How Long Will a Dealer Hold a Car With a Deposit?

When searching for a used or new car in the UAE, you may come across the possibility of reserving a car and paying a deposit. This is not uncommon, especially if the vehicle you want is high in demand or low in stock. 

One question that comes up regularly is How long will a dealer hold a car with a deposit. The answer depends on several factors, including dealership policy, type of deposit, and what you and the seller have agreed to. 

At CarBuyers.ae, we do not make car transactions much simpler, so we focus on delivering clarity, transparency, and helpful advice every step of the way when buying or selling your old car or buying a new one. We hope you can better prepare yourself on how a deposit works with a car buyer in the UAE, so you can save time and grief.

What You Need to Know About Car Deposits in the UAE

A car deposit is typically a portion of the total cost of the intended vehicle. A deposit assures the dealership that the buyer is serious and the dealership will temporarily hold/restrict sales of the car. 

In the UAE, it is common to make deposits for authorized dealerships and used car sellers to hold their deals. The deposit is usually valued between AED 1,000 to 10% of the total cost of the vehicle. The specific value depends on the value and type of car you plan to buy, and the dealership or seller's policy.

How Long Do Dealers Hold a Car?

Most UAE dealerships hold a vehicle for 3 to 7 days after accepting a deposit.  It gives the buyer a few days to prepare finance, documentation, insurance, or to make a decision.

That is not a hard and fast rule. Each dealership can have its terms and conditions. In some cases, a hold is only one day in high-demand or luxury cars unless the buyer deposits a larger amount. For less demand and smaller dealers, a hold can be up to 2 weeks, as long as the buyer demonstrates a serious intent to buy.

At CarBuyers.ae, we always recommend that both parties document the time and conditions the deposit hold is for, just to avoid any confusion.

Is the Deposit Refundable?

One of the key points when placing a deposit is whether that deposit is refundable or not. Some dealerships accept refundable deposits, but many do not. If they are not refundable, that means if you walked away from the deal after the car dealership had held the vehicle for you, or even if you walked away during the hold period, you would lose your deposit.

Make sure you always ask the dealer beforehand:

• Is the deposit refundable or nonrefundable (refundable means you will receive your money back when there is a valid reason to terminate the transaction)?
• Under what conditions, if any, can I receive my money back?
• Will the amount of deposit be applied towards the total price as agreed (if the transaction is completed)?

You should be sure to ask these questions if you are uncertain about financing, if your insurance has not been approved yet, or if you are still comparing other options.

What Happens When You Delay Payment?

If you do not finalize the purchase of the car within the time specified, the dealership is generally allowed to relist the car or sell it to someone else. In many cases, the dealer penalizes you by forfeiting the deposit.

This is why it is important to be firm and final about your decision to purchase and how you plan to finance it before placing a deposit. Dealers function within a strict inventory turnover policy, and a dealer will not hold a car for very long, particularly in busy showrooms or during peak car-buying conditions.

If, when it comes to timelines for payment, you are uncertain, then negotiate a written agreement with the dealer or procure a vehicle without leaving a deposit.

What If the Dealer Cancels the Deal Themselves?

Though it is rare, a dealer may cancel the deal themselves if they find another buyer who is willing to pay immediately or advance a better deal, but it can be regarded as unethical and unprofessional if they have also accepted a deposit.

If so, you are entitled to an immediate refund of your deposit and are owed the full amount. Most dealers in the UAE are reputable and operate under strict consumer protection laws, and they will issue a refund without hesitation when they cancel the deal.

At CarBuyers.ae, we work with professional and verified car dealers who will honor the buyers' commitments and will be transparent with their customers during the vehicle reservation process.

Best Practices Before Paying a Car Deposit 

Placing a deposit on a car is a financial commitment, so be sure to cover everything before doing so:

• Ask for a formal receipt/amended agreement stating the amount of deposit payable, the period the vehicle will be held, the deposit refund policy, and the terms of sale.
• Check the vehicle in person, or take a mechanic you trust with you.
• Review the RTA history on the vehicle to check for any accidents or outstanding fines, especially important when considering a used car.
• Ask what will be included in the vehicle purchase, for example: help with registration, help with insurance, help after the sale, etc.
• Clarify the mode of payment—some dealers may accept cash, while others will only accept bank transfers or credit/debit cards.

Following these practices will maintain a calm and stress-free environment during the car buying process while avoiding any surprises!

How CarBuyers.ae Can Make Your Life Easier

At CarBuyers.ae, we try to provide an honest, reliable alternative to making either a purchase or a sale of cars in the UAE, and ensure that our users never have to deal with uncertain sellers or engage in unfair transactions through our network of verified dealers and buyers.

If you are selling your car, we can offer you a free online valuation, an instant offer, and immediate payout in cash - and we never charge hidden fees or pursue haggling tactics. If you are buying your car, we only connect you with our trusted dealers that have straightforward policies, including written agreements for every deposit, a range of financing options, and help with related RTA searches.

With CarBuyers.ae, you are not just placing a deposit for a car; you are taking a secure step for a transparent and protected car transaction.

Conclusion

Placing a deposit is a normal and convenient step when purchasing a car in the UAE. If you go this route, it is important to understand how long the car will be held by the dealer with the deposit, the refund terms if you decide not to proceed, and the car handling obligations between the parties.

Typically, a dealer will hold a car on deposit for a period of 3 to 7 days. However, this can depend on their internal processes, as well as your agreement. Always ensure you get the agreements in writing, and don't be afraid to ask for clarification before handing your money over.

With an understanding of your rights and responsibilities, purchasing your next vehicle with a trusted partner, such as CarBuyers.ae, should be quick, fair, and frustration-free.

FAQs – Car Deposits in the UAE 

Q1: What amount is usually taken as a deposit to hold a car? 

Most dealers require between AED 1,000 to 10% of the cost of the vehicle. 

Q2: If I want to cancel the deal, can I get my deposit back? 

If the deposit is refundable, yes. Always confirm before you pay. 

Q3: What happens if I delay payment of the deposit? 

Your dealer may cancel the hold and keep the deposit, depending on the agreement. 

Q4: Do all car dealerships in the UAE have the same hold period? 

No. Each dealership has its stated policies.  Always confirm in writing when the hold period expires. 

Q5: Will CarBuyers.ae help with a car deposit or purchase? 

CarBuyers.ae facilitates connections with verified dealers and helps ensure any deposit agreement is clear and secure.