How much deposit should you leave on a car at a dealer?

jaydeeuk1

I'd leave enough to tax it if 2nd hand. Also depends where, from Toyota a deposit of £500 was enough for a new £13k car.

I remember the advert where you could get a Kia for a quid. Considering it was for a Rio, I'm not sure it was that good a deal.

rotherham123

OddballJamie wrote: »

I don't believe for one minute that your Vauxhall dealership is taking £20 deposits on new and approved used cars unless you have a fleet of old Novas round back.

What serious car buyer doesn't have a card of some description tucked away in their wallet/purse. Actually nowadays it's crazy not to drop at least 100 notes deposit on a credit card for the added protection.

£20 deposits wreak of desperation and pressure selling.

well we do if we have to.. now we dont do it day in and day out and 99% of the time its £100 and its usually on debit card.

But on the rare occaission someone walks in with the intention of "just looking" and then decides to buy the car offered we will take a small deposit if this is all the customer has.

You still havent answered my question, you have a customer who says they want to buy a car, you ask for £100 deposit, they say they havent got £100 only £20... do you let them walk and not sign them up? or do you take the £20 and tell them to bring the remaining £80 in on collection or phone up with card details when they get home??

i have took plenty of £20 -£50 deposits which the customer the proceeded to take the car, so whats the problem with that??

What your doing oddballjamie is assuming everyone is the same and has a card on them, well thats not true but 99% do and its usually £100 but any monetary commitment is a positve commitment and any true sales man will sieze that moment if its the best option ats the time. Yes i would love £100 - £500 everytime but its not always possible.

Its not not pressure selling or desperation, those days are gone, theres too much choice, internet competition and cheap money so the customer is in the driving seat. Look after the customer, treat them right and when they shop you at some local back street garage they may just prefer to dealt with as if they were in Debenhams.

colino

A deposit has to be painful enough that the "looker" cements their intention to buy as they will be made aware that the deposit is non-refundable. Taking a £20 deposit isn't worth the paperwork, either they are wasting your time or you can get the full price when they come straight back.

rotherham123

colino wrote: »

A deposit has to be painful enough that the "looker" cements their intention to buy as they will be made aware that the deposit is non-refundable. Taking a £20 deposit isn't worth the paperwork, either they are wasting your time or you can get the full price when they come straight back.

read my post again, you havde missed my point and i assume you are not in car sales.

To clarify deposit are refundable if a finance deal is done, if its a cash deal then the dealer is not obliged to return it, but we treat our customers fairly and return deposits on all sales.

You say not worth the paperwork, of course it is, i f a customer says yes i am having the car and leaves £20 what would you do say no i cant take your order?

Just in case you cant be bothered to read what you have misread, i said that if customer only had £20 and wanted to buy we sign them up and 99% of the time they follow through with the sale. Its all psychological, the customer hands over a deposit feels like they have bought a car and feels commited, thats why we do it when we have to, cuts out all that buyers remorse...

As i said we dont do it every day as we ask for £100 and it may only happen twice a month but when it does we dont turn down business, would you?

rev_henry

rotherham123 wrote: »

well we do if we have to.. now we dont do it day in and day out and 99% of the time its £100 and its usually on debit card.

But on the rare occaission someone walks in with the intention of "just looking" and then decides to buy the car offered we will take a small deposit if this is all the customer has.

You still havent answered my question, you have a customer who says they want to buy a car, you ask for £100 deposit, they say they havent got £100 only £20... do you let them walk and not sign them up? or do you take the £20 and tell them to bring the remaining £80 in on collection or phone up with card details when they get home??

i have took plenty of £20 -£50 deposits which the customer the proceeded to take the car, so whats the problem with that??

What your doing oddballjamie is assuming everyone is the same and has a card on them, well thats not true but 99% do and its usually £100 but any monetary commitment is a positve commitment and any true sales man will sieze that moment if its the best option ats the time. Yes i would love £100 - £500 everytime but its not always possible.

Its not not pressure selling or desperation, those days are gone, theres too much choice, internet competition and cheap money so the customer is in the driving seat. Look after the customer, treat them right and when they shop you at some local back street garage they may just prefer to dealt with as if they were in Debenhams.

I do see the logic in this. Someone leaves £20, finds a cheaper one later online, they either think 'oh well, I've done it now, I've seen this one and it looks good, this other one may not be as good when I see it'. OR they say oh well I'll just forget the £20 leaving you £20 up.

Without any commitment your car is just on the level with any other online.

somethingcorporate

rotherham123 wrote: »

To clarify deposit are refundable if a finance deal is done, if its a cash deal then the dealer is not obliged to return it, but we treat our customers fairly and return deposits on all sales.

Not true, deposits can be returnable if they are not a genuine pre-estimate of loss. There is no contractual right for the retailer to retain the deposit if it would amount to a financial penalty, regardless of the payment method.

See more at the consumer rights FAQ here: http://forums.moneysavingexpert.com/showpost.php?p=42873192&postcount=16

colino

rotherham123, I sincerely hope your employer doesn't read this as you have demonstrated an incredibly poor understanding of the sales and consumer laws training that you will have been given if you deal in any way with new car finance. The fact that you talk about conversion rates points out your status, anyone doing the job properly and taking a proper deposit doesn't have below 100%.

spacey2012

somethingcorporate wrote: »

Not true, deposits can be returnable if they are not a genuine pre-estimate of loss. There is no contractual right for the retailer to retain the deposit if it would amount to a financial penalty, regardless of the payment method.

See more at the consumer rights FAQ here: http://forums.moneysavingexpert.com/showpost.php?p=42873192&postcount=16

This is the legal position, the reality is somewhat different, you can obtain a bit of paper that says they owe your deposit, but they still have your cash and rarely ever give it back.

rotherham123

colino wrote: »

rotherham123, I sincerely hope your employer doesn't read this as you have demonstrated an incredibly poor understanding of the sales and consumer laws training that you will have been given if you deal in any way with new car finance. The fact that you talk about conversion rates points out your status, anyone doing the job properly and taking a proper deposit doesn't have below 100%.

whats a proper deposit?... does it matter???

not going to kick this to death as i am getting bored, we take small deposits, it works for us.. end of and goodbye

Petree

I find this really strange... am I alone in thinking the deposit is just that, e.g. its Tuesday, i'll pick it up Saturday heres £XYZ, rather than an amount down on a car I may or may not buy?

Maybe i'm old before my time :eek: