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Are Car Deposits Refundable? What You Should Know Before Pre-Ordering a Vehicle

Experts urge buyers should always review the dealer's refund policy before making a deposit.

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Encarnacion Aviles had been searching for a new car and found the perfect vehicle at a dealer's showroom. But she said she was told the vehicle was not immediately available.

“The men told me that they didn’t have any available. I had to wait because of the pandemic,” she said.

Aviles decided to make a $1,000 deposit to secure the vehicle, but she said months went by without any updates from the dealer.

After trying to contact the dealer multiple times, Aviles said she was told the car was still unavailable. Tired of waiting, she decided to cancel her purchase and asked for her deposit to be refunded.

"No, no, no. You cannot get the money back,” Aviles said they told her.  

Aviles said she only made the deposit because the salesperson assured her that she would be entitled to a refund if she changed her mind. She says the only proof she had of her deposit was a receipt showing her cashed check, with no information about the car or the dealer's refund policy.

Ronald Montoya, Senior Consumer Advice Editor at Edmunds, said buyers should always review the dealer's refund policy before making a deposit.

“As the customer, you want to make sure you ask about that before you're placing the deposit," Montoya said. "And ideally, you want to get something in writing that shows proof that it's going to be given back to you if you change your mind on the car.”

Under Florida law, it's unfair or deceptive for a dealer to require or accept a deposit from a prospective customer before entering into a binding contract unless the customer is given a written receipt that states the duration the dealer will hold the vehicle, the deposit amount, and whether the deposit is refundable or not.

In Aviles' case, the dealer told NBC 6 Responds they have a non-refundable policy when a customer pre-orders a car, as the vehicle is specifically ordered for that customer and can be difficult to sell to someone else if they change their mind.

After NBC 6 Responds got involved, the dealer decided to give Aviles her money back, telling us they did it out of courtesy.  

If you're considering buying a new car, it's important to remember that there is still a shortage of vehicles in the market, and certain colors or options may require a longer wait time. The expert advises against making a rushed decision and to ensure that you're willing to wait before moving forward with a deposit.

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