If a customer cancels an order for a manufactured home after selecting upgrades, how much of the deposit will they typically receive back?

When a customer cancels an order for a manufactured home after selecting upgrades, the typical practice is that they receive all of their deposit back minus specific costs incurred by the dealership, with the deduction not exceeding a certain percentage of the deposit—commonly set at 10%. This approach reflects the reasonable expectation that some financial commitments may have already been made in relation to the upgrades and any incurred administrative costs. The reason for the 10% limit is to provide a balance between protecting the interests of the customer and covering the costs that the manufacturer or dealer may have incurred as a result of the customer's order.

In this context, the other options do not align with standard industry practices. Giving back all of the deposit without any deductions does not account for the costs already incurred due to the customer's selections. Charging the cost of upgrades and repairs or deducting not exceeding 5% of the deposit would either overestimate the customer's liability or underestimate the costs associated with processing the order, respectively. Thus, the answer that stipulates deductions not exceeding 10% of the deposit is both fair and aligned with common practices in handling such scenarios in manufactured home sales.