How Long Will a Dealer Hold a Car With a Deposit?

Once you’ve paid the deposit on a car, you’ll want to pick it up as quickly as possible. Otherwise, the car may be given to someone else and the down payment may not be refundable.

On average, dealers will hold a car with a down payment for up to five days. However, it may be possible for the dealer to hold the car for longer.

More about this will be provided below.

How Long Will a Dealer Hold a Car With a Deposit?

Truthfully, there is no exact amount of time because it depends on the circumstances.

Some dealers will only hold the car for a day or two, while others may hold the car for a week or longer.

If you have a relationship with the dealer, you may be able to convince them to hold the vehicle for longer.

On average, a dealer will hold a car with a deposit for up to five days.

Why Put Down A Down Payment?

Once you’re ready to buy a car, you should put down a deposit. In many cases, you’ll have to put down a deposit during the process.

You can leverage a down payment to get more favorable lending terms. You’ll also increase your chances of getting the loan in the first place.

If you don’t have perfect credit, you can offset it by paying a higher down payment.

On top of that, the down payment will help prevent someone else from getting the car first.

How Much Of A Deposit?

Putting down a deposit on a vehicle is usually a good idea. Doing so shows the dealer that you’re serious about buying the vehicle.

Furthermore, putting down a deposit can help when financing the car. How much of a deposit should you put down?

When buying a used vehicle, it is wise to put down a deposit of at least 10%. If you’re purchasing a new car, try to put down at least 20%.

Putting down a deposit can help secure the car before the financing goes through.

Is It Possible To Negotiate After The Deposit?

Once you’ve put down a deposit, you may believe that the negotiations are over. However, this isn’t the case because you can still negotiate with the dealer.

The deposit helps lock in the vehicle so it cannot be sold to someone else, but it may not lock in the price.

Still, it is a good idea to know what you’re willing to pay for the vehicle before putting down the deposit. After all, you may not be able to get the deposit back later.

Just remember that the answer depends on the circumstances and the dealer you’re working with. Ask before paying a deposit.

Are Car Deposits Refundable?

It is vital to understand that some car deposits are not refundable. Once you’ve paid the deposit, there is a risk that you won’t get it back.

Therefore, you should always second-guess this decision before handing over your money. However, there are some circumstances that would make the deposit refundable.

For instance, the dealer may decide to cancel the deal. If the dealer cancels, you’ll probably get the deposit back.

In other cases, the deposit is refundable anyway. Before paying a deposit, be sure to speak to the dealer to find out whether the deposit is refundable.

When Will You Have To Pay a Deposit?

In general, deposits are not always required. Depending on the circumstances, you may or may not have to pay a deposit.

Usually, there are three situations in which the customer would have to pay a deposit. For starters, the dealer may not have the vehicle in stock, but they might be able to get it from another dealer.

The dealer would take a deposit to complete the deal. You’ll also have to pay a deposit if the dealer is going to special order the vehicle for you.

Finally, the dealer will take a deposit to hold the vehicle for you. If you want to prevent the car from being sold to someone else, negotiate a price and pay a deposit.

Don’t Hesitate To Call The Dealer

When you’re in doubt, it is always best to speak to the dealer directly. If you want to know more about the deposit and requirements, call the dealer and ask.

They’ll tell you about the deposit and whether it is refundable. Furthermore, you can talk to the dealer if you need them to hold the car for a little longer.

Most dealers understand that things are going to happen, so they will likely be okay holding the car for a few more days.

Can A Dealer Sell A Car After Taking A Deposit?

Unfortunately, a deposit isn’t a guarantee that you’re going to get the automobile. You may believe that the car is yours after the deposit is paid, but this may not be the case.

The deal could always fall through. Plus, there is a risk that the dealer is going to accept a better price from someone else.

If the dealer can make more money without breaking the law, they’ll do it. Therefore, the dealer may sell the car to someone else even if you’ve put down a deposit.

It normally isn’t a good business practice because this can hurt the company’s reputation. Still, it happens from time to time.

Frequently Asked Questions