Uproars Entertainment

Putting a deposit down on a car - how long is that deposit good for?

I am going to look at a car this weekend - I plan on putting down a deposit...but on the flipside. I hope the deposit buys me some time to pay off some credit cards over the next couple weeks. Is that possible? How long is a deposit on a car typically good for?

Public Comments

1. Typically, deposits only give you up to 48 hours to complete the transaction. It is up to the dealership though. There aren't any laws that set time limits. I wouldn't expect a dealer to sit on the car while you pay your bills. You may not have to worry about it though. You first payment will not be due for 30-45 days. That would give you plenty of time to pay off your credit cards before the first payment is due.
2. usually the "deposit" is a down payment and goes towards the purchase price.
3. The deposit doesnt mean anything without paper to support it and spell out what it does.
4. Specify the terms (time of hold and amount or % refunded if you decide not to complete the purchase) you want in exchange for the deposit. If you want them to withhold the car from the market for two weeks, don't expect a full refund if you decide not to buy the car. To get a full refund, you probably can't get a hold longer than two business days. Whatever you and the dealer agree to, get it in writing and signed by an authorized dealer representative.
5. If depends. A deposit is a short term commitment that can and should be fully refundable. Usually 24 - 48 hours just to get your paperwork and cash together so you can come back and seal the deal without the risk of the car being sold out from under you. A down payment is long term and a commitment that you will buy this car at the agreed upon price. A couple of weeks is way too long to expect someone to hold a deposit since a deposit is non binding and refundable.