What is a reasonable amount to pay as deposit when buying a car at the yard?
tony9,
Oct 7, 8:50pm
Whatever you negotiate. I have never HAD to pay one, but I have preferred to. Depends on what the yard thinks of you and what you think of the yard.
Make sure you get a receipt stating the terms of the deposit.
Reasonable max might be 10%.
tamarillo,
Oct 7, 8:52pm
Any deposit makes a valid contract so $100 cash.
monaro17,
Oct 7, 8:54pm
Depends on the price of the car. Imo under 5k, $500. Over 5k, $1000. Over 50k $2000
beno,
Oct 7, 9:38pm
why anyone would pay a deposit on a car is beyond me. It serves no purpose. I can understand doing it when buying a house as there needs to be a gesture of purchase due to additional cost involved for the purchase such as legal fees reports,etc. if one is compelled to pay a deposit then $1 is sufficient and legal
texastwo,
Oct 8, 1:39am
Yep a deposit to hold it is hardly binding if a better price comes along
pico42,
Oct 8, 2:42am
There doesn't need to be a deposit for a house either.
socram,
Oct 8, 4:05am
What is the reason for the deposit? For the yard to hold a vehicle whilst you sell your own or raise finance? If so and you are serious about buying, then $100 minimum.
For how long? There has to be a time limit as presumably, a car yard wants to use the space to sell cars not offer a cheap parking spot whilst the buyer dithers. I'd suggest that a time limit of 10 days would be sufficient but if I were the seller, I'd say that if you didn't cough up with the balance within 10 days, you'd lose it!
pico42,
Oct 8, 8:42pm
Then what is the point of a deposit?
jayzeeb,
Oct 8, 9:09pm
A deposit is a show of commitment - all to easy for a customer to say on a handshake or over the phone that they will buy the car and then never come back - and in the meantime you may have turned down another customer who was ready to buy that car . it's happened a couple of times to me and now I won't take a car off the yard until a deposit is paid.
billyfieldman,
Oct 9, 2:11am
Thanks.
The intention for putting a deposit is so the dealer doesn't sell off the car for a higher price while I am arranging for pre-purchase inspection and insurance. Mobile PPI mechanics, especially the good ones can be very busy.
kazbanz,
Oct 11, 2:51am
Billy-The actual amount of money you pay as a deposit is academic within the bounds of reason. From $200-$1000 But it does need to be tied into a a sale agreement. So you need a Sale agreement clearly stating the deal in its entirety How much you agree to pay,How much the holding deposit is and that the deal is subject to a pre purchase inspection.
billyfieldman,
Oct 11, 7:50am
OK. Thanks.
2get1,
Oct 12, 4:08am
case in point, was recently selling my ute, guy was interested and wanted it AA inspected, said he would take it if passed AA and we talked a figure. he didn't offer a deposit. 90 minutes later another guy called, offered me $1K more than first guy and stole it out from under the other guys nose.
I always take a deposit to secure a deal and pay one as a buyer. 10% of the sale price is my normal and I as a seller make it non refundable to stop the time wasters backing out. The only reason it is refundable is if sale is conditional on passing an inspection. You would be surprised to know that a good mate sold one vehicle and over the month he was selling it, took 3 non refundable deposits but sold it once lol money for jam from time wasting tyre kickers.
tony9,
Oct 12, 4:14am
He is pushing his luck. The only way you can legally keep a "non refundable deposit " is if you can show that it is a reasonable amount to compensate you for lost reasonable costs.
2get1,
Oct 12, 4:26am
he did and could because he kept the email chain showing that he after taking said non refundable deposit and car passing inspection, had documented other offers to purchase. Which he turned down as already had a buyer in the pipeline, who backed out and lost deposit, The reasonable cost to compensate was well and truly exceeded. a $1k deposit on a $10k deal that was turned down. Good way of keeping the dead beats at bay and teaching them a well earned lesson
kazbanz,
Feb 19, 4:09pm
And THERE ^^^^^^^^ is the difference between dealers and private sellers. A dealer couldn't get away with that.
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