Gotten into a problem with the seller

[X 02]

Couple days ago I went to a local private seller's home to look at a NSX he has listed in the trader. Needless to say, after going over the car, I was very happy with the condition of the car and the price he was selling. I gave the seller a $3k deposit on the spot to hold the car for me for two weeks before I can come up with the rest. The seller agreed and we both signed a simple sales agreement and I was on my way home. Two days have past now and the seller has withdraw the deposit from my account. This morning around 8am, he calls me out of the blues and ask if I have the remaining balance ready to pay for the car and oddly enough I did because I was working very hard these couple of days to come up with the money so I can drive the car home as soon as possible. So I gave him the good news and we were making plans to closed this deal some time this afternoon. However, couple hours later, he calls back and tells me that he does not want to sell me the car and want to give my deposit back. Needless to say I was furious because I had to take off time from work, drive 80 miles one way to go see the car, take off time from work again today to make arrangements to pick up the car, transfer money here and there, paying bank fees, ordered wheels, car cover and alarm for the car and now this moron tells me he doesn't want to sell. He wasn't really a very nice guy to deal with from the start and I was doing everything he asked so he woudn't be inconvenienced by this sale and gave him what ever amount deposit was asked for. I now feel like he's giving me the run around and I am very pissed off.

I want to take this guy to small claims court to not only get my deposit back but to sue him for damages. I can only imagine the reason why he backs out is because he's selling this car $3k-$4k below wholesale and he's loosing sleep over it now. AT least that's the excuse he's giving me saying he's wife is telling him are you positive you want to sell this car? You are loosing alot of money on depreciation selling a 2 year old car at such a price. But why didn't he think about all this before he submitted the ad in the autotrader and actually accepted my offer and deposited my check? I think I have a good case in my hand sueing him for damages and he will not only have to cover all the effort I put in before, during and after the sale, he now will also have to cover the price difference for me to get another car similar to this one at a regular market price. What do you all think?

 

[KGP]

Not a lawyer, but...

If you have a signed agreement, noting the car in question, as well as a cashed deposit check, you have a case - no question about it. Your question has to be how much hassle and time would be involved to get the car, and what would be happening to the car in the mean-time.

 

[X 02]

A simple signed sales agreement stating both parties name, address and sell price, mileage, VIN, year and deposit amount were all listed in the sales agreement. I have also stated few clauses in the agreement that the seller is not to sell the car to anyone else during the two week period after he accepted my deposit and we both have to follow through with this purchase to the fullest extend unless we both agreed to forfit. I check with my bank yesterday and the check was cleared. I wrote a letter of demand to the seller just now and will certified it to him tomorrow. I have stated the damages amount in the letter and he will also have to refund my deposit.

I am not sure how much time I will have to put out sueing someone through small claims. It shouldn't take up too much since it's a small claims. As for the condition of the car during the mean time, I will definitely ask the court to give me time to have the car re-inspected and tested by an Acura dealer if the seller decids to sell me the car then. Obviously if the car is in any other condition than what I saw two days ago and what the seller described in the trader as mint and under showroom condition, I should have the right to back out. This is the first time I have ever sued anyone and I can't believe it's over my dream car. Thanks.

 

[Motegi]

Very sorry to hear about your predicament. I am pretty sure I know of the car in question (silver). It was definitely an incredible deal for the year and mileage.

I lost a deal on a 99 silver coupe for 43K several months ago in the final paperwork phase (seller decided that they didn't want to sell). However I have signed papers for a low mileage '00 today and am hoping all will go well.

Best of luck in getting things worked out.

Late,
Motegi

 

[KGP]

It shouldn't take up too much since it's a small claims.
Are you sure it would be a small claims civil suit? My state only allows a maximum of $3,000.

A few other things to consider:

A) Do you have written corresponece from the seller that he decided to back-out of the sale? If not, I would try to get it.

B) Your contract states that you must pay the balance within two weeks. So, if you don't have proof of "A", then it could concievably come down to his word against yours, with him claiming that you did not pay the balance within the contractual time limit. It might even be to your advantage to pay the balance (via certified letter with check enclosed) to provide for evidence that you help up your end of the agreement. That I'd check with your lawyer on.

