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Old 07-28-2014, 10:36 AM   #1
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Non-refundable deposit?

Have you guys ever heard of a dealership requiring a non-refundable deposit to do a dealer trade on a vehicle? I've got a local dealership looking into transferring a JKU for me to see from one of their sister dealerships, and the sales guy mentioned I'd have to put down a $500 nonrefundable deposit. I'm not putting down a deposit on anything until I see it and test drive it. If they want to play that game I'll drive the 1.5 hours to the other dealership and buy it from them...

The guy said it was because the Willys is so customized the other dealership won't do it unless there's a deposit...

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Old 07-28-2014, 10:40 AM   #2
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I wouldn't even say No Thank You on my way back out the Door. Non_Refundable my Arse. They just don't want to get "stuck" with a Wrangler with miles on it with the 15's inbound. It's B.S. The Willy's is a rare and sought after unit, customized? It appeals to a unique groupd, I think they are called "Jeepers".
Find a good dealer IMO.

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Old 07-28-2014, 10:40 AM   #3
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If it was a willys with all the goodies I want, and only 1.5 hours away, I would drive to pick it up. They sell like hotcakes and if u wait, more than likely it will get picked up. Reason my willys was in the lot for 10 days was because my dealer didn't have a picture of it nor it was listed as a willys.
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Old 07-28-2014, 10:43 AM   #4
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It has nothing to do with the other dealer. I dont know about most dealerships but a Ford dealer I used go work for used to require something down. This is because the dealer is basically having to give up something for a vehicle they didn't originally order for one reason or another and are not willing to do so without a guaranteed sale. I would suggest if the drive is feasible just go to the other dealer if you are unsure if it is what you want.
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Old 07-28-2014, 10:44 AM   #5
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Originally Posted by dawhitesJKU View Post
If it was a willys with all the goodies I want, and only 1.5 hours away, I would drive to pick it up. They sell like hotcakes and if u wait, more than likely it will get picked up. Reason my willys was in the lot for 10 days was because my dealer didn't have a picture of it nor it was listed as a willys.
There's not a pic of it on this dealer's site. Only way I found it was by looking through window stickers of the sports.

Same dealership has 3 more in transit...
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Old 07-28-2014, 10:45 AM   #6
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It has nothing to do with the other dealer. I dont know about most dealerships but a Ford dealer I used go work for used to require something down. This is because the dealer is basically having to give up something for a vehicle they didn't originally order for one reason or another and are not willing to do so without a guaranteed sale. I would suggest if the drive is feasible just go to the other dealer if you are unsure if it is what you want.
News to me. The last 3 vehicles I have bought have been dealer transfers. Never once was asked for a nonrefundable deposit because the dealer knew if I didn't buy it someone else would...
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Old 07-28-2014, 10:48 AM   #7
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Originally Posted by ssramage View Post

News to me. The last 3 vehicles I have bought have been dealer transfers. Never once was asked for a nonrefundable deposit because the dealer knew if I didn't buy it someone else would...
Again I can't speak for any dealership other than the one I worked for. Just giving you the info I have again if it's worth it to you make the drive.
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Old 07-28-2014, 10:53 AM   #8
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That's BS. I would be sure to tell them that their "sales" tactics just cost them a nice sale.

My Jeep was 6 hours from me, to get the color and features I wanted... Go get it.
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Old 07-28-2014, 11:04 AM   #9
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Get is while you can. I had to back out of my '14 willys I had ordered and the dealership had no problem selling it off it two days!!!
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Old 07-28-2014, 11:24 AM   #10
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I had to do a dealer trade for my 2014 Willys as well, and my salesman said that the protocol for dealer trades is a $500 refundable security deposit to be sure the buyer is somewhat serious about closing the deal. Ultimately my salesman ended up never charing my cc for the deposit because he could tell I was serious given the time we spent discussing the different trim levels and searching for the vehicle I wanted.
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Old 07-28-2014, 11:30 AM   #11
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Run, don't walk away! If that is how the front office operates the back office (service) isn't going to be much better.
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Old 07-28-2014, 11:32 AM   #12
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Thinking about passing on this dealership. Just got a call from the sales guy and he basically told me they won't give me an out the door price on the Jeep because I'm not sitting in the office and they know I'll just take the offer somewhere else and get it for less. My response was, "if you're not going to give me the lowest offer, I'm not interested anyways..."
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Old 07-28-2014, 11:34 AM   #13
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I have never put down a deposit on any vehicle in my life, if they require one, I would just walk away. I ordered my Rubi-X with no money down, purchased it when it hit the dealer, but it was ordered in my name.
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Old 07-28-2014, 11:36 AM   #14
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Yep. Run.
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Old 07-28-2014, 11:51 AM   #15
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I didn't have any issues putting a deposit down when I ordered my Jeep. It was applied to the price I paid, so it wasn't just like $500 out the door. I imagine it's the same sort of things for getting something transferred from one place to another.

