The deposit is one of the more controversial aspects of making any vehicle purchase. However, it need not be so. Unfortunately, a poorly trained sales staff at many dealerships is usually the reason for issues related to deposits.
Let’s start with a discussion about what a deposit is. I’ll start with how we consider deposits at Freedom Ford and then I’ll compare that with how they are handled at some other stores. At Freedom Ford, a deposit is only discussed at the point that the customer has indicated they are ready to purchase the vehicle in question. This means that either the final price has been agreed upon or the customer has offered a price at which they will purchase the car. The main point of the deposit at this point is to ensure that if the car is removed from inventory and is no longer for sale, that the purchaser will fulfill their promise to buy the car.
Unfortunately, due to inadequate training, salespeople at some other stores bring up the deposit at inappropriate times. For example, I’ve had customers tell me that at other stores they were asked to provide a $1000 deposit just to find out the price of a used vehicle! When this happens it leaves customers with a bad taste and tends to put a negative spin on the whole concept of leaving a deposit.
After years of abuse of the deposit concept in the car sales industry, an interesting thing has happened. In the last few years, I have noticed an increased tendency for customers to offer deposits before they are asked for. In this case, some customers have learned that untrained salespeople will salivate at the offer of a deposit. However, in virtually all of these cases, the shoppers are hoping that their deposit will hold the vehicle while they shop to see if they can find something better. Of course, at well run dealerships these deposits are usually declined. It gets pretty tough to tell a prospective customer that they can’t buy a certain car because we are waiting to see if someone else finds something better.
A very important aspect of the whole deposit discussion is the ability to get a deposit back. Legally, a dealership does not have to return any deposit. This an excerpt from the FAQ section on the AMVIC.org web site:
Q. I just bought a vehicle but have changed my mind. Can I cancel the deal and get my deposit back?
- Under normal circumstances, no. Your car purchase agreement is a legal contract.
- The only exception is if the agreement was signed with conditions: e.g. the vehicle must pass an inspection first or suitable financing had to be available.
- Speak to the dealer. They may be willing to work out an arrangement concerning the agreement but will probably keep the deposit
So be especially careful if leaving a deposit without the intention to follow through on your purchase. Although I would expect most dealers would return a deposit, they have no obligation to do so. If a consumer promises to buy a vehicle and then buys one elsewhere, they may have trouble getting a deposit back, especially if time has passes and the first dealer has turned away business because they thought the vehicle was sold.
Leaving a legitimate deposit protects both parties. After all, nobody would like to go pick up their new car only to hear that the dealer sold it to someone else.
