I've financed a car and put 1,000 down, it's been 2 days and the dealer still Looking a for a bank but I've been approved already?

So I've put 1,000 down for my car at Honda and everyday passes but still same response from the dealer "still working on a approval" but they have my deposit and they already approved me. Is this even legal, Can they hold my deposit and not give me the car. Would I lose my deposit if I'm not approved?

You have not been approved or you would have the car.

I would talk to a lawyer about all this

You put your down to Hold the vehicle, to prevent it from being sold to someone else.
You read the Contract and it said, in tiny print, SUBJECT to final Financing. You were NOT approved by the Financial Institution for the purchase, you were accepted for Potential Purchase subject to approved financing.

Your 1000$ means the vehicle was less than 5,000$ (20%).
If you could not get a Loan from your own bank (personal preferred, auto if it must) you were in trouble from the start.

If you have problems with the dealer finance officer, you may contact your State's DMV, Licensing Office, they usually have a web site.

And No. It is very unusual for a dealer to refund the Deposit. The deposit is money the dealer earned by keeping the vehicle off the market.

Tell the auto dealer in writing today if he's unable to provide financing that you demand your deposit back do it before your 3 days is up.