Need to give credit card for putting an offer?

[an_y]

When shopping for a new car, I visited several dealerships, and most of the salesperson would ask me to give him my credit card when I presented him with my offer? He then would go to his sales manager with my credit card and the offer. Is this the industry standard?
I am pretty hesistant giving out my credit card since I ran into a shady dealership once where my card was swiped even though I didn't agree with the price. Any suggestions anyone?

[yao416]

We were at Markham Honda today and when we put a "offer" the salesperson ask us for a credit card as well, we refused to give them.

[jasonkwan86]

A credit card is necessary in order to put in the offer. It is proof that you are willing to go through with the purchase and that deposit can be made assuming the manager agrees with your offer.

[lordzod]

A credit card is necessary in order to put in the offer. It is proof that you are willing to go through with the purchase and that deposit can be made assuming the manager agrees with your offer.


I don't believe for a minute that it's necessary.

Back in Feb when I was going through the process of purchasing my Mini, no request was ever made of me for my CC. So maybe that's just the way your dealership does it. My dealer got my CC only when we had agreed on the deal and I used it for my deposit.

But if I was asked I would have refused. If no transaction is taking place, ie an actual deposit, I don't see a valid reason for them to have your CC info.

[EP32k2]

It is the dealers way to force you to commit to the purchase. I say screw that. I have bought 4 new cars without giving out my CC to them. Once they ask me, I just tell them that I am shopping and that if the price is right I will committ. Don't fall for their sneaky tactics. Remember they want your business and there are plenty of dealers to choose from.

The first dealer that asked me for my CC I actually played along, but gave them a card that only had a $500 limit...LOL

[blackmoon69]

dont give the CC negotiate the price first and if it push thru then you can give it to them.

[blackmoon69]

I don't believe for a minute that it's necessary.

Back in Feb when I was going through the process of purchasing my Mini, no request was ever made of me for my CC. So maybe that's just the way your dealership does it. My dealer got my CC only when we had agreed on the deal and I used it for my deposit.

But if I was asked I would have refused. If no transaction is taking place, ie an actual deposit, I don't see a valid reason for them to have your CC info.

my dealer did the same thing as you did.

[lucretius]

I recently was defrauded by a dealership and I had put done a credit card deposit. Deposits are not necessary -- there usaually just a way for dealers to bind you to a deal, yet they can easily back out of it. IMHO, reputable dealers do not need to take deposits. And, I will NEVER give a deposit again!



When shopping for a new car, I visited several dealerships, and most of the salesperson would ask me to give him my credit card when I presented him with my offer? He then would go to his sales manager with my credit card and the offer. Is this the industry standard?
I am pretty hesistant giving out my credit card since I ran into a shady dealership once where my card was swiped even though I didn't agree with the price. Any suggestions anyone?

[m4gician]

I recently was defrauded by a dealership and I had put done a credit card deposit. Deposits are not necessary -- there usaually just a way for dealers to bind you to a deal, yet they can easily back out of it. IMHO, reputable dealers do not need to take deposits. And, I will NEVER give a deposit again!

sorry to hear that, please post their name and location so we can publically boycott them... :D

[CaptSmethwick]

Actually, it's an old trick to keep you in the showroom during the back-and-forth negotiations. If they have your card (or car keys or whatever), it makes it that much harder for you to walk out in the heat of the to-and-fro.

The least reputable out there also use them to run credit checks.

Frankly, at a reputable dealership where they know you and know you're serious, they won't even ask you for this. Once upon a time, I bought at places that used to ask and I always refused. One time (many years ago), a salesman said to me "I need something to demonstrate to my sales manager that you're serious". :lol:

[Anonymouse]

Volvo of Unionville did this to me yesterday. I fell for it. I actually gave them a $3k deposit, which in retrospect seems a little much.

[afretes]

It doesn't make a difference if the dealer has your CC or keys or whatever... If you are not satisfied with the transaction, ask for them back and leave.
What is the big deal? They can't charge it unless you authorize it anyway. Are you intending to buy a car without a deposit or are you simply wasting time?
Put your money on the table when you are making an offer, show you are interested and that you mean business! Don't think that because you have bought 4 or more cars you know what you're doing, we sell anywhere between 40 and 50 cars a month, I believe we have a bit more experience in this area.
It has been a normal business practice everywhere and for all transactions to give a deposit to secure the item you are intending to buy. I really don’t see the point some people are making by not complying with something that makes absolute sense.

[lordzod]

There's nothing wrong with a reasonable deposit. But until, the deal is made, and both parties are satisfied with the price to be paid, there is no reason for the dealership to get CC info prior to this.

They can't charge it unless you authorize it anyway.

So what's the point of giving the CC info then, as you said it's not like you can do anything with it? So why request it?


Actually, it's an old trick to keep you in the showroom during the back-and-forth negotiations. If they have your card (or car keys or whatever), it makes it that much harder for you to walk out in the heat of the to-and-fro.

The least reputable out there also use them to run credit checks.

Frankly, at a reputable dealership where they know you and know you're serious, they won't even ask you for this. Once upon a time, I bought at places that used to ask and I always refused. One time (many years ago), a salesman said to me "I need something to demonstrate to my sales manager that you're serious". :lol:

Now this makes more sense as to why some dealerships want the info than to "show that I am serious"

[CaptSmethwick]

It doesn't make a difference if the dealer has your CC or keys or whatever... If you are not satisfied with the transaction, ask for them back and leave.
What is the big deal? They can't charge it unless you authorize it anyway. Are you intending to buy a car without a deposit or are you simply wasting time?
Put your money on the table when you are making an offer, show you are interested and that you mean business! Don't think that because you have bought 4 or more cars you know what you're doing, we sell anywhere between 40 and 50 cars a month, I believe we have a bit more experience in this area.It has been a normal business practice everywhere and for all transactions to give a deposit to secure the item you are intending to buy. I really don’t see the point some people are making by not complying with something that makes absolute sense.

