Deposit quandry
Discussion
Thought I'd ask for a little perspective on this situation.
I have a car going in for some work in a month, discussions have been on going for a couple of months.
Now I like the co, they seem a good bunch and I'm happy with the quote etc and I have no reason at all to think everything wouldn't be fine.
But I've been asked for a 50% deposit at time of booking, which is now for delivery of my car in a month.
This is where I'm getting a bit twitchy as the amount will be well into 4 figures. The money just goes into their co accounts not a holding account or similar.
I've asked why the deposit but really I know what its for - confirmation of the booking (so I will turn up and not leave them without work for a month) and to allow purchase of parts so they can get on asap - every co needs cash flow.
It just seems to be their policy and they don't seem short of work.
But I going to feel a proper numpty if I turn up on the day to find the place empty and closed and me with no work done and 50% already paid.
I feel I'm taking all the risk but I know I'm coming and they don't, for certain. A credit card would be best I imagine but there may be a charge for this I suppose.
I want the work done and I don't want to come across as the awkward customer and the jobs they had in were much larger and more expensive than mine will be.
I wondered about putting something on the invoice to the effect that the money is not part of their co assets until work commences even though they would have it and can use it. I've no idea if this has any legal power but it might help as a creditor.
Any thoughts anyone or am I just being paranoid.
I have a car going in for some work in a month, discussions have been on going for a couple of months.
Now I like the co, they seem a good bunch and I'm happy with the quote etc and I have no reason at all to think everything wouldn't be fine.
But I've been asked for a 50% deposit at time of booking, which is now for delivery of my car in a month.
This is where I'm getting a bit twitchy as the amount will be well into 4 figures. The money just goes into their co accounts not a holding account or similar.
I've asked why the deposit but really I know what its for - confirmation of the booking (so I will turn up and not leave them without work for a month) and to allow purchase of parts so they can get on asap - every co needs cash flow.
It just seems to be their policy and they don't seem short of work.
But I going to feel a proper numpty if I turn up on the day to find the place empty and closed and me with no work done and 50% already paid.
I feel I'm taking all the risk but I know I'm coming and they don't, for certain. A credit card would be best I imagine but there may be a charge for this I suppose.
I want the work done and I don't want to come across as the awkward customer and the jobs they had in were much larger and more expensive than mine will be.
I wondered about putting something on the invoice to the effect that the money is not part of their co assets until work commences even though they would have it and can use it. I've no idea if this has any legal power but it might help as a creditor.
Any thoughts anyone or am I just being paranoid.
They have incurred no costs, so why do they need a deposit? Generic parts will only be ordered once they have inspected. Ditto specialist parts (but with a longer lead time?). They have incurred no labour cost. Why do they need a deposit?
If it was a big part item like an engine - I could understand them not wanting to be fully exposed to all of the costs - but that should be by negotiation with the client.
Credit card would be one route, and even if they charge you a few % it might be worth it, but go with your gut feel.
If it was a big part item like an engine - I could understand them not wanting to be fully exposed to all of the costs - but that should be by negotiation with the client.
Credit card would be one route, and even if they charge you a few % it might be worth it, but go with your gut feel.
I might be barking up the wrong tree here, but I guess you're worried about one outcome (the garage closing up with your money in tow) based on one of two scenarios.
Either the owners are crooks, just out to make a few hundred quid, then do a bunk
or
They're in financial trouble and might well fold before they do your work, leaving you to join a long list of creditors (is it creditors or debtors, I'm never sure?)
If you think it's the first one, then you've got to ask yourself if this is really the sort of thing which is likely to happen. How long has the garage been there? How much effort have they put into this "con"? It's unlikely that a 30 year established local business with an order book full of customers having, presumably, lots and lots of extremely specialist work undertaken are going to think to themselves that they can retire to a nice life in the Costa Del Sol with your £1500.
If it's the second option, could you check them out on something like DueDil.com. It'll cost about a fiver to get access to the accounts and what not and if, unlike me, you know what you're looking at, it'll probably give you a decent idea as to the state of their finances. If they owe hundreds of thousands and have very small income, then run away. If they made a profit equivalent to the GDP of a medium sized banana republic, then you're good to go (but be aware that you're paying through the nose).
Simon.
