Deposit....What Does It Mean?

Triple Trouble · Dec 15, 2005

What is your take on what a deposit on something is for?

In this particular case it was for a motorcycle but it could be for a boat, truck, or just about anything.

The story goes like this.
I had a guy come and look at my motorcycle on 12/2 and says he likes it but wants to take a look at a couple more before he decides.
I get a call the next day and he asks me a couple more questions about the bike.
On the following day he calls and wants to talk price and if I come down he will have his wife put a check in the mail for $250 as a deposit. He said he was on his way to the airport to go out of the country on business and would handle the rest of the transaction and pickup of the bike.

On Thursday 12/8 his wife left a message on my answering machine saying I should get the check Friday or Saturday. I got a personal check Saturday and deposited it on Monday the 12th.

I get a call from the guy today, Thursday 12/15 and he gives me the old story about his wife giving him a hard time about it and he wants to back out of the sale and wants the deposit back.

My feeling is that a deposit says I am giving this to you until I can return with the rest of the funds needed to finish the transaction and that you do not sell it to someone else.

I did let an add in the local paper expire and I turned away another potential buyer over the phone when I told him I had a deposit on the bike.

If I do decide to return any of it I am going to wait an adequate amount of time to make sure that he does not stop payment on the check that I cashed.

What does a deposit mean to you?
Do you feel I should return none, all, or a portion of it?

Thanks,
Cordell

OldMagicfloat · Dec 15, 2005

A deposit is to hold the bike for him until he returns with the rest of the dough. He's not returning with the rest of the money. Keep his deposit.

Tell him to get the $250.00 from his wife! :dead:

Car Biz · Dec 15, 2005

That is your money he failed to take delivery. That is what a deposit means to me. my .02.

HammerEd · Dec 15, 2005

Keep it.Can't use the wife excuse if she's the one that mailed it.I think it's pretty much common knowledge.

hap hazzard · Dec 15, 2005

It's a deposit until a road test and only returnable if something is wrong with the bike.

Underdog88 · Dec 15, 2005

I just put a deposit on a boat at a dealer. 10% to hold boat until I can get out there to see it in person, hear it run ect. I asked them if it was refundable and they said of course. If the boat didn't meet my satisfaction for any reason I get my 3k+ deposit back.

Tim G. · Dec 15, 2005

Underdog88 said:
I just put a deposit on a boat at a dealer. 10% to hold boat until I can get out there to see it in person, hear it run ect. I asked them if it was refundable and they said of course. If the boat didn't meet my satisfaction for any reason I get my 3k+ deposit back.

But what if your wife doesn't like the colors, or you????? Then your 3k is history...right?

F that guy and his $250. that's what a deposit is for. Keep it. Buy $200 worth of ads for the bike and get it sold. Give me the other $50. :bigsmile:

tcob · Dec 15, 2005

i don't think any 'dealer' would keep it. i wouldn't. figure it's just part of doing business.

HammerEd · Dec 15, 2005

Underdog88 said:
I just put a deposit on a boat at a dealer. 10% to hold boat until I can get out there to see it in person, hear it run ect. I asked them if it was refundable and they said of course. If the boat didn't meet my satisfaction for any reason I get my 3k+ deposit back.

Different situation.This guy already checked the bike out.

NYSuperboat24 · Dec 15, 2005

Jeeze Cordell I hate to here this. I think that you are totally in the right on keeping the deposit. I also very much agree with your reasoning. The deposit is to hold his place as buyer. Since he no longer is willing to be the buyer he has forfeited that right and forfeited his deposit. Besides you have already lost a potential sale and if you decide to re-run the add it is money that possibly you wouldn't't have had to spend if another buyer had come along. Now if he was the only person that had showed any interest in the bike then I would have a hard time not giving his money back, but there is the potential of a lost sale in the mix which sways my opinion. I hope everything works out and keep us posted.

Underdog88 · Dec 15, 2005

You right it is a different situation. I re-read the original post where he already looked at the bike and said he wanted it.

Keep it!

Triple Trouble · Dec 16, 2005

The person did come and look at the bike.
It is a 2005 model, black, with 2k miles and no damage.
We ran the bike in the garage.

His wife signed the check and wrote on the line deposit for "type of bike".

I know that she was well aware of what it was as he said that he had discussed it with her when I talked with him on the phone.

This guy gave me a business card with a web site address on it and I looked at the site today. Looking at what he does for a hobby and some of the pictures of past and present toys I doubt that he would miss the $250.

Personally I think that he found something else that he likes better which is fine with me. He should just suck it up and tell me the truth instead of blaming his wife.

Cordell

Rattlesnake Jake · Dec 16, 2005

Put a 10,000 deposit on a 37 Sundancer last year, contingent on my selling my 34 within a certain time frame, as the dealer and I could not agree on the trade value. Long story short, didn`t sell the 34 so I got my deposit back.
Tell him you`ll refund his money after you sell the bike.
Pi$$ fights settle nothing.

dragster3 · Dec 16, 2005

Triple Trouble said:
The person did come and look at the bike.
It is a 2005 model, black, with 2k miles and no damage.
We ran the bike in the garage.