I make a deposit when I sign a sales agreement, not when I put in an offer. The seller doesn't need a CC to consider my offer and if my presence in the dealership doesn't indicate that I'm serious, I highly doubt that the symbolism of letting them hold my CC is better.

At the end of the day, I don't want to be held in my chair having to ask for anything back if I decide to leave at any point in a negotiation.

BTW, the part of your post that I bolded came across to me as rather arrogant - consumer insight is easily as important as yours.

[MichaelKnight]

Could it be to prevent people from making offers only to walk out (after it is accepted) and use as leverage at another dealership?

[misterburns]

sounds like a sales tactic at the very least.

if someone asked me "i need something to show the manager that you're serious"

my only answer could be, "the fact that I am still here and not on my way to your competitor, thank"

don't get bullied! :)

[misterburns]

Could it be to prevent people from making offers only to walk out (after it is accepted) and use as leverage at another dealership?

i call this...shopping :)

[tsxnation]

This was done to me at Family Honda. Then I was getting up to leave and they called me back to give me an offer of MSRP. I left, purchased it at Number 7 at very little over invoice with no hassle. Family Honda is a joke when you go in a speak with their sales agents. They are not very knowledgeable and have that typical sales agent pitch. The sales manager is even worse. They try to bully you into accepting their price.

[CaptSmethwick]

Could it be to prevent people from making offers only to walk out (after it is accepted) and use as leverage at another dealership?

I have never been given a written copy of a signed deal without having given a deposit.

I really cannot think of any circumstance that would require a CC to be given - unless you are using it to pay the deposit once you have a deal.

[Maxspeed]

when ever ive purchased a car or leased.... never gave my credit card.... did the deal over the phone and signed the papers when the car was delivered....

[Arcturus]

Agreed this is an old sales trick, when the sales manager comes back in to reject your offer he throws down your credit card like it is worthless, as in to make you believe that your offer was so ridiculous that you need to come over to his side. This was done to me at Walkley Nissan.

[TodayHello]

i call this...shopping :)

They know that, and thats why they want your CC ... it shows you are ready to put down a deposit (thus showing an intention of buying the car from them). Otherwise you could walk out, shop the deal (and the price), and they would have wasted all that time with you. This should make sense to everyone here.

What should also make sense is how we as consumers can use this as leverage to our advantage.... giving us another tool use against the dealer to get closer to the price we want.... instead of "Hey Mr. Customer I need a CC before taking this to my manager to show your serious", it becomes "Hey Mr. Salesman go talk to your manager and get me the deal I want and I have your deposit right here".

[malecoke]

I dont see how giving CC can be a sign of seriousness if I could just take it back any minute and walk about if im not happy about something.

Let's I give you the CC, you THOUGHT I was serious and gave me a bottomline offer, at tht point I could still take it back and walk out, what the point ? :confused:

[CaptSmethwick]

I dont see how giving CC can be a sign of seriousness if I could just take it back any minute and walk about if im not happy about something.

Let's I give you the CC, you THOUGHT I was serious and gave me a bottomline offer, at tht point I could still take it back and walk out, what the point ? :confused:

If it was in the open and on the desk in front of you and you had the presence of mind, yes you could. Those two conditions don't always exist - I have seen (and heard of) this "game" played out differently at different points over the past 30 years of car buying.

[active]

When i was in the market for a new Civic EX-L (in march 09) the sales person asked me my intials on the negotiation papers (some sort of paper not an agreement) just to go and talk with his manager and get an approval or an counter offer. I refused. I said what's there in the initials. If your manager accepts my offer or come up with a counter then if i accept i would sign them. Else no way i would sign them.

[circumventer]

I once had an encounter with a nissan dealership where I gave the CC and the sales manager refused my offer, after sometime of negotiating a deal could not be made.

I asked for the CC back and was asked to speak to the sales manager, i went and he was angry that i wanted it back.

He said why would you make offers if you were not ready to buy.

Seeing as we didn't even come to agreement on a price i didn't understand why he was he was so angry and rude. I have very little patients so i cussed him off and told him id gladly pay MSRP at another dealership just because of his actions.

[Avatar]

I once had an encounter with a nissan dealership where I gave the CC and the sales manager refused my offer, after sometime of negotiating a deal could not be made.

I asked for the CC back and was asked to speak to the sales manager, i went and he was angry that i wanted it back.

He said why would you make offers if you were not ready to buy.

Seeing as we didn't even come to agreement on a price i didn't understand why he was he was so angry and rude. I have very little patients so i cussed him off and told him id gladly pay MSRP at another dealership just because of his actions.

That happened to me before. So next time I think I just walk away to another dealer to save the hassle.

[anounymouse]

Volvo of Unionville did this to me yesterday. I fell for it. I actually gave them a $3k deposit, which in retrospect seems a little much.

interesting username!:lol:

[Ebtek]

It doesn't make a difference if the dealer has your CC or keys or whatever... If you are not satisfied with the transaction, ask for them back and leave.
What is the big deal? They can't charge it unless you authorize it anyway. Are you intending to buy a car without a deposit or are you simply wasting time?
Put your money on the table when you are making an offer, show you are interested and that you mean business! Don't think that because you have bought 4 or more cars you know what you're doing, we sell anywhere between 40 and 50 cars a month, I believe we have a bit more experience in this area.
It has been a normal business practice everywhere and for all transactions to give a deposit to secure the item you are intending to buy. I really don’t see the point some people are making by not complying with something that makes absolute sense.

what a load of crap.

you guys are in no position to be making ridiculous demands of your customer, especially in today's economy.

