How to return a prepayment for a car if you cancel the purchase

A trip to a car dealership does not always end with the purchase of a car. In some cases, a prospective buyer may not be satisfied with the car’s equipment or its color. The way out of the situation is to buy a car to order.

Salon managers strongly recommend making an advance payment. This arrangement of events is beneficial to both parties. The salon receives a guarantee that the client will definitely return for a purchase, and the buyer frees himself from the exhausting search for a suitable model.

It is not uncommon for a buyer's plans or financial circumstances to change. Therefore, in a situation where the client changes his mind about making a transaction, the question arises about returning the prepayment.

Advance concept

An advance is necessary to record the buyer's intentions. The salon, by prior agreement, accepts from the client an amount of money equal to several percent of the purchase price. That is, the money paid as an advance covers the seller’s upcoming expenses.

The agreement between the parties to the transaction must be in writing. Unlike other types of partial prepayment, an advance payment performs only a payment function and is practically not protected by legislative norms.

Important: If the buyer, after completing the agreement, refuses the transaction, it will not be possible to return the advance payment in full. The refund will be made minus the seller's costs (for example, collecting and preparing documents for the car).

Content

• Is it possible to return a used car to a car dealership?
• How to return a car to a car dealership
• Is it possible to return a car purchased on credit to the dealership?
• What to do if the car dealership refuses to accept the car

Many buyers are accustomed to trusting car dealerships. Such companies give the impression of being solid and reliable organizations. But sometimes unscrupulous showrooms hide the ins and outs of a car. Damaged or restored cars are sold under the guise of new ones, legally clean cars are sold as pledged or leased cars, etc.

In such cases, the buyer has a desire to return the car to the dealership. Together with experts, we will figure out whether this can be done, how and what to do if the seller refuses to accept the car back.

What is a deposit and what functions does it perform?

The concept of this type of prepayment is explained in Art. 380 Civil Code of the Russian Federation.

The deposit performs two functions:

Important: The agreement to make a deposit must be drawn up in writing and must indicate the amount of the advance payment. Otherwise, this amount is considered paid as an advance!

How to apply correctly?

The legislation establishes that the agreement on the deposit must be concluded in writing (clause 2 of Article 380 of the Civil Code of the Russian Federation). Both parties to the transaction must be present when drawing it up. Having recorded all agreements in writing, each party puts their personal signature on the document.

The agreement does not need to be notarized.

How to draw up an agreement to deposit the amount?

There is no unified form for such an agreement, so when drawing it up, you can use a standard form. The deposit agreement when purchasing a car specifies the following information :

1. Date and place (city) of signing the agreement.
2. Data about the parties to the transaction (full name, date of birth, passport details, residential address). In the agreement they are referred to as the “depositor” and the “depositor”.
3. Amount of the amount transferred as a deposit: “The Depositor received from the Depositor an amount in the amount of...”. The amount must be indicated in numbers and words.
4. Detailed characteristics of the car for the purchase of which an advance payment is made (make and model of the vehicle, year of manufacture, color, body and engine number, series and number of the technical passport and vehicle registration certificate, availability of additionally installed equipment). A clause in the contract may begin with the words: “The deposit was received for the purchase in the name (buyer’s details) of a car with the following characteristics (detailed description of the vehicle).”
5. The final price of the car upon concluding the main purchase and sale transaction (indicated in numbers and in words): “The cost of the vehicle being sold is determined by the parties to the transaction in the amount of (amount) and is an essential condition of the agreement.”
6. Deadline for concluding the main purchase and sale agreement.
7. Responsibility of the parties in case of violation of the terms of the agreement with reference to the provisions of Art. 381 Civil Code of the Russian Federation.
8. Obligation of the deposit recipient (seller) to transfer the car in its current condition when signing the main agreement: “The deposit recipient undertakes the obligation to transfer the vehicle in the form in which it is at the time of signing this deposit agreement.”
9. Force majeure circumstances.
10. Signatures of each participant in the transaction with a transcript.

Reference! The agreement on payment of the deposit is drawn up and signed in two identical copies. Inconsistencies in the information provided are not permitted. Passport data and information about the car must completely match the data contained in the original documents.

Refund of advance payment upon cancellation of purchase

Chapter II of the Law “On Protection of Consumer Rights” regulates the issue of refusal to purchase a car after making an advance payment. Namely, if within 15 days from the date of purchase, the buyer provides evidence that the car has significant defects, he has the right to demand a refund of the entire amount paid, including the deposit.

If these conditions are violated, the managers of the car dealership have the right not to accept the vehicle (based on Resolution of the Government of the Russian Federation of January 19, 1998 No. 55).

