For sale deposits

[The Pikey]

A few of you may know that I am selling the Supra, but I need an answer from people more familiar with sales that involve a deposit to hold the car.

 

I have a guy sending me a deposit this week, and the usual "unwritten rule" is that deposits are non-refundable. Is this most people's understanding of this practice? The guy sending it to me was curious about it in-case anything fell through on his end, and he could not complete the sale. He is waiting on a re-finance check on his home for the rest of the principle. He wanted to know if he could get the whole deposit back...which is usually not the practice on Supraforums.

 

I look at it like: I'm telling other interested/potential buyers that the car is basically sold. So, if he backs out, at least I recoup something for the potential loss of money from other buyers who might have had other cars as options, besides mine. But, it also seems like it could be free money for something I never even sold. I am a little conflicted.

 

I'm not looking to be convinced that keeping a deposit is the right thing to do, I'm just looking for an experienced point of view on the subject.

 

Thanks

 

Scott

 

Peace

[Bam]

I don't think there is a standard, or it is assumed, you must tell him its a NON-refundable deposit otherwise it is, because without that, its still HIS money if he doesn't buy the car.

[dakotart]

I don't think that it matters what the forum standard is.

 

It comes down to what you agreed on. i.e. you stated non-refundable deposit if the car is not paid in full by xx/xx/xxxx date.

[SamZman]

It's my understanding that most deposits are refundable. It's him showing good faith that he intends to buy the car, and doesnt intend to just not call again or leave you hanging. But generally if the sale doesnt go thru the $ would be returned.

[The Pikey]

I don't think there is a standard, or it is assumed, you must tell him its a NON-refundable deposit otherwise it is, because without that, its still HIS money if he doesn't buy the car.

 

I told him I might do a 50% refund, but that it makes the deposit pretty pointless. He is under the understanding of the unwritten rule as well...that's why he asked about it. I have 3 besides him that say they're serious buyers, but I have them on hold for him.

[HAOLE]

What ever way you decide to handle the deposit... put it in writing. If something does go bad, documentation is present.

 

my .02

[Bam]

Well as long as you make sure he is on the same level of understanding the agreement as you are, then its all fine and dandy, but I thought by you making this post you took a deposit and didn't really clarify if it was refundable or not, and you just assumed that he knew it wasn't, which I guess you could do since he'd have no proof it wasn't, but still, that'd be a bitch thing to do. Glad you're not though, even if he has no recourse, it'd still be a headache.

[Kevin R.]

Unless you discussed it at the beginning, I would think if he doesn't buy the deposit should go back.

 

I would only take a deposit from now on if you tell them that this is you letting them get the money together, so if they don't and waste your time it is non-refundable. Otherwise, what really is the point of a deposit?

 

My 2 cents.

[The Pikey]

It's my understanding that most deposits are refundable. It's him showing good faith that he intends to buy the car, and doesnt intend to just not call again or leave you hanging. But generally if the sale doesnt go thru the $ would be returned.

 

That's why it makes it hard for me to keep it. He's trusting someone over a forum that they will possibly return his money. But, there's also the hardline point of view, and I'm trying to get a car sold, with as little delays or interruptions as possible.

 

Thanks for the responses.

[zeitgeist57]

If you're going to give him his deposit back, then no documentation is really necessary as the full faith is given by the buyer to fulfill the transaction. If you want to make a deposit non-refundable, you should send him something to sign making him aware that he is agreeing to a deposit of $xxx for the Supra that expires in 60 days (for example) at which time xx% of his original deposit is non-refundable.

 

Two things: 1) It keeps him honest, and everything is court supported (though most people don't go to small claims court unless monetary losses are more than $1500),]. 2) It makes the deposit only good for a specific span of time, after which you can feel comfortable putting the car back on the market if he backs out of the deal.

 

No matter what you do, getting something IN WRITING (even in an email) helps support your side no matter how the transaction goes.

[MrMeanGreen]

Make it non-refundable and do it in writing to weed out the tire kickers from the real deal. I've done this every time and never been burnt.

[ImUrOBGYN]

If you're going to give him his deposit back, then no documentation is really necessary as the full faith is given by the buyer to fulfill the transaction. If you want to make a deposit non-refundable, you should send him something to sign making him aware that he is agreeing to a deposit of $xxx for the Supra that expires in 60 days (for example) at which time xx% of his original deposit is non-refundable.

 

Two things: 1) It keeps him honest, and everything is court supported (though most people don't go to small claims court unless monetary losses are more than $1500),]. 2) It makes the deposit only good for a specific span of time, after which you can feel comfortable putting the car back on the market if he backs out of the deal.

