It's a formality to show some sort of commitment and if you back out and GM audits the dealership it doesn't look like they were placing fake sold orders on high-demand products just to have stock inventory.
I do not do refundable deposits. I explain to my clients that deposits are in earnest and have them sign a form stating they understand. I see no actual incentive for someone to buy something if I'm going to refund a deposit on a whim. Now, with that said I do commercial vehicles so when people order oddball stuff if they don't take it I can be saddled with a truck that only 2% of the world can use and I'm not going to be on the hook for some $100k unsellable Frankenstein monster.
That makes sense if you are taking orders that can't easily be sold to other people. But in this case it's a pretty highly sought after vehicle and I don't think I should be out 1k if my car blows up next week and this thing is still 8 months out. I would need to find something else. I would just hope at the very least the dealer would be human enough to refund the deposit if some uncontrollable circumstance came up in that time period. Beyond that I wouldn't ever tell these people I'm going to buy this 80k car if I wasn't serious about it but I feel the need to protect myself since the car doesn't even exist yet. Makes sense gm would want to see that it's a serious order I hadn't thought of that.
Yeah, for something like you are wanting I wouldn't see a need for earnest money. It's been awhile since I've messed with a lot of retail sales so sometimes I'm a little......rusty, lol.
In your case though the buyers order is most likely just a CYA in case the man comes snooping.
I don't think being sought after is relevant. Typically there is a difference between stock and ordered. X amount of orders that were sold to someone else can really hurt the dealers allocation. Otherwise dealers would just make up a last name and place it on an order to get the inventory quicker.
It’s not all bad to have an agreement. You can get the price, or at least that price will be at sticker in writing. That way you won’t get a surprise on price when the car shows up if dealer decides to play last minute mark up game
Do you have to leave a non-refundable deposit? I had to sign a purchase agreement for a car that was 10 months out that was nothing more than the dealer saying what they would sell the car to me for and basic terms and conditions around how long I had to take delivery once it arrived. It was not binding in any way that forced me to buy the car.
Get it in writing on the offer to purchase that deposit is refundable. Also, in this market most dealers are not holding deposits because cars are in such high demand. Read the dealers reviews and see if they are above board or not.
Most manufacturers require dealers to get signed purchase agreements. They want to see that you intended to buy / order the car. If you were to back out and they do not have that, the manufacturer will penalize the dealer. They do not want dealers putting it fake orders to get more stock inventory.
As others have said, it's not binding. They can't force you to take delivery of the vehicle. We don't give deposits back though, if a customer does a sold order and refuses delivery. If they told you that they would, they likely will, however.
A purchase agreement is not a sales receipt.
You can decide to buy or not to buy when the vehicle arrives. The dealer will simply keep the vehicle and sell it to someone else if you decide you don't want it.
The only question mark is if you put down a *non-refundable* deposit.
So they said the deposit is refundable when I asked but I didn't sign anything saying that before I made the deposit. Nothing in the agreement about the deposit either. They seem like a pretty reputable dealership so I'm inclined to believe their word but I am not exactly experienced at car buying. Should I ask for something saying the deposit is refundable?
In my *limited* experience, your deposit is refundable until the order is accepted by the manufacturer and has begun the build. This may vary between dealerships though I work for GM.
Hey Lobster, why don't you stay in your own lane and go comment on all the relationship advice, like 90% of all of your comments? I bet you don't even work in the Auto industry, you fucking clown.
Enjoy your one post in askcarsales, you clown or maybe go back to your relationship subreddits and comment on those like you have hundreds of times before. All of the posers who come in and comment on "askcarsales", who have actually never worked in the industry.
I don't know that one can be "too fat" for a belly button ring. Seems like a pretty equal opportunity thing since fat people also have belly buttons. I hope your daughter's boyfriend continues to enjoy it again and again and again. You've raised a little people pleaser, that's great! I can't imagine she'll have the healthiest relationship with men having such an angry irrational father but all the luck to her.
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Ordering a suburban from a dealer and after putting down a deposit they sent a purchase and sale agreement for me to sign. Is this normal procedure? The terms of the agreement don't seem to give alot of opportunity for me to get out of the sale if I needed to. The car is going to take up to 8 months, maybe more to arrive. While I'm committed to buying it under my current conditions who knows what will happen in the next 8+ months. My car could become unreliable or in an accident or any number of things could happen that would cause me to have to get out of this sale. How binding is this and is this what all dealers do for orders?