If the buyer changes his mind about bringing the transaction to its logical conclusion, he also has the right to demand the return of the deposit amount. However, this condition must be specified in the contract. To do this, the buyer must come to the salon where the agreement was signed and declare his intentions. The dealer will ask the customer to fill out two applications:

1. Application to terminate the contract.
2. Application for the return of the paid amount.

If the dealer refuses to return the deposit, the buyer has the right to go to court to resolve the dispute.

In what cases can deposited funds be returned and in what cases not?

If the parties to the transaction, before the moment of its execution, by mutual agreement, decided to terminate the obligations, then in this case the deposit is returned back (clause 1 of Article 381 of the Civil Code of the Russian Federation). Also, the deposit is subject to return if the deposit recipient (car seller) has not fulfilled his obligations established by the contract. In this case, the amount is returned back to the buyer in double the amount (clause 2 of Article 381 of the Civil Code of the Russian Federation).

Failure to fulfill obligations implies the following:

• the seller did not provide the buyer with the car within the period specified in the agreement;
• the car was sold to another buyer;
• the characteristics of the vehicle differ from those specified in the agreement (the dealer delivered the car in a different color or with a different configuration);
• the technical or external condition of the car differs from that in which the car was at the time of making the advance payment.

If the buyer himself changes his mind about purchasing a car, then he has no right to return the money (clause 2 of Article 381 of the Civil Code of the Russian Federation).

The car dealership did not fulfill its obligations. How to return a prepayment

The law establishes the right to demand the return of the deposit amount in case of violation of contractual obligations by the seller (Part 3 of Article 487 of the Civil Code of the Russian Federation).

It is not only the Civil Code of the Russian Federation that protects the rights of the buyer. Article 23.1 of Law No. 2300-1 gives him the right to demand full compensation for losses incurred as a result of failure to fulfill contractual obligations.

By paying a deposit, the car dealership client expects to receive the car within a strictly specified time frame. If the vehicle does not go on sale within the specified period, the dealer is obliged to notify you in advance. Typically, the buyer is offered three options for the development of events:

1. Refund of the deposit amount.
2. Changing car delivery dates.
3. Buying another car with similar characteristics.

The choice is always up to the buyer. However, the managers of the car dealership are aimed at maintaining the prepayment amount. Therefore, they will tactfully insist on changing delivery dates.

What to do with an advance and what is the difference?

The concept of a deposit is clearly defined in the Civil Code of the Russian Federation (Article 380); it is used to confirm the buyer’s intention to complete a car purchase and sale transaction. The amount contributed by him serves as security for the execution of the contract.

There are no separate articles explaining the concept of advance payment in the Civil Code of the Russian Federation . The general essence of these payments is similar. The advance is made by the buyer in order to confirm real intentions to make a purchase, but the payment does not act as security for the transaction. If the parties did not indicate in the agreement that the amount of money is being paid as a deposit, then in this case it is considered that the buyer has made an advance on the transaction.

Important! The main difference between a deposit and an advance is the consequences associated with the parties’ failure to fulfill their obligations.

If all agreements between the seller and the buyer are fulfilled and the transaction takes place within the established period, then there will be no difference between the deposit and the advance payment. If the car is not sold, regardless of the circumstances, the advance is returned back. An exception may be cases where the parties to the agreement have indicated liability in the form of a fine for the parties if they fail to fulfill their obligations.

The deposit has a security function. If one of the parties breaks the deal, then sanctions are applied in accordance with Art. 381 Civil Code of the Russian Federation.

Prepayment return algorithm

In order to return the prepayment, the buyer must personally appear at the car dealership with a statement of termination of the contract. The dealer is given 10 days to review the request.

The application is submitted to the manager. The form of compilation is free, but the following details and information must be indicated in the text:

1. Full name of the car dealership, its address, full name of the manager.
2. Information about the buyer (full name, registration and/or residence address), telephone number.
3. Date of the transaction.
4. Terms of a transaction.
5. Deposit amount (be sure to write it in letters).
6. Reasons for termination of the contract.
7. Expressing a demand for the return of the deposit.
8. Date and signature.

If, at the end of the period for consideration of the application, the car dealership refuses to return the advance funds, the client must proceed to the stage of drawing up a claim.

The claim is drawn up in two copies. One of them is given to the dealer. On the copy that remains with the buyer, it is necessary to put the incoming registration number of the document and the date of its acceptance for consideration. If the salon employees refuse to accept the claim, it should be sent by registered mail with notification.

The dealer is also given 10 days from the date of receipt to consider the claim (the date of receipt will be indicated on the postal notification). If the reason for termination of the transaction was a poor-quality product, an examination is appointed, based on the results of which a final decision will be made.

