can a used car dealership hang on to my down payment for over a month now after i refused to sign anything and backed out of deal…they will not return my 6000.00 can i take them to court

I was interested in a vehicle online with a used car lot out of state and sent a down payment to hold car so I got paperwork sent but I did not sign one thing due to not wanting the vehicle.they still have my money amount of 6000.00 for almost a month later… the manager is not responding??

Asked on September 13, 2016 under Business Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, they can keep your downpayment. A downpayment or a deposit is, among other things, security for your performance--i.e. it is money the dealer can keep if you don't go through with the transaction. You don't have the right to change your mind and back out of the deal after making a deposit and get the deposit back, unless and only if the terms of sale specifically allow you to do this.

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