Protocol on deposit for car purchase?

[motion]

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?

[onewhippedpuppy]

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.

[rwest]

Originally Posted by motion

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?

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?

[MRM]

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.

[Joe Bob]

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.

[rusnak]

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

[Baz]

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

[Crowbob]

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.

[motion]

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.

[motion]

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

[Arizona_928]

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

[Crowbob]

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.

[stomachmonkey]

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.

[john70t]

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.

[motion]

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.

[Seahawk]

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

Good ad, btw.

[rusnak]

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

[motion]

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

[motion]

Originally Posted by rusnak

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

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

[rusnak]

Hahaha!