When can the deposit be returned?

The transfer of funds as a deposit is fixed in the terms of the contract or a separate agreement. At the same time, the parties indicate the following information:

1. characteristics and equipment of the vehicle for the purchase of which an advance payment has been made;
2. the period during which the car dealership undertakes to deliver and hand over the car to the buyer;
3. the amount of the deposit that the buyer gave towards the cost of the car.

If the car is delivered in the proper configuration and the order is not overdue, the entire amount of the deposit will be taken into account towards the price under the contract. However, if the car dealership violates its obligations, the buyer has the right to choose a further course of events - wait to receive the car, or demand a double refund of the deposit.

The most common reason for returning the deposit is a violation of the delivery deadlines for the ordered car . The buyer has the right to make such a demand the next day after the expiration of the delivery period. Also, the basis for return will be the discrepancy between the characteristics and configuration of the vehicle, if the buyer and seller do not agree to reduce the price under the contract, or set a new deadline for the delivery of the appropriate vehicle.

The car dealership cannot unilaterally change the terms and conditions of delivery of the car , which were fixed in the contract. To make such changes, an additional agreement must be drawn up. However, the buyer has the right to refuse to establish new deadlines for the fulfillment of obligations and make a demand for the return of the deposit.

You cannot receive a deposit if, after handing over the car, minor defects were discovered that could be eliminated during warranty repairs. In this case, you can file a claim to eliminate deficiencies, carry out repairs, reduce the price of the car, or other requirements. Even if significant and irreparable defects are discovered during the operation of the vehicle, the buyer will be able to return the full or partial cost of the car, but not a double deposit.

Complaint to Rospotrebnadzor

Rospotrebnadzor is a federal service that protects consumer rights. A complaint should be filed with this authority only after a refusal to return the deposit has been received from the dealer. The absence of an official response from the management of the car dealership (if there is a mark indicating that they have received the complaint) is also grounds for a complaint.

The application to the federal service contains the same information as in the application for termination of the contract. The complaint must also be accompanied by a copy of the contract, a receipt for payment of the deposit and the claim.

Rospotrebnadzor considers citizens' appeals within 30 days. If the outcome of the review is an order to eliminate the violation, the dealer will be required to comply with all requirements of the federal service. In case of non-compliance, the management of the car dealership will be held administratively liable.

How does the contract protect the rights of the buyer?

After the deposit for the purchase of a car has been officially transferred and the corresponding contract has been drawn up, the buyer does not have to worry that the car will be transferred to another person. The concluded deal provides the following advantages:

• the purchase will be completed within the specified period;
• the final cost of the car will not change;
• cancellation of the transaction due to the seller guarantees compensation.

When fulfilling the obligation to make a deposit becomes impossible due to reasons beyond the seller’s control, the deposited amount will be returned to the buyer - this procedure is enshrined in Art. 416 of the Civil Code of the Russian Federation - as in the case of a mutual agreement between the parties to cancel the sale.

If the transaction proceeds in the usual format, then the due balance of funds will be paid by the potential client later on the deadline agreed on the paper: the seller, in turn, can also relax, not worry about the sale of the car and count on compliance with the agreement.

Going to court

A lawsuit is an excellent way to protect your rights. Art. 131 of the Code of Civil Procedure of the Russian Federation establishes the form and content of such an appeal. A sample application can be found on the Internet.

In order for a positive decision to be made during the consideration of the case, the plaintiff will need to provide evidence of the validity of the return of the advance.

The main evidence in this situation is:

1. Contract of sale.
2. Car warranty card.
3. A check for payment of the deposit amount.
4. A copy of the application for termination of the contract and the outcome of its consideration.
5. A copy of the complaint and the response to it.
6. Conclusion of the expert commission on the vehicle malfunction.
7. An order to eliminate violations issued by Rospotrebnadzor (if any).

If the prepayment was made without concluding an agreement, the plaintiff must provide testimony from third parties. However, in most cases, the return of undocumented advance funds is impossible.

Procedure for returning the deposit

When drawing up a purchase and sale agreement or a deposit agreement, the parties can foresee in advance the procedure for filing a claim and returning funds. Naturally, the terms of the agreement cannot contradict the norms of the Civil Code of the Russian Federation and other regulations. For example, establishing a clause in the contract regarding the refusal to return the deposit or reduce its amount will be contrary to the law.

