$500 Deposit ??? What would you do for a new car?

[kg4fxg]

Looking at buying a new Civic Hatchback. They are hard to find meaning 2019. Dealer would like $500 to hold car but in reality that takes away all negotiation in my mind. We can agree on price for the new car but why put down a deposit and assume you will get a fair price on trade-in as it is only valued a week prior to deal?

My current car I can value on KBB or Edmonds and even get a price at CarMax. Thoughts?

I am in no hurry. And I am thinking email other dealers. When one comes in with the color I want go for it. Don't just plan on one dealer. And yes I have reviewed DealerRater. I have several to choose from and I am sure there will be some in January/February.

What would you do? I hate to play dealers against each other. But drop $500 a month in advance? If someone buys the car before me so what, work with several dealers? I can play this game too.
Thanks

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[360glitch]

I put down a $1,000 deposit for a 6MT Sport Hatch that had to be transferred in. I negotiated the purchase price ahead of time and they held to it. Depends on how honest your dealer is I suppose.

 

[kg4fxg]

My only issue is dropping $500 for a car a month in advance with no idea what they would give me on a trade. I would do it if I was just buying a car without a trade. I am not financing. So I have to (I assume) get a check from credit union. Get a fair price on my car or worse sell it to CarMax and then deal with the dealer. BTW, I drive a Mini Cooper Coupe S only made for 4 years loaded in mint condition. But I run 60 miles a day. I am resigned to trading every 5 years due to excessive miles.

My car is still under maintenance. I assume the Civic is cheaper to maintain. Looking at a Civic Touring. I had a Corolla in the past and a Accord in the 90's. I guess I am still impressed with how well it drove. Amazing. Just not good at negotiating prices and trade in values.
Bill

 

[Deezy]

The day I was going to buy mine I called the dealer when I was on the way and he said the car had been sold while he was out on a dealer trade. He assured he could get me another one in a day or two and requested a $500 deposit. I gave it to him only because I had been dealing with him for a couple weeks. A few days go by and he finally said he couldn't find one and gave me my deposit back. I already knew where another one was so I called the sales guy told him I wanted it and he put the keys in his desk and held it for me. The deposit thing is just a B.S. move by the dealer to try and lock you in.... By the way is kg4fxg your Ham call sign?

 

[charleswrivers]

$500 deposit is pretty normal.

That being said, I already had an agreed on price when I put down a deposit... then verified it when I picked up the car aboit a week later. The price I agreed on was exactly the same as what was on the paperwork. When the car was delivered as a dealer transfer with a pile of add-ons they did (N2 tires, locking light nuts, cargo tray, pin stripe and other randomness) I wasn't charged additionally for any of it as it wasn't part of my agreed price.

I wouldn't be against a deposit so far as I have a good deal worked up. A deposit without a deal is just a no-interest loan to the dealer to come back and let them start wheeling and dealing. You can always get it back, however. If they don't play ball, get it back and walk.

 

[kg4fxg]

Yes, ham call kg4fxg. Not in a hurry. I hate to play dealers against each other but if they want a deposit that opens it up. Besides, just because you buy a car at one dealer that does not mean you can't choose another for service. They don't care. There isn't a huge discount on the car, but the trade is everything. Most dealers would give you what CarMax offers. They don't want you to leave. Anyway, I will loose money. I gain driving a Honda. Most of my colleagues would drive a BMW or Infinity. I don't want to pay the high maintenance cost. BTW, the civic drives like a dream. My commute is 2 to 2 1/2 hours a day. Stop and go hence I don't want a clutch. Thanks

 

[Shankmeyster]

If you are looking for a high demand vehicle then you are going to have to leave a deposit regardless otherwise they won't even bother finding a car for you. It's the only way they know you are serious. If it was a high volume vehicle where they were a dime a dozen sitting on lots all over then you could just walk in and get one right off the lot.

 

[kg4fxg]

I emailed back. Dealer never replied. Almost put down a deposit. Went to another dealer. Dealer lost interest because I was willing to wait for the car. Dealer just wants to sell what they have now. Went to dealer and test drove a car in wrong color. Bad dealer. Shame on dealer. Dealer lost a sale.

 

[HustedDrums]

Hey, I'm in sales in the car business. The $500 deposit is merely just to hold the car for you. Nothing more, nothing less. It is refundable if you decide you do not want the car or if you don't like the deal. You can figure out the numbers and everything else later.

 

[jimmyreal]

$500 deposit is normal, but is only advisable if either 1. the final price is negotiated already or 2. it's refundable if a price can't be agreed upon.

I put $500 down before driving 2 hrs for my wife's CR-V, but I had the out the door contract in my email already. I put $500 down on my Si while it was in transit but it was refundable, really was just a deposit so I got "first refusal" since there weren't any local Si to test drive.

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