Is this contract legal or not?

A friend of mine put $500.00 on a new car purchase contract while the dealer looked for his color
and option package.

Two weeks later, he found another dealer with the car he wanted and a better trade-in.

He goes back to dealer one, and demanded his $500.00 deposit back.

Dealer said hell no, that's a binding contact.

My friend says no it's not because there was no vin # on it, just "TBD" To Be Delivered.

The dealership did refund his $500.00.

In your opinion, was this a valid contract or not?

 

No - not a valid contract - and thats why they returned his $500.00. IMO I would never have given money to the dealer just to "look" for a vehicle I wanted. All they have to do is look in there computer system and find it which they could have easily done while he was there.

 

thats a used car salesman tactic, not Lexus. i made a 1000 deposit to hold a car on the lot for a few days, but fully refundable. didnt have to sign anything, it just made sure someone didnt buy their last hybrid before i made up my mind

 

The dealer MUST refund any deposit unless you sign a completed contract and drive the car off the lot.
Until you drive the car off of the lot - the dealer still owns it. When a car is in great demand and you want the dealer
to hold the car for you, they will politely ask you to drive the car around the block so that, then you will own the car.

 

Even if there was a contract signed. There's a few days of window where you can still withdraw from the contract, it's a consumer protection or something.

 

In Canada even if they put down "non-refundable" there is still a way to get them refund your deposit. Let me know if you are in Canada, I can pm you the place where you can file a complain and get them in trouble.