The Civil Code of the Russian Federation provides for the following procedure for returning the deposit for a car at a car dealership:

• Having established that the seller violated the deadline for transfer of the vehicle, or another obligation under the contract, you must submit a written claim and demand a double refund;
• since a transaction involving citizens is subject to the Law “On the Protection of Consumer Rights”, the seller is obliged to respond to the claim no later than 20 days (the car dealership is obliged to transfer the money or send a reasoned refusal);
• if the claim is refused, the deposit can be recovered in double the amount through the court (in this case, a fine, penalty, and compensation for moral damage will be collected from the car dealership);
• Having received a court decision and a writ of execution, you need to send them to the bailiffs for forced collection of funds.

The parties may change this procedure in favor of the consumer. For example, a car dealership may agree to reduce the period for returning the deposit and to file claims at the place of actual sale, rather than at the central office.

Making a claim

If the car dealership admits the violation and agrees to return the deposit in double amount, you can avoid filing a claim and going to court. In order for the seller to be able to take into account the return, you must submit a written application and formalize the termination of the purchase and sale agreement. Money can be issued in cash or transferred according to the buyer’s account details (if the contract or agreement does not specify the form of refund, the seller can choose any option).

To return funds upon application, no more than 3 days are given . If the buyer has not received the money within this period, he can file a claim. Typically, the claim is filed with the seller's authorized representative named in the contract. To avoid problems with receiving funds, you need to consider the following rules for filing a claim:

1. the document must be handed over to an authorized representative of the seller against signature, or sent by mail (when you subsequently go to court, you will have to provide evidence that the seller has received the claim);
2. in the text of the claim you must indicate information about the concluded agreement, refer to the transfer of the deposit, indicate the amount of the advance payment;
3. In order to receive a deposit, the buyer must indicate a violation of obligations on the part of the car dealership (for example, failure to meet the deadline for transfer of the vehicle).

Claim for a refund to a car dealership (sample)

The seller may not wait until the deadline for consideration of the claim expires and transfer the money to the buyer. If the seller does not agree with the fact of a violation, he must send a reasoned response justifying his position. If you evade returning the money or sending a response, the car dealership will be fined under the Law “On the Protection of Consumer Rights”.

Why do you need a preliminary agreement?

Registration of the PDKP ensures guaranteed execution of the main contract. A correctly executed document will ensure the protection of the interests of both parties to the transaction.

The PDCP is drawn up in the presence of “inhibiting” factors that do not make it possible to immediately conclude the final version of the contract.

The reason for this could be:

1. Lack of complete documentation.
2. The buyer does not have the required amount requested by the seller.
3. The heir who wants to sell the car has not taken over his rights, etc.

There can be an endless number of reasons for making a preliminary agreement.

The main purpose of concluding a PDCP is to confirm the seriousness of intentions. To ensure guarantees for the final completion of the transaction, you can contact an experienced lawyer to draw up an interim agreement, who will write down the requirements in the document so that the parties in the future will not be able to refuse the planned main contract.

This is especially important when executing expensive transactions, for example, the sale of vehicles, which is usually carried out by sales agents upon prior application.

Registration of the TC PDCP will ensure:

• Protection from an irresponsible or unscrupulous buyer in case of unexpected refusal of the ordered car.
• Guarantee to the buyer that the security deposit will be retained.
• Providing the vehicle on time, in accordance with the interim agreement, ensuring the signing of the main contract.

Is it possible to return a car purchased on credit to the dealership?

A loan car can also be taken to a car dealership. Refunds are subject to the same conditions as for full payment for the car. The dealer is obliged to transfer the entire amount along with interest, and you transfer it to the bank. The latter, in turn, removes the mark on the deposit, gives the title, after which you hand the car back to the store.

The law also allows for a vehicle with legal problems to be returned to the dealership. Such cars, unfortunately, are also often found in dealerships. For example, at the beginning of 2021, one of the Moscow dealers sold a Hyundai Creta to a woman, who was listed as collateral. The problem only became apparent after a month of use.

To save yourself from unnecessary problems, lawyers advise carefully checking the history of the car, even if you buy it from a good car dealership. Run the car through the databases and make sure that your future iron horse is completely clean and will not let you down.

Here's an example: the fourth Optima is sold for almost a million rubles. The manager of the car dealership said that the car was in perfect condition, not damaged, the oil and brake pads had been changed.

We check the car through avtocod.ru and immediately see that the car is damaged.

The accident occurred in April 2021.

There is no diagram of the damage, but from the calculations of the repair work it becomes clear that the impact fell on the front part.

The bumper, radiator grille, and hood were replaced. In total, restoration costs ranged from 112,658 to 119,628 rubles.

The Optima actually had a technical inspection. At the same time, the car's mileage decreased.

It’s not pleasant to find out about problems after the purchase. If you are planning to return the car, but the seller does not cooperate, you will only be able to get your money back through the courts. Additionally, you can recover money for moral damages.

Also read: 8 most common mistakes when buying a car