How to Give Deposits When Buying Used Cars

When you are shopping for a new vehicle, you may find a suitable used car but need to look for financing or delay the purchase for another reason. The seller may agree to hold the car if you are willing to put down a deposit. This money shows you are sincere about returning and buying the vehicle. The deposit amount is usually negotiable, and you should make sure the terms are spelled out so you will get your money back if something keeps you from completing the purchase.

Instructions

1

Get the car inspected by a qualified, independent mechanic. Don't take the seller's word about its condition; you cannot hold him to verbal promises. Don't give any deposit money unless the car is confirmed to be in good condition.

2

Insist on a modest deposit amount. It should not take more than $500, although it may be best to offer $100 first and only go up if the dealer insists.

3

Ask whether the deposit is refundable and whether this will be indicated on the receipt before handing over the money. Deposits for used car purchases are refundable in many states, but some dealers will get around this by stating it is not refundable on the receipt. Do not make a deposit if you see this wording.

4

Read the deposit agreement carefully before signing it. Ask about any questionable items, and don't accept verbal assurances or promises. Make the seller put any promises in writing and initial them. Otherwise they are not legally enforceable.