I need to know if this is legal. I went into buy a new car on Saturday 05/19/2012. They did not have the car I wanted and said that they would have one coming in soon so I could put a deposit of $1000 and come back once they had the car in stock. I was told that would be Tuesday 05/21/2012 no later than 05/22/2012. I called each day to find out when it would be in. Phone tag with the salesman. Then I was told the car would be in on 05/23/2012. Well, at the time I put the deposit down I purchased a navigation system for $1853 and they said they would install it once the car came in. Well, I found a car on 05/22/2012 and took advantage of a better deal. I called the salesman first thing 8:30am 05/23/2012 and told them not to install the system, I had changed my mind about the car and found something better. Well, they called again and left a message stating that the car was ready to be picked up. So I called back to let them know that I had left a prior message and I had to tell them again that I had changed my mind. I then get a call from a nasty "sales manager" who is raising his voice at me saying what am I going to do with this car now? You need to come in and get it! You're making a big mistake! You're money is not going to be refunded...what if I take money off?" I was very consistent with the fact that I no longer wanted the car and wanted my money refunded! I never received a breakdown or a contract I just signed a receipt that I left the deposit of 1000. At this point I have never even seen the car. Can they hold me to this? Did I lose all that money? Thank you!
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The Editor, Mark Bernardin, is an attorney living in MA. Please send your suggestions or comments to: TheEditor@malawforum.com
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Getting back deposit in automobile sale
The first thought that comes to mind is the statute of frauds. Under Massachusetts law, certain contracts must be in writing to be enforceable. For example, contracts to lease or sell real property, contracts that cannot be carried out within one year, and contracts for the sale of goods valued at more than $500. I don't have any experience with this type of claim, so I'm not sure if the dealer could mount some type of equitable claim based on their alteration of the product to meet your request (assuming they can show they made the alteration before you called to cancel the contract).
If you cannot reach an agreement and decide to go with the other dealer, I would simply tell the dealer who took your deposit that you will sue them in small claims court. Unless you want to pay an attorney to get involved, there's not much else you can do. Then, if they refuse to give you the deposit back, you sue them. You have a good faith claim, and if you lose, you are only out the filing fee, (currently $40 for claims greater than $500 but less than or equal to $2000. If you want to turn up the heat, and believe the dealer is engaged in unfair or deceptive practices, send a 93A demand letter first. Then you can request triple damages if the dealer does not make a good faith response to your demand. Good luck.