Ontario Car Deposit Refund : Can You Cancel After Signing?

Can you get a car deposit back in Ontario?

If you paid a dealership deposit without signing a purchase contract, OMVIC says the dealer must return it on request. After signing, there is no general cooling-off period. Your options depend on the contract’s conditions, applicable legal rights, or a cancellation agreement with the dealer.

Updated October 4, 2026. This guide focuses on purchases from OMVIC-registered Ontario dealerships.

You sign for a car, pay a $1,000 deposit, and head home. Then you check the insurance quote, reconsider the monthly payment, or find a vehicle that suits you better.

Can you call the dealership and cancel before collecting the car?

You can ask, but changing your mind does not automatically give you a right to cancel. Ontario has no general cooling-off period for dealership vehicle purchases or leases. Calling the same afternoon does not create one.

Still, “no cooling-off period” does not mean every deposit is automatically non-refundable. Start with the paperwork: did you sign a purchase agreement, and what does it actually say?

A car buyer carefully reviewing financial documents and signing a vehicle purchase contract with a sales representative at a modern Ontario car dealership.
Thoroughly reviewing the finance terms
and breakdown of fees before signing
the final sales agreement at the dealership.

Is there a cooling-off period for buying a car in Ontario?

No general cooling-off period applies to an Ontario dealership car purchase or lease. Do not assume you have 24 hours, 48 hours, or 10 days to reconsider a signed deal.

Not having collected the vehicle does not, by itself, make the agreement cancellable. The same caution applies to new cars, used cars, and electric vehicles.

OMVIC explains the rule in its no cooling-off period guidance. Any cancellation right needs a separate basis, such as an applicable contract condition or a legal remedy.

When can you get a car deposit back?

Situation What it means
Deposit paid, no signed purchase contract OMVIC says the dealer must return the deposit when requested.
A written contract condition is not met The condition may provide a basis to cancel and recover the deposit.
Signed agreement, buyer simply changes their mind No automatic cancellation or refund right.
Certain required vehicle disclosures are missing or inaccurate A statutory cancellation right may apply.
Dealer agrees to release the buyer Confirm the refund, any deduction, and the release terms in writing.

Conditions can cover financing, an inspection, agreed repairs, or another approval. Their wording matters. A financing condition should identify acceptable terms rather than leave you guessing what “approved” means.

Read OMVIC’s agreement cancellation guidance before deciding which situation applies.

The 90-day rule is not a trial period

Certain disclosure failures can give a buyer a right to cancel within 90 days after actually receiving the vehicle. Examples include required information about vehicle identity, mileage, specified previous uses, or salvage, rebuilt, and irreparable branding.

That does not give every buyer 90 days to return a car. Nor does every disclosure dispute automatically qualify for this particular remedy. OMVIC’s disclosures guideline explains the distinction.

Can a dealership keep your deposit after you cancel?

A dealer may agree to cancel but seek compensation for losses caused by the cancellation. OMVIC says those costs should be reasonable and provable. Depending on the circumstances, the dealer may retain some or all of the deposit.

If a dealership says it will keep $1,000, ask for the relevant contract clause and an explanation of the amount. “Non-refundable” is a reason to inspect the agreement carefully, not a complete explanation of every possible dispute.

OMVIC’s dealer cancellation guidance also identifies other options, including a refund, an alternative deal, or civil action.

Do not assume losing the deposit ends the deal. Ask the dealer to confirm that the purchase agreement is cancelled and whether the agreed settlement releases you from further obligations.

How to request cancellation before delivery

1. Collect the complete paperwork

Keep the purchase agreement, its reverse-side terms, financing documents, deposit receipt, and any electronic signing records. Save emails or messages about refund promises, delivery dates, and conditions.

2. Explain the actual reason

There is a practical difference between “I changed my mind” and “the financing offered does not meet the condition in my agreement.” Identify the relevant wording. If your reason is buyer’s remorse, ask for a negotiated release without claiming a cooling-off right.

3. Make a written request

Contact the dealership’s general manager or owner. Include the agreement date, vehicle details, deposit amount, reason for your request, and proposed resolution. Keep proof that the request was delivered.

A simple negotiation request could say:

I am requesting cancellation of the vehicle purchase agreement dated [date]. Please confirm whether you will agree to cancellation, how much of my deposit will be returned, and the basis for any proposed deduction. Please also confirm whether the agreed cancellation would release me from further obligations under the purchase agreement.

This wording requests a settlement. It does not replace a formal cancellation notice where you are exercising a specific legal right.

4. Contact OMVIC if the dispute remains unresolved

OMVIC can provide guidance and review complaints involving registered dealers. Its complaints process recommends first putting the complaint and requested resolution to dealership management.

OMVIC cannot order a dealer to refund money or cancel a contract. A dispute may require legal advice or court proceedings. Its toll-free number is 1-800-943-6002.

What to check before signing a car purchase agreement

The cheapest time to discover that a car does not fit your budget is before signing.

  • Insurance: Obtain a quote for the specific vehicle.
  • Financing: Check the interest rate, term, payment frequency, and total borrowing cost.
  • Trade-in: Confirm its value and how any outstanding loan will be handled.
  • Extras: Review warranties, protection products, and other additions individually.
  • Delivery: For a factory order, ask for a written deadline and what happens if it is missed.
  • Cancellation: Read deposit and cancellation terms before paying.

OMVIC recommends completing the financial homework and checking cancellation provisions in its before-you-sign checklist.

Buying an EV? Price the home setup first

For an electric vehicle, get an installation estimate if you plan to charge at home. Consider your parking arrangement, electrical capacity, landlord or condo approval where relevant, and access to public charging.

Compare the complete ownership budget: vehicle payments, insurance, charging, equipment installation, tires, and maintenance. Expected fuel savings alone do not tell you whether the purchase works for your household.

Frequently asked questions

Can I cancel a car purchase within 24 hours in Ontario?

There is no general 24-hour cancellation window. Check the agreement’s conditions and any applicable legal grounds, or ask the dealer for a negotiated cancellation.

What if I paid a deposit but did not sign anything?

OMVIC says a dealership must return a vehicle purchase deposit on request where no contract was signed. Check for electronic agreements as well as paper documents.

Can I cancel because I have not picked up the car?

Not taking delivery does not itself create a right to cancel. Review the signed agreement before assuming you can walk away.

What if the dealer promised the deposit was refundable?

Preserve the promise, especially if it appears in writing. Compare it with the agreement and ask management to address any conflict. A disputed verbal promise can be harder to establish.

Can I walk away by letting the dealer keep the deposit?

Do not assume so. Obtain written confirmation of cancellation, the settlement amount, and whether any further obligations remain.

Before paying, ask two questions: “Am I signing a purchase agreement?” and “Exactly when would this deposit be refunded?” Get the answers into the paperwork.

Legal information: This article provides general information about vehicle purchase agreements signed at OMVIC-registered dealerships in Ontario. It is not legal advice or a substitute for advice about your specific circumstances. Cancellation and refund rights depend on the agreement, how the transaction was conducted, the facts, and applicable law. Online purchases, private sales, and transactions outside Ontario may involve different requirements or protections. Laws and guidance may change; check current official sources. If you are considering cancelling a signed agreement, disputing a withheld deposit, or responding to a demand for additional payment, promptly consult an Ontario lawyer about your rights, obligations, and any applicable deadlines.

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