Non-Refundable Deposits are a great way for dealers to help secure a sale by having the buyer put a “little skin in the game.” As simple as it sounds, a Non-Refundable Deposit (“NRD”) is money paid by a customer toward the purchase of a specific vehicle that under certain conditions will be “non-refundable.”  Like many other rules, this rule is governed by the Florida Deceptive and Unfair Trade Practices Act (FDUPTA), and more specifically under section 501.976 (10).

In order for you to accept a NRD you’ll need to put in writing how long you will hold the vehicle for that person, the exact amount of the deposit, and clearly and conspicuously under what conditions and circumstances the deposit is nonrefundable (or refundable).

So what happens if you forget to clearly and conspicuously have the terms in writing, or if you don’t have a defined amount of time you will hold the vehicle for? Violations can be hefty, upwards of $10,000.00 per civil violation or more if it is against a protected group like someone over the age of 60, people with disabilities, service members or family of a service member.