[Ebtek]

This was done to me at Family Honda. Then I was getting up to leave and they called me back to give me an offer of MSRP. I left, purchased it at Number 7 at very little over invoice with no hassle. Family Honda is a joke when you go in a speak with their sales agents. They are not very knowledgeable and have that typical sales agent pitch. The sales manager is even worse. They try to bully you into accepting their price.

glad to hear you didnt buy from Classic Honda. those guys are a bunch of clowns. customer service is terrible

[dOuble O]

Volvo of Unionville did this to me yesterday. I fell for it. I actually gave them a $3k deposit, which in retrospect seems a little much.

Audi Uptown (Markham) tried this when I was looking for a new car but I didn't give the CC as I see no relevance of my CC being part of an offer...so I walked out and went to a different AUDI dealership...all the way to the west...

[jasonkwan86]

Hmm, well once you put in the offer its an agreement that you are willing to go through with the deposit of the car assuming the price is agreed upon. Its also a protection for the dealer as well.

[misterburns]

protection from what? lol

[jasonkwan86]

protection from what? lol

A form of proof is needed that you are commited to the deal instead of shopping around and going somewhere else. Otherwise its just conversation, not negotiation. If we dont agree on the price, we just give you the credit card back. Simple.

[bst]

A form of proof is needed that you are commited to the deal instead of shopping around and going somewhere else. Otherwise its just conversation, not negotiation. If we dont agree on the price, we just give you the credit card back. Simple.

I still don't buy this. What if I don't have my credit card in my wallet? Does that mean I need to give the dealer $1000 CASH in order to start the buying process? Would you as a consumer?

What's wrong with people shopping around? Nevertheless buying a car is a big purchase.

[an_y]

If we dont agree on the price, we just give you the credit card back. Simple.

Not true, there are just way too many dealers use this tactic as a way to hold the customer longer in their dealership, they have a thousand reasons not give the credit card back right away. Case example, try Mazda of Orangeville or Agincourt Mazda. I am not saying every dealer is like this.
If a dealer wants some form of protection, why we as a customer can not get some form of protection too?

[circumventer]

I think the best way to protect a sale is by having the sales manager make an offer that can't be refused.

Dont want to play games? price it right - the first time.

I dont see any reason why a dealer needs to make a 2000 dollar premium for a 10 min test drive.

Who goes to the dealer to get all the information these days?

[misterburns]

A form of proof is needed that you are commited to the deal instead of shopping around and going somewhere else. Otherwise its just conversation, not negotiation. If we dont agree on the price, we just give you the credit card back. Simple.


Wow. I think you actually believe what you are saying.
:-0

Listen if I'm gonna shop for socks, and i see socks in store A for $5, I dont go into the store, leave $5 bucks and say, hold on to this, im gonna see what the price is at store B.

I go to store A, and store B, see who has the best deal for me, price/service/product/whatever, and then i buy it from that store.

This is called shopping. As consumers, its our right to find the best product and best price. As RFD consumers, we don't shop at the stores that won't be competitive.

Just my opinion.

[TodayHello]

Wow. I think you actually believe what you are saying.
:-0

Listen if I'm gonna shop for socks, and i see socks in store A for $5, I dont go into the store, leave $5 bucks and say, hold on to this, im gonna see what the price is at store B.

I go to store A, and store B, see who has the best deal for me, price/service/product/whatever, and then i buy it from that store.


2 things,

1) $5 item to a $20-30-40K+ item

2) Buying socks (usually) doesnt involve a salesman let alone a Salesman that works off of commission and dedicates 1-3hrs of his time with you.



This is called shopping. As consumers, its our right to find the best product and best price. As RFD consumers, we don't shop at the stores that won't be competitive.

Just my opinion.


Agreed 100% - however this is 100% what the dealership wants to avoid. They don't want you to shop at all - they want you to buy the car right there. All the "talk with my manager", "If I am able to get this price are you willing to put down a deposit today" (which is a legitimate question IMO), and others sales tactics aside, realizing this helps us as consumers as we can now leverage the putting down of the CC with better deals.

"If you're prepared to make an offer I can take your CC and the worksheet to my Manager"
"Take the worksheet to your Manager and if he accepts my offer you can have any one of my CCs you like"


What I find odd is all the people saying "yeah they tried to ask for my CC I told them to go screw themselves and went to another dealership and gladly paid full MSRP and came back and did a massive burnout in their parking lot while waiving the middle finder salute" as if there mere notion of wanting your CC for a potential Deposit is so outrageous and inconceivable that the negotiation ends right then and there.


And for those of us who arent interesting in buying - well why not say that when they ask for the CC? "I am not ready to put a down payment down today". :)

[sillysimms]

When shopping for a new car, I visited several dealerships, and most of the salesperson would ask me to give him my credit card when I presented him with my offer? He then would go to his sales manager with my credit card and the offer. Is this the industry standard?
I am pretty hesistant giving out my credit card since I ran into a shady dealership once where my card was swiped even though I didn't agree with the price. Any suggestions anyone?

This is a very interesting thread as I had a similar experience a little over 10 years ago when I was quite young and buying my first car. It was at a Honda dealership in Mississauga. I was told that he needed my credit card to show the manager I was serious. Now I would react differently, but being young and never have made this type of purchase before I gave it to him. We went back and forth a couple times and on the last time I said that I was going to go check another dealership since I still thought the price was too high ...

Well this is when my salesman said oh, I already ran the $3,000 through on your card since I got excited and had to show my manager you were serious. It went downhill from there. I was beyond furious that they had run a deposit through that I did not authorize and had made no agreement to purchase anything from them. If this happened today, I would probably have pursued this much further than just having them put the $3,000 back on my card. Lesson learned. I would never provide a credit card prior to agreeing to a purchase.

[m4gician]

Heh i always bring a cancelled/expired/non valid credit card with me in my wallet in case I come across this type of situation.

Problem SOLVED! Don't change the world, just change the problem. Make Dumbo think "i got the sucker" and you fight back with the same type of lame tricks.

if they say "we swiped it, it doesn't work" that's already swiping the card W/O CONSENT, walk out, find out what the laws are here, raise this issue to management.

[misterburns]

2 things,

1) $5 item to a $20-30-40K+ item

2) Buying socks (usually) doesnt involve a salesman let alone a Salesman that works off of commission and dedicates 1-3hrs of his time with you.





Agreed 100% - however this is 100% what the dealership wants to avoid. They don't want you to shop at all - they want you to buy the car right there. All the "talk with my manager", "If I am able to get this price are you willing to put down a deposit today" (which is a legitimate question IMO), and others sales tactics aside, realizing this helps us as consumers as we can now leverage the putting down of the CC with better deals.

"If you're prepared to make an offer I can take your CC and the worksheet to my Manager"
"Take the worksheet to your Manager and if he accepts my offer you can have any one of my CCs you like"


What I find odd is all the people saying "yeah they tried to ask for my CC I told them to go screw themselves and went to another dealership and gladly paid full MSRP and came back and did a massive burnout in their parking lot while waiving the middle finder salute" as if there mere notion of wanting your CC for a potential Deposit is so outrageous and inconceivable that the negotiation ends right then and there.


And for those of us who arent interesting in buying - well why not say that when they ask for the CC? "I am not ready to put a down payment down today". :)

1. Yes you are right, $5 is not $30,000. But the principles are the same.

2. I have gone to Moores, and a salesman has offered to help me with the purchase of my socks believe it or not. I declined, but I'm sure he would have been available had I a question about the thread count. :cheesygri

Its not just a question of security. Its a question of getting the best price or the best product. All of us agree this is a sales tactic. So why would we decide to give the seller the upper hand in any kind of negotiation.
I'm a consumer, I am actually in the process of finding a family vehicle.

I plan to drive all the products I am interested in. I plan to solicit offers / make offers to different dealerships for the same vehicle. And the dealership that accepts the lowest price I can achieve will make that sale. No one will receive any kind of deposit until ive found that satisfactory price /salesmanship. I am not going to tell anyone to screw themselves, but I don't plan on being outmaneuvered because the dealership doesn't want me to shop around. Are you kidding me? Seriously?

[ES_Revenge]

It doesn't make a difference if the dealer has your CC or keys or whatever...
So if it makes no difference, why ask for them from the customer? :confused:

:rolleyes:

It has been a normal business practice everywhere and for all transactions to give a deposit to secure the item you are intending to buy. I really don’t see the point some people are making by not complying with something that makes absolute sense.
Oh what a load. It's not "normal business practice" anywhere outside car dealerships. Go to Future Shop and negotiate on buying a TV, home theatre system, etc. and see if you have to give them your CC while negotiating or leave a deposit at all. There are no deposits, you pay for your stuff, in full, when you get it (or when they schedule the delivery in the case of things that have to be delivered).

[lordzod]

:mad:A form of proof is needed that you are commited to the deal instead of shopping around and going somewhere else. Otherwise its just conversation, not negotiation. If we dont agree on the price, we just give you the credit card back. Simple.

I feel like ranting a bit on this so pls bear with me.

A mentallity like this is an example why not to do business with MINI Markham. I used to only tell people to avoid one MINI dealer in Southern Ontario(MINI Vaughan West). Yes, I contacted all of them except Waterloo. But now your dealership is on my list. I also include the BMW dealerships that they are attached to.

The dealer I ended up getting the car from even said right off that they might not have the absolute lowest price compared to other dealers, but he emailed me a quote, with their best price, and the all extras that they offer. We never met, or even talked on the phone, until a test drive was arranged. My CC never left my wallet until everything was agreed upon and in writing, then a deposit was made when the sales agreement was signed. I was not a hard a$$. This is just the way THEY do business. They work with the customer, not against them.

Do you guys actually think that people enjoy shopping around just to get prices on cars? If I put in the effort of being there, putting in offers then I'm serious. And if you are worried about shopping the price around then it's very likely you aren't doing your best or even competitive price and feel like gouging customers.

I might have been able to get a slightly better price if I pushed harder. But at the end of the day I don't feel ripped off nor do I feel that I ripped them off.

Sorry for ranting so long, but arrogant auto salespeople just get under my skin.:mad:

[ES_Revenge]

^LOL, a lesson to be learned I guess for dealers coming on a consumer-driven site like RFD. Don't make comments that make you look bad from a customer's point of view. Better yet, don't have stupid policies that make you look bad in the first place ;)

[Bidou78]

+1 misterburns

At least we know who the salesmen are in this thread! :rolleyes:

Salesmen, it's obvious that a commissioned based sale adds more stress to your financial situation but just because a few people came in a bought a car at full MSRP doesn't mean that should be your goal all the time. Most folks are not in the position (nor that naive) to do that. So when the deal goes sour, you see the name of the dealership on RFD getting flamed. That is definitely not good for business. Lose some of the games and deceitfulness and you may do better. The salesmen loses all his integrity IMHO, when the little white binder comes out of the desk and he says "This is what we paid for the car from head office, we can't go lower then MSRP or we lose money!!" Meanwhile, I'm sitting there with a CCC report in my pocket wondering why the salesmen choose to start negotiations by lying? lol

A little more respect can go a long way.

BTW

The only salesmen with positive feedback that I've seen on RFD is Jeff the Biz.

[misterburns]

I might have been able to get a slightly better price if I pushed harder. But at the end of the day I don't feel ripped off nor do I feel that I ripped them off.


