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

[Montana Bronco]

Legit question: why in the world would anyone pay a dealer a “non-refundable” deposit ???

I scratch my head every time I read about this. But apparently a lot of people are willingly paying this. It makes zero sense.

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[rugbysecondrow]

In a normal market, if you order a custom item, it is normal to pay a deposit because it is riskier for the dealership. The "non-refundable" aspect is also normal because you/I selected options which might make it challenging for the dealers to sell that vehicle to another buyer. It seems that any Bronco will sell for above MSRP with any configuration of options, but that isn't true of most vehicles in a normal market.

I can imagine a scenario in which crazy orders are places, with no money deposited, and buyers never taking possession of the car. Now the dealer is stuck with a niche vehicle they can't sell.

It makes sense to me.

 

[Cappy]

Legit question: why in the world would anyone pay a dealer a “non-refundable” deposit ???

I scratch my head every time I read about this. But apparently a lot of people are willingly paying this. It makes zero sense.

It's standard practice to require a non-refundable deposit on custom orders.

Was fortunate myself to get a conditional refund agreement in writing. It basically said that if my dealer was unable to deliver me a 2021 Bronco for any reason, I get my deposit back.

To me, that was unusual. In all my years of buying cars, I've custom ordered at least six. Was the first time I was told the deposit could be refunded for any reason.

 

[Bronc-Itus]

 

[Monster1926]

Putting a non-refundable deposit down on a vehicle your not allowed to test drive or really even seen in person before delivery isnt very smart. I think it’s ignorant of a dealership to even ask for one. Refundable is fine as long as it’s in writing. My dealer which is a very small family owned dealership, didn’t require a deposit.

 

[Drex]

Putting a non-refundable deposit down on a vehicle your not allowed to test drive or really even seen in person before delivery isnt very smart. I think it’s ignorant of a dealership to even ask for one. Refundable is fine as long as it’s in writing. My dealer which is a very small family owned dealership, didn’t require a deposit.

You make the case for a non-refundable deposit actually. Your assertion that it is not smart for anyone to put a deposit on a vehicle they haven't driven it or maybe even seen it, translates to it being not smart to order a vehicle under this same conditions. Why would a dealer special order a vehicle and incur associated expenses (interest, advertising, storage, etc.) where the chances are much higher than normal that the ordering party might back out without asking for a commitment of earnest money to cover those expenses and additional carrying costs if it sits on the lot for extra time? So... Not at all unreasonable for a dealer to ask. The customer is always free to decline. Your idea sounds good to me though, so...

I look forward to you investing the money and starting a dealership with this policy. Responsible for generating enough cash flow to meet taxes and payroll for the people and their families that depends on the jobs you provide.

 

[BR0NCO]

What’s the big deal? My dealer required one. They lost several sales because of it which moved me up their allocation list. Yea I haven’t driven one, but I can’t imagine how bad it would have to drive for me to say ‘nah, I’m out’ for something I waited years for. On the positive side I am locked in at the price we agreed on and they can’t give me the ‘price increase beyond their control due to inflation/demand/cost of goods’ even though Ford said they would honor pricing, things change.

 

[Monster1926]

You make the case for a non-refundable deposit actually. Your assertion that it is not smart for anyone to put a deposit on a vehicle they haven't driven it or maybe even seen it, translates to it being not smart to order a vehicle under this same conditions. Why would a dealer special order a vehicle and incur associated expenses (interest, advertising, storage, etc.) where the chances are much higher than normal that the ordering party might back out without asking for a commitment of earnest money to cover those expenses and additional carrying costs if it sits on the lot for extra time? So... Not at all unreasonable for a dealer to ask. The customer is always free to decline. Your idea sounds good to me though, so...

I look forward to you investing the money and starting a dealership with this policy. Responsible for generating enough cash flow to meet taxes and payroll for the people and their families that depends on the jobs you provide.

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.

 

[pony2bronco]

I wish I had to put a NRD down and everyone else did too. Why? That will become apparent when 90% of us are still waiting on delivery in 2022 and dealer stock is sitting on the lots with a $10-20k markup.

 

[Monster1926]

I wish I had to put a NRD down and everyone else did too. Why? That will become apparent when 90% of us are still waiting on delivery in 2022 and dealer stock is sitting on the lots with a $10-20k markup.

That’s why you have a purchase agreement in place. A deposit just holds the vehicle. Dealers can and have sold a deposited vehicle from under people.

 

[linbackr99]

I would not - and I did not. My dealership, who I have been doing business with for a little over 20 years - asked for nothing except the order.

 

[Monster1926]

If someone lost their job right now would it be smart for them to still proceeded with the purchase? Unforeseen circumstances exist, especially in today’s economy.

 

[rugbysecondrow]

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.

I think people have a hard time delineating the difference between a "bad idea" and an "idea I don't like". You might not like the deposit, but that doesn't make it a bad idea.

Don't like it, don't pay it. Let's not make this more complicated than necessary.

 

[Monster1926]

The deposit was paid this Spring and came with terms that allowed pricing to be locked in. If you are getting a MY22, consider that you are getting a price decided upon in 2020...which is a good deal.

I think people have a hard time delineating the difference between a "bad idea" and an "idea I don't like". You might not like the deposit, but that doesn't make it a bad idea.

Don't like it, don't pay it. Let's not make this more complicated than necessary.

The price lock for MY was offered by Ford not the dealership. Ford sets the prices. You signed a binding agreement when you paid your deposit to your dealership?

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