Does a 'holding deposit' = loss of haggling?
Discussion
I'm considering a used car at a small dealership a fair few miles away. Is a 'holding deposit' paid before viewing the car ever refundable - and does the purchase price have to be agreed when paying said deposit?
Maybe I'm a bit old-fashioned in wanting to haggle (although I've never been too aggressive!), but it seems that paying a non-refundable deposit reduces that option considerably...
Maybe I'm a bit old-fashioned in wanting to haggle (although I've never been too aggressive!), but it seems that paying a non-refundable deposit reduces that option considerably...
A holding deposit is always refundable , the idea is that it gives you first dibs on the car and salesmen like them because it stops their colleagues selling the car.
It does reduce your negiotiating power a little I would say as obviously it is a signal of intent to buy the car but end of the day if it is the car you want and turns out to be in good condition etc why risk losing it?
It does reduce your negiotiating power a little I would say as obviously it is a signal of intent to buy the car but end of the day if it is the car you want and turns out to be in good condition etc why risk losing it?
280E said:
Thanks for the replies, chaps.
I've heard differing stories regarding the refundable-ness of deposits - I suppose it just needs clarifying in advance...
Definitely worth clarifying in advance yes to ensure both parties on the same page but end of the day if you have not signed anything the dealer cannot keep the deposit.I've heard differing stories regarding the refundable-ness of deposits - I suppose it just needs clarifying in advance...
If you put a deposit on the car and haven't seen it then it should be refundable, we refund if not as described or you are wanting finance but fail the application. It stops the timewasters from failing to turn up then wanting there money back.
Agree the price before you put a deposit down, if you have a PX describe it accurately so there is less chance this will change when you get there.
Agree the price before you put a deposit down, if you have a PX describe it accurately so there is less chance this will change when you get there.
We don't take "holding deposits", it's either sold or its not, there is no way we will hold a car for someone, even if they want to leave a deposit to hold it.
It's not fair on the other sales guys, however I understand that different garages work in different ways.
If someone wants to leave a deposit to secure a car then it is on the understanding that they are leaving a deposit to buy said car, unless it turns out to be not as described; we are thorough in describing cars that are sold this way as if not it just ends up being a world of pain, dissapointment and grief for both parties so it isn't worth being economical with the truth.
Rarely do we have issues or end up having to give refunds.
It's not fair on the other sales guys, however I understand that different garages work in different ways.
If someone wants to leave a deposit to secure a car then it is on the understanding that they are leaving a deposit to buy said car, unless it turns out to be not as described; we are thorough in describing cars that are sold this way as if not it just ends up being a world of pain, dissapointment and grief for both parties so it isn't worth being economical with the truth.
Rarely do we have issues or end up having to give refunds.
I think the simple answer probably has to be yes it will affect the haggling power but not remove it completely as you can only ever ask!
A better way of looking at it is - do you like the car enough to pay the full price and get them to hold it so no one else buys? If yes then thats the worst case and you may still get a bit off if you chance your arm or find any minor issues. If no you wouldnt pay full price or the car is actually a bit out of budget you would be better finding one closer to home and turning up.
As a side I know that a few dealerships charge a refundable deposit to do a branch transfer or get a vehicle from off site holding which is understandable bearing the time / cost this could envolve for someone not to show up to view.
A friend was looking at cars last week for his mother and the small local trader wasnt willling to shift 6 cars to get a £6k car out for a test drive unless my friend said he intended to buy at full price if the test drive went well! maybe that weeds out time wasters!
A better way of looking at it is - do you like the car enough to pay the full price and get them to hold it so no one else buys? If yes then thats the worst case and you may still get a bit off if you chance your arm or find any minor issues. If no you wouldnt pay full price or the car is actually a bit out of budget you would be better finding one closer to home and turning up.
As a side I know that a few dealerships charge a refundable deposit to do a branch transfer or get a vehicle from off site holding which is understandable bearing the time / cost this could envolve for someone not to show up to view.
A friend was looking at cars last week for his mother and the small local trader wasnt willling to shift 6 cars to get a £6k car out for a test drive unless my friend said he intended to buy at full price if the test drive went well! maybe that weeds out time wasters!
I think the simple answer probably has to be yes it will affect the haggling power but not remove it completely as you can only ever ask!
A better way of looking at it is - do you like the car enough to pay the full price and get them to hold it so no one else buys? If yes then thats the worst case and you may still get a bit off if you chance your arm or find any minor issues. If no you wouldnt pay full price or the car is actually a bit out of budget you would be better finding one closer to home and turning up.
As a side I know that a few dealerships charge a refundable deposit to do a branch transfer or get a vehicle from off site holding which is understandable bearing the time / cost this could envolve for someone not to show up to view.
A friend was looking at cars last week for his mother and the small local trader wasnt willling to shift 6 cars to get a £6k car out for a test drive unless my friend said he intended to buy at full price if the test drive went well! maybe that weeds out time wasters!
A better way of looking at it is - do you like the car enough to pay the full price and get them to hold it so no one else buys? If yes then thats the worst case and you may still get a bit off if you chance your arm or find any minor issues. If no you wouldnt pay full price or the car is actually a bit out of budget you would be better finding one closer to home and turning up.
As a side I know that a few dealerships charge a refundable deposit to do a branch transfer or get a vehicle from off site holding which is understandable bearing the time / cost this could envolve for someone not to show up to view.
A friend was looking at cars last week for his mother and the small local trader wasnt willling to shift 6 cars to get a £6k car out for a test drive unless my friend said he intended to buy at full price if the test drive went well! maybe that weeds out time wasters!
280E said:
Maybe I'm a bit old-fashioned in wanting to haggle (although I've never been too aggressive!), but it seems that paying a non-refundable deposit reduces that option considerably...
Going back a few years to when I got my Merc from an MB Direct branch some distance away the salesman was very keen to get a holding deposit off me in advance, and he reduced the car's price a couple £K to get me to agree.When I went to see the car, I started from the discounted price as if that was the sale price and I chipped away at that.
It doesn't seem possible to get big discounts on used cars these days, but that was one of only a couple of purchases I've made where I felt I got a really good deal.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff