I'm no legal expert but I was always under the impression that a deposit was a non refundable sum paid by the customer which would act as compensation if the customer backed out.
Having a refundable deposit seems all one sided on the side of the customer with no compensation to the dealer if the customer backs out.
The question I would ask here is Have you got it in writing from the dealer signed & dated that the deposit is refundable if you choose to back out?
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