Non refundable (large) deposits - Really?

Bob Montgomery · 05-30-2016, 02:25 PM

We are on our second motorhome purchase, and both times we were required to make a $5,000 nonrefundable deposit. We made them insert a clause that if we didn't get financing with a payment of no more that $XXX and an APR of no more than XX% it was refundable.

So the question for you is this: Is this normal in the RV business? Why? I have purchased a lot of autos in my life and never experienced anything like this. Even when buying a home you can get your deposit back in most cases.

Why are the RV dealers so afraid of people changing their minds? Also, when we purchased our motorhomes, we had to wait several days before we could pick up our new RV. When you purchase a car, it is ready to go in almost every case .... especially if it is a new car.

I guess I just question how the RV business works.... Mind you I am not complaining about my dealer .... I just don't understand why they do business they way they do.

I welcome any and all comments.

Ida Ratherbe Camping · 05-30-2016, 02:37 PM

If you ordered it, ya could see the depoist thing. Cuz if you backed out, they would be stuck with a RV they didn't want and made to your specs. If on lot, don't see the purpose of deposit.

On the wait thing, in theory, they will be checking systems, problems, getting it ready for your PDI. They probably haven't been in it since it was delivered to them.

My take on it.

Bob Montgomery · 05-30-2016, 02:44 PM

Quote:

Originally Posted by Ida Ratherbe Camping

If you ordered it, ya could see the depoist thing. Cuz if you backed out, they would be stuck with a RV they didn't want and made to your specs. If on lot, don't see the purpose of deposit.

On the wait thing, in theory, they will be checking systems, problems, getting it ready for your PDI. They probably haven't been in it since it was delivered to them.

My take on it.

Nope, in both cases we purchased units in stock, on the lot. One was a year old, the latest was new (2016) but in both cases we were required to put $5,000 down (non-refundable) and wait several days to take delivery. Yet in both cases we ended up bringing the units back to fix things that should have been ok when we took delivery. I guess the worst part was we live over 100 miles from the dealer (no dealers in Cody WY....even though we have many thousands of units come through every year.)L

mustardbucket107 · 05-30-2016, 02:55 PM

This is your dealers practice, not industry. I put $500 down to hold the one we were going to purchase until we could get there 4-5wks later.

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Bob Montgomery · 05-30-2016, 03:14 PM

Thanks. I am thinking maybe next time (if there is a next time) I am going to make some phone calls and possibly change dealers for a number of reasons. Thanks again.

Ham Camper · 05-31-2016, 12:46 PM

No way would I put 5K down and being non-refundable is just nuts. I bought a 60K new GMC pu truck and I ordered it special from the factory and I put down NOTHING. Not one red cent. Don't let them fast talk u into that again. Go to another dealer.

timfromma · 05-31-2016, 12:48 PM

My dealer put a $5000 credit card hold to order my trailer and only actually charged my card when I signed the final paperwork.

pdqparalegal1 · 05-31-2016, 04:52 PM

In most "most" cases, deposits are non refundable. Put as little deposit as possible. If you really want the unit, deposit is not a problem. Try to line up financing prior to going shopping. Dealers want deposits to keep shoppers from tying up inventory if they don't qualify to buy. And yes, there are those out there. Good luck!

Wolverine 1945 · 06-01-2016, 06:54 AM

Heard a strange story like that a couple of weeks ago,,, this guy bought a used car from a used car dealer,,, he had a trade in,,, so they made the deal and he drove off in his new used car,,, 3 or 4 days later the dealer called him and told him he had to bring the car back,,, because financing did not go thru !!! Never heard of making a deal before financing was approved ???

waiter21 · 06-02-2016, 07:37 AM

Everything in life is negotiable.

I can see situations where I would ask for a large deposit, i.e. If I had to special order something for a customer. I'd want to make sure I'm not going to get stuck with it. And if I do, I want to make sure I'm reimbursed for my troubles.

However, if its on the lot, then anything goes.

If you want me to hold one for you and not sell it to another customer, I would probably ask for a small non-refundable.

If you have cash in your pocket, lets talk...

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