How safe is my Ferrari deposit?
Discussion
I have £10k tied up in deposits with Ferrari dealers on new cars... including the F430 replacement (I always like to have one of the first!). I am more than happy to leave my deposit there (particularly given that interest rates on deposit are so low), providing that my money is safe. I also have every intention of purchasing and running the cars - I am not a speculator.
With car dealers struggling so much - how safe are these deposits? The majority of Ferrari dealers are part of large retail groups - however even these seem to be under threat at the moment (with many being 'fire sold' to competitors). This situation can only get worse in the new year as buyers stay away.
Perhaps these dealers should offer to hold deposits in protected trust accounts or similar (which still pay out in the event of a corporate collapse) - much like landlords are now obliged to do for their tenants?
Thoughts?
With car dealers struggling so much - how safe are these deposits? The majority of Ferrari dealers are part of large retail groups - however even these seem to be under threat at the moment (with many being 'fire sold' to competitors). This situation can only get worse in the new year as buyers stay away.
Perhaps these dealers should offer to hold deposits in protected trust accounts or similar (which still pay out in the event of a corporate collapse) - much like landlords are now obliged to do for their tenants?
Thoughts?
Not the same scale as you, but I would only ever leave a deposit on a credit card - you're protected by the card company then. An added advantage is that even if you pay the balance in cash, the whole deal is still covered by the credit card company.
If the dealership doesn't like the idea of credit card (because of the charges) then offer to swop to cash when you collect the car.
If the dealership doesn't like the idea of credit card (because of the charges) then offer to swop to cash when you collect the car.
I don't know on the time limit.
It's the various Consumer Credit Acts (CCA) assuming these are personal cards, not business ones, that give you the protection.
One significant thing (bearing in mind the cost of a Ferrari) that changed in April 08 was that the CCA 2006 came into force and that removed the £25K limit which prevously applied to the Acts coverage.
Make sure you haven't signed anything in which you opt out of CCA coverage - high net worth individuals can do that - as I'm not one, I'm not familiar with the details but I think you have to sign a declaration.
It's the various Consumer Credit Acts (CCA) assuming these are personal cards, not business ones, that give you the protection.
One significant thing (bearing in mind the cost of a Ferrari) that changed in April 08 was that the CCA 2006 came into force and that removed the £25K limit which prevously applied to the Acts coverage.
Make sure you haven't signed anything in which you opt out of CCA coverage - high net worth individuals can do that - as I'm not one, I'm not familiar with the details but I think you have to sign a declaration.
I own a caravan/motorhome dealership and most of the larger ones are registered with the FSA ( Financial Services Authority). Under that scheme, which almost all large car dealer groups would be in, there is a specific section which covers 'client money'.
This concerns itself with ensuring separate funds are always available (in fenced bank accounts)to cover any client money held in case of financial drama!
You would be unlucky to catch a cold with a dealer under this scheme....
... but I would still ask!!
This concerns itself with ensuring separate funds are always available (in fenced bank accounts)to cover any client money held in case of financial drama!
You would be unlucky to catch a cold with a dealer under this scheme....
... but I would still ask!!
There is no reason that the dealer shouldnt agree to put the money ina trust account in your and theri name after all they dont have to pay over the money forthe car until they buy it so what argument do they have not to do that? I would insist upon it! Hve heard a dealer claim they have to pay the money over to the manufacturesrs once, bu I told the slaeman that simply wasnt true! If they insist it is I would ask to see proof that it is paid and in your name with the manufacturer!
It's your money so why take the risk no matter what your net worth is!
It's your money so why take the risk no matter what your net worth is!
Super Ted said:
The dealer should be telling you he cannot take a deposit on a F430 replacement yet.
He will accept a letter of intent though.
Get your money back and keep it. Your place in the queue will stay the same.
Hey Super Ted - is that really corregt? The dealer has been sitting on £10k of my cash for years!He will accept a letter of intent though.
Get your money back and keep it. Your place in the queue will stay the same.
You need to put an LOI in until official announcement of the car by Ferrari
Once the car is announced then the dealer will ask for a deposit – it was £10,000 for the Cali or £20,000 for the Scuderia
After you have put in the car specification, around 3 months before the build date you will need to pay a further deposit. If you go for a standard spec this will be 10-20k. If you want Pink paint with blue leather it might well be the full cost of the car.
So as was said no dealer should have asked you for a deposit on a 430 replacement yet – they are just using you for cheap borrowing
In any case even if you put down a deposit on the 430 replacement 5 years ago, the “good” customer who asks for one 3 months after the launch will still get their car before you.
Once the car is announced then the dealer will ask for a deposit – it was £10,000 for the Cali or £20,000 for the Scuderia
After you have put in the car specification, around 3 months before the build date you will need to pay a further deposit. If you go for a standard spec this will be 10-20k. If you want Pink paint with blue leather it might well be the full cost of the car.
So as was said no dealer should have asked you for a deposit on a 430 replacement yet – they are just using you for cheap borrowing
In any case even if you put down a deposit on the 430 replacement 5 years ago, the “good” customer who asks for one 3 months after the launch will still get their car before you.
Edited by traxx on Saturday 27th December 13:43
traxx said:
You need to put an LOI in until official announcement of the car by Ferrari
Once the car is announced then the dealer will ask for a deposit – it was £10,000 for the Cali or £20,000 for the Scuderia
After you have put in the car specification, around 3 months before the build date you will need to pay a further deposit. If you go for a standard spec this will be 10-20k. If you want Pink paint with blue leather it might well be the full cost of the car.
So as was said no dealer should have asked you for a deposit on a 430 replacement yet – they are just using you for cheap borrowing
In any case even if you put down a deposit on the 430 replacement 5 years ago, the “good” customer who asks for one 3 months after the launch will still get their car before you.
OK - thx. I shall ask for my deposit back - annoying as they have had it for years... why can't they just be straight with me in the beginning rather than insisting on a deposit? I guess that I am not a good customer in so far as I have never owned a Ferrari, but I have owned new Astons and Porsches... if that helps show that I am not a speculator.Once the car is announced then the dealer will ask for a deposit – it was £10,000 for the Cali or £20,000 for the Scuderia
After you have put in the car specification, around 3 months before the build date you will need to pay a further deposit. If you go for a standard spec this will be 10-20k. If you want Pink paint with blue leather it might well be the full cost of the car.
So as was said no dealer should have asked you for a deposit on a 430 replacement yet – they are just using you for cheap borrowing
In any case even if you put down a deposit on the 430 replacement 5 years ago, the “good” customer who asks for one 3 months after the launch will still get their car before you.
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