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Non-refundable deposit?

5.7K views 18 replies 14 participants last post by  sinnet112  
Just today I saw reason to cancel my order (there is a white S5 for sale at Commonwealth Audi in Santa Ana that I am interested in) -- but even though it is perfectly legal to back out of my A5 at this point, I've already built up a relationship with my dealer over the past several months and would feel better if they could do a dealer trade to get the car over to Penske. I tried, but the guy at Commonwealth wasn't interested because there was no equivalent car for Penske to trade with.

-Ray
 
I don't know if it could really be considered a contract since most of us were not even given pricing at the time of order.

-Ray
 
Why should it be refundable ? The deposit is to give the dealer some assurance you intend to take delivery of the car. If you don't take it they get to pay for it and it becomes their stock, now imagine if they had several cancellations, it could put a dealer out of business. Why would they ask for a deposit otherwise ???
In California at least, it is illegal to have a non-refundable deposit. The purpose of the deposit is so that you won't go ordering 5 cars at 5 different dealerships. Unless you have a bizarre order, as stated previously, there's no reason that the dealer won't make equal or greater money whether you buy it or not, especially on a hot car like the A5/S5.

I've tried to get discounts on cancelled orders that arrive at my dealership -- not happening. They don't seem to be hurting that bad to have it in stock for a few extra weeks while it attracts walk-ins by having a high-end car in the showroom.

-Ray