Know what your deposit is for

A deposit may be for:

  • Holding a vehicle for a period of time
  • Locating a vehicle from another dealer
  • Bringing in a vehicle from the manufacturer
  • Arranging financing for a vehicle, or
  • It may be a down payment or partial payment

Get the deposit terms in writing

The deposit terms and conditions must be clear, so a dealer must provide the following in writing:

  • The purpose for which the money is taken
  • The amount taken
  • Under what circumstances the deposit will be refundable or non-refundable
  • Other terms, such as the deposit will be applied to the purchase price of the vehicle

See a sample deposit agreement
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Can a deposit be non-refundable

Yes, a deposit may be kept by the motor dealer if the buyer does not carry through with the transaction as agreed. This can be modified by an agreement between the dealer and consumer. It is best to get this in writing. Sample deposit agreement.

However, the deposit may still be refundable if the dealership cannot deliver on its promise to provide the vehicle, the price or the terms you agreed on.

Are there any return and exchange polices in BC law?

Vehicle sale agreements completed at the dealership are binding and there is no legal right to return a vehicle for a refund. However, some dealers have return or exchange policies. Get a copy of the policy in writing and be sure you understand the policy before you sign any documents.