Help me get my deposit back from a signed contract

[RLE 2K]

Hope some of you folks here can help me out. I recently signed a financing contract with a certain dealer. $1000 deposit was left and no co-signer. The dealer than asked for me to provide pay stubs and a co-signer. I couldn't and demanded my deposit back since the bank won't let me finance on my own. Heres the thing, I also gave them my dad's info as reference to see if I could finance the car with a co-signer. Now they are refusing to refund me the deposit. Saying, by giving them my dad's info on the phone, it "should" already be a consent by my dad and a new contract with his signature as the co-signer isn't required. The old contract stands and its up to me to provide them with pay stubs and a co-signer......

They are giving me all the walk around possible, any help will be greatly appreciated.

[AGR-1]

Did you sign a sales contract?

Did it mention conditional to financing approuval on the sales contract?

Why would you sign a finance contract? Its something most folks sign when they are taking delivery.

[TTony]

how did you pay ,cash?

[qwert97]

The contract that you sign is a bill of sale not financing. In Ontario there is no cooling off period on vehicle sales. It does not matter if the payment is made in cash or credit card since you have entered into a valid contract. Talk to the General Manager at the dealership and see if he will refund your deposit. Otherwise they have the right to repay themselves for liquidation damages. Generally that includes lost profit, admin etc. IN practice they generally forfeit the deposit. Since you paid a $1000 down you may be lucky if you get a couple of 100 bucks. The best way out of this is talk to them so that they refund the money to you.

[RLE 2K]

The sales contract however has only my name on it which the bank won't approved to let me finance without a co-signer. Theres no signature of a co-signer on the contract. So, I am obligated to provide a co-signer? I thought its the dealer's job to make sure that the bank approved first.

Paid the deposit by debit

[gordholio]

I lost $100 about 20 years ago on a deposit when I didn't follow through with the sale. Lesson learned. Don't commit before you are sure - and don't look around AFTER you have committed to buy with a deposit.
Always follow through on your commitments, but don't commit to buy until you are sure.

[TTony]

same thing happened to me, I found the same car cheaper somewhere else after the deposit , I told the guy I have anger management problem and I will be there Saturday to get my money back and told him I already talked with the bank they will charge back the money (debit)if you are not wiling to give back. finally they lowered the price -$1500

[RLE 2K]

This is not about me wanting a discount or having found a better deal somewhere else. This is about me signing the sales contract as a sole purchaser but now they require me to provide them with a co-signer.....

[Justin]

This is not about me wanting a discount or having found a better deal somewhere else. This is about me signing the sales contract as a sole purchaser but now they require me to provide them with a co-signer.....

You should get it all back. They are the ones that will no longer let the sale progress since they now require a co-signer. They are backing out of the original agreement, not you.

[ES_Revenge]

Good luck getting your deposit back. In Ontario it's very difficult as the laws in this province are designed heavily for businesses to take advantage of regular people.

This is why it's not a good idea to give anyone a significant deposit, ever, for anything, unless everything is a sure thing (like financing for example).

Deposits are just a way for crooks to make easy money IMO, those crooks being car dealers as pretty much all of them "require" deposits. Once they have it, you'll have to pry it from their cold dead hands before they give it back.

[Pete_Coach]

This is not about me wanting a discount or having found a better deal somewhere else. This is about me signing the sales contract as a sole purchaser but now they require me to provide them with a co-signer.....

You have learned a valuable lesson. You will, in the future, have yourself organized and with assurances that you can get financing. You will lose your deposit unless they are real nice and that means they are doing this out of goodwill, they do not have to.

You should get it all back. They are the ones that will no longer let the sale progress since they now require a co-signer. They are backing out of the original agreement, not you.

Are you reading the same post? The OP cannot get financing, co-signer or not, it has nothing to do the dealer. A co-signer is the one who will be obligated to pay if you default, therefore the co-signer must also be able to attain financing (or at least have enough collateral to cover the purchase price).

OP, with your thousand down, can you strike a lease deal? That may be a way out of your predicament and still get the car. Some places are more apt to forgo all the requirement on a lease as they company will still really own the car (along with you). At the end of lease, buy it out or give it back.

[VivienM]

You have learned a valuable lesson. You will, in the future, have yourself organized and with assurances that you can get financing. You will lose your deposit unless they are real nice and that means they are doing this out of goodwill, they do not have to.

What surprises me is that this contract is seemingly not subject to financing approval based on the information given to them.

It seems odd to me that they'd enter into a contract on certain terms, then say "oh, you HAVE to get a co-signer or else we keep your deposit".

[CheapScotsman]

What surprises me is that this contract is seemingly not subject to financing approval based on the information given to them.

It seems odd to me that they'd enter into a contract on certain terms, then say "oh, you HAVE to get a co-signer or else we keep your deposit".

yep, it is interesting that the OP didn't get a signed purchase agreement subject to financing, but, funnier things have happened.

I think the OP hasn't fulled tied the story together ... it apperas he bought the car, signed a purchase agreement (with no financing subjects) then found out get can't get financing ....

so the dealership is telling him to either get a co-signer (who can get financing and/or pay for it) OR he will loose his deposit (and the OP walks from the deal).

[thephenom]

yep, it is interesting that the OP didn't get a signed purchase agreement subject to financing, but, funnier things have happened.

I think the OP hasn't fulled tied the story together ... it apperas he bought the car, signed a purchase agreement (with no financing subjects) then found out get can't get financing ....

so the dealership is telling him to either get a co-signer (who can get financing and/or pay for it) OR he will loose his deposit (and the OP walks from the deal).

Sounds about right since he said the "bank" won't approval his finance.

[RLE 2K]

On the lower left corner of the contract, theres the Financing Terms box. One of the line is - Total to be financed (Subject to Lender's Approval). When I said the bank didn't approved, it was the dealer's bank. The dealer has a 0% finance car for sale, I thought I could take advantage of this great deal and signed the contract and left the deposit.