Is it the law for a downpayment on a car to be non-refundable and go towards fixing the car without telling the buyer?

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Is it the law for a downpayment on a car to be non-refundable and go towards fixing the car without telling the buyer?

I put a down payment on a car that to my knowledge was in working condition. I was not told that the down payment for my car was non-refundable and is used to go towards the repairs of the car to pass inspection nor did I sign anything that stated my money was non-refundable. I asked for a refund because the car was not in working condition when they said it would be and had hidden issues that the dealer told me of later. He pointed to a sign on the wall which was a copy of a deposits are non-refundable. It was not there at first and he said people try to sue all the time and never win.

Asked on March 29, 2012 under General Practice, Virginia

Answers:

Darren Delafield

Answered 12 years ago | Contributor

There are a few questions here that need to be answered before any guidance can be given. Was there a written contract? Was there a Bill of Sale? Was the vehicle purchased "As Is?" Was there a sign on the vehicle stating it was being sold "As Is?"

As a general rule, a contract for the sale of goods, including a motor vehicle, for a price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made which was signed by you. See Code of Virginia § 8.2-201. This may allow you to get your depots refunded.

The Code of Virginia § 46.2-1530 requires that there be a written buyer's order. The buyers order must include the amount of any cash deposit made by the buyer.

Virginia also has laws protecting buyers from fraud in connection with a consumer transaction. Was the vehicle being purchased by a business or for personal use? A consumer transaction means it was for personal use. If the salesperson lied regarding the condition of the vehicle, this could be fraud in connection with a consumer transaction. If so, the law permits the Judge to award attorney fees to the buyer.

Some attorneys will take this type of case on a contingency fee because of the likelihood of an award of attorney fees. Good luck.

 


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