Hi guys,
Like to get some advice here. I'm after a silver/ebony/6mt/nav/hpt that's coming off the factory mid May and should be in the dealership beginning of June, according to one dealer. I didn't order this car and I just called around. This dealer asks for a $500 full refundable deposit to hold the car so I'm the first to see/get it as it arrives. Now other dealerships in the area ask for $1k or $2k to order a car. I have 2 questions. First, is this $500 deposit seems reasonable? Secondly, when should be the negotiation on the price of this incoming car? Thanks.

 

Blue Sky:

The deposit is to seal the contract. The contract is for x dollars in exchange for a car. You don't buy a pig in a poke. Make your deal. It not only binds you but binds them too. Make sure they give you a signed copy of the buyers order or you have no contract. They like to have you sign and then just hold it without their signature. Don't let them. Both sign when you have agreed on a price or neither. And you get a signed copy. (by Mgr).

At least that's how I see it. And, yes, $100-500 is a reasonable deposit. Use a credit card. That way, you can reverse the charge if they start playing games.


XP

 

$500 is reasonable, but as stated previously its a good idea to use your credit card.

That deposit holds the car and binds them to sell it to you at the contract price.

Problem is that you're usually buying a spot on a list (i.e. the next 04 Black TL 6-speed with navi that is scheduled to come in June 30 or whatever) and they rarely include a VIN number on the initial contract because the car hasn't been built yet. So technically there's nothing you can do if they sell "your" car to someone else. All you can do is ask for your money back and go elsewhere.

I was actually asked to sign a contract for a car (again, just a spot on list, no VIN) that was supposed to be delivered in 6-8 weeks. But it specifically said all deposits were non-refundable. I said NFW and wanted that removed from the contract. After the typical "I have to talk to my manager about that" speech they came out and said that they would ammend the contract to say that the deposit was only refundable if they didn't deliver the car in 8 weeks. I agreed to that.

Needless to say they didn't deliver on time (I believe they sold "my" car to someone else who was willing to pay more so I got bumped down the list until the next one came in, though they didn't admit it) so I got my deposit back and ended up buying my 98 CL instead at a great price. Worked out for everyone!

 

I was in a similar situation and I gave a $300 deposit. But i definately negotiated every penny before I gave them the deposit even though the deposit was fully refundable

 

I should have added in my earlier post that the purpose of getting your deposit, from the dealer's perspective, is that it gets you out of the marketplace. You have made the psychological buy decision and feel you have bought a car so you will stop shopping. That is his primary goal at the moment. :devil:

But if you haven't penned a signed order and agreed on a price, the dealer is not bound to any figure. He can have you cooling your heels for 6-8 weeks waiting for "your" car and then hammer you when it comes in. You will be tired from waiting so long for your car, that you will be ripe for the plucking. You have told everybody that will listen that you're getting your new TL on Friday. You are left very vulnerable. That's how they like it. :chainsaw:

XP

 

Alright guys, thanks for all your reply. I went into the dealership and put down the 500 on my credit card as deposit. Now I'll wait for a couple of weeks for the car to come off production. When should the VIN be available?

 

Blue Sky, I don't know... but why you opt for HPT? I thought Seattle has lots of rain...
:o

 

You're right rets. It's a rainy city. But somehow we've been getting dryer weahter each year. The HPT shouldn't be worst than my Yokohama Parada Spec-2 on my current Integra in the rain.

 

Congratulations on your, um, er... deposit!

You didn't say if you negotiated price so I assume by your silence that you didn't.

What does that mean? The dealer is assuming you are going to pay MSRP for the car?? Didn't you even talk price? The salesperson probably sent his/her spouse out for a new HD TV.

XP

 

No we didn't talk price. I didn't sign anything except for the credit card slip. The understanding is when the car is in the dealership they'll give me a call. I'll then go and see the car. If I'm happy with what I see (I'm sure I will be) then I'll talk price with them.

I'm not sure how much I can negotiate with the price. The only accessory I want on it is the deck lid spoiler which I'll get them to throw in. Also will get them to throw in the "protection package" (wheel locks, mud guards, trunk tray & door edge protector) which they add on to all TLs. I will for sure work on getting the price below MSRP. Not sure how much I can get that lowered. What do you think?

 

You have literally given them carte blanche. They are not obligated to give you this car so if someone comes along willing to pay more for it- it's gone. It will go to the highest bidder.

You should be getting about $2000 off the MSRP (ignore the protection package stuff. It goes on all cars and costs them peanuts.)

But, you haven't locked them in to a price. You can do it at anytime. They, however, have succeded in stopping you from shopping (they think). I would contact several other dealership's Internet sites and get quotes for a similar car without telling them you have one on order.

Also, visit www.carbuyingtips.com and get lots of advice. Right now, you are just being pulled around by the nose.

XP

 

I also think not negotiating price was a mistake.

1)They have taken you out of the market for a new car while you wait on them.
2) They are under no obligation to sell you the car. Did you get any kind of paperwork that says under what conditions your deposit is refundable?
3) They know that when this car finally comes in and you see it you're gonna get a great big hard-on for it and they won't feel any need to negotiate a great deal with you. If you walk away they'll have it sold in a week or two anyway. And if you go somewhere else and want navi you're gonna have to wait another two months or so (which is what my deal is quoting) and they *know* you're not going to want to do that.

And you won't get a VIN until its built, which since its coming from Ohio rather than Japan is usually a week or two before delivery.

 

I agree, you should of definitely negoitiated a price. On my order form, I had the agreed price. I also had him put on it the Build Date and Build #. The VIN was available when the car was built. and I got the estimated delivery then.

You don't really have anything with just a deposit slip. What does it even say on it? We put a deposit down when we filled out the order contract. Deposit slips didn't mention anything about what type of car, etc. That was all on the order form.