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customer deposit when buying new car?

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have had a heated argument with my friend who is stupid enough not to understand how customer deposit works when buying a new car.it could be possible that i might end up being the stupid one.anyone k… Read More
KOGONAI Avatar
9m, 3d agoPosted 9 months, 3 days ago
have had a heated argument with my friend who is stupid enough not to understand how customer deposit works when buying a new car.it could be possible that i might end up being the stupid one.anyone knows what the customer deposit actually means?is that amount reused after the term ends? sorry if this is obvious
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KOGONAI Avatar
9m, 3d agoPosted 9 months, 3 days ago
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#1
I think it depends on the contract. When leasing, the 'deposit' is non refundable and effectively sunk cost. With buying, I am guessing it is like a house deposit, I.e. Money you are paying up front as part of the price of the vehicle?
#2
lukas0704
I think it depends on the contract. When leasing, the 'deposit' is non refundable and effectively sunk cost. With buying, I am guessing it is like a house deposit, I.e. Money you are paying up front as part of the price of the vehicle?
either way you dont get that amount back.is that correct?
#3
Depends. Is it a deposit being taken off the price of the car to reduce HP/PCP monthly payments or was the deposit to "to secure the order" for the car; as in if you cancel the order you lose that deposit and if you continue you get it back. Depends on the circumstances of the sale.
As an example when I trade in my car it is generally worth just over just over 50% of what I'm buying next, that way I get 0% finance deal, I wish to put zero extra money towards the car but the dealer still requires a small deposit upon the ordering of the car and when I take receipt of the car I get that back.
#4
initial 30% customer deposit of the car while taking a finance deal.then £150 per month
#5
KOGONAI
initial 30% customer deposit of the car while taking a finance deal.then £150 per month

Get nada back.
#6
cecilmcroberts
KOGONAI
initial 30% customer deposit of the car while taking a finance deal.then £150 per month
Get nada back.
i was wrong then
#7
The way I see it car costs say 10k . Customer deposit is for example 20% (2k) and the balance to finance is the remaining 8k, which is what you are taking out as a loan . The deposit is usually either cash or trade in value of previous vehicle or a combination of both . At the end of the term of the loan you have paid 10k plus interest made up of the customer deposit and the loan repayments . You don't get any money back but you do own the car outright .
#8
psychobitchfromhell
The way I see it car costs say 10k . Customer deposit is for example 20% (2k) and the balance to finance is the remaining 8k, which is what you are taking out as a loan . The deposit is usually either cash or trade in value of previous vehicle or a combination of both . At the end of the term of the loan you have paid 10k plus interest made up of the customer deposit and the loan repayments . You don't get any money back but you do own the car outright .
then i must have misunderstood.i thought that initial 2k could be used as deposit against the next car if you decided not to make the final payment at the end of 2 years to buy the car.am i making sense?
#9
Peegy
KOGONAI
psychobitchfromhell
The way I see it car costs say 10k . Customer deposit is for example 20% (2k) and the balance to finance is the remaining 8k, which is what you are taking out as a loan . The deposit is usually either cash or trade in value of previous vehicle or a combination of both . At the end of the term of the loan you have paid 10k plus interest made up of the customer deposit and the loan repayments . You don't get any money back but you do own the car outright .
then i must have misunderstood.i thought that initial 2k could be used as deposit against the next car if you decided not to make the final payment at the end of 2 years to buy the car.am i making sense?
You are making sense what you say but you are wrong. See post #7
i agreed that already.see post #6 and #8 :p

Edited By: KOGONAI on Aug 20, 2016 20:20
#10
KOGONAI
psychobitchfromhell
The way I see it car costs say 10k . Customer deposit is for example 20% (2k) and the balance to finance is the remaining 8k, which is what you are taking out as a loan . The deposit is usually either cash or trade in value of previous vehicle or a combination of both . At the end of the term of the loan you have paid 10k plus interest made up of the customer deposit and the loan repayments . You don't get any money back but you do own the car outright .
then i must have misunderstood.i thought that initial 2k could be used as deposit against the next car if you decided not to make the final payment at the end of 2 years to buy the car.am i making sense?
Sorry , I misunderstood . I was talking about buying a car outright . What you are referring to sounds more like leasing with the option to buy at the end of the contract . I think that would depend on the individual company and contract but always thought it was an initial payment not a deposit .
#11
psychobitchfromhell
KOGONAI
psychobitchfromhell
The way I see it car costs say 10k . Customer deposit is for example 20% (2k) and the balance to finance is the remaining 8k, which is what you are taking out as a loan . The deposit is usually either cash or trade in value of previous vehicle or a combination of both . At the end of the term of the loan you have paid 10k plus interest made up of the customer deposit and the loan repayments . You don't get any money back but you do own the car outright .
then i must have misunderstood.i thought that initial 2k could be used as deposit against the next car if you decided not to make the final payment at the end of 2 years to buy the car.am i making sense?
Sorry , I misunderstood . I was talking about buying a car outright . What you are referring to sounds more like leasing with the option to buy at the end of the contract . I think that would depend on the individual company and contract but always thought it was an initial payment not a deposit .
i will ask him to check and update me.good to have this information
#12
When you buy the car they will set a guarantee value of the car. When you get to the end of the lease you pay the final lump sum or hand the car back. If the car is worth less than the value that's it done but if the car is worth more you get a cheque for the difference or put it towards a new car.
#13
alankfc02
When you buy the car they will set a guarantee value of the car. When you get to the end of the lease you pay the final lump sum or hand the car back. If the car is worth less than the value that's it done but if the car is worth more you get a cheque for the difference or put it towards a new car.
thanks
#14
So who was the stupid one, you or your mate?
#15
itsdavidjones1984
So who was the stupid one, you or your mate?
:p

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