Dealer Requested Deposit Amount

[Hkak45]

All the privileged people on here who think that just because they paid a $100 reservation fee for the chance to order a $40k vehicle and then waltz right in to order it without any deposit or down payment, crack me up. We’re talking a $1000 here in most cases. My dealership asked for $900 including my initial $100. Why would I not want to throw a grand down early? That’s just cheaper for me in the long run. If you can’t afford a minimal deposit at the time of order, then maybe you should be in the market for a Yaris, and not a Bronco.

These folks complaining about $500-$1000 down are the ones who will finance the whole entire thing and wonder why they lost money when they trade it in a year later. I for one want to put a down payment on the Bronco... even if the dealer doesn’t require one because that gives a little more concrete evidence that it won’t be sold underneath you. For all those that don’t put anything down just be careful because some scumbag dealers may decide they don’t want to give it to you and sell it for ADM to someone else.


I know ford has said there will be “penalties” for that but no one has proof of that or what the penalties for not selling to the actual person is. For all we know it could be $500 fine when they just made $10k on the vehicle so they won’t care.
If you can’t afford to put $500-$1000 down on a brand new vehicle for deposit please rethink your decision to purchase this right now. Financially your future self may thank you.

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[Drex]

All the privileged people on here who think that just because they paid a $100 reservation fee for the chance to order a $40k vehicle and then waltz right in to order it without any deposit or down payment, crack me up. We’re talking a $1000 here in most cases. My dealership asked for $900 including my initial $100. Why would I not want to throw a grand down early? That’s just cheaper for me in the long run. If you can’t afford a minimal deposit at the time of order, then maybe you should be in the market for a Yaris, and not a Bronco.

To answer your question (I placed it in bold); It is not cheaper in the long run, at best it is a wash. A year from now when your Bronco shows up at the dealer, the $1000 you put down will have had a years worth of inflation against its purchasing power. Forecasts are below;

2021	1.6%	2.0%	Expansion (5.0%)	Forecast: Core rate is 1.5%
2022	1.7%	2.0%	Expansion (3.5%)	Forecast: Core rate is 1.7%

If you give the $1000 of buying power today to the dealer instead of into a down payment at time of sale in a year, you are essentially losing $17 of purchasing power over that year instead of your dealer. Sure, not a big deal, however if you have any credit card or other interest bearing debts, the interest on those might be as high as $220 for, say...any credit card balances adding up to $1000 at 21.99% for a year Those would be direct costs. The opportunity cost of lost investments with tax considerations and liquidity concerns are beyond the scope of this post, but it does exist.

Hopefully this encourages you to educate yourself on the time value of money. There is no shame in fiscal ignorance, nobody is born knowing these things, so no need to feel bad about assuming that people not wanting to tie up money for a year are unable to come up with the money. They might just understand the value of it better than you do is all.

-privileged person

 

[BDBJ79]

To answer your question (I placed it in bold); It is not cheaper in the long run, at best it is a wash. A year from now when your Bronco shows up at the dealer, the $1000 you put down will have had a years worth of inflation against its purchasing power. Forecasts are below;

2021	1.6%	2.0%	Expansion (5.0%)	Forecast: Core rate is 1.5%
2022	1.7%	2.0%	Expansion (3.5%)	Forecast: Core rate is 1.7%

If you give the $1000 of buying power today to the dealer instead of into a down payment at time of sale in a year, you are essentially losing $17 of purchasing power over that year instead of your dealer. Sure, not a big deal, however if you have any credit card or other interest bearing debts, the interest on those might be as high as $220 for, say...any credit card balances adding up to $1000 at 21.99% for a year Those would be direct costs. The opportunity cost of lost investments with tax considerations and liquidity concerns are beyond the scope of this post, but it does exist.

Hopefully this encourages you to educate yourself on the time value of money. There is no shame in fiscal ignorance, nobody is born knowing these things, so no need to feel bad about assuming that people not wanting to tie up money for a year are unable to come up with the money. They might just understand the value of it better than you do is all.

