Allocation with non refundable ADM - question?
12-15-2018, 03:27 PM
#16
I would only be worried if they put the $15k as a separate item and or separate paperwork . If they just mark up your msrp $15k and list as sales price of car no worries. They have deposit and will deliver. If they cant no way for it to be “non refundable “
12-15-2018, 03:34 PM
#17
Rennlist Member
Join Date: Sep 2002
Location: In a van down by the Ottawa River ...
Posts: 4,132
Received 460 Likes
on
257 Posts
As long as they are able to issue a verified commission number, it's confirms a buildable GT3 slot and your deposit will lock you as owner of the slot.
12-15-2018, 06:27 PM
#20
Drifting
i have an opportunity to grab a Feb GT3 allocation for a 15k adm, which seems to be the going rate. I am finally over the mental hurdle of paying the ADM - now dealer wants the full ADM upfront and says it’s non refundable - Feels like pouring salt in the ADM wound. For those that have paid ADM for an allocation is this demand consistent with your experience?
A deposit is refundable by law.
And ADM is a markup on MSRP. It is not a deposit. It is not a non-refundable fee.
If dealer is demanding an ADM up front, and it is not refundable, then they are playing games.
If they say they just want some level of commitment from you, it's a BS sales tactic.
Your commitment is a deposit. And it is legally refundable. If something happens where you can't buy the car, that's their problem. That's the risk they take by doing business.
If something happens and they lose the allocation or never had it, are they going to PAY YOU a fee? No, of course not.
If it were me I would offer a deposit. Maybe $10K-15K. But it needs to be refundable because that is the law.
If they say no, it's obvious they are hiding something. Like maybe the ADM is going into someone's pocket...
And if they still insist, then tell them ok but if my car never shows up, I want IN WRITING, that you OWE ME my ADM/deposit back + an additional non-delivery fee of... I dunno... $25K.
12-15-2018, 08:56 PM
#22
i have an opportunity to grab a Feb GT3 allocation for a 15k adm, which seems to be the going rate. I am finally over the mental hurdle of paying the ADM - now dealer wants the full ADM upfront and says it’s non refundable - Feels like pouring salt in the ADM wound. For those that have paid ADM for an allocation is this demand consistent with your experience?
12-15-2018, 08:57 PM
#23
12-15-2018, 09:32 PM
#24
Drifting
Maybe. I still wouldn't do it. This is a car. Not a house purchase protected by escrow and attorneys for buyer/seller.
If the dealer wants an "ADM" up front and it's non-refundable, then it's shady.
Maybe the allocation exists and the guy will get the car. But chances are that ADM is going directly into someone's pocket.
OP, if you do it... make damn sure the money is going directly to the dealership. NOT to a third-party. NOT to an LLC that's "doing business as" the dealership. NOT to some third-party corporation.
If the dealership is Porsche of AnyCity, make sure your deposit goes to Porsche of AnyCity, and not Super Awesome Racing X, LLC.
If the dealer wants an "ADM" up front and it's non-refundable, then it's shady.
Maybe the allocation exists and the guy will get the car. But chances are that ADM is going directly into someone's pocket.
OP, if you do it... make damn sure the money is going directly to the dealership. NOT to a third-party. NOT to an LLC that's "doing business as" the dealership. NOT to some third-party corporation.
If the dealership is Porsche of AnyCity, make sure your deposit goes to Porsche of AnyCity, and not Super Awesome Racing X, LLC.
12-15-2018, 09:36 PM
#25
Drifting
What state is this in? You should also check to make sure deposits aren't refundable by law. I know here in California, a dealership can't keep the deposit.
12-15-2018, 09:53 PM
#26
Why does it need to be non refundable on a car they can sell with one phone call?
12-16-2018, 01:37 AM
#27
If you're ordering something they perceive would be a hard sell (and perhaps a money loser on sale) should you back out of the deal, then expect them to require a big non refundable down payment. It's insurance to them.
The conventional wisdom, generally true, IMO, is non refundable deposits are considered unenforceable. However, if the stakes are high enough, don't count on, simply, skating out on the deal.
12-16-2018, 08:17 AM
#29
Rennlist Member
wow. I also did an early trade but they cut me a check for the trade amount and just hold on to the tax benefit portion.