Things to consider before putting down a deposit

[Anonymous]

I’m ordering a car for the first time in my life. The dealership says they anticipate that we will get the car in about four months, but they obviously have no control over the process.

I need to put down a non-refundable $2,500 deposit for the car. Tell me about all the risks I’m not thinking about. $2,500 isn’t HUGE money, but I would rather not lose it.

[Anonymous]

You won't lose it (well, unless the dealership goes bankrupt..unlikely) but it means you're committed to buying that specific car with those specific options. As long as you dont' change your mind, you're fine.

I have a deposit down on a car that won't be ready for more than 6 months.

[Anonymous]

That’s what people are doing to get new cars now.

[Anonymous]

Anonymous wrote:You won't lose it (well, unless the dealership goes bankrupt..unlikely) but it means you're committed to buying that specific car with those specific options. As long as you dont' change your mind, you're fine.

I have a deposit down on a car that won't be ready for more than 6 months.

Do you have an out if they don’t deliver for way longer than anticipated?

[Anonymous]

Deposit for an ordered car should never be non-refundable. I would look at other dealers. There can be issues when the car arrives like damage during transport or missing features because of current supply chain.

[Anonymous]

Anonymous wrote:Deposit for an ordered car should never be non-refundable. I would look at other dealers. There can be issues when the car arrives like damage during transport or missing features because of current supply chain.

Unfortunately for the consumer, in this market, dealers set the rules.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Deposit for an ordered car should never be non-refundable. I would look at other dealers. There can be issues when the car arrives like damage during transport or missing features because of current supply chain.

Unfortunately for the consumer, in this market, dealers set the rules.

There are still dealers in this market with refundable deposits.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Deposit for an ordered car should never be non-refundable. I would look at other dealers. There can be issues when the car arrives like damage during transport or missing features because of current supply chain.

Unfortunately for the consumer, in this market, dealers set the rules.

There are still dealers in this market with refundable deposits.

I agree. Op have you looked at other dealers? The deposit should be refundable.

[Anonymous]

All the dealers I’ve spoken to have 100% refundable deposits. And why not - if I back out they can sell the car in a hot second.

[Anonymous]

We order almost all of our cars, and I’ve never had the deposit non refundable. $2500 seems like a lot too unless the car is super exclusive.

[Anonymous]

A deposit is not the same thing as a binding purchase order signed by the dealer with final price and all options listed. With a deposit the dealer could still demand a markup or that you buy $3000 in added products/services. And $2500 is exhorbitant. Why should the dealer sit on your money for months? I would walk to another dealer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Deposit for an ordered car should never be non-refundable. I would look at other dealers. There can be issues when the car arrives like damage during transport or missing features because of current supply chain.

Unfortunately for the consumer, in this market, dealers set the rules.

Spoken like someone working for a dealership. A $2500 non-refundable deposit is shady AF. There is no shortage of dealers who want your business and aren’t interested in scamming you.

[Anonymous]

I was trying to do this on a new generation car for 2023. Dealers will take $1000 deposit and it is refundable- but they will not provide a signed price. They use the word “market adjustment” for marking up over msrp and they are waiting for the 2023 model to arrive to determine what people will pay. They were honest that the mark up may be 15k if that’s what people will pay; or it could be 5k.
It is crazy.

[Anonymous]

I’ve only ever been asked to put down $500. This was for a vehicle in the upper $40ks and in high demand. However, I ended up with a dealer that didn’t require deposit. As others have noted $2,500 is excessive for the standard car.

[Anonymous]

Agree with other PPs re looking at other dealers. There are many differences in practices - amount of deposit, whether it's refundable, and whether they charge a markup on MSRP and how much. Worth calling around.