Complaint Review: Texas Direct Auto

My wife and I wanted to trade a vehicle for another. We went to Texas Direct Auto (TDA) on Fri 7/17/09 and after visual inspection of three vehicles decided to get a 2003 VW Passat.

The trade-in value for our 2005 Kia Sorento was only $5000, but we decided to go ahead and put down a $500 deposit, thinking that we would be given time to consider the offer. We left the dealership with our Kia and a payout agreement (but no Passat).

Over the weekend, I decided that we would lose too much money on the trade. On Mon (7/21/09) I sent TDA an email asking for refund of the $500 deposit. The salesman reminded me that before they charged my debit card, he mentioned that the deposit was non-refundable. While it is true that he said this, I countered that:

1. There is nothing on the main page or subsequent pages that explains the deposit is non-refundable.
2. The only paperwork we received was a one-page summary of the purchase. It basically showed us how much we needed to pay to take delivery of the Passat. However, nowhere on the document does it say that the deposit is non-refundable. [See attached PDF file]
3. We didn't sign any documents.

In his email reply, the salesman said that on the detailed listing page for the Passat, it does state that the deposit is non-refundable. This is true, but the statement is buried deep in the page. This basically amounts to fine print on legal documents that most people don't read.

The bottom line is that TDA is not providing customers with all the information they need to make a smart purchase decision. TDA is not open and transparent in its advertisements and is relaying on "fine print" practices to deceive and, in my opinion, illegally bilk customers out of money.


Additional Information
A. TDA main website is here: www.texasdirectauto.com

Nowhere on the main page does it mention that the $500 deposit is non-refundable.

B. TDA main listing page is reached by clicking on the picture of the office and/or vehicles.

Nowhere on the main listing page does it even mention that a $500 deposit is required.

C. Clicking on a vehicle in the main listing page takes you to the vehicle specifications/information page. Below the "Buy Now" price is a link that explains the $500 deposit, but when you click on the link, there's nothing that states the deposit is non-refundable. You have to scroll down to almost the very end to finally get any information about the $500 deposit.

RXH
Kemah, Texas
U.S.A.