Moral question, selling a car given a deposit

I need a little help on this one. Three weeks ago I stuck a "for sale" sign in my '90 Chevy truck. I don't drive the truck anymore, it's been sitting in my driveway for a couple of months. I live on a quiet residential street so I really didn't think anything would happen until I actually advertised it in the Recycler or Trucktrader. Within about two hours of putting the sign in I got the first of two calls. The next day I had my wife take the truck to the corner gas/smog station to get tested (in ca to sell a used car it has to have p***ed a smog test within the last 90 days) while getting it tested a guy buying gas came over and was really interested in the truck. He ended coming over the next day, Saturday, and looked at and test drive the truck. He told me he really wanted it but didn't have all the money. He gave me $500 to hold it for him, he was going to be back the following Saturday with the balance. Saturday came and he called to say he still didn't have the cash, he said he would have it in a week which will be this Saturday. My question is this, what do I do if Saturday comes and he still doesn't have the money? I'm not a **** and I'm not looking to F anyone, he seems like a pretty nice guy. I think can sell this truck no problem without much effort, like I said the sign was in it for a day and I got two calls. I feel like I've got three options: 1. give him the deposit back and tell him thanks for nothing. 2. hang on to the deposit and advertise the truck, if he comes up with the money it's his, if I sell it to someone else he gets his money back. 3. (not at all likely) keep the deposit and tell him to beat it, that's what deposits are for. What would you do? Sorry for the long thread, I've bought a lot of cars but I hardly ever seem to sell any. Your help/advice is greatly appreciated.

 

edit,,i re- read it ...

hopefully someone has a better answer,,because ive been in this situation,,,

 

First off, DON'T do number 3. I would call him back and explain to him it has been 3 weeks and you need the money today. If not, it will be back on the market and he can come get his 500 CASH back. Not any other form of payment than what he gave you. Guessing cash here.

That is only fair. You gave him a chance, and he couldn't get it quick enough. He still has a chance, but your not being drug around by a 500 dollar deposit either.

 

I would give him till this saturday,if he still doesnt have the money,sell it to the next guy and give him back his deposit,same thing happend to me guy kept string me along,finally told him enough is enough

 

That was last Saturday, and your right I did say ok. I'm asking about this Saturday. I'm a lot of things but I'm not ***********.

 

Holding the deposit ***umes a contract with a time to be fulfilled. If you have another buyer who is able to pay more quickly, then it's your decision, as to whether to wait for deposit buyer to come thru,(I would advise him that deal time is needing to end) or return it and take buyer #2

 

i know,..your right ,read my post where i edited it,,,it's a tough call,

 

you guys have an agreeable date to purchase the truck by. you put in writing his name, date, amount of deposit down towards the balance. you write in he gets a refund of his deposit if he can't get the balance due by date, or like earnest money-he loses it. YOU BOTH SIGN IT, EACH GETS A COPY. YOUR **** IS COVERED.

WINGED AVENGER
WISCONSIN
'41 PONCHO
'76 MGB
RODS N RELICS

 

I would tell him that you would still like to sell the car to him and you are more than willing to sell it to him........as soon as he comes up with the money.

But until he can get the money the truck is going back up for sale and that he can come pick up his deposit until or if he is able to come up with the rest.

 

Call the guy BEFORE Saturday and let him know the deal....he MAY can get it quicker knowing he is going to lose the deal. Tell him he has by 2:00 pm Saturday. 2:01 pm Saturday, that truck goes back up for sale and his deposit is returned in full. You can't play the waiting game if theres others in line

 

Seems like the way I would go is #2 but call him and tell him that time is running out none the less.

 

This is actually a pretty simple one: (I ought to get hammered for THIS - )

IF you're a BUSINESSMAN - take his dough - tell him to beat it - yuk it up with your friends.

IF you're a fellow who could possibly picture YOURSELF on the other end - ask how YOU would like to be fairly treated and go from there.

The only conscience you face will be your own!

 

From what I read it seems like the timeframe is open ended for him. I think you should tell him exactly how long his deposit will hold the truck. If that is only this weekend, fine call and tell him now. If you are willing to give him until the next week, fine tell him if he shows up or calls this Saturday. It didn't seem like you were in a big hurry to sell the truck in the first place, I think the guy should have a deadline. He may think his $500 will hold it indefinetely.
CHAZ

 

That is a very tough call. He should have held up his end of the deal. You have missed oppurtunitys to sell this and that should be worth something to you. I had a bike for sale and a guy I work with wanted it so he gave me like $650 or something but kept stalling on the rest. I finally told him that he was getting his money back because he was not going to come up with the rest, I could see it. Worked out for the best though, ended up selling it for $500 more than I priced it to him at.
So, the good thing to do would be give his money back and sell it to someone else. Hopefully he comes up w/ the balance and you wont have to deal with it at all. Good luck!

 

Thanks, I think I just needed to hear this from someone else. When I've put deposits on cars it was because I didn't have the money on me, not because I didn't have the money.

 

This is the answer, plain and simple!!!!!

Ill add this:

You ALWAYS need a paper trail and you ALWAYS need to have a clear date that is reasonable for both parties to pay the final amount when a down payment is taken.

Ive sold a lot of cars, and there is a lot of deadbeats out there. The longer you wait for his good word to surface with the money, the longer its off the market, and the potential of losing a buyer that has all the cash by saying he has to wait untill you see if the first guy will come through.

