Tips on Buying Cars: Want to cancel car purchase Agreement--Urgent, chev cobalt, proper legal advice

Question
Signed a document to purchase a 2009 Chev Cobalt LT Sedan 4.16.09.  Gave $500.00 deposit.  They brought the car in from Brampton.  I advised yesterday that I wish to cancel this & noted that they had the righ to keep my deposit.  Manager says he will take legal action & it will end up costing me around $3500-$5000 for this cancellation.  His main reason being they brought the car in for me.  Time is running out fast...please help me.  I need to cancel the deal.  Is no grace period? I don't have the car & the VIN# is not on the signed contact either.

Answer
Dear Elaine,

I hope you are doing well.

I am not sure of the legal details, but I believe that they don't need to give back the $500 deposit.  This is the reason for the deposit in the first place as an act of good faith.

Since they had to pay for the transport of the vehicle, I believe that you won't have much of an argument to get your deposit back.

If you want proper legal advice, I would speak to an attorney, but I think the cheapest solution is to give up the deposit and walk away.

I hope this helps.

Best regards,

Paul