Hi
I think you would only be correct in keeping a deposit or part thereof, if any receipt you issued for the deposit, noted that deposits may not be returned in the event that any oustanding balance was not paid to purchase the vehicle. If the customer was warned of this, then they could have walked away or agreed with you to note the receipt that if the customer was not happy with repairs, the full deposit would be refunded. You should have a vehicle checklist to be signed by both parities noting any faults, against which you could note repair before sale or customer happy to accept without repair.
This is from Lincolnshire Trading standards report about Motor Trade Sales
"Deposits are usually considered to be non-refundable. However, if you are in breach of contract, or if
you agreed that the deposit would be refundable as an express term of the contract, then you should
return the customer’s deposit. You would also be under a duty to mitigate your losses - i.e. only take
from the deposit any losses that you have actually made.
If the deposit was taken as part of a sale which was to be completed via a finance agreement, then the
deposit must be refunded if the finance agreement is cancelled."
I think you may be on dodgy ground morally and legally (breach of contract) if you did not mention that the deposit may not be refunded, if the customer did not proceed. For £100 it is not worth it. If the customer bad mouths you down the pub, you could lose more money in future sales. Bad publicity spreads much more quickly than stories about good service.
This is a bit gutting when you have paid out money but I suppose this comes with the territory.I am in agreement with the customer that any MOT type faults e.g. headlight should be fixed before sale and it is normal for cars to be sold with reasonable MOT period left. I would not buy a car from a motor trader where there is only about 4 months MOT left.
Huckster