Deposit and fees?!
02-21-2009, 12:46 PM
#31
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In today's uncertain economy, large deposits can be a real risk if the dealership closes. Yesterday, I heard that Prestige Porsche in Nyack NY just closed its doors. So what happens to the $3500 deposit someone has with them? Do they become a general creditor?
This thread raises the concept of risk from the dealer being stuck with an unsold car. Just want to make sure that we all appreciate that there is risk for the buyer too. If the deposit was put in an escrow account or you have 1st dibbs on the attractive receptionist (
) then that might be a mitigating risk strategy. I suspect 20% of the dealers today will not be here within 18 months.
This thread raises the concept of risk from the dealer being stuck with an unsold car. Just want to make sure that we all appreciate that there is risk for the buyer too. If the deposit was put in an escrow account or you have 1st dibbs on the attractive receptionist (
) then that might be a mitigating risk strategy. I suspect 20% of the dealers today will not be here within 18 months.There is a 'REAL' risk that certain dealers are going to go under. With 11 of the little ****** in Ohio, there's too many of us. It's only a matter of time before they start dropping like dead flys.
The irony is there are a LOT of resources out there that actually promote dishonesty and disdain towards the dealerships. Sure, there's a lot of bad apples in my business- rightly so; but it' s a two way street. I've seen my fair share of shady acts by clients. Especially with Mercedes Benz Clients.
Have you ever heard this before?
"I have to go talk to my wife."
" I'm going to think about it."
"I need to go pick up my kids up the street at the soccor game" (come on, can you not put your kids in the middle of this crap? lol
) " I need to go pray on it." (I'm serious! lmao)
(via email) "give me your best price and I'll buy it from you right now."
"The BMW is $200/mo less a month" (cough *bull**** cough lol)
"I have to go pick my teeth, wash my hair and bang my wife"- (actual quote_ from a great, and fuggin hilarious client of mine)
"I'm going to shop this **** out of your number b/c I honestly don't know the market and haven't done my research on this car. I might even do business with a dealership that won't be here tomorrow. But I'm nervous I'm making the wrong decision. Can you tell me more about the Mercedes? I'd prefer it over the others"- Fantasy response of real truth LOL
*I've gone off on tangent but it was amusing!
I am really amazed at how little a deposit that most car dealers require, I sell Class 8 trucks and our industry does not get enough deposit either. I think if you are worried about the financial status of your dealer you are at the wrong place. We ordered a new phone system a couple of months ago and it was 25% at order and another 25% in 90 days!
02-21-2009, 12:48 PM
#32
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ps. I want to add that when I hear any/all the above what YOU are really saying is: "you've not conviced me to do business with you."
It ain't rocket science. LOL
It ain't rocket science. LOL
02-21-2009, 01:32 PM
#33
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Business is business, from both ends. I've never put up more than a $1k "deposit" to order any car. Doc fees, I don't pay, at least not right out (maybe in the final agreed price). I live and have lived in states where by law the deposits were refundable.
02-22-2009, 03:16 AM
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02-22-2009, 07:38 AM
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So what about using an escrow account for the deposit? It seems that no dealer should balk at escrow vs. deposit -- unless, of course, he needs the operating funds.