You always need to be fair and honest and be sure you are following the General Codes of Conduct and that you are not committing an unfair practice under the Consumer Protection Act.
As of Oct. 31, 2018, ABR Section 31.4 gives AMVIC the authority to set the form and content of a deposit agreement. AMVIC has not set the form and content of a deposit agreement at this time. However there is a recommended (non-mandatory) deposit agreement available below that could be used as a best practice. Click here for more information on the additional ABR legislation.
In order to protect consumers and you, the salesperson or business, you may want to consider the following:
- Never ask or take a deposit as a condition of allowing a consumer to test drive or negotiate a price for a vehicle. If there is no sales agreement, there should be no need for a deposit.
- Always have a written sales agreement signed by both parties before accepting a deposit.
- Make certain the sales agreement clearly states whether the deposit is refundable or non-refundable and under what terms and conditions.
- Clarify the reason for a deposit. Is it a deposit or is it a down payment?
Deposit Agreement (non mandatory)