Hi there. We have found the perfect van suitable for our business. It is 2020 but it is of course prudent to get an independent check. The dealer has agreed to let us do this and to take it off the market (their words) during the time it is away getting that done (approx 5 days between us getting it in, and the meantime it stays on their lot).
They have asked us for a $3K deposit as a 'taking it off the market in case you're whatever. The thing is, the 3k is billed on an invoice for the whole vehicle, saying xxx remaining pursuant to the independent check being fine.
We had verbally agreed on them the following:
1. Pay a deposit 2. Get the van checked 3. If happy with the report (ie no majors etc) we proceed with the trade in and purchase 4. If the report has some things in that the dealership agree to fix at no cost then we have the right to accept this or not (we would but not telling them that now). 5. If the van throws up unexpected things that will cost or cause problems then we will walk away and get our full $3k Deposit back.
The only reason we would not get it back, is if it came back from the independent inspection in a satisfactory condition (at our discerning) but we decided we didn't want it anyhow (change of mind) then we wouldn't get the deposit back.
It smells a bit weird to me. This is a company that is selling 2020 70K European (VW Sprint) I think it is. Any advice on the reasonableness or otherwise of this? It is a large, long-established dealership specialising in these lines/class of vehicles.
Thank you for any advice, much appreciated.
If it makes a difference - the price includes ORC and we are paying Cash - no finance no nothing. May trade in a vehicle with them but may not either depend on if we can sell it before the timeline or not for a better price than been offered from them.
Thank you, Tracey
itsafamilything,
Apr 15, 10:50am
How is it ON their lot yet OFF the market? I do not like the sound of that. Also make absolutely sure ie in writing that you may change your mind as for example in the interim you may be presented with a better deal and it is up to you to determine what a good report from the ppi is and what you will accept. Incidentally there may be items that come up in the report that call for further negotiation. If they say they will not negotiate at all I would walk away. If they say they will negotiate then get that in writing!
kazbanz,
Apr 15, 10:53am
It makes total sense and is exactly the way we do things To be clear. 1) the deposit secures the vehicle for you 0they cannot sell it to anyone else. 2) The deal is subject to a vehicle inspection satisfactory to YOU . --or your deposit is refunded. 3) It is allowing that you have done all due diligence up to the PPI stage. So you are happy with how it drives. Any paint defects you have seen. Interior condition etc. 4) All price negotiation has already been done INCLUDING the agreed value of your trade in.
if you aren't happy with any step/steps then you can refuse to pay the deposit. BUT right until deposit is paid the car is still on the market for sale.
raven-and-blade,
Apr 15, 11:10am
#3 yes that is correct, The subject to vehicle inspection etc, is not stated on the agreement and that all needs clearing up.Negotiation of the tradein is not really finished either, so we arent happy right now, and understand 1000% its still on the market - fair enough. At the end of the day there's more than one of them around :) Thanks for all the advice.
kazbanz,
Apr 15, 11:13am
DO WHAT ? Nobody (no dealer) ever would agree to those conditions. "ohh yea I MIGHT want to buy this car but if I find a cheaper car etc I want my deposit back" Flipping that backwards "yea we will take your $3000 deposit and let you spend $XXX on getting a PPI but if we get a better offer will sell the vehicle to them including after you get the PPI done " The buyer should have satisfied themselves already as to the deal and the vehicle condition before signing the VOSA. The PPI is the final mechanical inspection
kazbanz,
Apr 15, 11:18am
No worries. Then no reason to pay anything if the deal is still open ended Deposit payment once all parties are happy with the ENTIRE deal conditional only on that PPI Im LITERALLY dealing with this exact scenario right now. Customer isn't committing to anything until PPI is done. Fair enough. No VOSA done. No deposit paid and customer totally aware that Car is on the market until deposit paid.
itsafamilything,
Apr 15, 11:27am
If the buyer was satisfied as to condition there would be no need for a PPI don't you agree? That's exactly why most in the community need to get a good PPI done ie because they do not know! After all if the report uncovers issues of any significance then the dealer is going to have to address those issues if that buyer does not wish to proceed. It also follows that the dealer does not have to negotiate but from what I read from the OP I did not see this being addressed. It is only right to know this side of the PPI what if anything would result from the PPI in this regard.
