Nonrefundable Deposits for Factory Orders
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Nonrefundable Deposits for Factory Orders
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.
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Re:Price should be fixed if deposit is non-refundable
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
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Here's another idea...
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!
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Two things...
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
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Don't!
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.
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"Death"
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