Pre ordered Toyota Prius dilemma?

myhondaCivic

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About 5 months ago I paid $500 to pre order Toyota Prius 2009 at Schaumburg Toyota Dealership. Finally, when the vehicle came, my budget won't allow me to afford it and plus the dealer is asking to put down at least 7K with a interest rate of 8% which is obviously tough for me at this time of economy.
The dealer tells me if I don't purchase the veichel with the given rate and the down payment, he will not give my $500 deposit back.
Can he do that? Isn't this against the law? What can I do to get my money back?
 
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