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Non-refundable deposit?

5K views 18 replies 14 participants last post by  sinnet112 
#1 ·
I went to place an order for a 2009 A5, and I was asked to put down a $1K NON-REFUNDABLE deposit!

I was told that the car I wanted to order would be hard to sell in the 3-5 months that they expected delivery. I think it's BS. Do they expect the market to significantly drop off? What do you think??? I think they may know something we don't! (btw -- perfect credit + high income, etc... so no issue with financials...)

This was the order I wanted to place:
Black
Manual
Premium
B&O
Cinnamon Brown Leather

I'm worried about a recall, price reduction, or some other insider information that they obviously wouldn't share. Am I thinking about this too much?
 
#3 ·
I agree with Jimmyz--if the dealer would have trouble selling that car they should get out of the Audi dealership. Definately go to another dealer. Non-refundable is a joke. I also assume it's a one way deal--if they cannot deliver on time can you walk away with your deposit?
 
#4 ·
I've ordered a lot of cars over the years, and my understanding has always been that deposits are fully refundable unless you're ordering something bizarre.

That said, after my recent order had been placed the dealer called back and wanted me to sign a "deposit nonrefundable" notice, which was contingent on the car being delivered by a certain date, which they conveniently left blank. I tossed it in the trash. I think some dealers may be worried that as cars become more available later this year (which they will), some buyers may bolt to better deals if they aren't locked in.

My impression is that most state attorneys general consider automobile deposits refundable. If you sign a form stating otherwise, you are giving up a right you would otherwise have, which seems unwise.
 
#5 ·
Why should it be refundable ? The deposit is to give the dealer some assurance you intend to take delivery of the car. If you don't take it they get to pay for it and it becomes their stock, now imagine if they had several cancellations, it could put a dealer out of business. Why would they ask for a deposit otherwise ???
 
#7 ·
Makes sense to me.
 
#9 ·
Capitalism has taught me that if you can find a product at a cheaper price, why not buy it? If a cust has found another A5/S5 at a lower price, why shouldn't he be able to cancel the current order and go to another dealership?

If anything, the dealer should either negotiate with current cust to get them to stay or lose the sale, simple as that. It works in all the other industry, why should the auto dealership be any different?
 
#11 ·
In the uk any deposit paid by a customer can be non refundable, as long has it has been paid as a deposit and not a part payment. At least your being told from the start its non refundable. Why is this bothering you if you intend to buy the car? It also stops people ordering cars then trying to get discount or cancelling the order. As for a price reduction, im sure that if there was one before you took delivery of the car it would be passed on??? Even though it is a non refundable deposit, my dealer would give a refund as long as the car hadnt been built, or in the build process.
 
#13 ·
I don't know if it could really be considered a contract since most of us were not even given pricing at the time of order.

-Ray
 
#14 ·
My deposit is "non refundable" UNTIL the car is sold by the dealer. I still placed the deposit because I doubt there would be trouble selling the car if I end up canceling the order. So if I cancel the order I won't get my money back until the dealer sells the car... which I highly doubt would be a problem for them, especially with the color and options I chose.
 
#15 ·
Just today I saw reason to cancel my order (there is a white S5 for sale at Commonwealth Audi in Santa Ana that I am interested in) -- but even though it is perfectly legal to back out of my A5 at this point, I've already built up a relationship with my dealer over the past several months and would feel better if they could do a dealer trade to get the car over to Penske. I tried, but the guy at Commonwealth wasn't interested because there was no equivalent car for Penske to trade with.

-Ray
 
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