Originally Posted by MOAB
Really? Is this proivded for in some statute? Because it is contrary to ordinary contract law.
From this link:
Since there is no provision for a "cooling off" period in Ontario's law, if you want to cancel a vehicle purchase agreement the dealer is entitled to claim "liquidated damages" and retain a part – or all – of your deposit. Liquidated damages arise from the expenses the dealer might have already incurred in when selling the vehicle to you: e.g. advertising, freight and administrative costs, as well as from the loss of profit resulting from this cancellation.
Basically the dealer has to prove in the form of an itemized list the actual liquidated damages incurred by the cancellation. They can't keep the deposit as an arbitrary penalty just because a buyer cancelled an order.
2010 E91 328i xdrive. 6MT, Sports, Premium Sound, Navigation
2010 VW Touareg TDI, 2006 E90 330i, 2004 E46 325iT, 2003 MINI Cooper S (Retired)