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Dear Advisor,

I have visited a car dealer in Nelson to buy a imported used vehicle from their car yard. Initially, I went for viewing a different car but interested with another car in the yard. They said the documentation is not processed for the car and they asked me to do the test drive first.

I have noticed a (check engine) signal and asked them after the test drive. At first, they said that it's a O2 sensor fault and came back saying it's a fault from the speed sensor. They have sent their vehicle for appraisal from Vinz.

I have made a booking for Pre Purchase Vehicle Inspection at VTNZ. After the vehicle appraisal they said the engine is having some problem with the transmission torque convertor. They have made a booking with the transmission specialist on 9th of March.

I have paid $500 as a deposit and the total price of the vehicle is $15k. Now I am not having a satisfaction with them buying a car and worried about the problem that may arise in the future with the engine or the transmission. No documents were signed.

Am I eligible to ask for my deposit ($500) without any deduction? If they apply any charges then what is my right to recover the deposit in full.

Many thanks for time and your consideration upon my request and looking forward to hearing from you.

Kind Regards,
Saravanan Karuppiah.

Hi if you have made a deposit on a vehicle it probably isn't refundable unless it is written in the contract, however if the vehicle has a fault that can't be repaired you could dispute that they are not able to provide you with a car that is of acceptable quality and free from faults.