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Old 05-28-2011, 06:21 PM   #1
Gundo
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Default Car Dealership Question possible issue.

I was looking at a Jeep today at and was trying to get the Salesman to run some numbers for me, just find out what payments would be in different terms and with or without cash down. He would not do anything unless I gave a $500 deposit on the Jeep. Apparently I needed to show commitment in order to even get him to talk numbers all he would say was "it will be right in that area" when I told him the monthly payment I was trying to stay with in.

He then went on to tell me if I gave him the deposit, they ran my credit and I was approved if we talked numbers and I walked away I would lose my deposit. Wtf?

Im wondering if anyone else has had anything like that happen anywhere, as far as I know its not common practice.
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Old 05-28-2011, 06:33 PM   #2
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Sounds fishy to me. I can't see that salesman making any sales doing that bit.
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Old 05-28-2011, 06:35 PM   #3
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I just found it really odd that he was requesting a deposit to actually sit down and discuss any type of selling price.
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Old 05-28-2011, 06:37 PM   #4
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I just found it really odd that he was requesting a deposit to actually sit down and discuss any type of selling price.
Sounds like he was trying to sucker you into putting money down before agreeing to a deal. Very shoddy. Maybe somebody who knows more about selling cars will chime in.
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Old 05-28-2011, 06:37 PM   #5
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I just found it really odd that he was requesting a deposit to actually sit down and discuss any type of selling price.
I am sitting at my desk at work right now, what is the price of the JEEP and the finance rate. I can run the speculative numbers for you, I have a full dealer finance suite on my computer.
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Old 05-28-2011, 06:40 PM   #6
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Thats the thing that was such a HUGE piss off was that he would only say things like "mid twenties" or "$25,000ish". He never gave me a solid number. They don't list the price on their website either. It sucks because I like the Jeep and it has some options that I have only seen in this one model but I don't like their commit first deal later kind of tactics.
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Old 05-28-2011, 06:49 PM   #7
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Thats the thing that was such a HUGE piss off was that he would only say things like "mid twenties" or "$25,000ish". He never gave me a solid number. They don't list the price on their website either. It sucks because I like the Jeep and it has some options that I have only seen in this one model but I don't like their commit first deal later kind of tactics.
Then go to another Dodge dealer. The way our guys work it here is, We will quote retail payments all day long using MSRP and any applicable rebates / promotional rates. If the customer is asking what our biggest discount is, we leave it up to the customer to make an offer, and back the offer with a deposit. If the offer is accepted we keep it and proceed with the deal. If the offer is declined, the counter offer isn't accepted, or the credit is is declined, we return the deposit.

Sounds like you just have run into a really hard ass old school sales guy.

You can't expect a dealer to lay all his cards on the table though without and tell you the bottom line lowest price without a real commitment. If they did that, the dealer would never make a nickel on a car.

Best advice, go to CarcostCanada.com, spend $20 bucks, and get the info you are looking for. Then go back with that info, and make your deal with a different salesman. And make sure you let the original salesman know you aren't comfortable with him, in front of the new salesman.... that will really ruin his day. Car salesman hate it when another guy writes their lead, and it will lead to lots of internal friction, and possibly a salesman fistfight behind the service department.

Last edited by pylon; 05-28-2011 at 06:53 PM.
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Old 05-28-2011, 06:50 PM   #8
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If I had the spare time and money I would love to go down and inquire through him. When he said I needed the deposit to talk numbers I would walk up to another sales person and buy it cash.
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Old 05-28-2011, 06:55 PM   #9
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If I had the spare time and money I would love to go down and inquire through him. When he said I needed the deposit to talk numbers I would walk up to another sales person and buy it cash.
Hey Travis... I want the best price on one of your listings, and I don't want to back it up with a deposit. And I may or may not buy it if I agree with the price, and I am not even sure if I want a new house.... can you fire me off a quote?
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Old 05-28-2011, 07:00 PM   #10
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Asking for $500 up front if a very very common tactic used by car dealers. But the salesperson telling you that your deposit will not be refunded if you don't reach an agreement is very likely not legal. Essentially you are paying the dealer to try and sell you a car, talk about an insult.

I would never go back to that dealer myself.
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Old 05-28-2011, 07:05 PM   #11
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I can appreciate that they want commitment from me to start the bargaining process but at the same time as a consumer at least let me know what your actual listed selling price is. I know its just a list price and that there is room for movement but if you say "mid twenties" is that on the $22,000 end of the scale or the $27,000 end of the scale.

