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I had to pay down-payment for Renault Kwid but now I have changed my mind to buy it but the dealer is saying that he will not return my advance deposit amount of Rs. 10,000, what should I do?

By: Ahammed on 31 october 2016

1 Answers:

You paid a deposit, but what was the agreement or paperwork for the deposit say? What was the deposit for? If they did not meet those terms, then you are entitled to the deposit back. So, check first whether you had paid for the holding deposit or a purchase deposit.

A holding deposit does not oblige you to proceed with the purchase. It is simply to ensure that the vehicle is not sold to somebody else while you are considering it and amount can be refundable or non-refundable depending on what is agreed between you and the seller.

While a purchase deposit is committing you to purchase the vehicle and it is generally non-refundable. It involves signing a contract to purchase the vehicle and all terms and conditions relating to the sale, including the deposit, must be stated clearly in the contract.

There is also a state law that regulates the dealings of auto dealers which you should investigate. In my opinion there should be some provisions on deposits refund.

ganesh   2016-10-31

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