Never Give Cash Deposit Before Buying a Car

Some dealers will ask for a deposit as "good faith" to show that you're serious about purchasing the car. This is before you even negotiate the price of the vehicle!

It's ridiculous to provide a deposit, and you should NEVER do so unless the dealer is ordering you a car they don't have in stock.

Otherwise, the only reason a dealer will want a deposit is so they can prevent you from leaving the dealership or buying a car from a competing dealer.

It's usually the sleazy dealers that will try to get a deposit from you, and these types of dealers are trained to wear you down until you agree to buy a car.

There is no law that says you need to provide a deposit, even AFTER you negotiate the price of the car. As I pointed out earlier, the only time a deposit request is legitimate is when the dealer orders a car from the factory, or does a dealer trade with a competing dealer to get you a car they don't have in stock.

They will usually ask for a deposit of $500. Make sure you agree to the price in writing and that it's refundable in case you change your mind or the vehicle is not what you expected.