While they called it non-refundable, basically my sales guy told me that if I walked away from my order, he would likely give it back to me as long as I didn't have some order combination that wouldn't sell.

I wouldn't necessarily call the practice a red flag, unless the money doesn't apply to the Jeep and they won't do anything to fix any issues you may have with the Jeep when it's brought to the dealership.

That being said, if you don't want to put the money down, or you feel the dealership is being shady, you should walk away. Even if they aren't doing anything wrong, you'll never be happy with your purchase if you think they are trying to pull one over on you.
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Old 07-28-2014, 12:10 PM   #16
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Quote:
Originally Posted by ssramage View Post
Have you guys ever heard of a dealership requiring a non-refundable deposit to do a dealer trade on a vehicle? I've got a local dealership looking into transferring a JKU for me to see from one of their sister dealerships, and the sales guy mentioned I'd have to put down a $500 nonrefundable deposit. I'm not putting down a deposit on anything until I see it and test drive it. If they want to play that game I'll drive the 1.5 hours to the other dealership and buy it from them...

The guy said it was because the Willys is so customized the other dealership won't do it unless there's a deposit...
Horsehockey...never heard of it...we've bought several vehicles that way in the last 10 years, from basic trim to limited editions, no deposit required.
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Old 07-28-2014, 12:16 PM   #17
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Quote:
Originally Posted by ssramage View Post
Have you guys ever heard of a dealership requiring a non-refundable deposit to do a dealer trade on a vehicle? I've got a local dealership looking into transferring a JKU for me to see from one of their sister dealerships, and the sales guy mentioned I'd have to put down a $500 nonrefundable deposit. I'm not putting down a deposit on anything until I see it and test drive it. If they want to play that game I'll drive the 1.5 hours to the other dealership and buy it from them...
In buying cars for many decades now, I have never had a dealer not want a deposit on a vehicle. Gosh, even when I sell my used vehicles privately, I always require a deposit from the buyer.

You are asking both dealers to go thru a lot of trouble. If you are not all that really sure you want to actually buy it, IMHO you're being pretty unreasonable here.

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Originally Posted by ssramage View Post
The guy said it was because the Willys is so customized the other dealership won't do it unless there's a deposit...
Seems like a valid request to me.
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Old 07-28-2014, 12:31 PM   #18
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I think a deposit is completely reasonable since they have to foot the bill to transfer the Jeep 1.5 hours to your dealership. What happens if it gets there and you test drive it and you don't like it?

Drive over to the other dealer if you're concerned.
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Old 07-28-2014, 12:35 PM   #19
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Not unreasonable to have to put down a deposit.

I would insist that it be refundable, however.

I certainly wouldn't put down a non-refundable deposit before having an agreed upon "out the door" price.

Only under those circumstances would I consider moving forward with this dealer.

If their issue is that they won't allow a transfer unless the deposit is non-refundable, then I'd drive to the other dealer and work directly with them. If you're concerned that the Jeep may sell before you can get there, I would offer the $500 refundable deposit to hold it until you can get there (assuming you're planning to go to the dealer that day). Seems reasonable to protect them to some degree that you're interested and coming and protects you a bit from having them sell it while you're driving there.

I do recognize the dilemma for the dealerships in telling a potential hot customer who is standing in front of them that the Jeep they may want to buy is off limits because another customer is interested. They risk losing a sale if they send away one person and the other no-shows, etc. But a non-refundable on something you haven't worked out terms on is silly. I'd suggest that you agree to work the deal on the phone, make the deposit and get, in writing, it's pending acceptable drive/inspection upon delivery.
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Old 07-28-2014, 12:46 PM   #20
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Its only a 1.5 hr drive, go get YOUR jeep!
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Old 07-28-2014, 12:50 PM   #21
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Jeez, it's like there are car dealers posting here...

