ericmess

A while back ago at the end of the summer I posted my car for sale. I wanted to sell it then because I could avoid storeage fees and shop over the winter (I live in MN) to upgrade. A fellow said he didnt have the money now to buy it, but he would soon get me a deposit ($1000) in agreement to not market the car anymore and sell it to him first thing in the spring provided he had the rest of the payment. He planned to save over the winter to buy it. I received the deposit and we didn't sign any paper work since we both had trust in each other. I assumed he knew the purpose of a deposit and we didn't even discuss whether it was refundable or not. I just got a call from him saying that he needs $12k worth of dental work done and he will not be buying the car. He will show me documentation about the dentist work. He also wants his deposit back. The ball is in my court...I would like to hear what you guys think.

Tom R.

see if you can sell it. if you sell it and get all of your money give him his money back. if he cost you a thousand or more, you are ethically entitled to the money.

royalschwarz

If no paperwork was done and he has proof of payment to you, sorry to say, but you are outta luck. Refund and be done. If push comes to shove, then take whatever it cost to store it during the winter out of the deposit (providing it's not your own garage).

apierce918

i would run that buy him, take 3-4 months rental out of the payment, and give him that number and see if he thinks that is reasonable. If he was a cordial guy and is being honest with dentist and you thought he seemed nice, i would think he would be fine with that. If he starts throwing a fit, maybe just give in and give it to him

944obscene

He gave you money, thus halting any sales propositions, and now he just wants to back out? What, are you a credit union or a bank? You took that money in good faith that he would buy the car. Since then, I'm sure you passed up many offers (potential or real). You need to find a "half way point", because that money was a security deposit. Both for you and him.

The nice side of me says give it back. The real-world side of me says work out a deal, but do not refund all of his "deposit".

944obscene

:removed:

-944obscene

ericmess

I agree with this point...I am just torn between business is business, or being a nice guy

BackInBlack

What are your "damages"?

I think both of you need to learn a lesson here and lessons are rarely free. Everything goes down on paper and everybody signs. May be time for $500 each for education.

944obscene

I say this... I'm a nice guy. I'd give the money back and remind him that he prevented any sales for the duration of the deposit. Then I would cut-ties and search for a new buyer if I still wanted to sell. (I'd probably sell to me for like... free. I have email and shipping address info on hand.)

PorscheDude1

Next make an invoice stating the deposit is non refundable.
This is just the way of the world.

Deansk8flip

doesnt this guy know what a deposit is? if the guy decides to not buy the car and you give him his money back, then why have a deposit in the first place? ive done this in the past when i was looking at several cars at once, and i never even dreamed that i would get my money back if i didnt buy.

if i were you i would keep all the money and tell the guy that he shouldve figured out what a deposit was before he gave me $1000.

ericmess

This is the understanding that I was under too...

IPSC

OHHHH BOY ! ! ! A deposit story...

I would tend to agree that a deposit is the beginging payment of a transaction BUT...

Way back in 2004 (and Tom R will remember this) I found an 87 951 for sale on autotrader. I contacted the owner (Frank Leonard) and he described the car as "Show Room condition." His words, verbatium.

I said I was interested. He sent me photos (my belief now is that they were not of the car in question), he agreed to a PPI at my expense and let me pick the shop to do the PPI. All seemed well.

Then he told me there were people wanting to buy it and I asked if he would agree to hold the car for one week (the time it would take for the PPI to get done and me to get there) for a $1000 deposit. We then agreed that the $1000 deposit would be FULLY refundable should the PPI turn up any major problems. I asked a second time, "You will give me the money back if there is anything big wrong with the car?" My fear being failing a leak down and compression test or a clutch needing replaced. Frank Agreed saying "there is NOTHING wrong with this car, you will love it ! ! !"

I wired the Money... Put in leave papers, I was still in the Marines at this point, and just back from Iraq for the second time. I Bought a plane ticket and got all ready to fly up to Ohio and drive what I believed would be a great car home.

The PPI came back a page long, full of some major discrepancies with the final note that the car had been resprayed (badly as the service manager put it) from Blue to Red and not exactly Guards red either. Frank did not even know this.

I spoke to him and he asked when I was coming up? I replied that his description of the car was not accurate and that I was going to pass due to the fact the car had been repainted.

Frank quit answering my phone calls and emails and never returned my money. The car sat on autotrader for 6 months. I caught Frank a couple of times when he wasn't expecting a call from a pay phone and he claimed that he had never agreed to a refund on the deposit and that my making him wait had cost him the sale of a car becuse and I quote "if a car doesn't sell in the first week it ain't gonna sell. " I replied "well maybe you have the car overpriced for the condition?" He hung up on me.

I called the service manager that had done the PPI and asked what Frank's "deal" was. He replied that the guy hung around and bothered his mechanics and didn't buy much.

I contacted a lawyer but the fees to recover the $1000 was just shy of what it cost me already and since I did not have anything I writing, it would basically come down to a "he said he said in small claims court.

So in your situation my recommendation is to work something out. It sounds like your buddy is not trying to screw you but is in a bad spot. See if he will cover the storage costs for the time spent.

Moral of the story, Hammer these details out in the first place, even among friends and get it on paper. The get it on paper part is the IMPORTANT part.

IPSC

Judson951

A depoist is to take the car off the market. So it was off the market for lets say 3 months. How much is your insurance per month that you had to pay? Do you have a car payment? Where did you list the car for sale at? And how much did that ad cost you to run? All of your time you had in trying to sell it? I would say you are the one who is getting screwed on the deal.

Keep the money relist your car and go on down the road.

ericmess

in response to IPSC

ok good point. The buyer saw the car in person, the car recently had a PPI done within the last 3k miles, and I offered him to drive it. I offered for a PPI to be done, but I wasn't to crazy to pay for it since it just had one done. This car has maintanence records to the T. The things wrong with the car were pointed out and nothing was being covered up.