Dealers and deposits

rg0r

rg0r

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Hey guys...

I am about to get another bike. Wanted to ask... from my past experience, dealers always want "deposits" before they do a loan check... Can this be done without a deposit? I wouldn't want to get denied for a loan and the dealer not returning my deposit. Seen this happen before when a friend was purchasing a car.

Thanks
 
use a credit card ... i always deposit with a cc...
 
they can't keep your deposit if you are denied financing.

Like chiller said, use your CC. If they say no then walk away.
 
rg0r said:
Hey guys...

I am about to get another bike. Wanted to ask... from my past experience, dealers always want "deposits" before they do a loan check... Can this be done without a deposit? I wouldn't want to get denied for a loan and the dealer not returning my deposit. Seen this happen before when a friend was purchasing a car.

Thanks
Click to expand...

they will say something like "I need a deposit to show good faith in the bargaining process" or some bs like that.
Same when you make an offer, the salesman/woman will want a deposit and take it to the guy/girl in that back office to approve or most likely deny your first offer.
They want a deposit as a way of keeping you at the table to negotiate.
Put it to them this way, here is my offer if financing gets approved and your management agrees to the price I'll leave a deposit.
otherwise as the great Geddy Lee once said "Exit stage left" buyers market man, you make the rules! you can always find another dealer to try to screw you over
 
A contract requires offer, acceptance and consideration. Without consideration (deposit) there is no contract.
 
I just bought a 2010 BMW GSA, it was all done verbally till pick up day. I had bought a bike from my dealer before, so there was some history there already so I didn't need a deposit. Did not even think of that actually, never had to put any money down till I picked up my ride.
 
I bought a bike over the phone from Lindsey. Even negotiated a price for my trade-in by email. Got there, paid the deposit, signed the papers for the financing and loaded the bike on the truck.

like VanillaGorilla said, it's a byers market.
 
If you come on my lot and want to finance a car, we will definitely ask for a deposit before we start working on your approval. It takes a lot of effort and negotiation to get a finance deal going. The deposit is always refundable if you are not approved and this is also put in writing. A lot of times you get people that just want to see if they can get an approval or not. Anyone who is not willing to put a deposit (subject to finance) is not ready/serious to buy a vehicle.

If you can get it in writing that if you're not satisfied with the finance terms, (interest rate, monthly payment, down payment, etc...) then you will have no problem getting your money back. Also make sure that it says "If no deal, deposit refunded in full", so you have all aspects covered. Good luck.
 
If I was asked for a deposit before financing I would walk and find somewhere less sleazy. I wont finance a bike and have never had a problem with a car or truck. you should know all the details about interest rates and terms before you put any money down.
 
Scuba Steve said:
If I was asked for a deposit before financing I would walk and find somewhere less sleazy. I wont finance a bike and have never had a problem with a car or truck. you should know all the details about interest rates and terms before you put any money down.
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Every dealer operates differently, but if your deposit is 100% secured, what's the problem?
 
If they/you write "Subject to Finance" in the deal then they can't keep your money. They cant keep it regardless, I have been told this by over a dozen retailers.

Wayy back in Dec 1998 I put a deposit of $500. down on a gixxer at Mc Bride cycles. They were cool about everything, they even stored the bike for me from Dec - April free of charge... Man, I miss dealing wit those dealerships. IMO they were very friendly and told you like it was first hand about everybike because the salesmen would ride the demo bike to and from work everyday. Now when I go into Honda of course they're gunna hype up their bikes for the sale. Kai and Rod from Mc Bride's were always honest and would tell you str8 up such and such isnt that great of a bike.
 
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The other posts got you covered from a deposit/dealer stand point The question is why are you worried if you'll be approved?

If it's credit related, (poor, limited or none) I'd get a copy of your credit report from equifax or trans union. You can get one on line if you can pay by credit card. If not, they mail a report to you. See their web site for details.

Once you have a credit report, you can find out what the criteria is before applying for anything. Minimum income, time at job, residence criteria.

In general, it's not a good idea to finance a bike. There are exceptions of course. The draw backs are making monthly payments during the winter when not using it. Possibly a change in employment/income and can't afford it a short time later. Insurance cost go up unexpectantly and can't afford to ride. Get a few tickets and need to park it for awhile. Again paying for something that sits there. Then try and sell it and can't get enough to pay off what you owe.

Anyways, it's good food for thought. Or a bunch of bs you can ignor.


Cheers.
 
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Most dealers are not interested in keeping deposits, they are there to make sales and move their inventory.
The ones that do hold your deposit are the ones that are new in the business and think this is the right course of action.
I have taken many deposits and never had a problem refunding it if the finance/deal didn't go through.
However, the only time money was deducted from a deposit is when a customer is 100% committed, we start working on the vehicle to get it ready (safety, e. test, etc...) and they change their mind for God knows whatever reason. It wouldn't be fair for us to spend the money and not be compensated for $$$ spent, time/effort.

Moral of the story; only put a deposit if you're serious. If there is a condition on the sale (on paper) and it doesn't go through, your money is 100% secure. If the dealer refuses to refund the money, you can then contact OMVIC and they will make sure you get your money back. It's a win/win situation.
 
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If I never leave a deposit, I never need to contact OMVIC if I run into a shady dealer, now do I?

I work in financing for a major manufacturer. Its not that much work to get financing going. That line would never work on me.
 
excellent advices thanks guys. waiting for my approval phone call sigh... wish me well
 
Jerico said:
If I never leave a deposit, I never need to contact OMVIC if I run into a shady dealer, now do I?

I work in financing for a major manufacturer. Its not that much work to get financing going. That line would never work on me.
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It's not a line my man, it's the truth. We don't just send a credit application and wait for an answer. We work hard to get better rates, lower monthly payments, lower down payments, etc...
If a customer is putting 500$ down payment and the finance company wants 1000$ down payment. A lot of times we take that 500$ out of our profit margin to make the deal go through. (if the customer can't come up with the rest)
Unfortunately we are selling/financing cheap used cars, I don't work for a major manufacturer. My lot is on Morningside & Kingston Rd where the majority of shoppers are looking for cheap cars, so it's a different ball game than what you're used to.

rg0r said:
excellent advices thanks guys. waiting for my approval phone call sigh... wish me well
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Good Luck, did you end up putting down a deposit?
 
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Just a general comment, but I feel you should know if your credit rating is good enough to get a loan on something as relatively minor like a motorcycle. If it's so borderline that you have to go through a subprime loaner or pay a high interest fee, you should probably be asking yourself if getting a loan is really the right thing to do.

A yearly equifax check will keep you up to date on how your credit is doing, and save your credit rating from unneccessary credit checks. Every time you apply for credit it puts a slight ding on your rating, especially if you apply for credit multiple times in a short time span.
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