View Full Version : Nonrefundable Deposits for Factory Orders


rcl4668
12-22-1998, 09:26 AM
This is a followup to my earlier posting regarding 1999.5 changes. Thanks again to all who responded.<p>Again, I am about to put down $1000 on a new, factory-ordered A4 2.8 with the following options: quattro, sunroof, sport package, trip computer and upgraded sound system. The car will have the ambition grey cloth interior with no cold weather package. The car will be a five-speed manual with no Tiptronic automatic transmission. The dealer quoted a price of $31875.<p>The dealer just called me to inform me that he will require a $1000 nonrefundable deposit because they consider an A4 without the cold weather package to be "death," i.e., unsellable. I am hesitant to do this because the dealer also indicated that the price he quoted was contingent on no price increases for the 1999.5 model. I counterproposed by saying that I would agree to the nonrefundable deposit if he would lock me in to the quoted price. If he refuses, should I walk? Am I being unreasonable or is he?<p>I apologize for the length of this message. Any comments you can relay would be greatly appreciated.

Paul N
12-22-1998, 09:31 AM
Depending on where you live the all-weather package may be a hot item or a dud. In SoCal, finding a car with all-weather is difficult. If the dealer is going to require a non-refundable deposit, then they should fix the price.<p>Paul

vik
12-22-1998, 10:19 AM
First things first, I agree with Paul N. If he doesn't agree to fix the price, you should walk. In fact, according to Jim H. in a posting below, the price *should* be fixed at order regardless.<p>Second, you could possibly suggest a compromise to the dealer. Tell him that if you cancel your order, you'll pay freight for him to do a dealer trade. One of my local dealers told me that he does dealer trades all over the country, so your guy ought to be able to trade the cold-weather package with somebody up north with no problem. Freight might be $300 to $500, but you still win out over $1000.<p>Lastly, before you tell him anything, check your state law. Cherry Hill Imports in NJ told me that it's illegal for a dealership to demand a non-refundable deposit. Your state might have a similar law.<p>Good luck!

Josh
12-22-1998, 10:22 AM
1. $1000 is high for a deposit on a car; $500 should be more than sufficient. My mother just put down $270 on a VW Jetta GLX. I put down $500 on both new cars I bought (94 Passat GLX and 98 Audi A4 2.8).<p>2. "Without Cold Weather Package is Death" is not appropriate; a lot of people don't want it, especially with cloth. Where do you live?<p><br>-josh

Steve M
12-22-1998, 11:05 AM
If you place an order, everything should be agreed to up front. That's what a purchase order is!<p>If you don't have a firm price, don't order the car.

JIM H.
12-22-1998, 11:27 AM

jfl
12-22-1998, 12:31 PM
If you agree to his terms, you've given him $1000 BEFORE he's agreed to a price. This means he could raise the price by up to $1000 before it's in your financial interests to find another dealer.<p>Basically, if you agree to this deal, you give up ALL negotiating leverage and he has the ability to increase his profit margin.

Cdogg
12-22-1998, 02:23 PM

the real jfl
12-22-1998, 03:54 PM

Tom Halter
12-22-1998, 05:31 PM
My dealer (Sunnyside Audi in Cleveland) told me that a $500 deposit is typical, unless the vehicle is an oddball vehicle that they couldn't easily resell (anything without a sunroof or anything yellow). Depending on the color of the car and your location, you could fit into that category. Being in the north, the dealers around here pretty much order every car with the cold weather package. Plus, most of the A4s I see (especially the 2.8s) almost always come with either leather or leatherette.<p>Tom Halter<br>98.5 2.8 QM Pearl/Onyx

BobL
12-22-1998, 07:55 PM
I have a 99.5 on order in New York City. My dealer demanded a $1000 non-refundable deposit, but the contract of sale also says the price is fixed. And the price is reasonable (4% over invoice).<p>The thing I objected to most about the contract of sale is that it says that I must accept delivery of the car within XX days (I think it is 5 or 10 days) after being notified that it is ready for delivery, otherwisethe sale is cancelled, I lose the deposit, *and* I owe a penalty of 5% of the price of the car They absolutely refused to budge on that, although they said in actuality they would be flexible if I was out of town on a trip, etc. It means that if something is wrong with the car I can't refuse to accept delivery on it as a tactic to make them remedy the problem.

cj
12-23-1998, 05:44 AM
Bob,<p>What is so different about your order that you need to give a non-refundable deposit? <p>I think the pickup clause in your contract to to assure that you arrange financing for the car when it is available. The dealer does not want to be stuck holding it in inventory for 3 weeks while you're shopping for someone to lend you the money. If you have issues about the car and don't want to accept it, I'm sure there are legal protections to prevent the dealer from executing the clause.

Rob
12-23-1998, 07:40 AM
My dealer did NOT have a non-refundable deposit. I live in Texas AND ordered the cold weather package. Maybe you should call Park Place Audi.<br>

rcl4668
12-23-1998, 09:04 AM
Thanks for the feedback. I live in Oregon. I went ahead and made the nonrefundable deposit yesterday on the condition that the quoted price be fixed subject only to any changes made by Audi to the MSRP of the 1999.5 model.

JIM H.
12-23-1998, 06:27 PM
There's no reason for you to suggest or agree to an increase if Audi raises the price of the 99.5! You're now LOCKED IN, get it?

Matt in Cleveland
12-23-1998, 07:33 PM
Same dealer for me, Sunnyside. Had to put down $1000 non-refundable dollars for my '99 QMS Avant, which is, ahem, yellow. Apparently they don't make many of these things, and want to make sure that you're coming back to get it. I had to do a lot of convincing for them to even let me order it. I even got a call from A of A confirming the order--they said that there are only 5 of these slated for US delivery this year, and were concerned that a yellow avant with manual transmission was, as it has been said, "DEATH." I didn't hesitate for a minute. Gimmie that yellow wagon, man.<p>-Matt in Cleveland