I'm willing to bet in all car dealership history, you ripping them off has never ever EVA EVA happened. :) :lol: :)

^LOL, a lesson to be learned I guess for dealers coming on a consumer-driven site like RFD. Don't make comments that make you look bad from a customer's point of view. Better yet, don't have stupid policies that make you look bad in the first place ;)

YES! [pressing the agree button] [pressing the green slime button] [pressing the staples EASY button] :lol:

[BradT]

I asked the sales person for their company credit card once and got a puzzled look. I wanted to make sure they were serious about selling me a car.

[active]

The only salesmen with positive feedback that I've seen on RFD is Jeff the Biz.

+1

100% I agree with you...He is great

[misterburns]

A little more respect can go a long way.



A little off topic but I always like to tell this story. One day I went shopping for a laptop with my GF. We wanted to get a Mac laptop so we went to the Apple store. The Apple sales rep told us about the different features of the different models and of the different price points. All this was in probably great detail except that I hadn't bothered to listen. Not because I was being rude, but because of something he said early on in the presentation. He tried to sell me anti-virus software and extended warranty plans. And he kept trying to imply that if we didnt go with the nice warranty package, it would mean a lot more cost for us down the line. In the back of my mind, I think it set off a chain reaction that just made anything that came out of his mouth look like bubbles of cloud. :lol:

We politely left, and my gf kind of snickered at me. Im sure all she could think about was the apple/pc commercials. In frustration and disbelief, we went to Futureshop. I know I know...shopping there is like trying to cross the 401 in baggy pants.

Anyways, after getting pretty much mauled by at least 3 futureshop heroes, we decided, to just keep lookin in the store. No offence to them, they are just doin their jobs. On that particular day, a Sony rep just happened to be there. He asked us if he could show us some of the items around. In the end, he compared all the other laptops around to the Sony laptops. He said everything is pretty comparable. He said you will pay more for these Sony laptops. Then he looks at me and points to the laptop and says, "But look how sexy it is"

I was dumbfounded. I was like. OK. I'll take it. Seriously, I bought it. And I did it cos he really sold the product.

The point I'm trying to get across is sales is not only a money game, but a social interaction. Someone asking as opposed to someone telling is going to get a lot more out of a customer like me :cheesygri

[TodayHello]

I plan to drive all the products I am interested in. I plan to solicit offers / make offers to different dealerships for the same vehicle. And the dealership that accepts the lowest price I can achieve will make that sale. No one will receive any kind of deposit until ive found that satisfactory price /salesmanship. I am not going to tell anyone to screw themselves, but I don't plan on being outmaneuvered because the dealership doesn't want me to shop around. Are you kidding me? Seriously?


Am I kidding you about what? I'm I serious about what?

Using the 'CC for a deposit' tactic to the CONSUMERS advantage - Yes. Please tell me you read my post :D

Don't strawman me :) That goes for the rest of you as well. I see lots of emotions in here and lots of defensive posturing. Thats fine if thats your thing on the internet.

At the end of the day KNOWING how the dealership sales process works and their tactics will help you outmaneuver and secure a better dealer. CCC and APA help. Cross shopping helps. Knowing the dealers tactics works. Anyone talking about how the process could be or should be or would be ...... doesnt matter because this is how it is. Thinking you can change it is cute and i wish you luck. For everyone else, instead of being so INSULTED at the idea of a CC "to show youre serious", stop treating it as a deal breaker and INSTEAD treat it as any other one of the dealers tactics to be REVERSED and used against them :)

[misterburns]

I asked the sales person for their company credit card once and got a puzzled look. I wanted to make sure they were serious about selling me a car.

thats hilarious !!!

+1

100% I agree with you...He is great

Which dealership does he work for?

[active]

Which dealership does he work for?


Sorry i was taking about Jeff your Honda guy from Toronto Honda....not Jeff the biz.....

[misterburns]

Am I kidding you about what? I'm I serious about what?

Using the 'CC for a deposit' tactic to the CONSUMERS advantage - Yes. Please tell me you read my post :D

Don't strawman me :) That goes for the rest of you as well. I see lots of emotions in here and lots of defensive posturing. Thats fine if thats your thing on the internet.

At the end of the day KNOWING how the dealership sales process works and their tactics will help you outmaneuver and secure a better dealer. CCC and APA help. Cross shopping helps. Knowing the dealers tactics works. Anyone talking about how the process could be or should be or would be ...... doesnt matter because this is how it is. Thinking you can change it is cute and i wish you luck. For everyone else, instead of being so INSULTED at the idea of a CC "to show youre serious", stop treating it as a deal breaker and INSTEAD treat it as any other one of the dealers tactics to be REVERSED and used against them :)


Walking away is a consumer's tactic, and the moment a salesperson asks me for a CC to show im serious about buying a car, the moment I walk out. And guaranteed he nor that dealership will receive my business, my family's, my coworkers and any of my clients. Consumer power is about the people, not the industry. In any case, i wish you well. :)

[misterburns]

Sorry i was taking about Jeff your Honda guy from Toronto Honda....not Jeff the biz.....

Hey I might look him up then...

I wanted look at a CRV or a Fit.

[TodayHello]

Walking away is a consumer's tactic, and the moment a salesperson asks me for a CC to show im serious about buying a car, the moment I walk out. And guaranteed he nor that dealership will receive my business, my family's, my coworkers and any of my clients. Consumer power is about the people, not the industry. In any case, i wish you well. :)


I have no doubt that both of us will be successful negotiating cars for the prices we deem fair in the future although our consumer tactics may differ :)

[active]

Hey I might look him up then...

I wanted look at a CRV or a Fit.

