Sample Deposit Agreement

Between: Date:________________

_________________________________: the Dealer and

_________________________________: the Customer

It is agreed that the Customer will pay to the Dealer the full sum of $______________

This money is being accepted by the Dealer as a Deposit*. This money is being paid to

Hold a vehicle for a period of time

Bring a vehicle from another dealer

Order a vehicle from the manufacturer

Arrange financing for a vehicle

If other, please describe:

Terms

1. If the Customer does not perform their part of the agreement by __________________(date)

all these monies are (select one);

Refundable ______(initial)

Not refundable ______(initial)

2. If the Dealer does not perform their part of the agreement by __________________(date) all

these monies will be refunded.

3. If the Customer and the Dealer perform their parts of the agreement, the deposit will be

applied to the purchase price.

Customer: ____________________________ Dealer: _______________________________

Note: A partial payment or down payment should be documented as part of a detailed

purchase or sale agreement.

*Sections 21(1)(j) and 21(2) of the Motor Dealer Act Regulation Reg. 447/78 require that a deposit be

specifically identified and accounted for on the purchase agreement for a new or used motor vehicle.