 

[X 02]

It shouldn't take up too much since it's a small claims.
Are you sure it would be a small claims civil suit? My state only allows a maximum of $3,000.

California allows up to $5k dollars in small claims.

A few other things to consider:

A) Do you have written corresponece from the seller that he decided to back-out of the sale? If not, I would try to get it.

The seller has told me this afternoon that he will overnight a check to refund my deposit. Is that good enough?

B) Your contract states that you must pay the balance within two weeks. So, if you don't have proof of "A", then it could concievably come down to his word against yours, with him claiming that you did not pay the balance within the contractual time limit. It might even be to your advantage to pay the balance (via certified letter with check enclosed) to provide for evidence that you help up your end of the agreement. That I'd check with your lawyer on.

Based on the above statement, I don't think I need a certified check. He's mailing me back a check for a refund. And in my letter of demand, I gave him 7 days to reply back with an answer as to what he wants to do, sell me the car or go to small claims. But I guess I can go get a certified check just in case.

 

[KGP]

California allows up to $5k dollars in small claims.

Better check with a lawyer. I wonder if the amount in question would be the balance of the car or what.

The seller has told me this afternoon that he will overnight a check to refund my deposit. Is that good enough?
I suppose that would be evidence enough that he has rejected the sale. Should you cash the check it might be evidence that you have accepted the fact of him not wanting to sell.

Based on the above statement, I don't think I need any certified check.
I meant certified mail, not check. Certified so that you had evidence that he had recieved the balance due within the contractual time limit.

 

[X 02]

Better check with a lawyer. I wonder if the amount in question would be the balance of the car or what.

I am sueing him within the $5k limit so I don't have to hire a lawyer and I am capable of doing this myself with a help of a friend.

The seller has told me this afternoon that he will overnight a check to refund my deposit. Is that good enough?
I suppose that would be evidence enough that he has rejected the sale. Should you cash the check it might be evidence that you accepted him not wanting to sell.

Yes, I think that will do it but of course, I will not deposit his check

Based on the above statement, I don't think I need any certified check.
I meant certified mail, not check. Certified so that you had evidence that he had recieved the balance due within the contractual time limit.[/B]

You think I should still make a bank check out to him and mail it certified? He still owes money to the credit union and I was suppose to just pay the credit union directly so they will release the lien.

 

[KGP]

You think I should still make a bank check out to him and mail it certified?
That I would definately ask your lawyer friend about. I don't want to pretend to be a lawyer. I'm just trying to offer some logical thought to someone who is probably so pissed they can't see straight, much less try to think clearly about the whole thing.

 

[X 02]

KGP, you think I am pissed now? You should see me this morning when he told me he wants out.. I am ok now and thanks for your concern. I will ask my friend and see about the certified mailing. Thanks

 

[KGP]

I'd like to see this one played out on Judge Judy.

 

[X 02]

I ain't gonna put up a free show.. haha

 

[nsxtasy]

If you want to get nasty, you can sue him for breach of contract, not just for your expenses... (I am not a lawyer though)

 

[ChopsJazz]

IMO Gene is on track here. You should make sure that you follow through with your end of the contract to the letter. Also, don't cash that check! It shows that you accept his terms. JMO, like the others here, I'm not a lwyer either.

Good luck. And slapping a breach of contract suit on him may just force his hand.

 

[EssTooKayTD]

hope things work out, but I couldn't help but think when you said you bought stuff for the car...it's like counting your chikens before they hatch isn't it? Like buying furniture for a house you haven't closed on? ANYWAYS, hope things work out.

 

[S Flavor]

 

[X 02]

hope things work out, but I couldn't help but think when you said you bought stuff for the car...it's like counting your chikens before they hatch isn't it? Like buying furniture for a house you haven't closed on? ANYWAYS, hope things work out.

Very true EssTooKay and I will definitely remember this next time. For me, this wasn't something just verbally. We had written sales contract, terms and deposit involved. From my past experience, if the seller wants to get out of something like this, they will have to pay for damages. Especailly when the seller demands $3k which is not a small amount. I really didn't think he will back out or do such a stupid thing and the minute I found out my deposit has been cashed, I felt it's a done deal.