-privileged person

wow, smart guy. Someone must not have anything better to do on a Saturday morning. No debt over here. Thanks for your concern.

 

[Brock27]

How could you not expect a deposit at order? Have you ever ordered a new vehicle before? Ever dealer wants money when you place an order on a $60k new vehicle. I’m putting down 5k why not it’s all going toward the thing anyways. If you want something new and rare put skin in the game. If you don’t want to step aside wait for a 2022 and let us get the 2021s.

the things I could do to make $5k work for me in the market for 6-18 months instead letting the dealer make interest off it...
I've ordered several new cars and have always been required to place a deposit. Then again I actually got to see said cars in person, test drive them and know I'm getting what I ordered where in this case, the closest we've gotten is seeing a pre-production model through a buggy B&P with colors like cactus grey/area 51 looking drastically different every time we see it.

Still excited though ?

 

[Brock27]

These folks complaining about $500-$1000 down are the ones who will finance the whole entire thing and wonder why they lost money when they trade it in a year later. I for one want to put a down payment on the Bronco... even if the dealer doesn’t require one because that gives a little more concrete evidence that it won’t be sold underneath you. For all those that don’t put anything down just be careful because some scumbag dealers may decide they don’t want to give it to you and sell it for ADM to someone else.


I know ford has said there will be “penalties” for that but no one has proof of that or what the penalties for not selling to the actual person is. For all we know it could be $500 fine when they just made $10k on the vehicle so they won’t care.
If you can’t afford to put $500-$1000 down on a brand new vehicle for deposit please rethink your decision to purchase this right now. Financially your future self may thank you.

Incorrect. I'm paying cash for my Bronco yet have a problem putting down $1-2k+ on a car that I haven't seen anything past the pre-production model yet.

 

[Hkak45]

Incorrect. I'm paying cash for my Bronco yet have a problem putting down $1-2k+ on a car that I haven't seen anything past the pre-production model yet.

If it is refundable deposit that fixed this problem

 

[LSBronco13]

How could you not expect a deposit at order? Have you ever ordered a new vehicle before? Ever dealer wants money when you place an order on a $60k new vehicle. I’m putting down 5k why not it’s all going toward the thing anyways. If you want something new and rare put skin in the game. If you don’t want to step aside wait for a 2022 and let us get the 2021s.

Update (11/14) to this post: To be clear I know a deposit is requested. Ford Motor Company told me a deposit of $500 will likely be the amount. That is why when my previous reservation dealer requested a $2K deposit not knowing I left them earlier due to them wanting MSRP for the Bronco.
I am just asking others what Dollar amount their dealers are requesting. If you are a car saleman I understand your bias comments.

 

[LSBronco13]

Incorrect. I'm paying cash for my Bronco yet have a problem putting down $1-2k+ on a car that I haven't seen anything past the pre-production model yet.

Thank you that is my point I was making and FMC told me it would likely be $500.

 

[BlueBronco]

I know ford has said there will be “penalties” for that but no one has proof of that or what the penalties for not selling to the actual person is. For all we know it could be $500 fine when they just made $10k on the vehicle so they won’t care.

Many of us do have proof, and while it is not a fine, it has the potential to affect those downstream from you in your chosen dealers allocation que. Sure, they could make 10k on an ADM but that could be the only Bronco they sell for a month or two.

And a dealership wanting a (refundable) deposit upon placing an order has nothing to do with them being legitimate, or shady or reputable. It is them conducting their business in a way that they think can best protect their interests. People can disagree with it all they want and not like it and move their reservation to another dealership. This is still a free country after all.

Edit. To OP, I think that a deposit between $500 to $1k is fair for both parties. $2k is unreasonable.

 

[LSBronco13]

If it is refundable deposit that fixed this problem

It's not about being refundable it's about NPV of my money in my bank account not theirs for seven months.

 

[LSBronco13]

Many of us do have proof, and while it is not a fine, it has the potential to affect those downstream from you in your chosen dealers allocation que. Sure, they could make 10k on an ADM but that could be the only Bronco they sell for a month or two.

