Is It Necessary to Pay a Renewal Deposit When Buying a Car?

[ValentinaLynn]

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.

[LeThomas]

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.

[SophieDella]

I just helped a friend resolve a dispute over insurance renewal deposits. To put it bluntly, this is just a tactic used by 4S shops to lock you into buying insurance from them. The law states that consumers have the right to freely choose their insurance channels, and including insurance renewal deposits in sales contracts constitutes an unfair clause. They might use this as a condition when you're financing a car, but in reality, a deposit receipt is sufficient. Don't rush into signing or paying—market supervision authorities are currently cracking down hard on such practices. If you encounter a dealer that insists on charging this fee, it's often easier to walk away and find a more reputable 4S shop.

[BlakelyLee]

Last time when buying a car, I refused on the spot when asked to pay a 2,000 yuan deposit. The sales consultant came up with various excuses, saying it's required for all auto loans. In fact, renewal insurance deposits are not legally mandated fees - insurance laws have long stipulated consumers' freedom of choice. Those paying full cash won't encounter this issue at all. I recommend checking average insurance rates for your target model before visiting dealers, and bringing a car-savvy friend to negotiate. Salespeople behave more honestly when they see you're knowledgeable. I later bought insurance through phone price comparisons, saving nearly 30% compared to dealership quotes.

[LeAustin]

None of the three cars in our family have ever paid a renewal deposit. This money is essentially a profit source for 4S shops, as insurance rebates can reach 30%. Their common rhetoric is 'loans require guarantees,' but in fact, banks have no such requirement. I suggest paying special attention to the supplementary clauses when signing the contract, and directly cross out any terms with 'renewal deposit' or 'insurance security deposit' written on them. Nowadays, online insurance platforms are very convenient; buying insurance yourself is not only cheaper but also comes with various value-added services. Remember, your right to choose insurance is protected by the Consumer Rights Protection Law.

[DeAlessandra]

A friend in the auto trade told me that legitimate brands are becoming increasingly strict about insurance renewal deposits. Some dealerships collect this money under the guise of offering a discounted car price, but it actually violates antitrust laws. When financing a car purchase, pay attention to the details of the financial plan—manufacturer financing usually doesn’t require a deposit. If you encounter forced collection, keep promotional materials and communication records. If they make excuses not to refund the deposit when returning the car, calling the manufacturer’s 400 hotline to complain is the most effective solution. Now, I compare three insurance providers myself, saving at least a thousand bucks annually for the same coverage.