nice_lady,
Apr 15, 12:41pm
Nah. If it's so new there'll be others of similar price/quality available. If the dealer wants to sell it their request for a deposit to 'hold' it while you get an inspection done is excessive and OTT. The inspection should take a morning at the most. Are they really likely to miss a sale from some other non existant buyer during one morning off the lot ?And if they wont let you get an inspection done without a deposit that's pretty weird. Here you are - a buyer with full payment on hand wanting the vehicle - what do they have to lose ? I"d be put off by their request.
curlcrown,
Apr 15, 1:08pm
Look at it another way. Suppose you paid a deposit and the next day the dealer informed you that they have changed their mind about the deal and are going to give your deposit back because someone else wants to buy it unconditionally.
curlcrown,
Apr 15, 1:12pm
That could be arranged but it would be unreasonable to expect the dealer to hold it for days. In the meantime someone else might buy it.
kazbanz,
Apr 15, 3:12pm
it’s simple and clear cut . Deposit stops the vehicle being sold. Sale conditional to good inspection. No deal with no deposit so car can be sold elsewhere possibly without iinspection. But hey what do l know
kazbanz,
Apr 15, 3:13pm
but hey that NEVER happens right?
curlcrown,
Apr 15, 3:48pm
No it’s just a story made up to pressure the customer
budgel,
Apr 15, 4:36pm
I presume there are plenty of those vehicles around at approximately that price. If you are not happy with any part of the deal, dont buy it!
Kaz's advice on the order in which a deal is ideally consummated is worth taking! If you want the vehicle at the agreed price, then sign up for it with you paying the deposit conditional on it passing a PPI to your satisfaction. It would be foolish, and a waste of money to get a PPI for a vehicle or deal you are still uncertain about.
Get your head clear about what you want and go from there! Good luck!
franc123,
Apr 16, 3:52am
People pay $70k for used VW vans?
kazbanz,
Apr 16, 5:10am
Just thinking about this. My bet is that its a mid to large size dealer. A number of competing sales staff. So the salesman is trying to "shortcut " the system and get the van off the market so they don't loose the sale to another salesman. My advice in post 3 stands. Just to carry on a bit from there though. The deal you have has the car securely held. Any faults found you have the right to call it quits and walk away. So unless the inspection is perfect you are effectively starting from scratch. You can /could accept the vehicle and deal done Equally you can pull the pin
OR accept the car only if certain faults are rectified perhaps discount on the price. The dealer may or may not agree So you are effectively back into
amasser,
Apr 16, 12:57pm
Walk away, quickly.
richynuts,
Apr 16, 1:47pm
and dealer wants a 3k deposit to hold it from selling to anyone else? Yeah right.
blueviking,
Apr 17, 3:07am
DON'T PAY A DEPOSIT. You may never get it back and end up having to take them to court for it.
m16d,
Apr 17, 3:56am
Good luck getting the 3 grand back. your dealing with a car salesman.
kazbanz,
Apr 17, 8:13am
You make that statement on what basis?
superdave0_13,
Apr 17, 9:02am
I just can't believe the hoops they want you to jump through for the short time it takes to do your vehicle checks. Just ridiculous.
skiff1,
Apr 17, 9:12am
feelings?
skiff1,
Apr 17, 9:16am
let’s say a dealer averages 3 weeks to sell a car that comes on their lot? On any given day there is more or less a 5% chance any given car will sell? So if I want to have a dealer hold the vehicle for a week, there is a 25-35% chance it would sell in that time. If I were a dealer, I wouldn’t hold a car even with a deposit. Buy the the car or don’t, but don’t expect me to wait would be my view.
nice_lady,
Apr 17, 12:12pm
TBH theres NO way I'd pay a $3000 'holding deposit' so that I could get a vehicle worth $70,000 or more, (which I was actually keen to buy for 'cash' up front on a good inspection result), checked in a couple of hours during a morning. I'd be telling the sales yard to take a leap.
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