Will a 25 % down payment depoist help out for ADM

[H - 2 CHARLIE]

Would a $12K deposit help to hold and get your truck without any tricks pulled on you ? And of course have a singed contract with a OTD total price with signatures.

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[jonwithanelcamino]

No

 

[BR0NCO]

No, not at all. But the contract should

 

[Gangstead]

I don't see how that would make any difference. The kind of dealer who is going to do you dirty will do it whether you've put down $500 or $50,000 deposit.

 

[Romano]

Would a $12K deposit help to hold and get your truck without any tricks pulled on you ? And of course have a singed contract with a OTD total price with signatures.

Uhh NO.

 

[F OR D]

inverse, they have your money now. like someone said, just ask for a signed agreement at msrp or whatever you decide.

 

[Tricky Dick]

It should cover most of the ADM, yes. Then you can take out a loan for the full MSRP amount.

 

[FoxyRoxy]

You are asking will it help ADM ( additional Dealer Markup ) Maybe he is asking does it help get a loan because the vehicle is priced at 125% of MSRP.. Ford and most banks will loan over MSRP due to the fact that many cars of late have markups. But there is a percentage that they will go up to depending on your credit.

Will $12k help secure a car that is coming in? Why tie up your money.. I bet the dealership would take less than $2k deposit on a car that is coming in.. Hot cars like a Raptor would be $2k deposit, an Escape $500 deposit.. It should be fully refundable if you don't end up taking the car, but sometimes on specialty cars and oddball orders it is may not be.. Up to you and your dealership to negotiate that!

 

[JohnnyBronco]

I think he means will hard cold cash motivate a dealer to sell at msrp instead of adding ADM and answercis soundly no as dealers hate cash. They would rather you borrow as much as possible to pad their kickback

 

[KABQ]

^This. Dealers make their money in financing. The more you give them the more leverage they have over you with a nonrefundable deposit, and they'll be less flexible on price since you're financing less.

(I know this is an old post, but maybe it will help someone else. It's also possible OP is still waiting.)

 

[BostonSasquatch]

Dealers make money in three categories:
1) Pure profit. The more expensive (consider trim levels and options) the vehicle, the more profit.
2) Trade in. The less they give you for that, the more they can get when they sell it or send it to auction.
3) Financing.

Let them think they'll make money on your trade and financing while you negotiate the purchase price down. When you have a commitment, find out what their finance rates are, and what your downpayment will be. You don't tell them first off you'll put up a big downpayment, or finance it from savings or a credit union. You throw that at them late in the game.

The trade-in may offer the most wiggle room. While you're playing with numbers with the salesman, another guy is inspecting your current drive. He'll come back with a low-ball figure. You act like you'll accept it (good for them, they think), while you negotiate the price down (or insist they throw on accessories). Then you either 1) tell them you know your Blue Book value is much higher, and insist they come up, or 2) Take the trade-in off the negotiating table (tell them you have a private sale lined up). That leaves you with a cheaper car purchase and/or more options & a higher trim line.

Another idea: accept their probably too-high finance rate ("Yay," they think, "We're making money!") You can then go to a credit union for a re-finance of it at a lower rate, or take your liquid assets and pay it off, use your home equity, or simply accelerate your principle payments. Make sure any loan you take out has no pre-payment penalty. Ask them to show it to you in plain English in the contract.

Remember: you're in the driver's seat. You can walk out the door and go to another dealer. They have your contact info--they can always call you with a better deal. Your discipline in leaving the negotiating table is an important part of the art of the deal.

 

[Silver-Bolt]

Dealers make money in three categories:
1) Pure profit. The more expensive (consider trim levels and options) the vehicle, the more profit.
2) Trade in. The less they give you for that, the more they can get when they sell it or send it to auction.
3) Financing.

Let them think they'll make money on your trade and financing while you negotiate the purchase price down. When you have a commitment, find out what their finance rates are, and what your downpayment will be. You don't tell them first off you'll put up a big downpayment, or finance it from savings or a credit union. You throw that at them late in the game.

The trade-in may offer the most wiggle room. While you're playing with numbers with the salesman, another guy is inspecting your current drive. He'll come back with a low-ball figure. You act like you'll accept it (good for them, they think), while you negotiate the price down (or insist they throw on accessories). Then you either 1) tell them you know your Blue Book value is much higher, and insist they come up, or 2) Take the trade-in off the negotiating table (tell them you have a private sale lined up). That leaves you with a cheaper car purchase and/or more options & a higher trim line.

Another idea: accept their probably too-high finance rate ("Yay," they think, "We're making money!") You can then go to a credit union for a re-finance of it at a lower rate, or take your liquid assets and pay it off, use your home equity, or simply accelerate your principle payments. Make sure any loan you take out has no pre-payment penalty. Ask them to show it to you in plain English in the contract.

Remember: you're in the driver's seat. You can walk out the door and go to another dealer. They have your contact info--they can always call you with a better deal. Your discipline in leaving the negotiating table is an important part of the art of the deal.

4th category. Dealer add-ons. Nitrogen in the tires, security etching, paint and interior protection, extended warranty. These are their cash cows and most all are completely worthless.

 

[MnLakeBum]

No and as bad as the stock market has been recently, the Dow Jones average has gone up 9.4% in the last two years. I ordered my Bronco 1.29.21 and should maybe have it by the end of the month so I would have lost money giving it to the dealer 2 years ago.

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