QUESTION
Are Car dealerships not obligated to refund a down payment
Asked on Aug 26th, 2015 on Breach of Contract - Maryland
More details to this question:
I financed a AS IS car from a car dealership in Jersey City, NJ. a few days after that I had a family emergency with a family member who was sick and lost her job and benefits so therefore I had to give the car up in order to help that member out with medical bills. I couldn't afford to pay for that car and then help out my family member. I called the finance company and spoke with them, I explained to them my situation and what I was goin through which was an unforeseen event. they canceled my auto loan and I returned the car to dealership. well once I got to the dealership, one of the Manager and the salesman wanted to know why I returned the car I explained to him that I had an unforeseen emergency with a family member so they pretty much thought that I was lying about the whole thing. the salesman stated to me that I will not be getting a refund and I asked why, he stated to me that they don't have to refund me back. I was told that I will get a credit for a new car but never did
1 ANSWER
What does your contract say? While I understand and appreciate your loyalty and commitment to your family member, her situation did not give you a legal excuse to cancel the contract. While the company is apparently allowing you to cancel, unless it also agreed to refund your downpayment, or your original agreement gave you the right to cancel and obtain a refund, I don't see any obligation on the part of the dealership to refund your deposit.
P.S. I believe, but am not sure, that you have a statutory right to cancel this type of contract within, I believe, 3 days, but am assuming that you cancelled after that time had run out.
Answered on Aug 27th, 2015 at 10:00 AM