And a dealership wanting a (refundable) deposit upon placing an order has nothing to do with them being legitimate, or shady or reputable. It is them conducting their business in a way that they think can best protect their interests. People can disagree with it all they want and not like it and move their reservation to another dealership. This is still a free country after all.

Edit. To OP, I think that a deposit between $500 to $1k is fair for both parties. $2k is unreasonable.

It’s bizarre that you would let someone else use your money for that long before purchase. To each his own, but I wouldn’t do it on principle. $5k? I’d tell him to get lost. I’ll use that money however I want until the truck arrives...

That was my point obviously TwinTurboStan is a bias car dealer who doesnt understand NPV of other people's money.

 

[acetdeucy]

I recently transferred my reservation to another dealer who will accept invoice for Bronco WT and accessories. The previous dealer didn’t get the message and sent an email to me discussing the reservation time in December and the deposit. I laughed when their request was a $2000.00
deposit. Have you received an email from your reservation dealer with a stated deposit dollar amount ?
Update (11/14) to this post: To be clear I know a deposit is requested. Ford Motor Company told me a deposit of $500 will likely be the amount. That is why when my previous reservation dealer requested a $2K deposit not knowing I left them earlier due to them wanting MSRP for the Bronco.
I am just asking others what Dollar amount their dealers are requesting.

My dealer is Kearny Mesa (Eric), in San Diego county. He told me that, after talking with his Ford rep, the minimum that Ford will accept with a Bronco order is $500. So, it's your existing $100 + $400 more or if you've changed dealers before, it's just a total of $500. Eric also said that a deposit with Kearny Mesa is 100% refundable, if you don't take delivery.

Don't let your dealer tell you it has to be a Deposit greater than $500... or that all or part of your deposit is non-refundable! This is your last opportunity to ask your dealer these questions!!! You still have time to change dealers, and FORD has made it easier, by now allowing you to change, more than just the one time previously recommended.

 

[LSBronco13]

My dealer is Kearny Mesa (Eric), in San Diego county. He told me that, after talking with his Ford rep, the minimum that Ford will accept with a Bronco order is $500. So, it's your existing $100 + $400 more or if you've changed dealers before, it's just a total of $500. Eric also said that a deposit with Kearny Mesa is 100% refundable, if you don't take delivery.

Don't let your dealer tell you it has to be a Deposit greater than $500... or that all or part of your deposit is non-refundable! This is your last opportunity to ask your dealer these questions!!! You still have time to change dealers, and FORD has made it easier, by now allowing you to change, more than just the one time previously recommended.

This is why I posted my comments. To show how greedy the dealer in my city behaves with the deposit amount. I left them before that due to they wanted MSRP for the Bronco. I switched to Coutesy Ford who is taking my order at invoice.

 

[LSBronco13]

These folks complaining about $500-$1000 down are the ones who will finance the whole entire thing and wonder why they lost money when they trade it in a year later. I for one want to put a down payment on the Bronco... even if the dealer doesn’t require one because that gives a little more concrete evidence that it won’t be sold underneath you. For all those that don’t put anything down just be careful because some scumbag dealers may decide they don’t want to give it to you and sell it for ADM to someone else.


I know ford has said there will be “penalties” for that but no one has proof of that or what the penalties for not selling to the actual person is. For all we know it could be $500 fine when they just made $10k on the vehicle so they won’t care.
If you can’t afford to put $500-$1000 down on a brand new vehicle for deposit please rethink your decision to purchase this right now. Financially your future self may thank you.

You miss the whole point of my comments. I know a deposit is required. FMC stated to me it would likely be $500. If you understand NPV you would be better off with your additional money in your bank account not theirs. That is my economics 101 lesson to you for the day.

 

[Hamhands]

There is no reason for additional deposit only because the dealer has so much to gain if you cannot take delivery. If I were a dealer I would require zero deposit so that I converted as many reservations as possible and if an early reservation holder can't take delivery......awesome! Here comes a dealer markup and quick sale to another customer.

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