malmasri

Anyone has one on order, Please indicate what was the amount of deposit required by the dealer.
I have a friend that I referred to a large dealership and they are asking for $20000 which I think is extreme.

Overdraft

that is a lot...

goinpostol

I don't think that 10% is out of order...

DJ23

You should only have to place $1000 to hold your spot. A little high. That's what I did when I placed my order on a 2010 TT.

Jay

Macster

If the options chosen by your friend render the car a real oddity and very unlikely to be desired by anyone else should he back out of the car deal $20K could be called for. It is there to mitigate the cost to the dealer of having to lower the price of the car to find a taker.

For an otherwise normal though special ordered car it is beyond extreme.

I'll say this right now: Your friend had better check and double check the order forms are filled out are correct -- before he signs any of them -- and keep all copies of paperwork. He should also have it in writing when the car should arrive.

When the car comes in if the car not to his order, he has the right to either accept the car as it is or refuse it. Now if the car's not too far from his order, or even if it is, he can of course change his mind and accept the car as it is. Up to your friend.

When the car comes in and if the car not to what your friend *though* he ordered but if the car matches the order forms... it is your friend's car then.

Another thing is that he should have a good idea of when the car should be ready to pick up. A dealer can't be held to blame for something out of its control -- like a shipper's strike -- but if the dealer mixed up the order, missed a build slot, etc., then if the car delayed too long the buyer has the right to walk way with his deposit fully refunded.

Now the deposit: One thing a deposit does for the seller is it gives him lots of control over the buyer. This is good for the seller but bad for the buyer.

The buyer can't shop elsewhere, though he shouldn't want to because he should only have ordered the car once he had assured himself the price and whatever else that mattered to him regarding the car purchase was satisfactory. The seller asking for a big deposit does suggest to me -- unless the car a strange order -- the seller believes he has landed a whale, that the car deal will prove to be a lucrative one. The big deposit up front is just a clear grab for control over the buyer to help keep him hooked.

It also gives the seller leverage to try to play games with the purchase price, play the order placer buyer against another buyer off the street, a johhny-come-lately buyer. The seller can turn around and sell the car to another buyer and then still holding on to your friend's money order another car. This is why your friend needs to have a pretty good idea of when the car is expected and due and have this in writing so if the seller starts doing this he can cancel and walk away with his money.

Generally the deposit guidelines for the buyer are to put down as small a deposit as possible. But before putting any money down to have a very clear understanding and have it in writing of what he is buying, when it will be delivered, and what his obligations are once it is delivered, that is mainly how the car is to be paid for.

Sincerely,

Macster.

malmasri

^ Let me shed some light on this story: The dealer has a single 2011 Turbo S allocation. The color combo renders the car a non sellable one according to the dealer ( any order not Black, Silver or Gray with non Black or Cashmere interior is a risky car to sell). I do believe that that is the case since there are all kinds of Porsche cars on the roads in many other colors. The buyer is not someone who changes his mind frquently or backs out on purchases with a long history of many sports cars purchased over the years including Ferrari's as well as Porsches.....So a part from death they have a buyer for an expensive car with a fat margin....I still think it is too much

SchH III

I concur...in my opinion $20k is excessive. While I prefer not to discuss financial matters, I am comfortable indicating I have a deposit on a "S" and, relative to $20k, it is very modest. The dealer has, however, held my deposit since 2007 and in recent years I have purchased a 2005 Carrera S, a 2006 Cayenne Turbo S, a 2007 997 Turbo and a 2008 997 Turbo from him.

turbonator

I have to agree that $20k is excessive. Once they have you "locked in" you have lost significant leverage if they start playing games or jerking you around. As for ensuring a customer actually takes delivery of an ordered car, the deposit does not guarantee that either. Although considered bad form by the buyer, it is legally fully refundable at any time before actual delivery.

Gj325

When I ordered mine no dep. Was needed. I put one down anyway That way dealer owed me a car or that was my thinking Oct delve. Seems like it will never get here.

malmasri

One more thing about the deposit: It in NON REFUNDABLE!!!!!!!!!!!!

Gj325

I think my dealer in Memphis still has a slot they can ship the car anywhere. Not sure what dep. they would want from someone out of town but it only cost a phone call. Put my dep.on Amex. David Graham would be person to talk to there.

Macster

Generally speaking anything a car saleman says is intended to get you to pay as much for the car as possible and to buy the car today.

Therefore the dealer claiming the color combo unless black, silver or gray with something other than black or cashmere interior a risky car to sell is just another variation of this and its intent is to extract a big deposit.

It is all about control.

BTW, I see many black, silver and grey new Porsches on lots so I got news for that dealer: Even if that turbo a black on black it probably won't fly off the lot when it arrives. Which makes it even clearer why the dealer wanted a big depositi.

He wants to keep the whale hooked.

Which is not to say this is bad. If the buyer, your friend wants the car, then the large deposit helps ensure that, but probably does not guarantee it.

Sincerely,

Macster.

Macster

I'm not sure that is legal.

But if it is, then your friend has bought the car, no matter the correctness of the options to that of his order, or he has lost the $20K deposit.

The dealer will use the non-refundable deposit as a lever, club actually to get your friend to accept the car or else.

Not sure how much you want to pass on to your friend. If he's comforable with the arrangment then ignorance (and we've all be ignorant at one time or another) is bliss.

If you get a sense he's not comfortable with the arrangement... Not sure what can be done. Once the dealer has a deposit it is hard to get it to part with it. The bigger the deposit as I've mentioned previously suggests the dealer wants a lot of control over this transaction and he's not about to give it up without a big fight and your friend will need the law on his side to prevail.

It may be premature for me to say it, but first let me say I'm not a lawyer, which is then why I suggest it might be prudent if your friend concerned to speak with an attorney well-versed in these matters to see what his options are. Bring along copies of all the paperwork.

When I find myself in unfamiliar situations like this I like to know my options just in case. And I like to know how to proceed going forward to avoid digging a deeper hole for myself. Consulting with an attorney can provide this info and impart some peace of mind.

A car buying experience should be pleasureable though intense with anticipation. If the experience is not proving to be pleasureable then taking intelligent steps to get it back to the pleasureable state, or making it less unpleasureable, is I think a good plan.

Sincerely,

Macster.

malmasri

Macster: I agree with what you say...I myself did not think it would be legal to ask for a non refundable deposit...I think the law permits the dealer should the buyer back out of a special order car to only hold the deposit till the car is sold and then the dealer must refund the money.
As far as comfort: Both him and myself are not feeling good about what they are asking for and we both made them aware of it....it is unconcievable to most of us to make a purchase of a new car that much complex and almost painful...but if you are like anyone who has made many and frequent purchases over the year you become almost immune to this...call it experience if you may.
Will keep you posted on the progress of this deal.

TT Surgeon

1k will usually order you a car, my dealer would only ask for 10k if it was a weird color combo, but even that was 100% refundable.