deposit for car purchase

loanranger_4

I'm thinking about buying a used car which is going to need an inspection taken out on it. Once we have agreed a price what is the best way to ensure that the vendor does not sell the car to someone else before I get a professional inspection on it ? Is it normal to put a deposit down and if the car is OK then paying the difference, otherwise renegotiating/walking away with the deposit refunded?

grumpyoldgit_2

Depends very much on the vendor's attitude:
1. Will he/she be prepared to subject car to inspection which may affect the sale or asking price if anything detrimental is found?
2. Will he/she wait to be paid? - Xmas is coming
3. Do you have good reason to need an inspection?

AND
How badly you want this car!!

I used to buy my cars from a wholesale dealer and once asked him if I could have an inspection done as I was funding it through an employer loan scheme which required it. He told me that although he had nothing to fear from any inspection the examiner would be obliged to find something to report on as i would be paying for it and would expect a thorough report. As it happened we did a deal another way but I thought that was a good point from his point of view - he was a guy i bought from many times and I trusted him completely.

IF you convince him/her that an inspection is going to help the sale I suggest you try to negotiate a refundable holding deposit (if you can) or at the very least a small non-refundable deposit - after all you are asking the vendor to put off any other potential sale until you have made your mind up. Why should they do that if the car is otherwise saleable?

Good Luck

loanranger_4

Thanks grumpyoldgit for your insightful response, most useful.

The inspeciton is essential for peace of mind and if the dealer refused it then I would take my money elsewhere ( I just don't believe that it is worth the risk). I think of the one of the recent episodes of Top Gear where the presenters each bought a Ferrari for £10k and had no matter of problems with them (Clarksons cars' engine blew up!), and only 1 managed to make it to the destination. Have to agree that anyone paying for an inspection does expect the inspection to pay for itself and the dealers are wise to this.

I guess that having an exclusive right to buy must mean the exchange of money ( even though inspections do show some commitment to buy !). How much that (non)refundable small deposit IS remains to be seen, and I would of course pay much more for a refundable deposit. You're absolutely right to point out that if the dealer sees the inspection as a deal maker then he will be all the more be willing to go along with it.

I do see the sense in the non refundable deposit. A good compromise would be if the dealer could refund the deposit AND the cost of the inspection if he sells the car to someone else.

Many Thanks

vansboy

What I do if people want an inspection....( your dealer should be able to say the same!!!)

I'll simply say, OK, not a problem, but as I've already 'inspected' the vehicle, BEFORE I BOUGHT IT, why do you need another??

I'll be carrying out a FULL service & independent MOT & it will already have been HPI checked, when I got it.

Plus, I'll tell you who owned it before, so you COULD make enquires, from the previous owner.

& you'll have sight of the service history, that comes with it.

Plus, you're buying it from me - look my names outside the door & I'm NOT a fly by night dealer, if you've any problems, or queries, I WANT you to come back & let me know, so they can be sorted!!

& if you STILL want an inspection, please go ahead & spend your £$£$, but why not put this cash towards an extended warranty? At least there's chance that if something unforseen crops up, a long way down the line, you'll have some help towards it!!

I'd add a note onto your deposit reciept, that the purchase would expect to ONLY be honoured, subject to XXXXX carrying out a satisfactory, to Mr Customer, inspection. Otherwise the deposit wil be refunded in full.

& if your dealer has warranty facilitys, he MIGHT have the opportunity to offfer 'inspected' vehicles, anyway. Ford/Vauxhall main dealers do this & RAC in some independent garages, too.

& the BEST people to check it out, for you, is a local repair garage, that you use already (or the one you'll use if it needs work) NOT the big names, 'cos they've not quite as much reason to offer a truly personal service. & more expensive too!!

https://www.honestjohn.co.uk clik CarByCarBreakdown link there, for hints n tips on what to look for on ALL makes n models!!

VB

tomstickland

I think of the one of the recent episodes of Top Gear where the presenters each bought a Ferrari for £10k and had no matter of problems with them (Clarksons cars' engine blew up!), and only 1

Yes, but that was like buying a normal car for £100.

I don't have a high opinion of car inspections personally. I make my own judegement and then after that it's just fate.

loanranger_4

Thanks vansboy.

The model in question does need a professional inspection as some of the cars may be be suspectible to engine failure ( which can cost £££'s ), this in turn needs to be covered by a manufacturers warranty, so the inspection is to mitigate risks with the car than to dispel any issues with the dealer.

Thanks