I am a dealer and I can tell you confidence, the dealer cannot keep his deposit. A sales contract in California is only valid once the vehicle has been delivered to the consumer. If you go to small claims, your partner will win. You need to talk to the GM and let him or her know your intentions. None of us dealers want to waste our time or our associates time in smalls claims court over a non delivered vehicle. Trust me.. It's unfortunate that some dealers do this, but they are just playing hardball with you. You push back and they will budge.

 

Sounds like the OP's friend ought to give you a call. Thanks for the definitive answer.

 

Cool, will let him know. Thanks