What is the difference between a deposit and a down payment when buying a car?
1 Answers
The differences between a deposit and a down payment when buying a car are as follows: 1. A deposit serves as a guarantee, while a down payment does not. 2. Failure to pay a deposit does not constitute a breach of the main contract, whereas failure to pay a down payment constitutes a breach of the main contract. 3. The deposit guarantee method can be applied to various contracts, while down payments are mostly applicable only to named contracts. Below is more information about deposits and down payments: 1. "Down payment" is not explicitly defined in the law. The "down payment" appearing in the house subscription letter is only a unilateral commitment by the buyer to the developer. It is unclear whether the developer must double the refund if they breach the contract. If the developer breaches the contract, they only need to return the down payment. 2. After the buyer fulfills the contract, the deposit should be offset against the price or returned; if the buyer does not fulfill the contract, they have no right to demand the return of the deposit. If the developer does not fulfill the contract, they must return double the deposit. China's "Guarantee Law" also stipulates that the deposit should be agreed upon in writing and should not exceed 20% of the standard amount of the main contract. Once the deposit is agreed upon in writing and actually paid, corresponding legal consequences will arise.
