There was a similar instance locally where a furniture store was holding large deposits, not shipping the product *** not refunding. Our local TV station did sme research and found Federal trade laws that applied to shipped merchandise... Here is the quote below:
When you are buying furniture or anything else that's "shipped," Federal law states the seller must either give you a shipping date, or it automatically becomes 30 days from when the order was placed. If it is delayed, you have the option of accepting a new delivery date or cancelling with a full refund.
This should apply to your car, also. I believe it has to do with interstate commerce / shipping laws.
Besides being a HORRENDOUS business practice to commit to refund the deposit and then not follow through, its probably illegal...
Its still amazing to me that folks think they can get away with strong arming the consumer. With the power of the internet, everyone's dirty laundry is only a Google search away... Please keep us posted.
And for everyone else, this may be a lesson to rememer. Write on the buyers orders that the car must be delevered by XX date, if not, buyer can request and receive a full refund of deposit.