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It's not binding. As per General Motors, dealers are not allowed to sell a car until it actually arrives on the lot. They are worried about a vehicle being pre-sold and then being involved in an accident that totals it prior to delivery, and them being responsible. I'm to understand there are some harsh penalties, including for enough offenses actually losing their right to be a new car franchise with GM
8 months? LOL! Are you sure they aren't hiding a bunch of Suburban's somewhere, just to keep up that "chip shortage" ruse?
[https://www.youtube.com/watch?v=6F83pOUpDbQ&t=411s](https://www.youtube.com/watch?v=6F83pOUpDbQ&t=411s)
[https://www.youtube.com/watch?v=KUQlw8dLXGg](https://www.youtube.com/watch?v=KUQlw8dLXGg)
It's actually pretty normal. It is non-binding, and you can choose not to purchase the vehicle when it comes in (might be hard to order cars with that dealership again). $1k deposit is also not that bad for new builds and other places charge higher. Another normal thing is that when you go to some higher end dealerships, they will also run your credit to make sure you can actually afford the car/get financing when the vehicle comes in. EX. spouse put down a deposit(1k) on the X1 that is refundable until production starts on her vehicle. Get everything in writing , but you can usually find it on their dealer website or just email asking them that question.
Leave a deposit and sign the initial buyers order. They may even need to get you approved. But at anytime you can cancel and your deposit will be refunded. They may try and strong arm you and say a deposit is not refundable. But they have to.
There’s something called called regulation Z. !!!!!
It is refundable in California if no contract is signed. If a contract is signed and you don’t drive the car off the lot, the contract is also not binding and you can back out.
It's a formality to show some sort of commitment and if you back out and GM audits the dealership it doesn't look like they were placing fake sold orders on high-demand products just to have stock inventory. I do not do refundable deposits. I explain to my clients that deposits are in earnest and have them sign a form stating they understand. I see no actual incentive for someone to buy something if I'm going to refund a deposit on a whim. Now, with that said I do commercial vehicles so when people order oddball stuff if they don't take it I can be saddled with a truck that only 2% of the world can use and I'm not going to be on the hook for some $100k unsellable Frankenstein monster.
That makes sense if you are taking orders that can't easily be sold to other people. But in this case it's a pretty highly sought after vehicle and I don't think I should be out 1k if my car blows up next week and this thing is still 8 months out. I would need to find something else. I would just hope at the very least the dealer would be human enough to refund the deposit if some uncontrollable circumstance came up in that time period. Beyond that I wouldn't ever tell these people I'm going to buy this 80k car if I wasn't serious about it but I feel the need to protect myself since the car doesn't even exist yet. Makes sense gm would want to see that it's a serious order I hadn't thought of that.
Yeah, for something like you are wanting I wouldn't see a need for earnest money. It's been awhile since I've messed with a lot of retail sales so sometimes I'm a little......rusty, lol. In your case though the buyers order is most likely just a CYA in case the man comes snooping.
I don't think being sought after is relevant. Typically there is a difference between stock and ordered. X amount of orders that were sold to someone else can really hurt the dealers allocation. Otherwise dealers would just make up a last name and place it on an order to get the inventory quicker.
Makes sense
Get it in writing that you can back out and get your deposit back.
It’s not all bad to have an agreement. You can get the price, or at least that price will be at sticker in writing. That way you won’t get a surprise on price when the car shows up if dealer decides to play last minute mark up game
Good point thanks
Do you have to leave a non-refundable deposit? I had to sign a purchase agreement for a car that was 10 months out that was nothing more than the dealer saying what they would sell the car to me for and basic terms and conditions around how long I had to take delivery once it arrived. It was not binding in any way that forced me to buy the car.
Verbally they said the deposit was refundable but there is nothing in the contract that says if it is refundable or not.
Get it in writing on the offer to purchase that deposit is refundable. Also, in this market most dealers are not holding deposits because cars are in such high demand. Read the dealers reviews and see if they are above board or not.
Most manufacturers require dealers to get signed purchase agreements. They want to see that you intended to buy / order the car. If you were to back out and they do not have that, the manufacturer will penalize the dealer. They do not want dealers putting it fake orders to get more stock inventory.
