Protocol for deposit on cancelled order
#16
Originally Posted by Dave I
Next time I will.
In mine, there was no specific delivery date mentioned and I only had
a verbal approximate delivery date when I entered into the agreement.
Further , it clearly states that the ONLY reason why I would be entitled to a refund should I cancel the order, would be if there was a price increase.
When you first order the car, the dealer can only guess at an approximate delivery date , based on his previous experience.
Each car is custom built and he has no idea when it will actually go into production until some time after he places the order with the factory.
It took me almost two months to find out when mine would be built and delivered.
So unless you have a " no later than " delivey date IN WRITING , you may have a problem.
#17
There is no specific mention of delivery date, other than what was verbally conveyed to me by the individual that is no longer with the dealership. Below I have attached the pertinent parts of the contacts...see what you think. Obviously, the "retention of consideration" paragraph states that I lose the $$, but in reality out of consideration to a return customer, I thought they could be more accomodating.
3. This option shall commence on the day and year first above written and shall remain in effect for one year.
4. This option is granted in consideration of Optionee's payment to Optionor of the sum of $1,000.00 payable in cash or check drawn to the order of Optionor, subject to collection, receipt of which is hereby acknowledged.
5. If this option is exercised in accordance with its terms, the consideration paid Optionor by Optionee shall apply to the purchase price. However, if this option is not exercised, the consideration for the option shall be dealt with pursuant to either paragraph 7 or paragraph 8 as appropriate to the circumstances.
6. The cost of the subject vehicle from Optionor's franchisor is subject to change and the manufacturer's suggested retail price is subject to change as well. Both Optionor and Optionee recognize and acknowledge that the manufacturer's suggested retail price is not necessarily indicative of the worth or fair market value of the subject vehicle in Optionor's relevant market area.
In recognition of these facts, as well as the availability of the subject vehicle previously set forth in that section entitled "Recitals", Optionor and Optionee agree that if this option is exercised, Optionor shall sell the subject vehicle to Optionee at the official manufacturer's M.S.R.P...
**edited to omit pricing information**
...This example price has been calculated based on 2006 prices. Optionee will pay the exact price increase as this example is only an estimated price.
7. Unless otherwise provided herein, any notice, tender, or delivery to be given hereunder by either party to the other may be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested and shall be deemed communicated as of the date of mailing. Mailed notices shall be addressed as set forth in the Preamble, but each party may change his address by written notice, sent by certified mail, postage prepaid, return receipt requested only.
Upon receipt of either notice from Optionor's franchisor of the subject vehicle's shipment or upon actual delivery of the subject vehicle to Optionor, Optionor shall notify Optionee of the availability of the subject vehicle by registered mail.
Optionor shall not offer to sell the subject vehicle to any other Optionee or any other buyer before 15 days after mailing a notice of the subject vehicle's availability to Optionee at the above address, or such other address as Optionee may inform Optionor in writing.
8. Because Optionee's failure to exercise this option would result in the Optionor suffering a lost sale and therefore lost volume to the extent of this sale and because it would be impractical or extremely difficult to fix the Optionor's actual damages, all sums paid and services rendered to Optionor by Optionee shall be retained by Optionor in consideration o the granting of this option, that sum being presumed to be the amount of damage suffered by Optionee's failure to exercise this option.
9. If the option period set forth in paragraph 3 expires before Optionor shall have given notice under paragraph 7, the consideration shall be returned to Optionee without demand.
Option Period
3. This option shall commence on the day and year first above written and shall remain in effect for one year.
Consideration
4. This option is granted in consideration of Optionee's payment to Optionor of the sum of $1,000.00 payable in cash or check drawn to the order of Optionor, subject to collection, receipt of which is hereby acknowledged.
Consideration Applicable to Purchase Price
5. If this option is exercised in accordance with its terms, the consideration paid Optionor by Optionee shall apply to the purchase price. However, if this option is not exercised, the consideration for the option shall be dealt with pursuant to either paragraph 7 or paragraph 8 as appropriate to the circumstances.
Price
6. The cost of the subject vehicle from Optionor's franchisor is subject to change and the manufacturer's suggested retail price is subject to change as well. Both Optionor and Optionee recognize and acknowledge that the manufacturer's suggested retail price is not necessarily indicative of the worth or fair market value of the subject vehicle in Optionor's relevant market area.
