Can the deposit for a used car be refunded if I don't want to buy it?
1 Answers
If you have paid a deposit for a used car but no longer wish to purchase it, the deposit generally cannot be refunded. Regardless of whether a sales contract has been signed, the transaction is legally binding and cannot be arbitrarily canceled. If the seller agrees to terminate the contract after negotiation, the buyer will still bear certain liabilities for breach of contract and must compensate the seller for losses incurred. Therefore, the deposit is typically non-refundable. Legal basis: Article 585 of the Civil Code stipulates that parties may agree that if one party breaches the contract, it shall pay the other party a certain amount of liquidated damages based on the breach, or they may agree on a method for calculating the compensation for losses caused by the breach. Article 587 of the Civil Code of the People's Republic of China states that if the debtor fulfills the obligation, the deposit shall be deducted from the payment or returned. If the party paying the deposit fails to fulfill the obligation or fulfills it in a manner inconsistent with the agreement, thereby preventing the realization of the contract's purpose, it has no right to demand the return of the deposit. If the party receiving the deposit fails to fulfill the obligation or fulfills it in a manner inconsistent with the agreement, thereby preventing the realization of the contract's purpose, it shall return twice the amount of the deposit. If the agreed liquidated damages are lower than the actual losses incurred, the People's Court or arbitration institution may increase the amount upon the request of the party. If the agreed liquidated damages are excessively higher than the actual losses, the People's Court or arbitration institution may appropriately reduce the amount upon the request of the party.
