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If you're looking to buy a used vehicle, you may be wondering if you need to leave a deposit.
Both private sellers and used car dealerships may ask for a deposit, so it's important to know how much you're required to put down, whether you're entitled to a refund, or if you need to leave a deposit at all.
Read through the guide to see where you stand before you make your purchase.
Sellers can request that you put down a deposit so the vehicle isn't sold to anyone else – but you are not obliged to do so. On the other hand, a used car dealer is more likely to ask you for a deposit to secure the sale, or require you to sign a contract. Some states have regulations in place for used car dealerships that allow them to ask for a deposit.
Other states have no regulations for deposits.
There are two types of deposits that you can be asked for when buying a used car:
If you decide to leave a deposit to hold your vehicle, there are a few ways you can protect yourself:
Here are the cooling off periods by state:
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Hi
My 17 yr old son has paid a $500 deposit to a dealer
Hoping on finance which is proving difficult…not allowed under 18
Parents are required to borrow for him even though he is earning good money in a permanent part time job per week.
They also have commitments of their own
If finance can’t be arranged does he lose his deposit?? And his trade-in agreed to sell as part of the deal!
Hi RhonMac,
Thank you for leaving a question.
Was an agreement signed when the $500 deposit was given? Ideally, there should be one that states whether the deposit is refundable, whether the deposit is part of the purchase price and how the deposit should be paid. Have all the terms written down and signed by both parties. This ensures clarity for the pending contract on the car. Please reach out to the dealer on what you could agree upon regarding the deposit. Hope this helps!
Cheers,
Reggie