In recognition of these facts, as well as the availability of the subject vehicle previously set forth in that section entitled "Recitals", Optionor and Optionee agree that if this option is exercised, Optionor shall sell the subject vehicle to Optionee at the official manufacturer's M.S.R.P...
**edited to omit pricing information**
...This example price has been calculated based on 2006 prices. Optionee will pay the exact price increase as this example is only an estimated price.
Notices
7. Unless otherwise provided herein, any notice, tender, or delivery to be given hereunder by either party to the other may be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested and shall be deemed communicated as of the date of mailing. Mailed notices shall be addressed as set forth in the Preamble, but each party may change his address by written notice, sent by certified mail, postage prepaid, return receipt requested only.
Upon receipt of either notice from Optionor's franchisor of the subject vehicle's shipment or upon actual delivery of the subject vehicle to Optionor, Optionor shall notify Optionee of the availability of the subject vehicle by registered mail.
Optionor shall not offer to sell the subject vehicle to any other Optionee or any other buyer before 15 days after mailing a notice of the subject vehicle's availability to Optionee at the above address, or such other address as Optionee may inform Optionor in writing.
Retention of Consideration
8. Because Optionee's failure to exercise this option would result in the Optionor suffering a lost sale and therefore lost volume to the extent of this sale and because it would be impractical or extremely difficult to fix the Optionor's actual damages, all sums paid and services rendered to Optionor by Optionee shall be retained by Optionor in consideration o the granting of this option, that sum being presumed to be the amount of damage suffered by Optionee's failure to exercise this option.
Return of Consideration
9. If the option period set forth in paragraph 3 expires before Optionor shall have given notice under paragraph 7, the consideration shall be returned to Optionee without demand.
Last edited by Dave I; 09-15-2006 at 11:32 AM.
#21
Originally Posted by Salespunk
Trovan is correct. In California a deposit is always refundable. They are trying to push you since they are remote from you.
Let me understand this. A deposit is ALWAYS refundable in California?
A customer comes in and orders a $250,000 Ferrari for his girl friend
(all options, flourescent pink with green lizard leather interior)
When it arrives, she takes one look at the car and throws up.
He cancels the order and gets his deposit back ??
Would you be a car dealer ?
#23
Originally Posted by JCS
Let me understand this. A deposit is ALWAYS refundable in California?
A customer comes in and orders a $250,000 Ferrari for his girl friend
(all options, flourescent pink with green lizard leather interior)
When it arrives, she takes one look at the car and throws up.
He cancels the order and gets his deposit back ??
Would you be a car dealer ?
A customer comes in and orders a $250,000 Ferrari for his girl friend
(all options, flourescent pink with green lizard leather interior)
When it arrives, she takes one look at the car and throws up.
He cancels the order and gets his deposit back ??
Would you be a car dealer ?
all the dealers have told me that if you order a car that is "normal", deposit is absolutely refundable. in his case, i am certain that it is not pink.
#25
Originally Posted by trovan
i think you are describing an extreme case here.
all the dealers have told me that if you order a car that is "normal", deposit is absolutely refundable. in his case, i am certain that it is not pink.
all the dealers have told me that if you order a car that is "normal", deposit is absolutely refundable. in his case, i am certain that it is not pink.
You stated above that under California law "despite what the contract says" the buyers deposit must always be refunded .
I gave an extreme example to make a point .
Never mind what your dealer tells you when you sign. Does the law differentiate between "extreme " and " normal " ( whatever that is ) ?
Also, does the law apply equally to both parties ?
For example , lets say a car takes five months to deliver .
On the day it arrives,someone sees it at the dealers, likes it and offers him more than the sticker price .
Under California law , can the dealer sell him the car , just refund your deposit and tell you the deal is off ?
#26
i had a friend search california law...
this is what she saw, this basically is under california contract law...
California Civil Code Section 2982.7(a) states that any payment made by a buyer to a seller pending execution of a conditional sale contract shall be refunded to the buyer in the event the conditional sale contract is not executed
hope this helps
this is always in effect unless you didn't sign a waiver of deductible refund
the dealer is the one that differentiates what is consider extreme and out of the norm. i remember this specifically when i was orderingmy 996 for the second time when the another dealer screwed em over.. custom order paint, and options taht are not normally ordered... they make you sign another paper/contract.waiver stating that ur deposit is non refundable...
this is what she saw, this basically is under california contract law...
