Never Give Cash Deposit Before Buying a Car
Some dealers will ask for a deposit as "good faith" to show that you're serious about purchasing the car. This is before you even negotiate the price of the vehicle!
It's ridiculous to provide a deposit, and you should NEVER do so unless the dealer is ordering you a car they don't have in stock.
Otherwise, the only reason a dealer will want a deposit is so they can prevent you from leaving the dealership or buying a car from a competing dealer.
It's usually the sleazy dealers that will try to get a deposit from you, and these types of dealers are trained to wear you down until you agree to buy a car.
There is no law that says you need to provide a deposit, even AFTER you negotiate the price of the car. As I pointed out earlier, the only time a deposit request is legitimate is when the dealer orders a car from the factory, or does a dealer trade with a competing dealer to get you a car they don't have in stock.
They will usually ask for a deposit of $500. Make sure you agree to the price in writing and that it's refundable in case you change your mind or the vehicle is not what you expected.
3 Steps Every Car Buyer Needs to Take to Save Maximum Money
The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:Step 1 Get Prices From My Trusted Network
Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).Step 2 Get Prices From TrueCar / CarsDirect
TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.Step 3 Complete my Checklist
Follow this up with my checklist to make sure you squeeze out every last bit of savings.- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
About The Author
Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate
the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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