 

No matter what you do, getting something IN WRITING (even in an email) helps support your side no matter how the transaction goes.

 

This sounds like the plan to me. I don't think there's anything wrong with keeping a deposit as long as both parties have agreed to this in the beginning. You've got a big sale and therefore, less people interested than someone selling a dd civic. You can't let your time be wasted and/or miss another opportunity to sell it because someone is jerking your chain. This isn't personal for you or against others, it's simply a sale and these people should be faceless buyers. Sounds a little mean, but I'm just trying to get my point across. Yes, this guy doesn't really sound like he's scewing you, but you can't reallly pick through the buyers. Make some rules, stick by them and be sure sellers are aware of them. It sucks you have to do this because so many people flake out, but as usual in our society, a few bad ones ruin for everyone. If you're a good judge of character, decide on a case by case basis. If not, write something up for a non refund deposit, whatever % you decide.

[The Pikey]

Make it non-refundable and do it in writing to weed out the tire kickers from the real deal. I've done this every time and never been burnt.

 

This what I would like to do. I have had a few so called buyers waste a week or two of my time, and try to convince me they were legit. This is the first guy to step up with a deposit. I might just cut him som slack, and anyone here after gets NO refund.

[KillJoy]

If it is a Deposit to hold the car and to not sell it to someone else, it is non-refundable. Otherwise.... what is the point of it? To show good faith? Hell, you could sell it to the next guy in the week or 2 it takes them to make up their mind. Time is money. His money.

 

:thumbup:

 

KillJoy

[Jackson1647545504]

I say ...

 

* Deposit of 1% of car sales price

* Buyer must complete sale within 15 days, otherwise deposit is non-refundable

 

The deposit represents your time for having the car off the market. If buyer backs out you have now lost time and other potential sales; they should pay for that.

[Wease]

Refinancing your house to buy a car?

 

Oh yeah, and I like Jackson's idea... :nod:

[Nitrousbird]

State the deposit as non-refundable, and fully payment must be made within a certain amount of time.

 

Someone else's inability to have funds ready for a purchase shouldn't be your problem. If they backed out, you are simply be paid for your wasted time waiting on the person.

[Stallion Motorsports1647545491]

if I take a deposit on anything, it comes with a written, signed explanation that the money I am getting, becomes mine permanently. too bad, so sad if you have money issues.

[evan9381]

my buddy did this about a year ago, said he wanted a 2k deposit on his car, which i think he was selling for 12k, he told the guy it was refundable, guy paid him the deposit, never got back to him, my buddy even tried calling the guy every other day, 2 weeks later, no response, he spent the cash. lol

[Rally Pat]

Someone was supposed to buy my old van, and he gave me a $500 deposit on it, it was going for $1500. Something came up as he was about to buy it from me, and he couldnt buy it. I refunded it to him. I would prefer to refund someone than rob them, thats just me.

[Buck531]

I just gave a guy $100 last night to hold the Regal I'm going to buy for my wife. I jotted down on a piece of paper what the sale price was, what my deposit was, and what the left over money was. We both signed it. I told him up front that if something falls through and I can't buy the car (which won't happen), that he keeps the $100.

 

I know $100 is cow shit compared to the deposit you probably got on the Supra. Just stating how I worked it out with him.

[Science Abuse]

The whole idea of a deposit is to protect the seller from waste-of-time failed buyers. The entire idea behind the concept of a deposit is that it is not refundable...unless he's renting the car.

[GRN96WS6]

Scott when I sold my WS6 I had a kid who had a deposit on it for a month and I had not heard from him. I called him up and told him that per our written and signed agreement that I was going to put the car back up for sale as I needed the money or else the car wouldn't be for sale. He was down that weekend with the rest of the cash and took the car away.

 

On another forum I'm on this one guy sold his car last MAY and the guy JUST picked it up, granted he was paid in full and the guy was paying him storage but still that's nuts.

 

I'm with Sean though refinancing a home to buy a toy?

[thorne]

I don't think there is a standard, or it is assumed, you must tell him its a NON-refundable deposit otherwise it is, because without that, its still HIS money if he doesn't buy the car.

You plus advice on selling things = LOL

 

[The Pikey]

 

I'm with Sean though refinancing a home to buy a toy?

 

Hahaha...I'm not his financial advisor:) He might just be saying that so I will feel bad if he backs out. Maybe he has a kick ass house...I don't care; as long as he actually purchases the car.