Why Does the Car Sales Person Always Insist on a Deposit?

I've received so many emails from people telling me they had to give the car sales person a deposit on a car even before they made a buying decision, then they had to fight to get it back if they didn't buy!

How crazy is that?

Most car dealers insist that their sales people get a deposit from a potential customer as early in the sales process as possible. This puts enormous pressure on both the customer and the sales person.

Let's face it, how awkward is it for a sales person to have to get a deposit from a customer before they even agree to buy the car? It doesn't exactly foster a feeling of trust does it?

There is only one reason the dealership wants a deposit. It's all about control. They know that as long as they have your deposit you will not go anywhere else, thereby giving them more time to wear you down so you will buy a car from them on the spot.

A deposit is a tool to control you and nothing more.

There is no law that says you have to give a car dealer a deposit. They like to tell you the deposit is so you can show the dealer "good faith!" What a joke! You are the customer . . . you are doing them a favor by considering a purchase from them. Why do you have to show them "good faith?" They're the ones who need to show you "good faith!"

Over my career I have sold and financed hundreds and hundreds of vehicles with zero cash down. No deposit - no cash down. It happens every day in every car dealership around the country.

I also get emails from people telling me the dealer refuses to give them their deposit back; that they signed something with microscopic fine print that says the dealer gets to keep the deposit if you don't buy a car. Now that is downright theft. What happened to the "good faith?"

Those dealers should be put in jail and the key thrown away. They should be ashamed of themselves. They are a disgrace to their communities.

Just remember the next time you go into a car dealership to buy a car don't give them any deposit. If they won't give you a price on a car until you put down a deposit get the hell out of there and go find an honest car dealer. There are still some of those around.

Even after you make a deal and agree to purchase you do not have to give them a deposit. Of course they want you to. They are afraid you'll go somewhere else, and get a better deal before you take delivery of your new car. Too bad for them. Tell them to show you some "good faith!"

If you are financing with nothing down (which is done all the time) there's no need to put down a deposit. If your deal includes some cash down and you want to give them a portion or all of that cash down ahead of time go ahead, but you can wait until you pick up the car to give them the full down payment.

If you do give them a deposit make sure you get a receipt signed by someone in authority saying your deposit is refundable if you change your mind.

The only exception to the "no deposit" rule is if you are ordering a new car that's not in stock. Then and only then should you give the dealer a small deposit to order the car. Just make sure the deposit that you give them is deducted from the selling price when the car comes in . . . and get that in writing.

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Car Sales People Want You Under the Influence of Ether!

ether n. 1. a colorless, sweet-smelling liquid that burns and evaporates readily; It's fumes cause unconsciousness when deeply inhaled. 2. the upper regions of space beyond the earth's atmosphere.

This is the state of mind every car sales person dreams of putting their customers in. They do it by getting you all excited, playing on your emotions and convincing you that you want to take a vehicle home with you "today!"

After a car is sold and delivered car sales people joke with one another about how long it will take you to "come out of the ether!"

BEWARE!

If you make a rash, emotional car buying decision you will most likely have a serious case of "buyer's remorse" after you "come out of the ether." By then it's too late. Once you sign the papers and buy a car it is yours. There's no bringing it back.

If you want to avoid the ether and make a rational car buying decision then take your time and don't buy on your first trip to the dealership. Take some time to think it through and make sure you know what you're doing.

Analyze all aspects of the deal including the selling price, the trade allowance if any and the financing. Don't just accept what the car sales person tells you your payment will be. In fact, play it safe and don't believe anything they say to you, because it's their job to talk you into buying a car. Some - not all, but some car sales people will tell you anything you want to hear whether it's true or not just to sell the car.

Remember that you are in control of the entire buying process - not the sales person - even though they strive to maintain control. All you have to do is get up and walk out. That's your control! Don't give them any money down or the keys to your trade until you are sure of what you are doing. Don't sign anything and don't give them your social security number until you have decided to buy.

If you rush into a car buying decision you will be sorry. YOU'VE BEEN WARNED!

Car Sales People Want You Under the Influence of