Everything you need to know about deposits and the importance of written deposit agreements
What’s it for?
In law, a deposit usually shows a dealer that you intend to go ahead with a purchase. If that is not the case, do not leave a deposit on a vehicle.
If you complete the purchase, the deposit must be applied to the purchase price of the vehicle. The deposit becomes a down payment or partial payment.
However, in some cases, a deposit may be a fee for services, such as to:
Before leaving a deposit, ask the dealer to provide a written deposit agreement. This is a best practice at many dealerships, but is not required. The agreement should include this information:
Make sure you understand all the terms in the deposit agreement. Don’t forget to take a copy with you before you leave.