Refund for partial downpayment on car.

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architek

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I made a partial downpayment towards a car for the amout of $500, I was told that remainder of the down payment can be made after the bank approved the financing. I made it quite clear that I can only afford $1,800 as the total downpayment including the $500 partial deposit. Now, the bank wants a deposit of $4,500 which is way out of my reach, so I demanded my $500 back and I'm being told that all "sales are final, no refunds." Now the dealer wants me to pick another car from his lot; I think he knew I wasn't going to get financed but went ahead and lured me in so that I would have to purchase a car from him. Is this something I can take to small claims and get my money back?
 
I think it was quite clear that the car purchase was made subject to financing in absent of any agreement (was there a written agreement?) I'd send him a demand letter before suing him for $500. Unfortunately, I'm guessing that this isn't a surprise. It's always more difficult to get your money back after it is gone.
 
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