I didn't have any issues with him. The deal was done in minutes. I was having CCC, he gave me an offer, i gave him a counter ....done....deal. Its not that he gave me a good deal, he doesn't play games like any other sales person. No credit cards, I didn't even give him a deposit....not even a $1.

Signed the papers, after two weeks paid the agreed amount on D-day and picked up the vehicle.

[steve-0101]

Which dealership does he work for?

Jeff the Biz is from Mazda of Toronto. From my phone calls with him, he seems to be a pretty stand-up guy, and lots of people on this board vouch for him.

I've purchased a few cars in my days, one was a VW and they asked for my CC to "show the manager I was serious". I was young and gave it up, but never felt pressured. The last I bought (Acura) never asked and laughed when I made the offer and said "is this where you take my CC to show I'm serious?"... he simply said "We don't need it. We don't do business that way here. You can leave a deposit if and when we agree on a price." That went a long way to make me feel comfortable with that salesman, and I purchased from him a few minutes later.

[hardywang]

Don't understand what's a big deal here:confused:

Give them if you are serious about your purchase. Otherwise, just walk away.

As others already said, they can't really do anything wrong but just little bit pressure on both side. Some sales told me 'if you don't feel comfortable to give to me, come with me when i talk with my manager and show to my manager in you own hand.'

I made a purchase last Saturday and give them my CC without any bargain since during the whole conversation with my sales man, I know I can trust him.

Really, there is only trust or not, nothing else.

[Brandon]

Yea I don't see what the big issue is.

It's not like visiting North Korea where they take your passport on arrival and give it back when leaving. I just did some car shopping earlier this year, and I didn't have any problems giving my credit card when negotiating. When I didn't like how the negotiations were headed, I'd ask for the card back, they'd try and make a last offer, then they'd give the card back and I would leave. I didn't have any issues with anyone putting charges on the car without my authorization (only 1 charge put on my credit card, and that's because we agreed upon a good price and I bought a car).

Maybe the reason for credit card is psychological: people go to a dealership and negotiate because they want the car. The consumer wants to leave the dealership with a car, and maybe feels embarassed for having to ask for the card back to leave?? ...so they accept an offer they might not have with the extra "pressure".

[lordzod]

I'm willing to bet in all car dealership history, you ripping them off has never ever EVA EVA happened. :) :lol: :)


:lol:

I can't argue with that.:cheesygri

[Circuit]

I'm not going to argue either way, but make 2 points:

1. If at the end of the talks we come to an agreed price on both ends, a CONTRACT is signed. A deposit can be made anyway discussed. The dealer can even say that the CONTRACT will not be written up until a form of deposit is presented. That is fair.

2. Some of you happy-go-lucky people need to smarten up and realize that in the day of ever increasing FRAUD and IDENTITY THEFT, you need to be a little more careful about handing out your CC. Dealership, waiter, clerk, etc anyone that walks out of your site with it. But I guess it's one of those things, until it happens, meh....

Think about it.

P.S. - To all the "salespeople" that come on RFD and open "Ask me anything about..." threads. You do realize that you are entering a "deals" forum and are being judged by thousands, even if they don't post in your thread, they have read how you speak/write/reply. To me, some of these salespeople come off as arrogant and are only using RFD as an extension of your dealership. On my next purchase, I now know who to approach and who to avoid. Remember, you catch more flies with honey.

[CaptSmethwick]

Yea I don't see what the big issue is.

It's not like visiting North Korea where they take your passport on arrival and give it back when leaving. I just did some car shopping earlier this year, and I didn't have any problems giving my credit card when negotiating. When I didn't like how the negotiations were headed, I'd ask for the card back, they'd try and make a last offer, then they'd give the card back and I would leave. I didn't have any issues with anyone putting charges on the car without my authorization (only 1 charge put on my credit card, and that's because we agreed upon a good price and I bought a car).

Maybe the reason for credit card is psychological: people go to a dealership and negotiate because they want the car. The consumer wants to leave the dealership with a car, and maybe feels embarassed for having to ask for the card back to leave?? ...so they accept an offer they might not have with the extra "pressure".

Well, I agree that it's not a big deal but it seems like a pointless device that supports the larger "my sales manager is the real decision maker here" device. Since none of this works for me, I just don't comply - has never harmed me at all.

So far... :rolleyes:

[misterburns]

I didn't have any issues with him. The deal was done in minutes. I was having CCC, he gave me an offer, i gave him a counter ....done....deal. Its not that he gave me a good deal, he doesn't play games like any other sales person. No credit cards, I didn't even give him a deposit....not even a $1.

Signed the papers, after two weeks paid the agreed amount on D-day and picked up the vehicle.

Sounds like a solid deal. It always good to feel like it was a no hassle experience.

Jeff the Biz is from Mazda of Toronto. From my phone calls with him, he seems to be a pretty stand-up guy, and lots of people on this board vouch for him.

I've purchased a few cars in my days, one was a VW and they asked for my CC to "show the manager I was serious". I was young and gave it up, but never felt pressured. The last I bought (Acura) never asked and laughed when I made the offer and said "is this where you take my CC to show I'm serious?"... he simply said "We don't need it. We don't do business that way here. You can leave a deposit if and when we agree on a price." That went a long way to make me feel comfortable with that salesman, and I purchased from him a few minutes later.

I think you probably felt like you were being treated like an adult. Thats the way you should always feel when you are about to spend 30,000 on a company.

I'm not going to argue either way, but make 2 points:

1. If at the end of the talks we come to an agreed price on both ends, a CONTRACT is signed. A deposit can be made anyway discussed. The dealer can even say that the CONTRACT will not be written up until a form of deposit is presented. That is fair.

2. Some of you happy-go-lucky people need to smarten up and realize that in the day of ever increasing FRAUD and IDENTITY THEFT, you need to be a little more careful about handing out your CC. Dealership, waiter, clerk, etc anyone that walks out of your site with it. But I guess it's one of those things, until it happens, meh....