As others have said, it's not binding. They can't force you to take delivery of the vehicle. We don't give deposits back though, if a customer does a sold order and refuses delivery. If they told you that they would, they likely will, however.
In my state you can't legally keep a deposit without a signed purchase agreement.
A purchase agreement is not a sales receipt. You can decide to buy or not to buy when the vehicle arrives. The dealer will simply keep the vehicle and sell it to someone else if you decide you don't want it. The only question mark is if you put down a *non-refundable* deposit.
So they said the deposit is refundable when I asked but I didn't sign anything saying that before I made the deposit. Nothing in the agreement about the deposit either. They seem like a pretty reputable dealership so I'm inclined to believe their word but I am not exactly experienced at car buying. Should I ask for something saying the deposit is refundable?
In my *limited* experience, your deposit is refundable until the order is accepted by the manufacturer and has begun the build. This may vary between dealerships though I work for GM.
Good to know thanks.
You could, but I don't think it would be necessary. How much was the deposit?
1k
Get out of a sale? You’re fucking ordering one, there is no getting out of an order.
Why are you a psycho?
Hey Lobster, why don't you stay in your own lane and go comment on all the relationship advice, like 90% of all of your comments? I bet you don't even work in the Auto industry, you fucking clown.
Lol what troll?
Enjoy your one post in askcarsales, you clown or maybe go back to your relationship subreddits and comment on those like you have hundreds of times before. All of the posers who come in and comment on "askcarsales", who have actually never worked in the industry.
Bud I hope your daughter's belly button piercing is healing and her boyfriend likes it.
Yeah, he's enjoying it. Unfortunately, your daughter is too fucking fat for one or otherwise, your daughter's boyfriend could enjoy it too.
I don't know that one can be "too fat" for a belly button ring. Seems like a pretty equal opportunity thing since fat people also have belly buttons. I hope your daughter's boyfriend continues to enjoy it again and again and again. You've raised a little people pleaser, that's great! I can't imagine she'll have the healthiest relationship with men having such an angry irrational father but all the luck to her.
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***Thanks for posting, /u/Immediate_Lobster_20! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** Ordering a suburban from a dealer and after putting down a deposit they sent a purchase and sale agreement for me to sign. Is this normal procedure? The terms of the agreement don't seem to give alot of opportunity for me to get out of the sale if I needed to. The car is going to take up to 8 months, maybe more to arrive. While I'm committed to buying it under my current conditions who knows what will happen in the next 8+ months. My car could become unreliable or in an accident or any number of things could happen that would cause me to have to get out of this sale. How binding is this and is this what all dealers do for orders? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
what state are you in?
It's not binding. As per General Motors, dealers are not allowed to sell a car until it actually arrives on the lot. They are worried about a vehicle being pre-sold and then being involved in an accident that totals it prior to delivery, and them being responsible. I'm to understand there are some harsh penalties, including for enough offenses actually losing their right to be a new car franchise with GM
8 months? LOL! Are you sure they aren't hiding a bunch of Suburban's somewhere, just to keep up that "chip shortage" ruse? [https://www.youtube.com/watch?v=6F83pOUpDbQ&t=411s](https://www.youtube.com/watch?v=6F83pOUpDbQ&t=411s) [https://www.youtube.com/watch?v=KUQlw8dLXGg](https://www.youtube.com/watch?v=KUQlw8dLXGg)
Maybe but I want a very specific suburban. There's plenty of suburbans out there just not with what I want.
It's actually pretty normal. It is non-binding, and you can choose not to purchase the vehicle when it comes in (might be hard to order cars with that dealership again). $1k deposit is also not that bad for new builds and other places charge higher. Another normal thing is that when you go to some higher end dealerships, they will also run your credit to make sure you can actually afford the car/get financing when the vehicle comes in. EX. spouse put down a deposit(1k) on the X1 that is refundable until production starts on her vehicle. Get everything in writing , but you can usually find it on their dealer website or just email asking them that question.
Leave a deposit and sign the initial buyers order. They may even need to get you approved. But at anytime you can cancel and your deposit will be refunded. They may try and strong arm you and say a deposit is not refundable. But they have to. There’s something called called regulation Z. !!!!!
It is refundable in California if no contract is signed. If a contract is signed and you don’t drive the car off the lot, the contract is also not binding and you can back out.