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The piece of paper you signed when putting down a deposit is a contract. A contract is a legal agreement that a court will enforce. Everything should be there in black and white. The sales manager is right. If you decide not to buy the car you originally signed for, you will lose your deposit. I suspect what the salesman told you was BS to get you to sign the deal. Mind you I am in no means a lawyer or have any formal training in law except for a couple of university level law courses.
I believe you would have two choices unless the dealer is willing to cancel the existing contract and enter into a new one:
1. Buy the car
2. Lose your deposit.
Here's a negotiating tip to everyone buying a car. When initially making an offer, use a CHEQUE instead of a credit card. The salesman will probably be curious as to why... Why? You can RIP up the cheque if the salesman comes back and gives you some BS saying that the sales manager cannot sell it for that price, blah blah blah. What he'll do if you gave him your credit card is that he'll try to keep it so you can't leave... until you cave to his tatics that is...
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