Think about it.

P.S. - To all the "salespeople" that come on RFD and open "Ask me anything about..." threads. You do realize that you are entering a "deals" forum and are being judged by thousands, even if they don't post in your thread, they have read how you speak/write/reply. To me, some of these salespeople come off as arrogant and are only using RFD as an extension of your dealership. On my next purchase, I now know who to approach and who to avoid. Remember, you catch more flies with honey.


Great points, and I agree with all of them, except for your first one. I think the situation that was described was implying that the offer wouldnt be serious without a credit card. A small difference I can agree, but its intent is to make the buyer feel subordinate to the deal. That I think is what everyone feels is disagreeable.

As an aside, I went car testing today, and wanted to share my experiences(on the vehicles).

I checked out a

Honda Fit - Nice features, felt it was too small for me, noisy drive. Felt like I could hear everything going on. Has everything I would need for my burgeoning family.

Honda CRV - Sexy. Great interior, smooth ride. Expensive. Cargo room is fantastic.

Toyota Matrix - Good punch for a 4 banger, cargo and seating is ample. Interior is blah for me but functional.

I wasnt even looking for this, but when I passed by it I was like....hey hey there....

Toyota Corolla Sport - Same engine as the Matrix, better suspension. Interior was very functional, but wasn't bland or boring. Exterior was hot. Love the looks, good trunk space. Affordable.

As of today, its number one for me. (Weird, 5 years ago, I would have punched myself in the face for thinking buying a corolla. :D

Any thoughts?

[an_y]

[QUOTE=Circuit;8912545]I'm not going to argue either way, but make 2 points:

1. If at the end of the talks we come to an agreed price on both ends, a CONTRACT is signed. A deposit can be made anyway discussed. The dealer can even say that the CONTRACT will not be written up until a form of deposit is presented. That is fair.
QUOTE]

Agree with you on this. Initially I never had a problem giving out CC to the salesperson until I ran into a couple of shady Mazda dealerships. The 1st dealership swiped my CC for $3000 as a deposit for a car that they said they had it in stock, but when the bill of sale was printed, it didn't show the VIN number of the car and I refused to sign the paper without showing VIN on it. The dealer principal got involved and still giving me one hell of a hard time to refund my deposit. Turned out that they don't have the car in stock.

2nd dealership: The salesperson said "My sales manager won't consider any offer without a credit card". I gave it to him and off he went to his sales manager's office with my credit card and my initial on the offer. Several times offers and counter offers went back and forth until I finally decided to go to somewhere else, and I asked my credit card back. The sales person told me that his manager is not at his desk and it took me another 30 minutes to finally get my card back.

[HP_John]

At the dealers I worked at, yes, you do need to give a credit card for making an offer.

I'm not judging what is right, but only giving the dealer's perspective. If you say you (the customer) is willing to buy the car at this price (your offer price), then why can't you show a commitment that you will actually go through with it if we accept? You are telling us you are willing to buy the car at this price (your offer price) yet not actually willing to put a deposit if we accept your price.

In the past, many people would make an offer, then once they found out it was accepted, they would change their mind & lower their offer (if a dealer ever accepts your offer, people assume they must be getting screwed). Or make an offer, get it accepted, don't buy the car & go to another dealer & ask for another $100 off & the initial dealer loses.

[Circuit]

At the dealers I worked at, yes, you do need to give a credit card for making an offer.

I'm not judging what is right, but only giving the dealer's perspective. If you say you (the customer) is willing to buy the car at this price (your offer price), then why can't you show a commitment that you will actually go through with it if we accept? You are telling us you are willing to buy the car at this price (your offer price) yet not actually willing to put a deposit if we accept your price.

In the past, many people would make an offer, then once they found out it was accepted, they would change their mind & lower their offer (if a dealer ever accepts your offer, people assume they must be getting screwed). Or make an offer, get it accepted, don't buy the car & go to another dealer & ask for another $100 off & the initial dealer loses.

The problem is that it almost feels like being a hostage if the dealer has the CC. Please don't take this personally, my general thoughts on salespeople is that they really don't have a clue about their jobs, no formal education (training is NOT the same), terrible people skills, bad reputations and image. I actually enjoy going to a doctor and dentist MORE than visiting a dealer. I'm actually dreading this october when I have to get a new lease. On the last one I just went in with a CCC report, told them $X above invoice, yes or no? Politely. I did not want to waste their time, and I didn't want to waste my time. My theory was, "Ok fine, they're not completely screwing me over, but they get to sell me a car in 20 min and spend the rest of the day r@ping other sheep that come into the dealership, win-win, quick easy sale"

Salespeople need to change peoples perception of them because right now they are near the bottom of any other profession, maybe tied with a lawyer :) Handing over your CC is a big thing. Just like I don't understand when cellphone companies want your SIN on your 3 year contract application?

Oh well, if I get asked to show that I'm serious next time around, I'll whip my pants down, slap my balls on the table and say "OH! I'M SERIOUS!!" I wonder if that will speed up the paperwork..

[ssainani]

to begin with .... i'm not a car sales person .... never have been ... don't think i ever would be

but i dont see the issue about giving a cc with an offer

and i agree with the dealership that an offer should be presented with a deposit to firm it up .... otherwise it's just a conversation.


no one seems to have a problem giving a 10k or 20k deposit the moment you send an offer to buy a home ..... heck...we gave 30k a few years ago with our offer on our place --> why is a car any different

[an_y]

but i dont see the issue about giving a cc with an offer


You won't see the issue until you run into troubles with some dealerships as I explained above.


and i agree with the dealership that an offer should be presented with a deposit to firm it up .... otherwise it's just a conversation.