Id wait not a minute longer. Id call him and say, "I have someone that wants to come over tomorrow morning and he has all the cash. Do you have the money yet? No? Then come by and I'll give you back your deposit, I cant wait any longer to sell this truck, sorry."

 

Yeah, you need to give him a deadline. And your time is worth something - if he can't pay by the deadline you set, you should keep a little something for yourself. But all you have on this one is a verbal contract, so if you don't feel comfortable doing that it's your choice. Was it me in this situation I wouldn't expect to get all my deposit back, but not everyone thinks these things out or has the common sense to understand what they're doing in the first place.

I've run into guys who expected me to hold cars for weeks for free, I tell them to send me a deposit, then a week later - after I've told someone I sold it - the ***hole backs out. So I get back to my other buyer and he's moved on too. I still have the damn piece of **** car. That's why you get a deposit and don't return it - if the first guy backs out and costs you the sale, at least you have something for your time and h***le.


I almost think in the same situation, I'd tell him another 7 days and then you run an ad for it, and if someone else buys it before he does, you'll give him his deposit back, less $50 for your trouble holding it for him all this time.


Good luck at any rate -

 

I know its hard to do, but by rights, if you get a deposit and he can't full fill his end.. He loses the deposit. In order words, don't give a deposit if your not 99.9% sure. I sold a 39 ford to a guy in Ohio and took a 500.00 deposit. He call the next week and said he couldn't take it. He knew other people were wanting it at the time, but it was sold. He told me, he didn't expect the deposit back.

 

Call him and let him know the car goes back to being for sale to anyone on saturday, if he doesn't come up with the money. Give him his deposit back, if he can't get the rest of it.

Also, in the future, if you're not a used car lot, don't take a deposit on a car for sale. It eliminates a lot of bull****. Real buyers have cash instead of a story with a deposit.

 

I have done that twice...on a 67 nova wagon and on a 47 chevy sedan delivery...makes me think real hard now...but hey,that's part of the game.....

 

either **** or get off the pot!!! comes to mind. Money talks, and ******** walks; is another one, or how `bout you snooze you lose.

there will be a lesson in this for someone!

Tom T.

 

I 'sold' a truck here on the HAMB this spring. Told the guy his deposit was good until X date. After X date, the deposit and truck was mine. I extended it for him a time or two but he never made it to get it. I ended up keeping the truck. Still got it and kept his deposit. Never did hear back from him.

The deposit depends on the vehicle. If they want me to hold it, I only take enough that it shouldn't wipe them out if they lose it. Usually $100. That will cover my time if I have to do any messing around. It may go up to $150 due to inflation.

 

Yep, a deposit is a show of good faith. Not the first payment.

 

I would definitely not turn away another cash buyer at this point. I would let him think he still has a chance though. Giving him back his deposit with no other buyer is not neccessary at this point..

Do not, and this is from experience, let him toss you another hundred or so this next Saturday with a promise to pay all next week, etc.

Eventually you will need to spend his deposit/ partial payment and then youre screwed. He will stretch it out forever.

Tell him to **** or get off the pot. If he cant pay it all at once, then return his deposit and move on.

 

nice user name boy.

 

Tell him the truck is going up for sale.
You can offer to return his deposit now, or after someone else has paid for it; but the first one who pays in full, wins.

 

The trucks been sitting in your driveway for a couple of months....whats your rush? If you don't need the money then just ask him when he can have the rest of the money to you. If he needs a couple more weeks, so be it, No big deal.

 

I sold a car to someone I knew, he gave me $2000.00 on a $5000.00 car and I let him take the car. He came back several days later and told me he could not go thru with the deal and returned the car. I kept 10% ($200.00) for my trouble and gave him back $1800.00. He was happy andd so am I as the car is my 39 Ford which will be with me now until I die.

 

That brings us to the question: What is a deposit really for?

To me, a deposit means, "I am interested in buying the vehicle. If I can't come thru on my end to get the money to you in a stated period of time, I lose my deposit."

How urgently are you trying to get rid of the truck? If you can afford to keep it around, I don't see why you couldn't work with him...BUT some people like to take advantage of this, telling you they will have the money on "**" day...only to keep stringing you along and storing it for them.

That said, have there been other people approaching you with cash in hand that you have turned away because you already had a deposit? If so, I would keep the money if he doesn't come through. He already told you one date that he did not meet. Then he gave you another. How long are you going to let him string you along? If not, I would give him back his money and put the truck back up on the market. What has this cost you in terms of time and effort?

To me, a deposit is a non-refundable "agreement" to purchase a vehicle. It shows you are serious, and is supposed to make the seller aware of how really and truly serious you are in your intention to follow through with the rest of the transaction.

Otherwise...what good is it to put money down on anything, and decide to bail out, knowing you'll still get your "deposit" back from the seller? Defeats the purpose of offering a deposit to me, written down on paper or not...BUT I would advise, like others have mentioned, to write out a deposit receipt for good measure when taking cash on a partial deal. A paper trail is proof. I always thought it was an incentive, on the buyer's part, to make good on the deal.

I agree with Rustynewyorker.

 

the guy has not done what he said he would end of story.you need to quit worrying about him and do whats right for you and your family, sell the truck to the first buyer with the money and give him back the 500 if it bothers your conscience.you can go along with some one if they do what they say they will do, when they dont the rules change.