Is It Necessary to Pay a Renewal Deposit When Buying a Car?
2 Answers
No, it is not necessary to pay a renewal deposit when buying a car. Here is some information about renewal deposits: 1. Definition: A renewal deposit, as the term suggests, is generally encountered when purchasing insurance for a car. Renewal refers to continuing the insurance coverage after it expires. A renewal deposit is a deposit paid before renewal to prepare in advance and prevent unpaid dues upon expiration. 2. Illegality: Renewal deposits are illegal. If a renewal deposit is charged, it constitutes an illegal fee. Since 2017, the Chinese government has explicitly prohibited the collection of renewal deposits. If you have already paid a renewal deposit, you can request a refund. If the refund is not granted, you can file a lawsuit because renewal deposits are not legal. 3. Complaint: Car owners who have already paid a renewal deposit can file a complaint by calling the 12315 consumer complaint hotline.
Here's my car purchase experience for your reference. The 4S dealership did try to make me pay a renewal insurance deposit, claiming I had to continuously insure with them. But I specifically consulted 12315 and found this wasn't mandatory at all. The freedom to choose insurance is your legal right - don't get tricked. Later, I directly negotiated with the manager and had this clause removed before signing the contract. After buying the car, I chose my own insurer and saved over 800 yuan on the first year's premium compared to their quote. Fellow car owners, remember to keep your purchase contracts safe. If encountering forced deposit collection, file a complaint with consumer associations immediately. This kind of bundled sales practice should have been rectified long ago.
