Refundable holding deposit not refunded

On the 11 November 2017 I paid a visit to the Mercedes Benz branch in Claremont - Cape Town and saw a vehicle I liked. I was asked to pay a refundable holding deposit for the car in order to reserve the vehicle. I was assisted with finance application where the bank had asked for a huge deposit which I could not afford. The branch tried to help me get a cheaper option considering my financial situation I cancelled the deal. On Thursday the 14th December I wrote in to ask about the refund and this is the response I received.

"Apologies Nqobile, that was a non-refundable holding deposit that you would have only gotten back if you purchased the vehicle…

This is due to the fact that the vehicle has been taken of the market and many potential clients were turned down as it was reserved

The R5000 is only refundable if the finance is declined or the vehicle is purchased"

It is unfortunate because these terms were never explained to me when I paid the holding deposit. I feel it is unfair.