Automotive

Looking for advice dealer refuse to return deposit

  • Last Updated:
  • May 19th, 2021 1:36 pm
[OP]
Newbie
Jun 1, 2014
39 posts
69 upvotes
Toronto, ON

Looking for advice dealer refuse to return deposit

Dear RFDer,

I'm looking for advice what I should do when dealer refuse to return deposit. It would be great if anyone has similar experience and willing to share.

I signed a contract to purchase a new car. On the contract it says distance travelled is 150km. However, the dealer took a few pics for me and the mileage is 473km on the vehicle. I told the sales it's not acceptable as it's way more than the number on the contract. The sales told me it's because of dealer trade. I verbally agreed the trade but they never told me how it works. However, I checked the distance of the other dealership and it's only 100km from me.
Today I got a call from the manager. He's very rude and told me to take the car by the end of tomorrow, otherwise I'll either lose my deposit, or the price will change next month and he will sell other cars at MSRP to me.

Here are the things I have done:
Call OMVIC. The rep told me it's a grey area. If the dealer refuse to return my deposit, I have to go to small claim court. But it's possible that I have to take any cost of the dealer trade.
Call GM. The rep submitted a case for me
Call credit card company. They could refund but if the dealer provide any "evidence", I will still get charged.

I'm not sure what's the rule on the forum so I'm not going to release the name of the dealership. I appreciate if you have any suggestions.

Edit: The dealer is Eastside GM. Close to the Woodbine Costco in Markham.
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Update: got a call from the sales, she's willing to give me some freebies or renegotiate a new car. She told me the car has been registered under my name (I have no idea before the call), and there will be a loss if I decide to walk way from the contract. They will charge the cost on me. She also mentioned they have an internal "rule" that dealer trade is allowed to take up to 600km. So they are protected. However, they never told me that and it's not on the contract either. Is that something that I supposed to know? I was really pissed off yesterday by the manager, so seriously I don't want to do business with them again. If they offer me yesterday I would probably take it.
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Update 2: I filed a complaint to OMVIC last weekend and I'm quite surprised by their reply.

"In Ontario, a signed vehicle purchase or lease agreement is final upon signature. Whether the agreement will be cancelled is at the discretion of the seller. Should the seller agree to terminate the deal, they’re entitled to retain your deposit in order to recoup losses incurred as a result.
As your deposit was $1000, it’s highly likely the dealer’s damages meet or exceed this amount."

So it sounds like dealers are kings and they can break the contract but consumers can't refuse to take it. I asked for further explanation and got the following.

"When buying a vehicle in Ontario the dealership is required to include the vehicles odometer reading but they are allowed a variance of up to 1000 km’s. If the vehicle was delivered with a difference of more than 1000 km’s on the contact, then you would be allowed to cancel the agreement. The variance in this situation was 323 km’s, meaning this isn’t enough to trigger a cancellation in your complaint."

Wow, the dealer can travel with your new car up to 1000km and you have to accept it. They also don't have to release such "rule" and it's not on the contract either. Sounds like a great free road trip with a brand new car from Toronto to Montreal.
As pointed by RFDers, OMVIC is wrong.

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Update 3: Got an email by the manager.
"So these are your 3 options now:
1. Pick up the vehicle by Monday May 10th. Although Costco promotion has ended new GM employee pricing is a lower price. The residual value however has reduced resulting in a higher payment. As a gesture of good will we will take a further loss on the vehicle by $200 to match the April payment. Although not necessary we are trying to accommodate this situation. Client will not get the Costco gift card as that promotion is over. We have removed your plates and it will take us 1 business day to reissue them.
2. Wait 1-2 months if not longer for another vehicle to be shipped in brand new under 90km. Pricing will be subject to the programs at that time which may result in a higher payment but we will do our best to give you the best available deal.
3. We will refund you your $1000 deposit less all expenses incurred on your deal. We are not looking to profit from this and the deduction will go towards paying the costs incurred and ensuring the staff involved are compensated for their time. Please keep in mind that we also had to trade a Trailblazer with lower kms (different colour) to get the one you requested."
Last edited by chtx900326 on May 6th, 2021 6:40 pm, edited 4 times in total.
200 replies
Deal Expert
User avatar
Feb 11, 2007
16843 posts
18569 upvotes
Oakville
If you're getting a good deal why do you care about a couple hundred KM? It's all up to what the contract says. If it says a hard distance of 150km, then you have a case, but if it says there may be additional km involved in the trade, then you agreed to it. How much was this deposit you want to fight over?
If the women don't find you handsome, they should at least find you handy.
Deal Guru
Feb 9, 2006
12342 posts
6911 upvotes
Brampton
Ask for a couple oil changes and call it a day unless Your car has scheduled service included. Then ask for a discount, extra set of keys or swag.
Jr. Member
Sep 28, 2009
189 posts
91 upvotes
Contact OMVIC. They will direct you how to draft the letter and give you the contact of dealer principal, bypassing your sales individual.
Deal Addict
Nov 11, 2013
1013 posts
1197 upvotes
Calgary
That car is garbage now, who knows what could have happened in the 323km. Lol

Sounds like buyers remorse
Deal Addict
Jun 26, 2009
4187 posts
3314 upvotes
GTA
You are missing the point. Agreement is agreement, if I want 150 km max it's 150 km, not 155 or 161. I had written "no more than 50km". Got the car with 32km. Dealer trade as well, 500km away. It came on flatbed. But OP mentioned it's a GM dealer, so no surprise here, they still live in 80's bubble when Caprice was selling like crazy. OP is already generous with 150km, but 473 is little excessive.
Deal Expert
User avatar
Jul 30, 2007
29606 posts
15401 upvotes
Toronto
It’s likely it was used as demo or employee driven vehicle.

You can try to negotiate for some car accessories or service credits from the dealer and call it the day.
Deal Addict
User avatar
Feb 17, 2015
1022 posts
1183 upvotes
Canada
Totally agree with this. Because if its the other way around we as buyers have no recourse to them.
Tommy74 wrote: You are missing the point. Agreement is agreement, if I want 150 km max it's 150 km, not 155 or 161. I had written "no more than 50km". Got the car with 32km. Dealer trade as well, 500km away. It came on flatbed. But OP mentioned it's a GM dealer, so no surprise here, they still live in 80's bubble when Caprice was selling like crazy. OP is already generous with 150km, but 473 is little excessive.
Deal Expert
Jan 15, 2006
16689 posts
15101 upvotes
Richmond Hill
If it's written in the contract at 150km max, it's binding. Tell the Manager to F-off and get you another car with 150kms or less.
Deal Addict
Nov 24, 2013
1665 posts
983 upvotes
Toronto
Tell them you will take the car for an additional $x off since the kilometers are higher than what was agreed upon or do a credit card charge-back if you and the dealer can't come to some sort of agreement.
[OP]
Newbie
Jun 1, 2014
39 posts
69 upvotes
Toronto, ON
Thank you guys for your advise. I totally agree that it's a personal preference how many kms are "fine" when you pick up a new car. But I'm pissed off the dealer didn't follow the contract and told me to eat it.
I'm not getting a super good deal from GM, just a normal Costco discount. That manager was like "I gave you two options: 1. take the car, 2. buy another car at MSRP in the future. I won't return your deposit". It doesn't sound like he's willing to negotiate lol.

I'm surprised OMVIC rep call it "grey area". The number is on the contract, and dealer failed to follow that. How come it's grey area?
I have called my credit card company, and Costco auto. Let's see what's gonna happen.
Deal Expert
User avatar
Jul 5, 2004
25544 posts
4663 upvotes
OMVIC is a complete waste of time.

Just take them to small claims court if the charge back route doesn't work. You will win easily. You have an agreement that the dealership is refusing to honour.
Deal Addict
Oct 1, 2015
1702 posts
2086 upvotes
Barrie, ON
I'd ask for some floor mats and a few oil changes and call it a day, but that's just me.
Deal Addict
User avatar
Feb 17, 2015
1022 posts
1183 upvotes
Canada
At this point, you dont have to hide the dealerships name. Clearly you are in the right here. A contract is a contract. How about you not paying the right amount on the contract? I wonder how the manager will react.
chtx900326 wrote: Thank you guys for your advise. I totally agree that it's a personal preference how many kms are "fine" when you pick up a new car. But I'm pissed off the dealer didn't follow the contract and told me to eat it.
I'm not getting a super good deal from GM, just a normal Costco discount. That manager was like "I gave you two options: 1. take the car, 2. buy another car at MSRP in the future. I won't return your deposit". It doesn't sound like he's willing to negotiate lol.