Either the owners are crooks, just out to make a few hundred quid, then do a bunk
or
They're in financial trouble and might well fold before they do your work, leaving you to join a long list of creditors (is it creditors or debtors, I'm never sure?)
If you think it's the first one, then you've got to ask yourself if this is really the sort of thing which is likely to happen. How long has the garage been there? How much effort have they put into this "con"? It's unlikely that a 30 year established local business with an order book full of customers having, presumably, lots and lots of extremely specialist work undertaken are going to think to themselves that they can retire to a nice life in the Costa Del Sol with your £1500.
If it's the second option, could you check them out on something like DueDil.com. It'll cost about a fiver to get access to the accounts and what not and if, unlike me, you know what you're looking at, it'll probably give you a decent idea as to the state of their finances. If they owe hundreds of thousands and have very small income, then run away. If they made a profit equivalent to the GDP of a medium sized banana republic, then you're good to go (but be aware that you're paying through the nose).
Simon.
Vaud said:
SV8Predator said:
You've not been told the whole story here, fellas.
This isn't a chap putting his 3-cylinder Corsa in for a set of brake pads.
I don't see anything in his profile that would change my view.This isn't a chap putting his 3-cylinder Corsa in for a set of brake pads.
OP said:
discussions have been on going for a couple of months.
OP said:
the amount will be well into 4 figures
Can't see a Corsa owner discussing a pad change for two months - this sounds like extensive restoration or customisation.Jasandjules said:
My first thought is that they are having cash flow problems. In theory the parts should be sent to them on credit (I stand to be corrected of course).
Once the work is done and you are happy, pay, not before.
Agree with this, it looks like cash flow issues. I'd expect them to get at least 30 days from their suppliers. If they say they can turn your car round in a month then a 50% deposit suggets that they could be having trouble getting credit.Once the work is done and you are happy, pay, not before.
Vaud said:
They have incurred no costs, so why do they need a deposit? Generic parts will only be ordered once they have inspected. Ditto specialist parts (but with a longer lead time?). They have incurred no labour cost. Why do they need a deposit?
If it was a big part item like an engine - I could understand them not wanting to be fully exposed to all of the costs - but that should be by negotiation with the client.
Credit card would be one route, and even if they charge you a few % it might be worth it, but go with your gut feel.
They may need a deposit to ensure that they don't totally lose out if the OP doesn't turn up for his work to be done. Could be that they have to turn down or book later other work in order to accomodate him. So they need to know he will make the booking. Similar to how wedding venues and pub function rooms often want a deposit to make sure you turn up and they're not left with an empty room that they could have rented to someone else.If it was a big part item like an engine - I could understand them not wanting to be fully exposed to all of the costs - but that should be by negotiation with the client.
Credit card would be one route, and even if they charge you a few % it might be worth it, but go with your gut feel.
Vaud said:
I don't see anything in his profile that would change my view.
I can. Replacing the chassis on the Range Rover with a galvanized one. The only company I know who do them manufacture to order and they are well over £2K. Add the labour for swapping the chassis over this and you get quite a large bill. You cant really return an item like that if your client doesn't pay up.plasticpig said:
Vaud said:
I don't see anything in his profile that would change my view.
I can. Replacing the chassis on the Range Rover with a galvanized one. The only company I know who do them manufacture to order and they are well over £2K. Add the labour for swapping the chassis over this and you get quite a large bill. You cant really return an item like that if your client doesn't pay up.http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Jasandjules said:
My first thought is that they are having cash flow problems. In theory the parts should be sent to them on credit (I stand to be corrected of course).
Once the work is done and you are happy, pay, not before.
It is of course worth asking the reason for such a percentage. Perhaps they are so good they can afford to be choosy about their clients, and the deposit is a way of sorting the clients who CAN afford their services.Once the work is done and you are happy, pay, not before.
I had severe cash flow problems a few years ago when a customer went bust owing me for a good deal of money for unique product that could not be sold elsewhere.
It could also just be this is a company tackling a unique project just wishing to protect itself and their work force from bad payers.
The deposit is to hold your time/slot in the diary, if you don't show a commitment to the booking in a deposit they could be without work for a month if you don't turn up.
I take deposits for some of my bodywork jobs for this reason, you can't always book something else at short notice because someone can't be arsed to turn up.
I take deposits for some of my bodywork jobs for this reason, you can't always book something else at short notice because someone can't be arsed to turn up.
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