In what scenario can a dealer retain a buyer's deposit?

In Colorado, a dealer can retain a buyer's deposit if the dealer has not misrepresented the vehicle. This means that if the buyer is fully informed and aware of the vehicle's condition, history, and any particulars that could affect their decision, the dealer is within their rights to retain the deposit if the buyer ultimately decides to cancel the purchase. This establishes an important legal and ethical standard for dealer transactions, emphasizing the need for transparency and honesty in sales.

If a dealer misrepresents the vehicle, they can lose the right to retain any deposits since misleading the buyer invalidates their claim to that payment. Thus, in scenarios where the buyer made an informed decision based on accurate information provided by the dealer, retaining the deposit becomes permissible. This not only protects the dealer's interests but also promotes fair practice in the marketplace.