Never Give Cash Deposit Before Buying a CarOne of the most common complaints I hear are from car buyers who are having trouble getting their deposit back from the dealership.
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.
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