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California Car Deposit Refund Law

By Teletalk Desk

In the state of California, many car dealerships require customers to make a deposit before purchasing a vehicle. These deposits are refundable under certain conditions, and it is important to know what those specifics are. This guide will explain the details of the California Car Deposit Refund Law.

Table Of Content:

What counts as a car deposit in California?

Any amount of money that is given to a car dealership in exchange for the promise to purchase a vehicle in the future can be considered a deposit. This includes money put down for special orders or “lay away” agreements.

What happens if I decide not to purchase the car after making the deposit?

The dealership must return your deposit in full within 10 days if you change your mind about buying the car. If you do not receive it within that time frame, you can file a complaint with the Department of Motor Vehicles (DMV).

Is there a limit on how much I can pay as an initial deposit?

There is usually no cap on how much you can pay initially for the vehicle, but some dealerships may impose their own limit and this should be discussed with them upfront.

When does the law consider my payment as "non-refundable"?

The law states that once your contract has been approved by both parties and all associated paperwork has been signed, then any payments made are non-refundable. However, if there is fraud or misrepresentation involved from either party then some exceptions may apply.

Conclusion:
Knowing and understanding California's Car Deposit Refund Law can help potential buyers protect themselves from being taken advantage of by shady dealerships. It's important to be aware of these laws and regulations before entering into any agreement with a dealership.

Teletalk Desk

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