What's the purpose of a "Down Payment"?

[MKIV]

I'm specifically relating this to private sales.

Long story short, I held a certain part for a guy because he put $80 down (we agreed to $300). Two weeks pass and no word from him so I call...

Me: Hey there, any idea when you'll be free to come by?
Him: Yo bro I just found out from my boy that he can get the same part for $150 sorry bro
Me: Alright man no worries best of luck to you

*This is where I assume the phone call should end, but it doesn't*

Him: Ya bro I'll come by right now and grab my money
Me: Pardon? I believe this $80 was left with me as a down payment, or a guarantee of sale, no?
Him: Blah blah blah * yelling * that's theft you dumb a** you have my money and I have nothing from you I want my f'ing money or I'm paying you a visit tonight blah blah

The outcome was I gave him his money, $80 isn't the end of the world to me and I really didn't want this going any further.

So I want to know what's a down payment mean to you guys?

[Daryl @ RightDrive]

I think you were in the right. A down payment constitutes a sale, same as a deposit. Next time is suggest making it clear to the buyer that it is non-refundable.
The whole point is that the seller can be assured the sale will be completed, and the seller would take his product off the market.

[cobrAA]

thats why I never meet someone at my house!

[Zacho]

thats why I never meet someone at my house!

This, unless you've dealt with the person before OR they are a friend of a friend kind of deal.

Good on you for giving it back. Unless you specified "non-refundable" then I'd do what you did. I deposit is to show you are serious about making a purchase. If it is always refundable then what is the point of it, it shows nothing serious. However there are exceptions.

[nimblestix]

Shoulda dummied him.... Lol

No but in all seriousness the only way around that is to state clearly when taking the deposit that its non refundable should he change his mind.
The reason its non refundable is because you are taking the money in faith that he will buy your part, thus you would no longer be offering that part to anyone else while you wait for the rest of the dough to come in. Turning down potential sales to those that came after the deposot was made.

I think that anyone that doesnt have their head up their a$$ should know and respect that simple consumer practice and it shouldnt NEED to be made clear but unfortunately it does.

Sorry to hear you had to deal with an a$$hat. I hope he wasnt a member here....

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[Speeddm]

Partial payment needs to communicated in writing legally as NON refundable.

[needavdub]

It's one of those things you have to be VERY clear about prior to taking a deposit. I've done it for multiple people I've sold things to, and even given deposits myself a few times when I was a few days short of having all the funds. As long as you make it clear that it's non-refundable from the beginning then you should have no problems. That said, I have in the past refunded someones deposit (or at least partially) if the reason they backed out was more than just "found a better deal".

[Murchie]

making it clear to the buyer that it is non-refundable

To afford a serious problem. Always state the above!

[IMPULR33R]

i never take deposits.. period

either buy it or not ..first come first serve

cash only

if you say friday at 8 .. fine i wont sell it from under you/but im not taking down the ad

but, come saturday with no call its going to the next peson with cash... deposits never end well

i had a guy call wanting to leave 100.00 deposit on a puppy he wanted to pick up 5 weeks later

i never heard from him again

[M13]

Hey, if it makes you happy just think about how much **** he'd get in his life with that tiny brain of his.

"What?! the security deposit is MY MONEY, that's THEFT! SO what I damaged the rental suite, I HAVEN'T received anything for my money."

Also, if he literally told you "if you dont... I'm paying you a visit tonight..." that is a threat for personal safety. What a dumb wannabe gangster.