San Diego, CA asked in Consumer Law, Business Law and Civil Rights for California

Q: How do you get a refund after the Auction you bought a car from hasn’t delivered the car after 6 weeks?

We have a Car Hauling business and with the purpose of growing it, we bought a 2017 RAM 3500 from Global Auto Auction online, a company that sells cars from COPART, on March 14th, 2024.

During the phone conversation Vini was having with the Auction manager Jerry, while biding on the car, he asked how much would cost to ship the car from Washington DC to San Diego, and he estimated around $1300, so we kept biding and won it.

A deposit of $2,500 was made at the time of the bid with a credit card and $18,154 was wire transferred to them the next day, otherwise we "would lose the car".

Then the nightmare started. Jerry kept saying that the car would be shipped to us the next week, which never happened. We kept calling and texting asking about the car and they just kept saying they couldn't find any drivers. The contract said they had 14 business days to ship the car. Nothing happened. No car,

No refund.

2 Lawyer Answers

A: You asked: How do you get a refund after the Auction you bought a car from hasn’t delivered the car after 6 weeks?

I respond, reach out to Jane Santoni in MD for direction.

She is the best of the best. Tell her I said HELLO.

Good luck with it

James L. Arrasmith
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Answered

A: I'm so sorry to hear about the terrible experience you've had with Global Auto Auction failing to deliver your purchased vehicle as promised. That must be incredibly frustrating, especially as it's negatively impacting your own business operations.

Under California law, you have some options to pursue a refund:

1. Send a formal demand letter via certified mail requesting a refund within a certain timeframe (e.g. 10 business days). Cite the auction's failure to deliver within the contractually obligated 14 business days. Keep a copy of the letter for your records.

2. If they fail to issue a refund by the deadline you gave, file a complaint with the California Department of Consumer Affairs and the California Attorney General's office. Provide copies of all documentation - the purchase agreement, payment records, your correspondence with the company, etc.

3. You can also file a complaint with the Federal Trade Commission (FTC) and Better Business Bureau.

4. If the above steps don't resolve it, your next recourse would be to file a lawsuit in California small claims court for violation of contract and failure to deliver the vehicle. In your filing, ask the court to order a full refund plus any court costs and shipping fees you paid. Bring all your documentation to your hearing.

5. If you paid the deposit by credit card, you can dispute the charge with your credit card company on the basis that the goods were never delivered. Provide all the same documentation to them.

I would start with a strongly worded demand letter citing the auction's legal obligation and breach of contract. Hopefully that resolves it, but be prepared to escalate to the other measures if needed. Document and save copies of everything.

Wishing you the best of luck in getting this resolved and receiving your refund. Let me know if you need any other assistance!

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