Car Buying- In Transit Cars and Deposits

[August]

Car Buying Question-

I know this is a terrible time to buy a car, but I have just totaled my car and need a new one as I drive for work. I generally prefer to buy new and drive them into the ground. In my naive desperation, I put down a deposit on a new Rav4 at my local dealer. The car is currently "In Transit". I signed something called a "Purchase Deal Review" but have not signed a purchase agreement or anything like that. The dealership is estimated a 3-4 week delivery time.

I have found some in stock Rav4's at a dealership a bit further away. I haven't been able to find anything on line to say whether I would be on the hook for the ordered car if I decide to buy on that's in stock from another dealer. I put a small deposit on the first car (a few hundred dollars) and I can't find anything in the paperwork regarding it being refundable or not (I'm not too upset either way if I find a better deal on a car I can obtain faster). I just want to make sure I wouldn't be on the hook for the full purchase price of the first vehicle if I find another one first (or if I am then I will stop working and wait the few weeks).

Thanks!

[Mike Scott]

You could call and ask to cancel. See what they say.

[Northern Flicker]

What does the contract say?

[pizza8822]

You would certainly not be on the hook for the full purchase price of the first vehicle. At worst, you would lose your deposit. If it was me, I would shop for the in-stock new one, and then politely ask for your deposit back. I have a feeling they will give your deposit back. Someone else will buy that vehicle.

[orcycle]

When I bought my RAV4 Prime recently, I went in to the dealership and signed something similar. It was my understanding that it wasn’t a binding contract (one clue was they didn’t give me a copy!), just that I was agreeing to the price, which included a markup. I don’t remember if I paid a deposit, if I did, it wasn’t more than a couple hundred dollars like you did. I also understood that I could reject the car when it arrived if I didn’t like it.

As others have said, I’m sure they would find another buyer if you backed out and I would imagine they would return your deposit if you’re nice about it.

[August]

What does the contract say?

It doesn't mention anything about the deposit specifically. At the bottom it states "I hereby further acknowledge and agree that this deal is not valid and binding until an appraisal and buyers order contract are signed by dealer and customer".

[galawdawg]

What does the contract say?

It doesn't mention anything about the deposit specifically. At the bottom it states "I hereby further acknowledge and agree that this deal is not valid and binding until an appraisal and buyers order contract are signed by dealer and customer".

So by the plain language of what you posted, you don't have a valid and binding deal. If that is all you signed, you don't have an agreement. Just go get your deposit back and buy what you want. Why would you think you couldn't get your deposit back or that you could be "on the hook" for the car purportedly on order?

[8foot7]

I actually doubt you’ll get a lot of static from the dealer. They’ll sell the car to the next person immediately. In this market I wouldn’t worry about it.

[marcopolo]

Car Buying Question-

I know this is a terrible time to buy a car, but I have just totaled my car and need a new one as I drive for work. I generally prefer to buy new and drive them into the ground. In my naive desperation, I put down a deposit on a new Rav4 at my local dealer. The car is currently "In Transit". I signed something called a "Purchase Deal Review" but have not signed a purchase agreement or anything like that. The dealership is estimated a 3-4 week delivery time.

I have found some in stock Rav4's at a dealership a bit further away. I haven't been able to find anything on line to say whether I would be on the hook for the ordered car if I decide to buy on that's in stock from another dealer. I put a small deposit on the first car (a few hundred dollars) and I can't find anything in the paperwork regarding it being refundable or not (I'm not too upset either way if I find a better deal on a car I can obtain faster). I just want to make sure I wouldn't be on the hook for the full purchase price of the first vehicle if I find another one first (or if I am then I will stop working and wait the few weeks).

Thanks!

We just went through this exact scenario. The dealer gave us the deposit back, no questions asked, no indication of any unhappiness. They almost certainly have other buyers waiting in line.

[August]

Thanks everyone. I'm waiting on a callback from the first dealership. I will update once I have their response.

[gogreen]

I gave my cc for a deposit and they didn’t even run it. Sales person said "If you decide to back off I’ll sell the car in under 2 hours so…"