Non-Refundable Deposit. Is this normal?

[MustangSteve]

Hi all,

I am hoping to buy my first new car from a dealer, a 2015 EcoBoost Mustang!

My question.. is it normal to have a non-refundable deposit? I've attached a copy of the purchase order contract they want me to sign. The bottom part in regards to 5% cash value seems intresting to say the least.

They are asking for a $500 deposit and are unwilling to add that it is refundable or strike out the bottom portion with the interesting/scary language.

Is this normal? Let me know your thoughts.

Thanks!

It's entirely up to the dealer and how much demand there is for the car. I would suggest going to a different dealer

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[erne75]

My dealer wanted $1000 deposit. I said: you want me to tie up 1 grand of my hard earned money on a car that is not gonna show up until January (in my case)? I dont think so. So I gave them $500 and made the manager write down on the receipt "Deposit is refundable if customer doesnt take delivery of the car".

 

[Tim Hilliard]

I'm from New England and just thought non-refundable deposits were standard business practice. A deposit for any other industry requires a 50% deposit in some cases. Unless you have done business with the dealer before, or know someone I don't see the issue in the dealer protecting themselves, making you commit to a purchase etc. Many of you are getting dealer stock orders and not retail orders so whether you take the car or not is a non issue. A retail order needs to have a deposit because it does not go against allocations, again unless they know you.

 

[HalfMoon]

I'm from New England and just thought non-refundable deposits were standard business practice. A deposit for any other industry requires a 50% deposit in some cases. Unless you have done business with the dealer before, or know someone I don't see the issue in the dealer protecting themselves, making you commit to a purchase etc. Many of you are getting dealer stock orders and not retail orders so whether you take the car or not is a non issue. A retail order needs to have a deposit because it does not go against allocations, again unless they know you.

I have three cars reserved as of today.

One retail order from a dealer kinda far from me. He admitted he couldn't tell when the car was going to be built, but offered me a second option of a inventory car in a different color that he has coming in. He wrote me an invoice at X-Plan on both and has my name on them.

The other car is at another dealer that is more local to me, and it is a retail order at X-plan.

All three, one inventory order and two retail orders required no deposit and I have never bought from them. In fact my last Ford was a 1988 GT convertible, so even the dealer where I bought that one has no memory of me.

I think the requiring deposits is more of a location thing. Here in the Bay Area there is no problem selling Mustangs year round, they pretty much sell themselves up until the last year of a body style. If you live in a more rural area, like the very northern part of California or somewhere that gets actual winter weather for example, it may be an issue selling a Mustang in the winter where trucks are the common vehicle and they would have to sit on it.

 

[Fox9350]

With the internet and a willingness to shop around you have a lot of power as a consumer. You need to let the dealer be well aware you'll give your business to someone else unless he makes it refundable and strikes any shady language in there. And be 100% willing to walk and he'll know it and deal. Just find another dealer who won't require non refundable, lay it out to orig dealer, and be done with it.

 

[Barrel]

Dealer I've bought 3 cars from in 3 years wanted a $1000 non-refundable. Ended up going to a different dealer with a $500 fully refundable deposit. Then I bought my truck from them, too. Fine with me if my loyalty isn't rewarded with at least good faith I'm not a total douche - I'll find someone else to give my money to.

 

[Free Agent]

Dealer I've bought 3 cars from in 3 years wanted a $1000 non-refundable. Ended up going to a different dealer with a $500 fully refundable deposit. Then I bought my truck from them, too. Fine with me if my loyalty isn't rewarded with at least good faith I'm not a total douche - I'll find someone else to give my money to.

Good for you. Some of these dealers are such short-sighted dipshits they can't think ahead of one sale. Gee lets see, make a little bit more on ONE sale or make lots more on several more sales during your lifetime. Absolute morons, good on you for letting them shove it where the sun don't shine.

 

[RocketGuy3]

Lawd I hate dealerships. They're all such scams. They're worthless middlemen who add no value whatsoever to new-car transactions. They have far outlived their usefulness. I really hope the Tesla sales model spreads rapidly.

... But I digress. As others have said, I would just find another dealer. Some are less useless than others.

 

[Tim Hilliard]

I have three cars reserved as of today.

One retail order from a dealer kinda far from me. He admitted he couldn't tell when the car was going to be built, but offered me a second option of a inventory car in a different color that he has coming in. He wrote me an invoice at X-Plan on both and has my name on them.

The other car is at another dealer that is more local to me, and it is a retail order at X-plan.

All three, one inventory order and two retail orders required no deposit and I have never bought from them. In fact my last Ford was a 1988 GT convertible, so even the dealer where I bought that one has no memory of me.

I think the requiring deposits is more of a location thing. Here in the Bay Area there is no problem selling Mustangs year round, they pretty much sell themselves up until the last year of a body style. If you live in a more rural area, like the very northern part of California or somewhere that gets actual winter weather for example, it may be an issue selling a Mustang in the winter where trucks are the common vehicle and they would have to sit on it.

So we can track all three on Cotus? Please provide the Order and Dealer Numbers.

 

[HalfMoon]

So we can track all three on Cotus? Please provide the Order and Dealer Numbers.

Nope, since anyone that has access to the system would then have access to my personal info on the retail orders.

I could post pics, but 2 of them look identical, in processing and the last (inventory) shows awaiting transit.

I've posted a pic of my C7 elsewhere here though, which should satisfy you that I'm not feeding a line to you since I'm sure that's what you think. . I'll post pics when the one I choose shows up.

 

[Tim Hilliard]

Nope, since anyone that has access to the system would then have access to my personal info on the retail orders.

I could post pics, but 2 of them look identical, in processing and the last (inventory) shows awaiting transit.

I've posted a pic of my C7 elsewhere here though, which should satisfy you that I'm not feeding a line to you since I'm sure that's what you think. . I'll post pics when the one I choose shows up.

Everyone on here knows that is not true. :dnftt:

 

[HalfMoon]

Everyone on here knows that is not true. :dnftt:

Nah man, if you have access (as in an employee) it is true and I don't like exposing info. I am far from a troll. Look at the others here that aren't paying deposits. Not sure what so hard for you to believe.

Last year and even right now in the C7 arena many hedged their bets with allocations and placed multiple orders to make sure they got a car. I want to replace my DD with the Mustang and don't want to wait until December or later for it so I took some actions to make sure.

 

[JoeDogInKC]

LOL, COTUS doesn't even show a last name...

 

[HalfMoon]

COTUS may not, but another dealer took my order number and pulled my data, so there are tools available that link the information. That's all my point is.

 

[Tim Hilliard]

COTUS may not, but another dealer took my order number and pulled my data, so there are tools available that link the information. That's all my point is.

:doh:

Any salesman can put in your name and if you are in the system all your info comes up. It's available to anyone with a dealerconnection account. Are you using false identities as well? :tsk:

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