I'm surprised OMVIC rep call it "grey area". The number is on the contract, and dealer failed to follow that. How come it's grey area?
I have called my credit card company, and Costco auto. Let's see what's gonna happen.
Deal Expert
User avatar
Feb 11, 2007
16843 posts
18569 upvotes
Oakville
chtx900326 wrote: Thank you guys for your advise. I totally agree that it's a personal preference how many kms are "fine" when you pick up a new car. But I'm pissed off the dealer didn't follow the contract and told me to eat it.
I'm not getting a super good deal from GM, just a normal Costco discount. That manager was like "I gave you two options: 1. take the car, 2. buy another car at MSRP in the future. I won't return your deposit". It doesn't sound like he's willing to negotiate lol.

I'm surprised OMVIC rep call it "grey area". The number is on the contract, and dealer failed to follow that. How come it's grey area?
I have called my credit card company, and Costco auto. Let's see what's gonna happen.
Just do a charge back and go somewhere else. Make sure to tell GM Canada how your experience went. Please name dealer so we can all avoid. If they fight the charge, you have proof of contract and not being delivered what was in the contract.
Make sure you read the WHOLE contract to make sure you are in the right. Post it here with personal details removed if you want.
If the women don't find you handsome, they should at least find you handy.
Deal Addict
Oct 23, 2017
1925 posts
1428 upvotes
GTA West
chtx900326 wrote: Dear RFDer,

I'm looking for advice what I should do when dealer refuse to return deposit. It would be great if anyone has similar experience and willing to share.

I signed a contract to purchase a new car. On the contract it says distance travelled is 150km. However, the dealer took a few pics for me and the mileage is 473km on the vehicle. I told the sales it's not acceptable as it's way more than the number on the contract. The sales told me it's because of dealer trade. I verbally agreed the trade but they never told me how it works. However, I checked the distance of the other dealership and it's only 100km from me.
Today I got a call from the manager. He's very rude and told me to take the car by the end of tomorrow, otherwise I'll either lose my deposit, or the price will change next month and he will sell other cars at MSRP to me.

Here are the things I have done:
Call OMVIC. The rep told me it's a grey area. If the dealer refuse to return my deposit, I have to go to small claim court. But it's possible that I have to take any cost of the dealer trade.
Call GM. The rep submitted a case for me
Call credit card company. They could refund but if the dealer provide any "evidence", I will still get charged.

I'm not sure what's the rule on the forum so I'm not going to release the name of the dealership. I appreciate if you have any suggestions.
Something like this happened to me where the vehicle had, I think it was 700 km on it at delivery. You can look up another post I made on this subject, but the short of it is that I got $600 from the dealer to accept the vehicle.
Deal Addict
Feb 6, 2011
1732 posts
1480 upvotes
chtx900326 wrote: . On the contract it says distance travelled is 150km. However, the dealer took a few pics for me and the mileage is 473km on the vehicle. I told the sales it's not acceptable as it's way more than the number on the contract.
Contract is void.

Make an appointment with the dealer principal and make your case.
[OP]
Newbie
Jun 1, 2014
39 posts
69 upvotes
Toronto, ON
engineered wrote: Just do a charge back and go somewhere else. Make sure to tell GM Canada how your experience went. Please name dealer so we can all avoid. If they fight the charge, you have proof of contract and not being delivered what was in the contract.
Make sure you read the WHOLE contract to make sure you are in the right. Post it here with personal details removed if you want.
It's a simple 1-page contract, and the only relevant field is "DISTANCE TRAVELLED" which indicates 150 km. Not sure if there's any trap.
Last edited by chtx900326 on Apr 29th, 2021 11:29 pm, edited 1 time in total.
[OP]
Newbie
Jun 1, 2014
39 posts
69 upvotes
Toronto, ON
mxthor3 wrote: I'd ask for some floor mats and a few oil changes and call it a day, but that's just me.
lol the manager didn't even give me chance to negotiate.

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