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Don plopped down $500 at a Hyundai dealership with the understanding that he’d get his money back if the sale fell through. He wasn’t happy with the terms of the deal, so he went with another dealership and was assured that he’d get the money back. The dealer still has the deposit and told Dan he’d like him to come in and have a sit-down about why the sale didn’t happen. Dan just wants his $500.
He writes:
Two weeks ago I attempted to purchase a 2010 Hyundai Elantra SE from Long Island City Hyundai in [redacted], NY. I left a $500 deposit on my credit card and $4500 via an electronic check transfer. After a lot of seemingly intentional confusion regarding matching a competitors price (I showed them the prices for both cash and financing and they matched the competitors cash price but only if I were financing), and then being made to wait close to 4 hours for their finance department (and losing a day of work) I got disgusted and canceled the transaction. No contract had been signed and per New York law the deposit is fully refundable. The salesman himself confirmed that the money would be refunded.The dealer’s posted policy is to refund Credit Card deposits on the Friday following the cancellation. As I canceled the deal on Thursday the 17th of June, I expected to see the credit card deposit refunded on the 18th. As of Today I still have not been refunded. I spoke to Jack (who is a manager or possibly owner) on June 29th. He “wanted me to come in so we could talk about the deal falling through.” I wanted my money returned before I would entertain anything of the sort. At this point I believe it became clear to him that I was not going to buy the car from him. Since then I have called back a couple of times every day and he is always conveniently “out” (despite a friend calling immediately afterwards and speaking to him).
All I want is to get my money back. I already purchased the car from another Hyundai dealer and had nothing but a wonderful experience.
I’ve filed a complaint with Hyundai and the Better Business Bureau. I can call my credit card company and dispute the $500 deposit but I’m not sure how to proceed with respect to the deposit from my bank account. Is there a similar mechanism for “disputing” such a transfer. Obviously I can and will file a case in small claims court- but I would prefer to avoid that as it takes a lot of time and effort. Is there someone else I should be contacting? It is possible the dealer has gotten the message and will refund my deposits now- but since they are actively ignoring me I have no way to determine that.
How would you go about getting your deposit back while leaping through minimal flaming hoops?
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Honest dealers are few and far between, regardless of what model car they are selling. You should never give them money until you have everything down in writing and signed by the dealer’s manager. I bought a new car 6 months ago, and I eliminated several dealers after simply walking into a showroom and talking to a salesman for 5 minutes. I got “this deal is only good today”, “My boss won’t go for this deal”, etc. You really need an attorney to look at whatever you signed to see if there is a way out.
The question must be – why leave a $5,000 deposit for a Hyundai? Most dealers may require, at the most, a $100 or so. This is one example of why consumers must be vigilant. The fact this dealer wanted, and got, $5,000 is a clear indication this is one dealer to avoid. Since the dealer has your money, you could be in for a bit of grief. Since it appears to be under $5,000, it is most likely eligible for small claims. If the dealer does not return, small claims is likely the best bet. Hiring a lawyer will be expensive. I would not go that route until small claims proves unsuccesful. The dealer will likely hold the money until the last moment, just before the small claims court date, and then send you a check. The BBB might help if the dealer actually cares about the BBB, which is not always the case. While the dealer may not care about the BBB, it most likely cares about possible sales. Therefore, I think the idea of waiting until a Saturday and then visit the dealer and use a loud voice to ask for your money back, in front of the customers. I have used that tactic in the past with dealers and it does work. Good luck.
You could just go meet with the dealer and give him some honest feedback on why you decided not to do business with him.
I don’t understand why money was exchanged before everything was negotiated. An Elantra is not that hot of a car where you would have to hold one.
If you really don’t want to go and face this guy, contact a local TV station- WCBS or WNBC, they have reporters that do just this kind of thing.
Your bank should have a process in place for disputing an EFT. You may even be able to start the dispute online though you should definitely talk to someone at the bank. You’ll probably need to submit the dispute in writing even if they initially give you the money back while conducting their investigation so don’t forget that part.
Why would someone put a deposit on a mass produced new car? If the one you picked out sells, so what? There is probably 100 identical ones for sale in a 50 mile radius. Or, if you can wait a week or three, you can get a fresh one spec’d just the way you want it right off the next truck.
Go in to see him… with a posse of very large, angry looking friends. Politely ask him to refund your deposit in cash, right there. Right now. Before he upsets you and your friends.
Contact NYC’s Department of Consumer Affairs: http://www.nyc.gov/consumer/ or call 311 and ask for them.
New York law will never help this guy as much as the free market system will.
I suggest he allow the free market to work this one out for him.
Thanks Don for leaving us enough info to find out just where Jack lives and where he works, now I can go hunt him down myself. lol. Just kidding, but I did manage to give Jack a call. If anyone else wants to help Jack learn to be honest call him personally 718.361.6900.
the easiest way to get your money back, and possibly more, is to go to the dealership on an extremely busy day and get VERY VERY VOCAL
Most people don’t understand that you will always get a better deal by financing. The dealerships get kick backs from the financing companies for giving them business. The smartest thing to do is apply for financing and then pay off the loan within 6 months. The amount you pay in interest will still easily be less than the extra you would have paid if you used cash, so long as you have any kind of bargain power. So long as you have good credit you can get just about anything you want at a good price. Taking out loans, having at least two credit cards, and a mortgage is the fastest way to a 800+ credit score. With a 800+ credit score they will beg you to buy things from them and offer you all kinds of deals.
Not being an apologist for the car dealership, but if you made the charge on your card, you will have to sign the void slip that states you originally authorized the charge and then requested the charge be voided. This is a fraud prevention thing.
However, I feel that it is a trap and that you will be… encouraged to continue shopping there for a motorized product. Eff that. Go in, politely, firmly request your refund (and a receipt), and enjoy your afternoon.
Also, Hyundai? You can do better with Scion, dude.
Give us his number so we can call him for you……
Life stinks sometimes and you’ve gotta pull some weight to make up for the short comings of others. Call you bank and let them know what’s going on. Let them tell you how to handle it from that point of view. Then go to the dealer and get your money back. Go at a busy time and raise your voice in the lobby, not a lot, just enough to get people looking and asking questions. Then let it go. Let them know you’re in control. It will take some effort to be in control, but it’s worth it.
You can contact an attorney, however, the only one that wins is the attorney. You want your money back and you deserve to get your money back. Not your money back less attorney fees. Call the bank ASAP, most banks can assist in handling a dispute. I would go to the dealership and ask for your money back and call the police if they refuse. They won’t want customers seeing another customer call the police. Just don’t get angry or aggressive. If they say they won’t give your money just go outside and call the police. The police will tell you that this is a civil matter but having them show up may show the dealership that you mean business. They will take all of your information and document it.
Simple question, why would anyone put down a deposit for a Hyundai? I have been buying cars for forty years and never even been asked for a deposit. No way would I give anyone money as a deposit, except for a house. No reputable dealer would ask for a deposit except when one orders something special.