I just sent out my "letter of demand" to the seller and consulted my lawyer friend. She tells me certifying the seller a check stating I do have enough funds to pay off the balance is not necessay. The minute he refunds my deposit simply states that he decides to breach this sales contract and not wanting to follow through with the sale. I gave the seller 7 days to reply back with my demands or I will file a case with small claims.

 

[KGP]

... I couldn't help but think when you said you bought stuff for the car...it's like counting your chikens before they hatch isn't it?

Sancho must have taken a hit off the go-fast crack pipe a little early.

 

[NSXnBRLA]

I hope it works out for ya. I dont know if i'd be too keen on buying a car from someone that I was threatening with a lawsuit, though. He could do some significant damage to it that wouldnt be apparent for a few thousand miles, then call you and 'change his mind' and decide to go ahead with the transaction. From here, i'd only accept a monetary settlement, and NOT the original deal.

 

[X 02]

I hope it works out for ya. I dont know if i'd be too keen on buying a car from someone that I was threatening with a lawsuit, though. He could do some significant damage to it that wouldnt be apparent for a few thousand miles, then call you and 'change his mind' and decide to go ahead with the transaction. From here, i'd only accept a monetary settlement, and NOT the original deal.

That's an excellent point NSXnBRLA.. I thought about buying from someone I am sueing. What can someone do to a car that will only appear after few thousand miles? As for my demands, I don't think I can only request monetary settlement through small claims since the original deal was to purchase the car. I will however, if the seller does decide to sell me the car later on, definitely have a reputable Acura dealer inspect the car and also perform a compression test on the engine in case he dumps sugar in the gas tank..

Can someone recommend a Acura dealer in Southern California who is competent enough to do the inspection work for me, thanks?

 

[EssTooKayTD]

Very true EssTooKay and I will definitely remember this next time. For me, this wasn't something just verbally. We had written sales contract, terms and deposit involved. From my past experience, if the seller wants to get out of something like this, they will have to pay for damages. Especailly when the seller demands $3k which is not a small amount. I really didn't think he will back out or do such a stupid thing and the minute I found out my deposit has been cashed, I felt it's a done deal.

I just sent out my "letter of demand" to the seller and consulted my lawyer friend. She tells me certifying the seller a check stating I do have enough funds to pay off the balance is not necessay. The minute he refunds my deposit simply states that he decides to breach this sales contract and not wanting to follow through with the sale. I gave the seller 7 days to reply back with my demands or I will file a case with small claims.

Yeah, I don't blame you for thinking it. Call me conservative, but it's one of those, you never know type deals, and in this case, it actually happened! I'm sure the seller will see he's in a tough position and should just settle outside of court and realize he kind of messed up. Good thing you guys/gals put it down in writing.

Tom

 

[X 02]

I hope it works out for ya. I dont know if i'd be too keen on buying a car from someone that I was threatening with a lawsuit, though. He could do some significant damage to it that wouldnt be apparent for a few thousand miles, then call you and 'change his mind' and decide to go ahead with the transaction. From here, i'd only accept a monetary settlement, and NOT the original deal.

What sort of damage can the seller do that will only appear after a few months?

 

[frisbee54]

It can be a bummer dealing with a flaky seller or buyer I'm not sure how much $ you would be able to recieve in court as I think you can only get actuall $ for damages ie maybe for the amount of time off of work trying to buy the car unfortunaly it may not add up to be worth your time and effort Good Luck Doug

 

[Motegi]

Worst case scenario the seller could do many many things. I would list some but I don't want to give any ideas.

I'm not sure I would feel good about purchasing anything let alone an expensive used car from someone to whom I've made legal threats.

But if you do go through with it the bottom line is INSPECTION, INSPECTION, INSPECTION! I would recommend an inspection by a NSX master technician (preumably at a dealership). Ask for one directly since they will be most familiar with the way the NSX is supposed to drive/look/feel.

Have the inspector drive it, test the clutch, put it on a lift and look from underneath, check the oil (for abrasive additives or whatever else), check the tires, A/C, stereo.

It may be wise to be prepared to purchase on the spot as soon as the inspection is completed (presuming everything checks out) so that the seller cannot make any "modifications" afterwards.

Late,
Motegi

 

[ajnsx]

but I couldn't help but think when you said you bought stuff for the car...it's like counting your chikens before they hatch isn't it

nope, just nice to have the stuff ready for when you do get the car speed things along!