Common dealership practice?

Labster

Labster

New member
So I went and worked out a trade on my jeep for a new Mazdaspeed 3 and put down $2,500 but didn't sign any papers for the car yet, no financing etc because they didn't have the model with the options I wanted in stock. No biggie. I did that tuesday and was said that they should have the car I want by friday maybe saturday. Thursday they deposit my check yet I still don't have the car, ***! I find out friday that the dealership that has the car I want that they're doing a dealer trade with is holding it till today because they have a customer that can't decide between black and silver. ***! Is this a common dealership practice? I'm a bit pissed because they deposited my check and I still haven't taken delivery and that $2,500 down payment almost cleaned out my checking account and I'll have to make another payment on my Jeep if they don't do the buy out on my loan by thursday. Car dealerships just piss me off. End rant
 
They cashed your deposit to make you make a deal. I'd tell them to refund the cash and when they have a car that meets your specs to call. many won't do a dealer trade unless they have a signed deal.
 
Wow... $2500 for a deposit??? I don't like putting more than $200 down. Second, since you said money is now tight, you need to be aware of another sleaze-ball practice. Some dealerships will wait until they have a buyer for your car before they pay it off! Your bank will expect payment. Its crazy but it happens all the time.
 
The last time I checked, there's not a run on the Mazda 3. You just lost all of your negotiating leverage, and you can expect the terms of your deal to change significantly when the dealer finally gets a car in for you.



Do you even have the deal in writing? You need to get your money back immediately, and find a different dealer. It's a Mazda, for crying out loud. You don't need to put that kind of money down to "reserve" one.
 
Dealers won't keep your deposit, don't worry. When I sold cars we never deposited the check. We only stapled it to the deal folder until the final moment. Dealer trading like this is common practice. Always has been and always will be. If I were you I'd find out what dealer they are trading with and run there and buy the car. A dealer won't hold a car for a potential customer that long so I bet if you go there they will sell it to you.
 
David Fermani said:
Dealers won't keep your deposit, don't worry. When I sold cars we never deposited the check. We only stapled it to the deal folder until the final moment. Dealer trading like this is common practice. Always has been and always will be. If I were you I'd find out what dealer they are trading with and run there and buy the car. A dealer won't hold a car for a potential customer that long so I bet if you go there they will sell it to you.
Click to expand...



The guy in charge of mazda sales was out of the office on wednesday so by the time he called thursday the other guy had expressed interest yet couldn't decide between silver (my choice) and black. I understand giving preferential treatment to their customers on hand over giving preferential treatment to another dealer. I'm just annoyed and unfortunately, yes the check was deposited. I was using the $2500 as my deposite and down payment all in one I just figured why write two checks (and my salesman said he didn't think they'd deposit it till I picked it up either)
 
az57chevy said:
They cashed your deposit to make you make a deal. I'd tell them to refund the cash and when they have a car that meets your specs to call. many won't do a dealer trade unless they have a signed deal.
Click to expand...



They do all their trade ins through a wholesaler who agreed on the price to be paid. Which was nice because I only paid $350 in tax on the whole purchase instead of $1500 as if I had bought it outright which saved me some coin.



yakky said:
Wow... $2500 for a deposit??? I don't like putting more than $200 down. Second, since you said money is now tight, you need to be aware of another sleaze-ball practice. Some dealerships will wait until they have a buyer for your car before they pay it off! Your bank will expect payment. Its crazy but it happens all the time.
Click to expand...



I'll be sure to ask them about it. They said we would sign the pay off papers as soon as I came in to pick up the car though so I'm not sure.



15951 said:
The last time I checked, there's not a run on the Mazda 3. You just lost all of your negotiating leverage, and you can expect the terms of your deal to change significantly when the dealer finally gets a car in for you.



Do you even have the deal in writing? You need to get your money back immediately, and find a different dealer. It's a Mazda, for crying out loud. You don't need to put that kind of money down to "reserve" one.
Click to expand...



Unfortunately there's only one Mazdaspeed 3 with the color and options I want (tech package which can only be factory installed). I had them make a copy of the terms we agreed to. As I mentioned before the $2500 was my deposit and my downpayment in one. I figured why write 2 checks when I could just do one and take care of both at the same time.



AeroCleanse said:
How could you give them a check yet not sign any paperwork?
Click to expand...



I signed the buy out agreement (price they agreed to pay) yet I'm still driving around my Jeep while they get my car in stock.
 
They have your $2,500 in the bank, which means they have all the leverage now. They're also enjoying the interest free loan you have provided.



I hope for your sake that this dealer is exceptionally honest, because I've heard many stories that start like this and end with the dealer demanding more money when the car arrives. They know you're desperate now, and if they're like 99.9% of all car dealers, they will use that to make more money from the deal.
 
Labster said:
Unfortunately there's only one Mazdaspeed 3 with the color and options I want (tech package which can only be factory installed). I had them make a copy of the terms we agreed to. As I mentioned before the $2500 was my deposit and my downpayment in one. I figured why write 2 checks when I could just do one and take care of both at the same time.
Click to expand...

This is why you're in this situation. Your deposit is cashed right away. Here in Canada, dealerships don't even accept cheques for deposits anymore, it's cash, interac or credit card. It's a refundable amount that ensures you're "serious" about the deal, and allows the dealership to hold your vehicle for you. Because you combined the deposit and the down payment, the entire amount got cashed. This isn't the dealership's fault, nor yours (you have no way of knowing how it works). The sales person should have known this though, and known what was going to happen.



I've done a trade-in before, and also drove my trade-in for a few days after the papers were signed. If you read the trade-in paperwork (the small stuff), it'll state in there that the purchase offer on your vehicle is subject to "reasonable wear and tear post agreement", which basically means you're allowed to drive it and insure it before the dealership actually takes ownership of it, but if you put an abnormal amount of mileage on it in those few days, or you get in an accident, then the dealership can void the agreement. Case precedent in your local state's court can provide you some more specifics on what constitutes "reasonable wear and tear".



I wouldn't consider yourself getting screwed by the dealership just yet, everything they've done (from what you've said) is common practice.
 
The last time my wife wanted a car with specific color/options, I gave up looking and just called the fleet manager. It took a refundable deposit and a few weeks but we got what she wanted.
 
You must log in or register to reply here.
Back
Top