Dealer asking for $500 Deposit at time of Order

[tlubull]

I've seen some rabid responses from folks regarding order deposits from dealers. I did get an response from my dealer specifying they will offer at or below but not above MSRP. They do ask for $500 at ordering time. Anybody see this as a red flag? My dealer is local and I can't justify to myself travelling 6+hrs each way to a dealer for a discount. Doesn't seem fishy to me, just wanting some commitment instead of a bunch of cancels.

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[angrygrizzlybear]

Refundable? If so, not at all if they are asking for it at time of order. At least that is my opinion.

Non-refundable, I wouldn't agree to that.

 

[Nickp]

I’d expect most dealers to require a deposit at the time of order. Anything before putting your order in though don’t even consider it.

 

[RG7]

I don’t think it’s wrong at all. Dealers will get punished for converted orders where the buyer backs out, so it’s only fair that they want to be sure you’re serious. That alone isn’t a red flag.

 

[Jpeyer]

I’ve ordered a lot of vehicles. Money down prior to order is just a measure of good faith. They want to know you are purchasing the vehicle. It goes to your down payment. Some require it but I put money down regardless because I’m picky on what I typically want upon delivery. It gives me assurance that they’ll adhere to my wishes.

 

[xXChartmanXx]

I've seen some rabid responses from folks regarding order deposits from dealers. I did get an response from my dealer specifying they will offer at or below but not above MSRP. They do ask for $500 at ordering time. Anybody see this as a red flag? My dealer is local and I can't justify to myself travelling 6+hrs each way to a dealer for a discount. Doesn't seem fishy to me, just wanting some commitment instead of a bunch of cancels.

According to Ford's email in September they said to expect to pay a small refundable deposit. My dealership sent an email that same week saying they had planned to not request any further deposit but Ford is telling them to collect $500. So it's probably a requirement.

 

[Taco_Sexual]

Based on numerous threads out there it sounds like this is normal for some dealers with some even asking for $1,000. Just a matter if you want to front the $500 upon ordering or move to a dealer that isn't requiring it. Although any dealer (outside of the Granger-types) that tell you they aren't requiring it now could change their philosophy just as quickly. $500 could buy a lot of tacos.

 

[toughtoaster]

I've seen some rabid responses from folks regarding order deposits from dealers. I did get an response from my dealer specifying they will offer at or below but not above MSRP. They do ask for $500 at ordering time. Anybody see this as a red flag? My dealer is local and I can't justify to myself travelling 6+hrs each way to a dealer for a discount. Doesn't seem fishy to me, just wanting some commitment instead of a bunch of cancels.

I see it as completely reasonable. They need to make you sure you are serious and have skin in the game. $500 is serious enough but also low enough that it shouldn’t impede you if you truly want the Bronco. Just lock in pricing (and if changed you get a refund) at the time of order with them and say a prayer they don't plan on changing it at time of delivery (you could sue, but that’s time consuming and costly).

 

[pan-y-cerveza]

You're going to see a number of responses on this.

I, personally, don't have an issue with this. I feel it's a sign of good faith. I know some will be upset at leaving $500-1000 tied up with a dealer for months but it's not a huge issue from me. I used to work in big ticket sales ($10,000-20,000)....we always asked for a deposit on orders for custom orders we didn't have on the floor. Separates the tire-kickers.

Seems Ford has recommended it to the dealers so not a red flag. We will see a lot more dealers requiring deposits.

 

[Nickp]

According to Ford's email in September they said to expect to pay a small refundable deposit. My dealership sent an email that same week saying they had planned to not request any further deposit but Ford is telling them to collect $500. So it's probably a requirement.

I would not expect it to be refundable.

 

[shoelessjoe]

I've seen some rabid responses from folks regarding order deposits from dealers. I did get an response from my dealer specifying they will offer at or below but not above MSRP. They do ask for $500 at ordering time. Anybody see this as a red flag? My dealer is local and I can't justify to myself travelling 6+hrs each way to a dealer for a discount. Doesn't seem fishy to me, just wanting some commitment instead of a bunch of cancels.

Ford stated that dealers might ask for more money down on top of the $100 you already put down to reserve. It is up to the dealer. $500 isn't that much for a vehicle that will cost anywhere from 35k - 65k. I wouldn't call it a red flag. They just want to make sure you are serious about ordering the vehicle.

 

[coolrain]

I would not expect it to be refundable.

and that's the real catch... jobs, family, circumstances (you know life) can change a lot in 6 -8 months. I would understand a custom order that would sit on the lot for months requiring s non-refundable deposit... ok Not on a vehicle they will have offers on within days or even hours

BIG NOTE to those on group buys etc. or anyone really as they choose the dealership

 

[Nickp]

and that's the real catch... jobs, family, circumstances (you know life) can change a lot in 6 -8 months. I would understand a custom order that would sit on the lot for months requiring s non-refundable deposit... ok Not on a vehicle they will have offers on within days or even hours

BIG NOTE to those on group buys etc. or anyone really as they choose the dealership

From what I understand the penalties for units not going to the reservation holder are pretty stiff. Dealers are going to need to guarantee you won’t flake out, I’d expect A lot of dealerships to require $1k+ non refundable.

 

[Nickp]

Second, you are buying a vehicle that you have never seen in person and need an out.

You probably will want to wait until the 2022/2023 MY when they have stock units.

 

[gryphon1231]

I've seen some rabid responses from folks regarding order deposits from dealers. I did get an response from my dealer specifying they will offer at or below but not above MSRP. They do ask for $500 at ordering time. Anybody see this as a red flag? My dealer is local and I can't justify to myself travelling 6+hrs each way to a dealer for a discount. Doesn't seem fishy to me, just wanting some commitment instead of a bunch of cancels.

I've spoken with my dealer, they wanted an additional deposit of $500 as well. My response was for an additional $500 I wanted a signed contract with a negotiated price at the time I placed the order.

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