Cordell

My opinion is that he was asking to have you provide a "service/product" with the deposit. Namely, you taking the bike off the market while he was out of town and while he was getting the rest of the money together.

Best case - you keep the deposit for your trouble and loss of a sale.

Worse-case - (if you are feeling generous) you keep a sum of money to place another ad, etc...

My $.02

DagaH2X · Dec 16, 2005

Different deal with the boat deposit, you havnt seen it yet. Guy saw the bike and gave a deposit and changed his mind, tough beans.........I guess to answer the question deposit means what ever you verbally agreed it means, if he says heres a deposit till I get back from my trip like this guy then the money is yours. If he said heres a deposit until my mechanic checks it out then thats different.

Readvertise the bike and tell him if you sell the bike for the same price or more youll give him the $$ back minus advertising costs. Otherwise the wifey gets $250 less under the tree this year!

Mr. Demeanor · Dec 16, 2005

Is the guy local? I would keep it but know that some people will come by your house late one night and heave a brick through you front window. I bet if you keep it he buys the bike.

larson01 · Dec 16, 2005

I would keep it since you lost potential sales on the bike

DonMan · Dec 16, 2005

It depends upon what both of you verbally agreed his deposit was for. If you didn`t discuss exactly what a deposit would do for him, I think you should explain to him what YOU think a deposit is for and tell him that if you sell the bike, he can have his deposit back, less the cost of re-listing the bike.

My personal policy is that a deposit is to remove the item from the market and give the buyer an extended time to obtain funding for the item. If buyer cannot obtain the funding, the deposit is forfeited and the item is placed back on market. I NEVER refund a deposit. I ALWAYS verbally set a time limit and explain that the deposit WILL NOT be refunded.
To be honest, I`ve never had anyone ask for their deposit back.

DonMan · Dec 16, 2005

If you told him up front that his $250 was non-refundable, then NO...I would tell him to take a hike.

On the other hand, it`s only $250. I wouldn`t try to make enemies over $250.

chjohn · Dec 16, 2005

I never accept a deposit or "save" an item without a written agreement and I always specify that the deposit is non-refundable. Yes, you can lose a sale by requiring the agreement but if they are a serious buyer they should have no problem with it.

US1Fountain · Dec 16, 2005

Tell him to buy the bike, then he can sell it to get his deposit back.
You get rid of the bike, he gets his money back.

Since it's only $250, do what will make you sleep at night.

Guess I am too soft. I have given deposits back a couple of times. I figure they get caught up in the excitement, then have buyers remorse afterwards. Figure all I'm really out then is another $30 to relist. Sometimes I think the deposit is more protection for the buyer sometimes, so the seller doesn't sell it to a higher bidder. Kinda a double standard though that way of thinking.

Mr. Demeanor · Dec 16, 2005

I took a $500 deposit on a motorcycle once and the guy never came back for it and wouldn't return my calls. I sold the bike to someone else and left another message (several) for the guy and he never came for his money or the bike. I have wondered if the money was counterfeit???

tavis12 · Dec 16, 2005

Give the money back. If his story turns out to be true, and you were put in the same situation, wouldn't you want the same treatment?

Mr. Demeanor · Dec 16, 2005

tavis12 said:
Give the money back. If his story turns out to be true, and you were put in the same situation, wouldn't you want the same treatment?

Then why even take a deposit. From now on I ust tell people that the first one to show up with cash. I have my bike, a 2000 Suzuki Hayabusa, for sale right now and I am not screwing around waiting for someone o show up with funds while I sit on their deposit.

cbrxxtreme · Dec 16, 2005

hap hazzard said:
It's a deposit until a road test and only returnable if something is wrong with the bike.

Never let anyone ride your bike, untill you have CASH in hand (cardinal rule), They crash it they aren't going to buy it. If it don't run give them $ back. Deposits are non-refundable however. I've kept 2 on different cars I've sold. One guy called and told me he couldn't come up with the rest, and said to keep the deposit (was going to anyway, but at least he was nice about it), the other I just never heard from. Never returned my calls, maybe he got arrested or died? the $250 is yours, even if he tries small claims court they will rule in your favor. What is the bike, out of curiosity?

tavis12 · Dec 16, 2005

Mr. Demeanor said:
Then why even take a deposit. From now on I ust tell people that the first one to show up with cash. I have my bike, a 2000 Suzuki Hayabusa, for sale right now and I am not screwing around waiting for someone o show up with funds while I sit on their deposit.

I feel if you can give someone a break you should. If he had called and said he found a different bike and wanted his money back, that would be a different story. But he told the right story, in my opinion anyway.

Now it's entirely possible that he found another bike and he's going to turn around and give the money to that seller. Even if that's the case, it's something he will have to live with (being a lying scumbag), and I wouldn't let that affect my sense of right and wrong.

Deposit....What Does It Mean?

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