My local dealer is demanding a $3k non-refundable deposit to order a 2012 Cooper S with a number of packages. Originally they quoted $1k but claim it would be hard to sell this car if I backed out (it's silver white with black interior...nothing crazy).

Is this normal or should I tell them to stuff it and go to a dealer in another city?

 

Sounds somewhat normal - I was required to put down $2k when I ordered mine, but it was nice to have that amount applied to the down payment when I picked it up...

 

I was also quoted $1K (Dec. '09), but when I asked what if this happens and what if that... He just said how about $500.00? I put it on a CC.... but thinking about it they lose money on CC purchases so that might have been better for them?
They put the order through without so much as even asking if I had a job let alone a credit report.

One of the reasons I ordered rather than buying off the lot is that most of the lot stock had lots of options that I did not want to pay for. So I can see where a dealer would be careful especially if they have been burned a few times...

 

The deposit should never be non-refundable. Run away and go to a different dealer.

 

^ +1!!

 

In Wisconsin, the dealer can keep up to 5% of the selling price of the vehicle if a customer backs out of a signed purchase agreement (order out or off the lot). Most dealers don't enforce it on in stock cars, but do on order outs. The dealer should have some protection against getting stuck with a car they don't want, but $3,000 seems ridiculous. I'd probably find a different dealer.

 

Just get everything in writing that you want on your order including the installation price of the dealer installed options. Be sure you have the final bottom line price you are going to pay when you pick up the car. Bottom line includes everything including the tax.

When you pick up the car you need to be sure you have all options installed and if the car is not what you ordered they have to refund your deposit because they are the ones that broke the contract.

A contract works both ways. If the car is what you ordered and you just decide to not want it you lose $3,000

If the car is what you ordered you know exactly what you have in writing that you need to pay the dealer can not increase the cost even if the price of the car goes up from the factory. They have to abide by the contract.

Non-Refundable is not always non-refundable. It turns to re-fundable if the dealer breaks the contract.

 

I had a $500 deposit that was refundable if I chose to cancel my order, but maybe things are different in Washington. If the car was some bizarre combination of accessories that the dealer knew would be hard to sell to someone else, I could see the logic, but $3000 still seems very high.

 

I would go to another dealer, why let him use your money for free. $3000 is way to much, i would do $500 bucks at best, if the dealer wants your business he will see it your way or just walk. We ain't talkin about a $150000 exotic.... Oh i forgot to mention if it were me the only thing i would sign is the receipt for my refundable $500 bucks. No matter how you cut it the dealer will win, i do know this from past experience..good luck.

 

Yeah, I would go elsewhere. What if something comes up in the meantime while waiting? I put down $100 to order a car and had to go out of town 2 days before it got to the dealer. They said it was cool and gave me my money back. 6 months later they had a similar one on the lot that I bought.

 

There is only 1 dealer in my state which is more than 200 miles away from me. My deposit was non refundable. I asked what if I lost my job or could not get financing etc.... nope... nope...... Then without me asking the MA said $500 down would be fine. If I walk I go 200 miles back home and then 200 miles So to a CA dealer. So 'walking' was not really an option for me.

 

Klricks sometimes as in your case it all depends on how bad you want the vehicle. It seems as if your dealer was willing to work with you and thats a good thing.Yes here in Texas we have lots of Mini dealers with lots of cars and its a lot easier to just walk than let the dealer dictate the terms.

 

When I was thinking about getting a new Mazda 3, they were going to require a $500 deposit on a laser blue one, but no deposit on white, because they figured white would be a lot easier to sell if I backed out. Silver on black is stupid easy to sell. I think the dealership is just being greedy. Threaten to go elsewhere and see how their tune changes.

 

3,000 seams outrageous to me. I ordered a car with 13,000 in options and still only had to put down a 1,000 deposit, which I made sure was returned to me after I picked up my car.

 

Only 1K for me as well on my CM S

 

I had to put up $500 for my first. Nothing required for the next two.

Bill

For a $3,000 deposit I'd want to put in combinations the configurator would not allow.

 

As others have said, $3k deposit is unreasonable, especially non-refundable. Tell them to pound sand and walk. They'll change their tune......

 

There has to be more to this story. No dealer looks for ways to NOT sell a vehicle. No dealer is going to make a fortune by holding $3,000 dollars for 90 days and then applying it to someone's purchase nor are they so under-funded that an additional $3,000 in working capital is going to make a difference.

It would seem obvious that the order as configured does not fit with their inventory and they feel it would take a long time to sell the unit if the OP does not take it. Who would know better than the dealer who is selling the product everyday in that market? Holding the car will cause them to pay interest on a substantial amount of money until it is sold.

If a deposit on an order is refundable, why take it? This is not a game of let me order it and see if I like it. The dealer is going to pay for the order and they must keep it. Would it not be reasonable for the dealership to feel it necessary that the potential owner has a stake in the process? Is it not reasonable to ask for more deposit as the odds of quickly selling it rise?

 

3,000 bucks sounds like a lot of money to be non-refundable. I wouldn't really like that stipulation if I were you. There are plenty of other dealerships out there.

 

I put down a $500 deposit that was 100% refundable, I was told. When I bought the car I paid another $4,500 in cash (but only was required to do $2,500) before financing the rest.

 

The dealer asked me to put more down because my setup would be hard to sell, but I stuck to only putting down $250 which was refundable. If they're asking for $3000 non-refundable regardless of your set up, I'd suggest you go elsewhere.

 

 

I have to disagree completely on this. It's not like he's ordering a custom Ferrari, it's a Mini! I've purchased many cars over the last 25 years, including ordering 4 and never had to put down more than $500 and it was always refundable. I only backed out of one of those deals because I was promised it would take 6 weeks and 12 weeks later, still no car! I needed a car and went with something else and got my deposit back.

If the OP's dealer won't take an order like his without a non-refundable deposit, then it's the OP's choice as to whether or not to do business with them. Personally, I'd walk unless they change the terms.....

 

I can appreciate you have ordered four cars in the last 25 years. I have sold 200,000+ in the last forty. One thing I did not allow my people to do was to order a car with a refundable deposit. If the customer wanted to dictate what color and equipment I spent my tens of thousands of dollars on, they needed to step up. If they were going to order something that I felt may never sell because of color combination or equipment, the more non-refundable deposit required. I have had combinations so far off base, they would need to pay in full when ordered.

You are right. The customer has the right to buy anywhere he desires and the dealer has the right to pass entirely. If Graypoint is certain he wants the car, there is no dealer close by that is convenient, and he plans to put $3,000 down anyway...it is a moot point.

 

Agreed. especially if you are a dealership without many others around, a new one, or especially a Mini dealership in a place where minis aren't the car of choice....I ordered a countryman from a dealership in Reno and had to put down a $2500 non-refundable deposit that goes towards the purchase price of the car. The dealership was officially opening a few days after I went, and as I live in snowy mountains, typically Minis aren't the choice in cars. I also ordered certain things ala carte instead of getting all the packages to save a little money. I totally understand it. What's the POINT of even having a DEPOSIT if it is refundable? That's like saying "here's a contract, sign it, but it doesn't mean anything."
If it goes towards the purchase price of your car, makes sense. If they randomly added it on top of the purchase price, then that's obviiously a no no and they're trying to screw you.
Maybe where this person lives, it might be harder to get rid of the inventory, than say in San Francisco.