Auto brokers must limit deposits to what percentage of the purchase price and place all deposits where?

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The main idea is safeguarding the buyer’s money while keeping the broker’s handling of funds clear and accountable. Limiting the deposit to a small portion of the purchase price—2.5%—reduces the risk to the buyer if the deal changes or falls through and keeps the upfront financial exposure low for the consumer.

Deposits may be kept in the broker’s general operating account because they’re still the broker’s liability and must be properly recorded and reconciled. Proper accounting ensures those funds are traceable and can be applied toward the purchase or refunded as needed, without commingling personal funds with business funds.

The other options propose larger deposit requirements or require deposits to be in a separate trust or consumer account, which go beyond what this rule specifies and aren’t necessary for the tested standard. The key takeaway is the 2.5% cap and the requirement that deposits be handled in a way that keeps them verifiable and refundable.