Can the car purchase deposit be refunded?
1 Answers
Generally, the deposit paid for a car purchase cannot be refunded. If the buyer breaches the contract, the deposit is non-refundable. However, if the car seller breaches the contract, the buyer can request double the deposit as compensation or demand reimbursement for losses along with the refund of the deposit. The parties involved may agree that one party provides a deposit to the other as a guarantee for the debt. Below is relevant information: Regulation: According to Article 587 of China's newly implemented "Civil Code": If the debtor fulfills the debt, the deposit shall be offset against the price or refunded. If the party paying the deposit fails to fulfill the debt or does so in a manner inconsistent with the agreement, thereby making it impossible to achieve the purpose of the contract, they have no right to request a refund of the deposit. Reason: Once a car purchase contract is signed with a 4S store and a deposit is paid, regardless of whether the buyer later decides not to purchase the car or wants to buy a different model or configuration, the deposit cannot be refunded. This is because such actions constitute a unilateral breach of contract, and the 4S store has the right not to return the deposit.