Hello

I wondered if you could help...

I am about to buy a car...the offer is 20% deposit and 0% finance on the rest (through the company)

I am not too concerned about not getting the finance, because I have a good credit rating, but you never know.

My question is, what is the best way to go about purchasing the car, without getting stung just incase the finance doesn't come through?

I asked the salesman today, what would happen to my deposit if I didn't get the finance and he told me I would lose it. However, this is a new car, so the deposit is around £3000. This scared me off as you can imagine, so I looked at another garage with a similar deal, asked the salesman there, and he said 100% you would get your deposit back. I told him what the salesman had said to me in the other garage and he said he thought it sounded illegal.

Just to let you know, he has said to me if I can't get out of work to pop up there, he could take the details over the phone.

Hope this is enough information for you to help me.

Kind regards

Lauren

Hi --- Although your deposit is fully protected as above you would be well advised to make it a condition of the sale if it makes you feel easier, that your deposit is "unconditionally & fully refundable".....get that in writing and signed, before you agree to put your deposit down.

No agreement = no deal, tell them your business will go elsewhere if not agreed in writing. !

Why give £3000 deposit. Unless you are ordering a factory special order built to your exact requirements then a couple of hundred pounds should do as a deposit until you collect the car. on the point of a deposit refund then only cash agreement could result in the loss of a deposit. Hire Purchase is not completed untill all 3 parties sign the loan document. One more thing, i have lost count of how many customers have told me they have a 14 day cooling off period, where they get this information from I do not know. Once you have signed the loan documents the deal is done, no turning back.

stu

Stu --- I myself was thinking that £3k is excessive, but if it's a 20% deposit and the rest on a 0% finance deal then that 20% could be payable possibly as a condition of acceptance for the finance. ?

However the applicant can still take all the precautions already mentioned to safeguard the deposit in the unlikely event the finance co. does not accept her.

all the finance companies we use, GE, blackhorse, barclaycard, fafs etc only ever see the figures inputed into the computer and pay out on an invoice. they never see the deposit. asking for the deposit upfront will be the dealers decision. they may be scared that the customer will cancel or worse still just like a company i once worked for, they may be in financial trouble. once the car is taxed (if brand new) then the money comes straight out of the bank account. if the company hasnt got enough funds to cover it they will need the money up front from the customer. i wouldnt pay any more than a £200 deposit (and wouldnt expect any of my customers to) if i didnt feel comfortable with the dealer. there are plenty of car dealers out there who would be happy with your business.

stu