California Civil Code Section 2982.7(a) states that any payment made by a buyer to a seller pending execution of a conditional sale contract shall be refunded to the buyer in the event the conditional sale contract is not executed
hope this helps
this is always in effect unless you didn't sign a waiver of deductible refund
Originally Posted by JCS
You stated above that under California law "despite what the contract says" the buyers deposit must always be refunded .
I gave an extreme example to make a point .
Never mind what your dealer tells you when you sign. Does the law differentiate between "extreme " and " normal " ( whatever that is ) ?
Also, does the law apply equally to both parties ?
For example , lets say a car takes five months to deliver .
On the day it arrives,someone sees it at the dealers, likes it and offers him more than the sticker price .
Under California law , can the dealer sell him the car , just refund your deposit and tell you the deal is off ?
I gave an extreme example to make a point .
Never mind what your dealer tells you when you sign. Does the law differentiate between "extreme " and " normal " ( whatever that is ) ?
Also, does the law apply equally to both parties ?
For example , lets say a car takes five months to deliver .
On the day it arrives,someone sees it at the dealers, likes it and offers him more than the sticker price .
Under California law , can the dealer sell him the car , just refund your deposit and tell you the deal is off ?
the dealer is the one that differentiates what is consider extreme and out of the norm. i remember this specifically when i was orderingmy 996 for the second time when the another dealer screwed em over.. custom order paint, and options taht are not normally ordered... they make you sign another paper/contract.waiver stating that ur deposit is non refundable...
#27
Originally Posted by JCS
You stated above that under California law "despite what the contract says" the buyers deposit must always be refunded .
I gave an extreme example to make a point .
Never mind what your dealer tells you when you sign. Does the law differentiate between "extreme " and " normal " ( whatever that is ) ?
Also, does the law apply equally to both parties ?
For example , lets say a car takes five months to deliver .
On the day it arrives,someone sees it at the dealers, likes it and offers him more than the sticker price .
Under California law , can the dealer sell him the car , just refund your deposit and tell you the deal is off ?
I gave an extreme example to make a point .
Never mind what your dealer tells you when you sign. Does the law differentiate between "extreme " and " normal " ( whatever that is ) ?
Also, does the law apply equally to both parties ?
For example , lets say a car takes five months to deliver .
On the day it arrives,someone sees it at the dealers, likes it and offers him more than the sticker price .
Under California law , can the dealer sell him the car , just refund your deposit and tell you the deal is off ?
#28
Originally Posted by trovan
what am i, the california superior court!! it is common knowledge a deposit is refundable in caifornia.
Whoa. Lighten up .
I was not trying to pick an argument with you.
All I did was to quote YOU and wonder, since it is " common knowledge "that all deposits are refundable , why anyone would go thru the bother of drawing up an apparently meaningless document that is not worth the paper it's written on .
And for that matter , why require a deposit in the first place?
#29
Dave,
In my state (Washington) at my dealership (Barrier), I was told that my deposit would be refundable as long as my car isn't built yet (or gone into production). As of yesterday, my Turbo has started production so therefore my deposit is no longer refundable. If you say that yours was cancelled and production never started then you should be able to get your deposit back. It sounds like they were screwing around with you the whole time. I would try and get the deposit back through whatever means.
In my state (Washington) at my dealership (Barrier), I was told that my deposit would be refundable as long as my car isn't built yet (or gone into production). As of yesterday, my Turbo has started production so therefore my deposit is no longer refundable. If you say that yours was cancelled and production never started then you should be able to get your deposit back. It sounds like they were screwing around with you the whole time. I would try and get the deposit back through whatever means.
#30
Originally Posted by JCS
Whoa. Lighten up .
I was not trying to pick an argument with you.
All I did was to quote YOU and wonder, since it is " common knowledge "that all deposits are refundable , why anyone would go thru the bother of drawing up an apparently meaningless document that is not worth the paper it's written on .
And for that matter , why require a deposit in the first place?
I was not trying to pick an argument with you.
All I did was to quote YOU and wonder, since it is " common knowledge "that all deposits are refundable , why anyone would go thru the bother of drawing up an apparently meaningless document that is not worth the paper it's written on .
And for that matter , why require a deposit in the first place?
that is a good point. it would seem that the law is protecting the consumer for a reservation, but allows the buyer to get out without any consequences. in this case, a deposite is great for the buyer since you get to hold on to the car until you change your mind. but from what i can gather, that is what california allows.....