Why Would Anyone Pay A “Non-Refundable” Deposit ???

[SaudiBronco]

Would you rather pay a non-refundable $100 deposit or a refundable $8000 deposit like my case?

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[LIKEABOSS]

The point of a non-refundable deposit would be for a custom order vehicle spec'd out in a way that would make it otherwise difficult to sell to someone else. With a vehicle as hot as the Bronco there shouldn't be any reason why someone would be placing a deposit that's non-refundable. The dealer should be able to sell any Bronco easy.

 

[rugbysecondrow]

You signed a binding agreement when you paid your deposit to your dealership?

What you are suggesting as a custom order agreement that suggest the dealership absorb all the risk if the customer flakes on the purchase. Moves town, no call, changes their mind, wife wants a Jeep now etc. How is that a reasonable expectation? Anytime I have ordered something custom, they require a deposit of some sort. It would be weird if they didn't ask for! his, IMO.

 

[gentlemanbronco]

my 2 cents.... With the hype around the bronco dealers shouldn't be asking for deposits, because regardless of the configuration, they're going to sell whether the buyer goes thru with it or not. There's no way they'll just sit on the lots.....

 

[Monster1926]

What you are suggesting as a custom order agreement that suggest the dealership absorb all the risk if the customer flakes on the purchase. Moves town, no call, changes their mind, wife wants a Jeep now etc. How is that a reasonable expectation? Anytime I have ordered something custom, they require a deposit of some sort. It would be weird if they didn't ask for! his, IMO.

What have you custom ordered before? Something that’s been released that you could drive in a color or options you don’t like? This is very different. None are out to drive or really view. It would be slightly different if the mannequins were at the dealer before you order. You could drive one and check it out but you can’t. It is a blind order and a non refundable deposit is silly.

 

[Johnny Mo]

The point of a non-refundable deposit would be for a custom order vehicle spec'd out in a way that would make it otherwise difficult to sell to someone else. With a vehicle as hot as the Bronco there shouldn't be any reason why someone would be placing a deposit that's non-refundable. The dealer should be able to sell any Bronco easy.

True - except in this case Ford has already said that if a dealer sells more than 20% of their allocation to a non reservation holder they will lose future allocation. The dealers for the most part will follow and are bound by state law and in some states while saying a deposit is NON refundable, it is technically not allowed by law. At the same time if a deposit is LEGALLY non refundable and you have an unfortunate situation as others have described - then yeah the dealer is a scumbag if they don't take that into account. At the same time they do have risk and carry cost that they have to manage - so not sure why anyone would begrudge any business for doing what they are legally entitled to do to afford some protections.

 

[NorthCoast]

So I talked to two Ford dealerships before placing my order. The 1st wanted a $1000 non-refundable deposit, which I thought was strange. The 2nd told me that in no way should I put a non-refundable deposit down, I went in and made my order and that was it. I guess its a dealer by dealer thing, but the 2nd dealership said they wouldn't need a deposit on a vehicle they knew they would be able to sell immediately, and likely for more money too, if I decide I don't want it. I just took it that the dealership who wanted the NRD would be more difficult to work with than the one who didn't need anything other than my signature, so I took my business to the easier to work with dealership...

 

[mtap]

I would gladly pay a non refundable deposit for a few reasons..

-so i don’t spend the money i was going to use for it anyways
-peace of mind they have my money and i should get something back in return
-refundable deposits gives them room to mess something up, only to refund you your deposit as an apology

 

[rugbysecondrow]

What have you custom ordered before? Something that’s been released that you could drive in a color or options you don’t like? This is very different. None are out to drive or really view. It would be slightly different if the mannequins were at the dealer before you order. You could drive one and check it out but you can’t. It is a blind order and a non refundable deposit is silly.

Not just a car, but furniture, clothing, construction...they require deposits. Order pretty much anything custom and there will be a deposit of some sort to prove the customer has a financial vested interest in not easily walking away from their custom order. I paid a $500 deposit...so not a big deal IMO.

To me, this is a very basic and standard thing. So much so that I don't even understand how people don't understand this. That said, if you don't like it, then make another consumer choice. Buy "off the rack" when that option becomes available.

 

[Compta38]

on a vehicle with no specific timeline? ignorance.

 

[Quinn_the_eskimo]

Would you rather pay a non-refundable $100 deposit or a refundable $8000 deposit like my case?

$100. You've got 8 grand tied up when it could be working for you, gaining interest. Now it's working for the dealer so they can buy a cappuccino machine.

 

[rugbysecondrow]

on a vehicle with no specific timeline? ignorance.

This has ZERO to do with a deposit. The deposit is for the dealership and they have nothing to do with the production timelines.

This is super simple. If you don't feel comfortable paying a deposit on a vehicle with ambiguous delivery schedules, then don't do it. This is not a hard problem.

 

[Drex]

Awe, do you work for a dealership???? Look at how long it’s been for Ford to deliver Broncos. Almost a full year from when reservations opened. A lot can happen to a person in a year. Loss of a spouse, Loss of job, loss of tenants for rentals you have. To ask for a non-refundable deposit is a scumbag thing to do. Like I said refundable is fine. Remember not many outside of Ford employees drove the bronco so everyone is going in blind.

No, I do not work for a dealership, however I am more then familiar with doing whatever it takes to make payroll week after week. You keep doubling down on reasons a dealer would want to ask for a NRD. While this specific case is unusual because of the length of time involved, the concepts are the same; the more likely an orderer is going to walk away, the more likely there will be additional costs to the dealer, they have to cover their fixed cost by amortizating them across stock. Competition keeps the price in check, it really does, so a NRD is insurance against extra costs caused by a buyer backing out that cannot be recouped by raising prices.

While your opinion that it is not smart to agree and pay a non-refundable deposit on a vehicle with which you are not familiar is one with which I happen to agree, it is completely reasonable for the dealer to ask for one. You are asserting that a particular deal element is bad for both parties, 'not smart' when, if you read the other posts, other people understand, you will see the consensus that it is reasonable for a dealer to ask, if you don't personally feel comfortable with that deal, don't engage in it.

Just because you don't understand the financial and logistical reasons a dealer might quite reasonable ask for a NRD doesn't mean the dealership is ignorant, it means you are.

No shame in ignorance, in not knowing, the only shame is if you refuse to learn.

 

[Raptor911]

I always thought Ford should have made the reservation deposit at least $500 if not a $1000. I can guarantee you that at $1000, reservation #s would be a lot lower and very few double reservations by the same person would exist. Let’s separate the men from the boys. And anyone leaving a $1000 reservation deposit would gladly leave a non refundable deposit as you were a serious buyer from the get go.

 

[Monster1926]

Would you rather pay a non-refundable $100 deposit or a refundable $8000 deposit like my case?

I hope you’re joking. But at least it’s refundable I also hope you have that in writing.

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