How Long Will a Dealership Hold a Car with a Deposit?

When you’re looking to buy a car, especially one that you’ve had your eye on for a while, placing a deposit might seem like the perfect way to secure it. But how long will a dealership actually hold a car once you’ve paid that deposit? It’s a common question, and the answer isn’t always straightforward.

Dealership policies can vary, but there are a few key things you should know to protect your investment and make sure the car doesn’t slip through your fingers.

In this article, we’ll explore how long you can expect a dealership to hold a car with a deposit, what happens if you need more time, and what rights both you and the dealership have during the holding period.

What Is a Car Deposit and Why Do Dealerships Require It?

A car deposit is essentially a payment you make to show serious intent to purchase the vehicle. It allows you to secure the car, giving you peace of mind that it won’t be sold to another buyer while you finalise paperwork, arrange financing, or perhaps even sell your current vehicle.

Dealerships require deposits to ensure they aren’t left holding cars for people who may not actually be committed to buying.

The deposit amount can vary depending on the dealership and the type of vehicle. Some dealers may ask for a relatively small amount, while others may require a larger deposit, especially for high-demand vehicles.

It’s important to clarify whether the deposit is refundable or non-refundable before you pay, as this will affect your ability to get your money back if things don’t go as planned.

If you’re concerned about being sold a faulty car, it’s important to understand your rights. Check out our page on what to do if a dealership sells you a faulty car in the UK for more information.

How Long Will a Dealership Hold a Car with a Deposit?

In most cases, dealerships will hold a car for anywhere between 48 hours to a week once a deposit has been placed. However, the exact length of time can depend on a number of factors.

For example, if you’re buying a car that’s in high demand, the dealership might be less willing to hold it for an extended period, especially if other buyers are interested. Conversely, if the car is part of the dealership’s existing stock, you may be able to negotiate a longer hold.

New cars that are built to order typically come with longer holding periods, as the dealership knows you’ve already committed to waiting for the car to be manufactured. Used cars, on the other hand, may have shorter holding periods as dealerships want to sell these vehicles quickly, particularly if they’re in high demand.

If you’re trying to understand how much flexibility a dealership may offer on price, check out our guide on how much a dealership will come down on price on a new car in the UK.

What Happens If You Need More Time?

Life doesn’t always go according to plan, and there may be times when you need more time than initially agreed to finalise your purchase. In such cases, it’s crucial to communicate with the dealership as soon as possible. Most dealerships are willing to accommodate reasonable requests, especially if they see that you are genuinely committed to the purchase.

If you need more time, here are a few tips to negotiate a longer holding period:

• Be upfront: Let the dealership know early if there’s a delay in financing or other arrangements. Don’t wait until the last minute.
• Ask for a clear extension: Get the new holding period in writing to avoid misunderstandings.
• Stay in contact: Regularly check in with the dealership to reassure them that you’re still committed to the purchase.

For those looking to avoid financing altogether, our comprehensive guide on how to pay cash for a car at a dealership offers valuable insights.

What Are the Dealership’s Rights if the Time Expires?

Once the agreed holding period expires, the dealership is generally within its rights to sell the car to another buyer, especially if they have had other offers. If the car is particularly popular or limited in stock, the dealership may not want to wait too long before moving it on.

That said, reputable dealerships will usually give you a courtesy call or email to let you know that your holding period is nearing its end. It’s in their best interest to keep communication open, as they want to make the sale. However, legally, once the holding period expires, you may lose the right to the car, and in some cases, your deposit as well – depending on the terms agreed.

Can You Get a Refund on the Deposit?

Whether you can get your deposit back largely depends on the dealership’s policies and whether the deposit was marked as refundable or non-refundable. Refundable deposits are more common when the car hasn’t been specifically ordered for you or if the dealership can easily resell it to another buyer.

On the other hand, if the deposit was non-refundable, you could lose the money if you decide not to go through with the purchase or if you fail to meet the terms of the holding period. Always ask the dealership for a clear, written agreement on the status of your deposit before you hand over any money. This way, there are no surprises later.

How to Protect Yourself When Placing a Car Deposit

To make sure you’re not left in a difficult situation after placing a deposit, it’s essential to take a few precautions:

1. Get everything in writing: Verbal agreements can lead to misunderstandings. Make sure you have a written agreement that outlines how long the dealership will hold the car, whether the deposit is refundable, and any other important terms.
2. Understand the dealership’s policies: Every dealership has different policies regarding holding periods and deposits. Don’t be afraid to ask detailed questions and read through any contracts before signing.
3. Research the dealership: Check reviews online or speak with previous customers to gauge how flexible or customer-friendly the dealership is. This can give you insight into how they handle situations where a buyer needs more time or cancels the purchase.

Frequently Asked Questions (FAQs)

How much should I expect to pay as a deposit?
Deposits can range from a few hundred pounds to several thousand, depending on the price of the car and dealership policies. Always clarify the amount and whether it’s refundable before paying.

What happens if I change my mind after placing a deposit?
If your deposit is refundable, you can get your money back. If it’s non-refundable, you may lose it. Always check the terms before making a decision.

Can a dealership sell the car after I place a deposit?
Not during the holding period. However, if the holding period expires and you haven’t finalised the purchase, the dealership may sell the car to another buyer.

What should I do if the dealership isn’t honouring the agreed hold period?
If the dealership is not holding the car as agreed, you should first try to resolve the issue by discussing it with them directly. If that doesn’t work, you may want to contact a consumer protection agency or legal advisor to explore your options.

Conclusion

When placing a deposit on a car, understanding the dealership’s policies on holding periods and refunds is key to avoiding any nasty surprises. Most dealerships will hold a car for a few days up to a week, but this can vary depending on the situation.

Always get the details in writing, communicate clearly if you need more time, and ensure you fully understand the terms of the deposit. Doing so will help you secure the car you want without unnecessary stress or confusion.

Are you looking to buy a new used car? Contact us today and we can help you!