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Factory order deposit question

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Old 08-14-2017, 11:33 AM
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Default Factory order deposit question

I am in the process of ordering an A5 and the dealer is requesting a 10% MSRP that is nonrefundable if I do not complete the sale.

Is it normal for the deposit to be nonrefundable? Also, the 10% seems a bit high. The dealer has some exceptions for the car arriving with significant damage or not arriving within 120 days.

I recall other manufacturers allowing you to cancel at any time and getting a full refund. What was your experience with this on factory orders?
Old 08-14-2017, 11:35 AM
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Have you reviewed your state law governing this? The dealership can't re-write those rules.
Old 08-14-2017, 12:08 PM
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Are you trying to get it in Audi Exclusive Mary Kay Pink with the world's least popular options (or something else that would be an absolute chore to sell if you backed out)?

If not this is highly unusual, unreasonable even. If this is just a normal standard-color A4 with some options you want, I would promptly walk out with a "thanks but I'm just not interested in giving you $3-5K non-refundable for the distinct privilege of buying the highest volume, most nonexclusive model in your entire brand without even seeing it in person first let alone a test drive," and find a different dealer.

(Edit: sorry, when I said highest-volume most non-exclusive model, I thought you meant A4 since this is the A4 forum. I now see you said A5 but my point still stands).
Old 08-14-2017, 12:15 PM
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I realized I should have posted this in the A5 forum.
Old 08-14-2017, 12:18 PM
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Plus I should have searched the forum a little better because there looks like other have posted similar questions. My apologizes for my newbie mistake.
Old 08-14-2017, 01:29 PM
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Just as a quick data point for you, I ordered a Gotland Green Prestige A4, manual transmission, sport package w/ black leather ventilated seats, gray oak inlays. A bit of a unique build I believe as the dealer couldn't find a match anywhere on the planet. $1K deposit which I consider more than fair. Anticipated delivery mid OCT to early NOV.
Old 08-14-2017, 01:41 PM
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Thanks. Was your deposit refundable and what state are you in?
Old 08-14-2017, 01:56 PM
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PM sent thanks
Old 08-14-2017, 02:08 PM
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They must not be taking you as a serious buyer. Otherwise, many others have factory ordered with no deposit, $500. or 1K max.

I got an S5 factory ordered with a $500 Amex credit card deposit after the dealer insisted on 1K, although I had already been a prior Q5 owner. I stood my ground on $500. and they eventually agreed.
Old 08-14-2017, 02:59 PM
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Originally Posted by doodadw
I am in the process of ordering an A5 and the dealer is requesting a 10% MSRP that is nonrefundable if I do not complete the sale.

Is it normal for the deposit to be nonrefundable? Also, the 10% seems a bit high. The dealer has some exceptions for the car arriving with significant damage or not arriving within 120 days.

I recall other manufacturers allowing you to cancel at any time and getting a full refund. What was your experience with this on factory orders?
What country (and area within the country) are you in? And as others have said, what are you looking to order?

There were pictures of a pink Q5 in the GTA floating around a few years ago. Someone who claimed to have some inside info claimed the dealer had asked for a 10-20% deposit, kept the deposit when the person backed out, and STILL lost money selling that pink Q5.

FWIW, around here (southern Ontario, Canada), I think CAD$1000-2000 deposit is normal, and non-refundable. How zealously they'll enforce that non-refundableness... well, that probably depends on what you ordered.


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