Give me a rough starting point if its $26,000 and my budget is $22,000 I know the odds of getting $4000 more off the price is pretty slim and I wont waste you time or mine.
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Old 05-28-2011, 07:08 PM   #12
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Asking for $500 up front if a very very common tactic used by car dealers. But the salesperson telling you that your deposit will not be refunded if you don't reach an agreement is very likely not legal. Essentially you are paying the dealer to try and sell you a car, talk about an insult.

I would never go back to that dealer myself.
Ding ding ding ding ding......We have a winner.

Under AMVIC regulations you cannot do exactly that.
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Old 05-28-2011, 07:11 PM   #13
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I can appreciate that they want commitment from me to start the bargaining process but at the same time as a consumer at least let me know what your actual listed selling price is. I know its just a list price and that there is room for movement but if you say "mid twenties" is that on the $22,000 end of the scale or the $27,000 end of the scale.

Give me a rough starting point if its $26,000 and my budget is $22,000 I know the odds of getting $4000 more off the price is pretty slim and I wont waste you time or mine.
If you are going to buy a JEEP anyway, don't buy a new one. The depreciate horribly. A lot of our sales guys run away if they see someone pull up in a JEEP, as they know they usually owe about 20 grand more than the thing is worth if they try to trade it in. Be like one other super wise member on this board that bought a pre-owned JEEP from us, and save half of the price on a 2 year old unit.
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Old 05-28-2011, 07:18 PM   #14
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If you are going to buy a JEEP anyway, don't buy a new one. The depreciate horribly. A lot of our sales guys run away if they see someone pull up in a JEEP, as they know they usually owe about 20 grand more than the thing is worth if they try to trade it in. Be like one other super wise member on this board that bought a pre-owned JEEP from us, and save half of the price on a 2 year old unit.
It is a 09 I was looking at actually.
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Old 05-28-2011, 07:31 PM   #15
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do a search on beyond.ca about "dealer deposit"

you will get your info and a lot more. LOL

PS just go to another dealer. and then drive it over to this one and tell them the deal you got.
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Old 05-28-2011, 07:33 PM   #16
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Originally Posted by pylon View Post
Hey Travis... I want the best price on one of your listings, and I don't want to back it up with a deposit. And I may or may not buy it if I agree with the price, and I am not even sure if I want a new house.... can you fire me off a quote?
If someone calls me about a listing and wants me to crunch some numbers and figure out mortgage payments I am not going to insist they write a conditional offer first.
I will gladly spend 10 minutes of my day to turn this person into a possible client. I have had a handful of clients tell me that they were working with someone prior to me however they appreciated the extra mile I went which in turn led to their business.
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Old 05-28-2011, 07:43 PM   #17
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What dealership is this? I may get a jeep some day.
This, So i know who to stay away from...
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Old 05-28-2011, 07:58 PM   #18
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Sounds like Crowfoot Dodge.
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Old 05-28-2011, 08:08 PM   #19
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If someone calls me about a listing and wants me to crunch some numbers and figure out mortgage payments I am not going to insist they write a conditional offer first.
I will gladly spend 10 minutes of my day to turn this person into a possible client. I have had a handful of clients tell me that they were working with someone prior to me however they appreciated the extra mile I went which in turn led to their business.
I can work my own payments, I just want the best deal, and the absolute lowest price your client is willing to sell for, but I refuse to give you a commitment.
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Old 05-28-2011, 08:08 PM   #20
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Originally Posted by Realtor 1 View Post
If someone calls me about a listing and wants me to crunch some numbers and figure out mortgage payments I am not going to insist they write a conditional offer first.
I will gladly spend 10 minutes of my day to turn this person into a possible client. I have had a handful of clients tell me that they were working with someone prior to me however they appreciated the extra mile I went which in turn led to their business.
I don't know how it is in the housing market but I sold cars for a few years and I've heard everything in the world about buying cars.

"best price buys it now"
"I'm a year out doing research" (on a used car)
"I'm looking at the 350z and the Honda Civic Si"
"I'm paying cash, So I just want your lowest price"

We got stroked a lot when I sold cars, people were rude and are just as bad as the salesman. People would actually just wanna drive cars to waste your time and wouldn't feel bad about it. When I took ups on the lot and we started to question what they're really looking for I would simply ask if they're looking to buy a car or just wasting my time. I would just get that out of the way right away because I would rather be told "no" right away then waste an hour showing a vehicle and going for a ride only to be tossed the keys and told "thanks". Or get them in the office thinking they're going to buy the car and get nothing and never seeing them again because they went to another Nissan dealer down the road and some dbag lets them buy the car from him when I sold the car but they were embarrassed to come back because they were wrong.

this is a major reason why I got out of sales, because the people blame the dealer for everything. I know a lot of it is true but the buyer isn't an angel either.
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