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noahclan
By noahclan | Community user | 2 Posts | 31 January 2014 at 5:59pm

Hi there,
My husband and I had put a holding deposit of $1500 on a car, we were told by 2 of the sales men that if we did not like the car when we test drove it we would get the deposit back (car was being imported). Since then we had information that we didn't like about the D4 engines and my husband did not like the car when he drove it and said it had a bit of an oil leak. Anyway, they will not give our deposit back, is that legal?

ABayliss
By ABayliss | AA Expert | 2169 Posts | 3 February 2014 at 9:10am

It would be an unusual situation for the dealer to take a deposit but say it would be refundable if you change your mind. Normally, a deposit is binding and if you change your mind, the dealer is not obligated to provide a refund.
Having said that, if that's what the sales staff told you, there is such a thing as a verbal agreement, so they should refund your deposit.
In the event the dealer is now going back on his word, you may need to take the matter to the Motor Vehicle Disputes Tribunal .