The car met the description per his own inspector. The price was agreed upon before the inspection. The inspector was to validate the car versus the description, not to appraise its value as that had already been agreed upon. You have every right to KEEP 100% of the down payment. I would make sure that he understands this, then I would give him the money back and put this behind me. Next time make sure that the deposit is NON REFUNDABLE. Otherwise this may become way more hassle than its worth and to me that would not be worth the $500.00.
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