How long will a dealership hold a car with a deposit?
Here's a scenario, you have spotted your next car, done the requisite inspection and test drive, applied for finance and have just paid a deposit on the vehicle, therefore securing the vehicle. How long does this secure the vehicle before you sign the delivery note and drive away into the sunset?
There is also what is known as a holding deposit, a payment that a dealership accepts that means said dealer will hold onto the vehicle for the customer for a period of two working days, which excludes weekends and public holidays. The holding deposit is usually accompanied by a quote, after which the usual offer to purchase (OTP), traditional deposit and the other specifics of the transaction can take place.
If a holding deposit is not paid and the buyer opts for a more traditional percentage-based deposit on the overall cost of the vehicle, things are a bit different. While paying a deposit on a vehicle will reduce our monthly premiums and ultimately, how much interest we will pay on a car, the deposit also means that an OTP has been signed, which is a legally binding document entered into by the buyer and the dealership.
The deposit paid after the fact is another step in the process, which is followed by the signing of the delivery note upon the collection of the vehicle. When signing the OTP, be sure to read the document carefully, as it will outline the specific time period for which everything is valid and indeed, the various instances in which the deal can be terminated, which will give you a better idea of how long the deposit you have paid will ensure that the vehicle is kept for you.
