Car Purchase Deposits?

eschaton

I seem to read a lot of posts about people trying to get their deposit back after changing mind about buying a new car.

These deposits are often sums like £500 or more - why do people agree to such high deposits?

TradePro

eschaton wrote: »

I seem to read a lot of posts about people trying to get their deposit back after changing mind about buying a new car.

These deposits are often sums like £500 or more - why do people agree to such high deposits?

As someone in the industry, I honestly think such deposits are essential.

Generally, a used car is taken off sale, or a new car is ordered specifically for the buyer, and it is important that the buyer is 'taken out of the market' - it would be anarchy otherwise.

The trick as a buyer is of course to be 100% happy with the car and deal before paying a deposit.

motorguy

TradePro wrote: »

As someone in the industry, I honestly think such deposits are essential.

Generally, a used car is taken off sale, or a new car is ordered specifically for the buyer, and it is important that the buyer is 'taken out of the market' - it would be anarchy otherwise.

The trick as a buyer is of course to be 100% happy with the car and deal before paying a deposit.

Totally agree. Particularly on a new car.

Buzby

Surely the question isn't why do they agree to the deposit (confirming their commitment) but why they change their mind, and fully expect their money back?

If there is any doubt, they can go away and think about it. But this option doesn't appear to enter into the equation. The dealer is effectively taking the car off sale on receipt in readiness for the balance. Why should he lose out selling it to someone else because the original customer doesn't realise the deposit cuts both ways?

daveyjp

For many buying a car is a stressful experience, for others it is an exciting thing to do, both lead to buyers acting in haste, repenting at leisure.

Buyers don't buy everyday, sellers sell every day and they have plenty of tricks to get you to hand over the £500, especially when you consider everything which can be discussed when buying a car.


cost to change
finance options
Finance term
Apr
Deposit
Cost per month

Lots of buyers end up negotiating the last item and forget about the first item on the list. They walk away and realise they have signed up to a £150 a month deal for 60 months on a 4 year old car which trades at £4,000.

Buyers need to know the full details of what they will agree to pay and be prepared to walk away if what they want can't be negotiated. Then they can take time to reassess the situation.

eschaton

I agree with the reasons for deposits etc....

I do wonder even more about people paying deposits of £500 etc.. then finding a reason for changing their mind.

My main reason for asking is down to personal experience. Nearly 9 years ago I ordered a Nissan 350Z Roadster and paid a £2k deposit which was a requirement from Nissan due to the restricted numbers available. Apart from this, I have never been asked for more than £100 to secure a car whether it be from stock or an order. Last week I signed the order form for my latest car and wasn't asked for a penny deposit where normally they would ask for £100.

eschaton

daveyjp wrote: »

For many buying a car is a stressful experience, for others it is an exciting thing to do, both lead to buyers acting in haste, repenting at leisure.

Buyers don't buy everyday, sellers sell every day and they have plenty of tricks to get you to hand over the £500, especially when you consider everything which can be discussed when buying a car.


cost to change
finance options
Finance term
Apr
Deposit
Cost per month

Lots of buyers end up negotiating the last item and forget about the first item on the list. They walk away and realise they have signed up to a £150 a month deal for 60 months on a 4 year old car which trades at £4,000.

Buyers need to know the full details of what they will agree to pay and be prepared to walk away if what they want can't be negotiated. Then they can take time to reassess the situation.

Stressful?

Tricks to hand over £500?

People applicable to the above shouldn't be allowed out on their own.

TradePro

eschaton wrote: »

Last week I signed the order form for my latest car and wasn't asked for a penny deposit

That's very unusual. Is it a dealer you know? Is there something 'different' about the car?

motorguy

daveyjp wrote: »

Lots of buyers end up negotiating the last item and forget about the first item on the list. They walk away and realise they have signed up to a £150 a month deal for 60 months on a 4 year old car which trades at £4,000.

Doesnt sound far away.

Why should a retail buyer be concerned with what the trade price is?

Mobeer

eschaton wrote: »

I seem to read a lot of posts about people trying to get their deposit back after changing mind about buying a new car.

These deposits are often sums like £500 or more - why do people agree to such high deposits?

Paid a £1000 deposit on my car. Not a problem for me, because I wanted to buy the car.

Your question should really be, why do people buy cars they don't want?

eschaton

TradePro wrote: »

That's very unusual. Is it a dealer you know? Is there something 'different' about the car?

I agree it's ususual, I was in and out in under 10 minutes. I bought my current car from them in May 2011, that was the first time I had dealt with this particular site.

I did expect the sales guy to ask for the usual £100 but he didn't. The paperwork that he had ready to print on the system had the deposit at zero as well so it's not as if he just forgot.

Mobeer wrote: »

Paid a £1000 deposit on my car. Not a problem for me, because I wanted to buy the car.

Your question should really be, why do people buy cars they don't want?

Fair question