UCAN

I needed a car so I decided to try and get preapproved before I started to look. I was approved for 18,000 with Capital One. I saw a 2003 Toyota Solara for $6700.00 on the web and decided to take a look at the car. I test drove it, did a visual inspection and everything seemed ok. So I decided to buy it.

The problem was that Capital One requires that I purchase car from a franchised dealer, which this dealer wasn't. So I decided to try and get financing through the dealer. I signed a credit application and left a $500.00 Down payment ( the dealer said that his lenders woudn't approve without it). That was on a Thursday. The next day, Friday, the bank called to verify my information. I didn't hear from neither the dealer or the bank until I called on the following Wednesday to tell them that I found another car and used my preapproved credit form Capital one.

The sales manager told me I was approved for the loan through the dealer's bank and was scheduled to take delivery the next day. I told him that I was not contacted and I had already brought another car. I told him that I just wanted my down payment back. He told me that he couldn't give it to me because once the credit was approved, the bank automatically takes $750.00 from the dealership. I then told him that I never aggreed to a nonrefunded deposit and they cannot force me to accept the terms of a loan. I again demanded that my deposit be refunded to me. I told him that this was not legal, and he cannot hold money for product that was never delivered. But he said that he talked to his lawyer , who informed him that it was legal and he can keep my money to pay the bank.

I dont think this is Legal in Pennsylvania. Am I right? I was going the contact the attorney general or a lawyer, but I am not sure if I am right.

Thanks