#1 - of course the deposit would get applied to the deal that isn't the issue. The issue is - it's "non-refundable" who in their right mind would do that?
#2 What if the Jeep arrives and there is a "lot ding" requiring a trip to the body shop?
You would take that Jeep? I wouldn't.
Where's your $500.oo non-refundable deposit now?
#3 IF this rig is really 1.5 hours away - what's the issue here really. Go get the F'in Jeep and stop making this more complicated than it needs to be.
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Old 07-28-2014, 12:52 PM   #22
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Jeez, it's like there are car dealers posting... #1 - of course the deposit would get applied to the deal that isn't the issue. The issue is - it's "non-refundable" who in their right mind would do that?
What if the Jeep arrives and there is a "lot ding" requiring a trip to the body shop?
You would take that Jeep? I wouldn't.
Where's your $500.oo non-refundable deposit now? IF this rig is really 1.5 hours away - what's the issue here really. Go get the F'in Jeep and stop making this more complicated than it needs to be.
100% in agreement, go put the first few miles on your Jeep and enjoy the 1.5 hr drive.
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Old 07-28-2014, 02:46 PM   #23
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#4 What if the Jeep arrives and it is even far better looking in person. You come in to pick it up, with your bank/loan check in hand, all excited, and the sales person tells you that someone came in half an hour ago, and bought it.

No deposit. No dibs.
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Old 07-28-2014, 02:55 PM   #24
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#4 What if the Jeep arrives and it is even far better looking in person. You come in to pick it up, with your bank/loan check in hand, all excited, and the sales person tells you that someone came in half an hour ago, and bought it.

No deposit. No dibs.
Thats the dealer you want to avoid, if I make an agreement, I stick to it, they better as well. This is probably why I make damn sure who i am dealing with before I even buy a vehicle from them, and they usually know me well too. I have no problems going to someone else I can trust, even if its farther away, the local dealer doesn't automatically get my business. But there is no way in hell I am ever putting a down payment on anything.
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Old 07-28-2014, 03:22 PM   #25
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No way would I ever put a deposit on one sight unseen. I also never bought a dealer trade without all the details (price-trade ,etc) worked out before hand also. A deposit to hold it till I get the financing / cash to pay, Yes then.
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Old 07-28-2014, 03:23 PM   #26
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Screw it. Talked to the sales manager (not the sales guy who has only been there a week) and got it taken care of. 2% below invoice, higher than KBB on my trade, and excellent finance rate. Jeep will be here tomorrow with no deposit to go get it.
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Old 07-28-2014, 03:24 PM   #27
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Happy Ending. Congrats.
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Old 07-28-2014, 03:31 PM   #28
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Sounds like the dealerships I worked at. This may not be known to most but car salesmen work on commission and a lot of people just go in and waste their time. I wouldn't work a deal with a customer any where other that at my desk. My time was valuable to me and I never thought it was unfair to make sure someone was serious. Just an opinion from the dark side though.
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Old 07-28-2014, 03:38 PM   #29
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Personal experience (probably NOT typical) My Local dealer gave me ALL the details In Writing via email before I ever met them and that is ONE reason why they got my business.
They didn't play me so I rewarded their integrity with mine.
I have not regretted the decision yet. weels prior I was tire kicking at another dealership and got the typical walk-up from behind " Can I get that one ready for you to take home today" comment.
I got in my truck and drove away.
I own a business that involves "sales" if one of my employees approached a client in such a manner they would be working somewhere else.
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Old 07-28-2014, 03:41 PM   #30
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I run a dealership. If I go get a car, I just make the customer do the paperwork...either the contract or the check for the car or a deposit. Never once have I had a customer complain. There is a cost associated with driving...although if its only 150 miles away, my salesman goes so there is no cost. If i sell 100 new cars a month, 20-30 are dealer trades. Have I had issues with a scratch or ding my driver didn't see? Sure...but they are new cars, so I fix it and make it new...the only car I hate going to get is black cars. PITA !!!!
And think about this...the dealer is shelling out 30K or more check for the car or jeep...wouldn't you think they'd want something in return for it? Just common sense.

Now...insider dealership tip...there is no such thing as a non-refundable deposit. It is illegal. At least where I have lived and sold in FL and TN (and most states from what I understand). And...all the customers I "sign up and contract" to the agreed upon numbers...there is no deal until delivery is taken. Even with a signed contract, the customer can back out. I just try to have some concrete mental ownership before I have a driver go sometimes 1000 miles for a car.

PS - any other insider tips...feel free to PM me. Already helped a few others on here with some of thier "stealerships" as you guys say, issues.

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