What happens when the dealer does not accept the customer's offer?

• A. The down payment, deposit, or title for a trade-in must be returned to the customer immediately.
• B. The buyer must sign a new contract.
• C. The dealer keeps all funds.
• D. The vehicle is re-marketed immediately.

Answer: (A)

When no binding agreement exists, no contract is formed between the buyer and the dealer. Any money the buyer placed with the offer—such as a down payment, deposit, or the title for a trade-in—belongs to the buyer unless a deal is completed. If the dealer does not accept the offer, those funds must be returned promptly.

This is because there’s no approved sale to justify keeping the money. The buyer may instead present a counteroffer or walk away, and the dealer would need a new agreement to proceed. The other options imply actions that only occur after a contract is formed or accepted, which isn’t the case when the offer is rejected.