A merchant could ask you to leave a down payment (or a “deposit”) or make a promise to purchase to reserve the vehicle you want to get.
Promise to purchase
A promise to purchase can take various forms, from a simple verbal promise to a formal sales contract. In order to reduce the risk of misunderstanding, it is recommended that you sign a clear written agreement. Such an agreement could indicate, for example, a delivery date and the price of the vehicle.
Do not settle for a delivery date that is vague or subject to change using terms such as “as soon as possible,” “priority delivery” or “in 4 to 6 months.”
Furthermore, do not accept an agreement that contains a provision whereby the merchant reserves the right to increase the price of the vehicle. Such a practice is an offence under the law. Contact the Office to file a complaint.
Down payment
As a general rule, the best course of action is to make no down payment (or "deposit") until you have decided to purchase the vehicle. If you must make a down payment, pay the smallest amount possible. In any case, have the contract indicate that the down payment will be reimbursed in full if you cancel.
What happens if you change your mind or the merchant cannot fulfill the promises made to you? Whether or not you can cancel depends on each situation, the documents you have signed and how you were planning to pay for the vehicle. If you are dealing with a merchant who refuses to give you back your money, contact the Office to file a complaint.
For more information, refer to the page titled Cancelling a contract.
Last update : November 8, 2022
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.
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