight. Thanks MUCHO for everyone's feedback :)

I'd say give the deposit back and move on.

- the car looks to have blue in it in the pictures, at least on my computer
- you never agreed with him the deposit would be forfeited if he didn't buy it. Do you think he would have given you that much knowing the deposit was non-refundable?
- $1,000 is an unreasonable amount to lose for two days off the market. Maybe some of those potential buyers will come back, or maybe you can contact them yourself. It seems like it will sell quickly if you had this many responses (I assume quickly)
- it seems like he was sincere and dealt in good faith, even though he wasted a lot of your time
- I suspect you can afford to take the high road. Some of this problem is your fault, to an extent

Personally, I make it clear the deposit is forfeited if the buyer doesn't come through. Otherwise, what's the point? I scale the deposit to the value of the car and the holding period, passing on other potential deals. Maybe $500 for 3 days would have been reasonable. Maybe you'll get more than $15,900 from someone else, anyway.

Hmmm, the car looks like MB light grey to me. I looked at those cars once and that would be tied for best color, IMO. His color complaint is lame, especially since you specifically stated that it's grey, not blue. :confused:

I'd be tempted to keep half his deposit but I'd probably just give it back. Not worth the bad energy. I've lost a few deposits, (including one last night), but I've never kept one. Probably because I don't accept them. I've held vehicles and other things for a few days based on someone's word that they are going to buy it. Usually works out better.

I drove 400+ miles one way yesterday to buy a car that I'd seen pictures of and asked questions about. I Paypal'ed a $200 deposit about a week ago to lock it down. We are talking about a low priced resto project here. I've been busier than a whore on payday lately and seriously did not have time to go get it but I just bit the bullet and hauled ass up there with my truck, trailer and a helper to load it.

It was a non-running, 4800 lb. Cadillac. Sitting for about 16 years going by the license tabs. Supposedly rolled to its present resting place from a different spot on the property this past summer, so no rolling issues. Some of you have seen my winch thread, I haven't bought one yet so we were just going to winch it on w big ratchet come-alongs.

Anywhoo..., because of traffic and a late start, by the time we got there, it was dark. I'm talking pitch black and raining, out in the middle of nowhere. The seller met us there, she bought the place recently as a flip and the old cars were on the property and had to go. I took a quick look at the Caddy by flashlight and it was the car in the ad so I paid her the balance in hundreds.

There were a couple of issues that could have been raised right away, (car was very wet inside and I specifically asked about this, she said it was dry), also rear tires looked buried in the dirt like it had been where it's sitting for a lot longer than she told me. Not the end of the world, there are always minor issues in these things. My main concern was getting it on my trailer and heading back to L.A., a 6-hour drive down the 5 freeway.

The car was in worse shape than described, I was a little peaved but was going to take it. I backed my trailer up to it and hooked chains to pull it forward out of its hole so that I could load it. When I opened the door to put it in neutral and release brake, I discovered that the parking brake was pushed to the floor and the release was broken. Fun. This car was going to be a challenge to load rolling, dragging it onto the trailer wasn't happening.

I laid on the wet floor looking up at parking brake w a can of wd-40 and a screwdriver trying to release it w no success and then just said, fk it. Did I mention that I was 400 miles from home in freezing rain, working by flashlight? :)

I made an immediate and firm decision that I did not want the car and wanted only to get going home. She was sitting in her car, keeping dry with the guy she brought with. He was a tough guy, I don't blame her bringing him to meet a CL stranger at a remote property at night. He was also extra muscle to help load the car, I knew he was coming. I walked over to her car window and explained that the e-brake was stuck and I could not release it, the car was not moveable at this time and I'm aborting the mission. I told her that she could keep the $200 I sent her but I want the envelope full of cash back that I'd just given her.

Of course she was not happy w this. No one was happy at this point. I was kicking myself for handing her the $$ before really checking things out but a stuck e-brake is the last thing you will discover after chaining it up. She started wavering big time. I reminded her that one day earlier, she had offered my $200 back on the phone because someone else wanted the car. I said no, I'm coming for it. I really thought I wanted it until I saw it. :D

I told her to pretend it was 10 minutes ago and I hadn't handed her the money yet. I'm not buying your car. She asked the tough guy what she should do. Luckily for me, he was a man of good character and he said, "do the right thing". She handed me the $$ back and I handed her the title back. She was not happy. The general mood was that we are all out in the dark and the rain in the middle of nowhere and this scene could really head south in a hurry. She tried to tell me at first that she should keep more than the $200 because of her time, etc., and I wasn't having it. I'm what you might call a firm negotiator in these situations. ;)

There was never a thought of asking for the deposit back. She deserved that for holding the car for me as agreed, even if she did a lousy job of describing it. Selling old cars is not her business. Caveat Emptor or Carpe Diem or whatever they say.

This is very much like the language of a PayPal scammer.
Is the deposit money actually in your bank account yet - or do you just have a PP email saying its been sent?

Could PP actually take the deposit money back out of your PP linked account? If the 'buyer' was using a hacked/stolen PP account, this might happen before you realise - if PP notices &/or a dispute was lodged.

If the PP deposit is legit, one option would be to say that you will reconsider refunding his deposit IF you actually get the sale price you wanted (until then he will have to wait).