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customer deposit when buying new car?

15 replies
Found 20th Aug 2016
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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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?

Original Poster

lukas0704

I think it depends on the contract. When leasing, the 'deposit' is non … 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?

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.

Original Poster

initial 30% customer deposit of the car while taking a finance deal.then £150 per month

KOGONAI

initial 30% customer deposit of the car while taking a finance deal.then … initial 30% customer deposit of the car while taking a finance deal.then £150 per month



Get nada back.

Original Poster

cecilmcroberts

Get nada back.


i was wrong then

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 .

Original Poster

psychobitchfromhell

The way I see it car costs say 10k . Customer deposit is for example 20% … 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?

Original Poster

Peegy

You are making sense what you say but you are wrong. See post #7


i agreed that already.see post #6 and #8
Edited by: "KOGONAI" 20th Aug 2016

KOGONAI

then i must have misunderstood.i thought that initial 2k could be used as … 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 .

Original Poster

psychobitchfromhell

Sorry , I misunderstood . I was talking about buying a car outright . … 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

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.

Original Poster

alankfc02

When you buy the car they will set a guarantee value of the car. When you … 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

So who was the stupid one, you or your mate?

Original Poster

itsdavidjones1984

So who was the stupid one, you or your mate?


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