Record the deposit once, against the full price
Enter the full agreed selling price in Price and the deposit in Payment → Payments received. The balance updates on its own. Do not reduce the price by the deposit as well; that counts it twice. The deposit receipt guide has worked examples.
Say in writing what happens to the deposit
Whether a deposit is refundable if the buyer walks away is part of the agreement, so write it down in Warranty & terms before the buyer pays. Describe the deposit's purpose, the date by which the buyer must complete, and what happens if they do not. A deposit described as non-refundable still has to be reasonable and fairly presented; a term that a consumer would see as unfair may not be enforceable. Take advice on your standard wording.
What makes a car sale a distance sale
GOV.UK's guidance on online and distance selling for businesses covers sales made without the customer visiting your premises: over the phone, by email, online or through a video call. A buyer who reserved a car online and then came in to view it before agreeing the sale is in a different position from one who paid a deposit and bought after a video walkaround and had the car delivered.
For distance sales, GOV.UK says customers can cancel “up to 14 days after their order is delivered” without giving a reason. Before the sale you must give the customer information including your business name, contact details and address, a description of the goods, the price including taxes, delivery arrangements and costs, and how to cancel. If you do not tell the customer about their right to cancel, GOV.UK says they may “cancel at any time in the next 12 months”, and once they are told, they have 14 days from that point.
The GOV.UK list of exemptions does not mention vehicles. If you sell cars at a distance, build the cancellation information into your process rather than relying on the buyer not asking.
Recording a distance sale in DealerSlip
- Buyer. Enter the full postal address. Delivery and cancellation notices depend on it.
- Payment. Record the deposit and later payments as they arrive, each with its method.
- Collection date. Use it for the delivery date so the invoice shows when the 14 days start.
- Warranty & terms. State that the sale was made at a distance, that the buyer has 14 days from delivery to cancel, and how to do so. Keep the separate pre-contract information you sent with the deal file.
- Download and send. Send the pack with the pre-contract information. DealerSlip does not send documents itself.
Common questions
Does the 14-day rule apply when the buyer viewed the car at my premises?
GOV.UK's distance selling rules are about sales made without the customer visiting the business. A sale agreed on your premises after a viewing is not a distance sale, even if the buyer first found the car online. If in doubt, take advice on the specific sale.
How do I record a refunded deposit?
The payment editor accepts amounts of zero or more. Remove or amend the deposit line so the invoice reflects the money actually held, and keep the refund evidence in your own records.
Can DealerSlip generate the cancellation form?
No. It records the sale and prints your terms. Use your own cancellation form or the model form in the regulations, and keep a copy with the deal.