Can the car deposit be refunded?
2 Answers
It depends on whether the payment slip states "deposit" or "reservation fee" when the payment was made. The following explains the difference between the two: Deposit cannot be refunded: A deposit, which clearly indicates a reservation, is a mutual expression of intent with a specific purpose. According to contract law, except in cases of invalid contracts, deposits are non-refundable, and courts generally do not support the owner's request for a refund. Article 586 of the Civil Code stipulates that the parties may agree that one party shall pay a deposit to the other party as security for the claim. A deposit contract is established when the deposit is actually delivered. Reservation fee can be refunded: A reservation fee, which implies a tentative booking, generally represents a mutual expression of ambiguous intent. Similarly, under the Civil Code, a reservation fee can be requested for a refund.
I worked in the automotive sales industry for several years, and this is a very common question. Whether the car deposit can be refunded mainly depends on the agreement you signed. Pay attention to these two words when paying the deposit: 'booking fee' and 'deposit'—they are completely different. If it's a 'booking fee,' it's considered a prepayment and should theoretically be refunded if the deal falls through, but in practice, 4S dealerships often set conditions. If it's a 'deposit,' it carries a legal guarantee, meaning you'll lose the money if you back out. Also, carefully review the fine print in the contract, such as what happens if the delivery is delayed. In special cases, like the manufacturer failing to deliver the car on time, this constitutes a breach of contract, and you can not only get your money back but also claim compensation. Remember to keep all payment receipts and agreements as evidence in case you need to escalate the issue to consumer protection authorities.
