Legal Question in Consumer Law in Pennsylvania

Re: deposit

You asked if a deposit on a vehicle is refundable.

Generally deposits are never refundable unless 1) there is a WRITTEN agreement that the deposit is refundable or 2) if there were some material fraud underlying the sale. Contrary to what most people believe, leaving a deposit on a transaction is actually a contract. That contract says I intend to consummate the full transaction we are discussing and therefore I give this consideration (deposit money) so that the seller will remove the item from the market. The deposit is compensation to the seller if the purchaser fails to complete the transaction.

In this case, you had the opportunity to inspect the vehicle before leaving a deposit. You also could have made the deposit contingent (in writing) on a full inspection whereby the deposit would have been refundable.

Regards,

Roger

Re: deposit

I'd agree with the first answer provided that the seller does not qualify as a dealer. If he does qualify as a dealer then you may have some remedy under Pennsylvania Law. Pennsylvania's Administrative Code provides that:

"37 Pa. Code � 301.4. General provisions -- motor vehicle dealer

(a) With regard to a motor vehicle dealer, the following will be considered unfair methods of competition and unfair or deceptive acts or practices:

(1) Failing to prepare a written contract for the sale of a motor vehicle and failing to provide the purchaser with a copy of the same at the time the purchaser signs the contract.

(2) Using a printed or written contract form agreement, receipt or invoice in connection with the sale of a motor vehicle which is not clearly identified and which does not contain the following:

* * *

(iii) A description of the purchased vehicle as either "new" or "used" and, if used, a brief description of its prior usage such as "executive," "demonstrator," "reconstructed," or any prior usage which is required to be noted on a Pennsylvania Certificate of Title or which appears on the title of any state through which the dealer has acquired ownership.

* * *

This contract is not binding upon either the dealer or the purchaser until signed by an authorized dealer representative. YOU, THE BUYER, MAY CANCEL THIS CONTRACT AND RECEIVE A FULL REFUND ANY TIME BEFORE RECEIPT OF A COPY OF THIS CONTRACT SIGNED BY AN AUTHORIZED DEALER REPRESENTATIVE BY GIVING WRITTEN NOTICE OF CANCELLATION TO DEALER."