Unrefundable deposit.......refundable?

[Bill Lumbergh]

I'm supposed to pick up my silver '05 on less than 48 hours, but I think the dealer is using some shady tactics to try to make money on my good credit.

I was told when I placed the deposit (by check, and it hasn't been cashed) that it was refundable "if the dealer didn't deliver in my time frame". Well, the car is on the lot, so it's in my time frame.

If I discover they lied to me or used deceptive tactics, am I still legally required to give them the $500 deposit since they ordered the car? I can always put a stop payment on my check, but I don't want to get sued. Suppose we just can't agree on a price or interest rate, or whatever....can I get my check back or do i have to let them keep it?

[dreichla]

Since they're not really ORDERING your car (rather, just getting a car from the allocation, and then offering it to you based upon your rank in the waiting list) I would be hard pressed to think your deposit is non-refundable (even though they may have stated so)

At least that was my case and my dealer promptly refunded my CASHED deposit check by issuing me a dealer check. In any case, a dealer who can't supply the car you request in agreed upon time frame should refund your deposit without question. They should tell you up front. And if they don't, I'd steer away from that dealership.

I'm also a bit unclear as to the real reason you seem to be wishing to back out of the deal, especially if; 1) they've found your car; 2) in an acceptable timeframe; 3) and they stated the deposit was refundable?

Also, never allow them to run a credit check on you without complete agreement on the car first. Each time someone runs a credit check, your overall score drops. Always have some photo copies of your drivers license with a big fat note on it stating "DO NO RUN CREDIT CHECK" on it so they won't drag down your score as the finance manager sneaks off to do a quick check while you talk to the salesman.

Good luck!

[Bill Lumbergh]

I may be asking for my deposit back because of some possible shady tactics by the finance manager. To date, he still has not given me an actual number for my interest rate through Toyota Financial. At first I was told they couldn't quote until the VIN has been assigned. Now I'm being told "their computers are down." I'm not believing it.

I'm wondering how hard I'm going to have to twist their arms to get them to give me back my check. And no, it hasn't been deposited yet (so even if they refuse to give it back, I can always do a stop payment).

I'm just looking for ammo in case I need an "out" that doesn't cost me $500.

[baxsie]

Is Toyota offering some killer interest rate? Why use a car company as a loan company?

I was able to get a "blank check" through my credit union. Basically we went to the credit union, filled out all the loan forms, told them the car we wanted. They look the car up and give you a maximum loan amount. If the loan is approved, you get a blank check to take shopping.

Then you negotiate the price with the dealer(s) and tell the "finance guy" to take a leap.

Personally, if you go this way, I think it is better to not tell them that you have the check until the price is set. You do not need to let them know that they will not be milking you on the financial end of the deal when you are negotiating the vehicle.

On a Prius, it seems that the only negotiation (outside of VA )is MSRP

[Godiva]

What baxsie said.

I went to my credit union and got approved for up to $30,000 before I went to the dealership. Wasn't even planning on buying that day. Loan approval was good for 30 days so I had a month to find a car. (In San Diego, easy.)

I did not even mention the loan until I was already in Finance. He couldn't beat my rate and didn't try. Tried to sell me lojack and extended warranty instead. Said no to all that.

Read up here. Do what baxsie said. Get your car. Don't let them sell you etching or clearcoats.

Remember....you don't need to service it with these guys. And their computers might be down. Especially if they use old PCs.

[jeromep]

I think this is dealer puffery or deception with regard to not being able to give you a rate quote. Why? Because they can't give you a rate quote from Toyota Finance until they run your credit and get a score back from the system. Rates from vehicle finance companies are all done on the fly based on a combination of cost of funds for the financing institution and a risk assessment based upon your credit score. The higher your credit score (to a point) the lower the interest rate you pay.

So, in typical dealer fashion, instead of telling you the truth or being straight, they chose to lie. Now, considering that you are a smart buyer and are concerned about your deposit and being able to back out of the deal should you feel it goes south, this dealer is not helping itself by lying about the in house vehicle financing process.

I took my chances when I financed by going into the dealer and choosing to go with Toyota Financial. However my bank/credit union rate survey prior to going to the dealer indicated to me that I had done very well as Toyota Financial at that time beat the local institutions by a half a point.

As for your deposit, you should ask to see the check prior to completing the sale and it should probably be in your posession prior to closing the sale so that they know you are no longer on the hook.