Giving out a credit card for a deposit should only be done AFTER the customer gets a chance to review purchase agreement contract and satisfied with it. Or do I as a customer demand too much for this request?

Otherwise once the credit card got swiped and the customer doesn't agree with the purchase agreement (ie. no VIN number on the paper even though dealer says the car is in stock), dealers won't return the deposit that easily.

[ssainani]

Giving out a credit card for a deposit should only be done AFTER the customer gets a chance to review purchase agreement contract and satisfied with it. Or do I as a customer demand too much for this request?
.

i dont agree with this

again ... on the house .... your deposit is given with your offer to show your commitment

i agree that i'd be less trustworth of a dealer swiping the card versus a real estate agent as the cheque is payable to a trust account -- however in my 10+ cars i've bought from dealers i've never had bad luck.

just like the home purchase .... right your conditions out on paper and send it off for approval with a deposit

[an_y]

i dont agree with this

again ... on the house .... your deposit is given with your offer to show your commitment

i agree that i'd be less trustworth of a dealer swiping the card versus a real estate agent as the cheque is payable to a trust account -- however in my 10+ cars i've bought from dealers i've never had bad luck.

just like the home purchase .... right your conditions out on paper and send it off for approval with a deposit

When you put a deposit toward your house purchase, you or your lawyer reviews your purchase agreement, if you find something you're not satisfied in your purchase agreement, you can still back out of the deal and can get your deposit back easily.
That's the biggest difference putting down a deposit for a house and a car.

Unless if someone in your family or friend works in that dealership, you might have no problem giving out your credit card and deposit before you get a chance to review the purchase agreement.

[eastwood]

Been reading this thread with a bit of interest. Maybe it is different here in the Maritimes, but I've never heard of this practice before.

Either way though, there is a no way I'd ever give my credit card just to show I am serious about a car. The fact that I am there talking to the salesman should be good enough. I wouldn't be rude or even walk away, but I'd make it clear that I don't do business that way.

[Stock R]

Heh i always bring a cancelled/expired/non valid credit card with me in my wallet in case I come across this type of situation.


Good idea.

Personally I would not want to give my CC over either. It's like letting them put a vice on your balls. :evil:

Anyhow, the Hyundai dealership we got our latest purchase from did not ask for our CC. We showed up. Talked some numbers. After we shook hands, we gave our CC over for a deposit. I believe this is the way it should be done. Overall I've been very happy with how things went with Pathway Hyundai. The whole process was great.

I also find it interesting how firm the salespeople in this thread are. I can now safely cross them off my list of people to visit if I were ever interested in buying those brands of cars :twisted:

[ssainani]

When you put a deposit toward your house purchase, you or your lawyer reviews your purchase agreement, if you find something you're not satisfied in your purchase agreement, you can still back out of the deal and can get your deposit back easily..

:confused:

you cannot do this

unless you have a condition saying you can

[MasterXan]

We were at Markham Honda today and when we put a "offer" the salesperson ask us for a credit card as well, we refused to give them.

luckiliy, the salesman I dealt with didn't pull this on me and he was actually pretty fair. maybe it was because the salesman was new and was a fellow RFDER so he knew how serious we are. :D

But, I had a really negative experience with the sales/F&I manager. The manager knew I was new to car buying she tried to give me pressure just cause I was a first time car buyer. Lots of purchase agreement revisions and all that was possible since they couldn't find the car color I wanted.

let me ask you guys this:

do you need to pay a deposit to FIND a car? cause that's what happened here at Markham Honda. is it standard practice that the dealership start finding a car after you put a deposit or is this practice standard at crappy dealerships?

[KawaiiTentacleBeast]

It's not like visiting North Korea where they take your passport on arrival and give it back when leaving.

When did you visit North Korea? My parents went there on holiday a few years back and they didn't do any of that? Did they refuse to give it back until you bought a car from them too?

[ES_Revenge]

For those people saying things like you don't see what's wrong with giving your CC, I wonder how you would feel about:

-having to give your CC at FS/Best Lie, before a salesperson would talk to you about the price on that new big screen TV you were interested in, you know "just to show you are serious about buying"

-having to give your CC to the salesperson at Leon's before they would give you a deal on that dining set and sofa you were looking to purchase, so they "knew you were serious"

-having to give your CC at Staples before they'd consider selling you a laptop so they knew you were serious about buying one :rolleyes:

??? :confused: I guess by your guys' standards all of those are fine too. I mean heck why stop there, let's follow the slippery slope down: why not require you hand over your CC wherever the heck you go to buy anything??? Want a Big Mac meal? Uh not so fast, better swipe your CC before going through the drive-thru because otherwise you can't possibly be "serious" about getting that combo, so why should they do business with you?

The reality is none of you would agree to any of the above, I'm sure, so why let weasel car dealers get away with the same nonsense while you stay complacent and obidient to their demands? We already know from several threads on here already that deposits heavily favour the car dealer over the customer. The customer is totally screwed when they make a deposit, there's typically no way out of that transaction; but if the dealer wants out they can make up any lame excuse in the world and then it's as if you should feel grateful they gave you your deposit back in the end? :rolleyes: What a joke. I'm not saying people should be able to back out of contracts they enter on a whim, but the other party should not be able to either. However that's exactly the case with car sales contracts. Dealer can do whatever the hell they want, the customer cannot; and, the dealer has the customer's money, the customer has nothing of the dealer's.

Simply giving your CC isn't exactly a deposit, no, but it's just another step in that direction of the dealership taking a large percentage of the control in the transaction--something the law does nothing to prevent and something that some people are willing to let happen to them with a smile on their face. And there's nothing wrong with that? Gimme a break.

[liorsyncro]

It doesn't make sense. If you are actually signing a sales agreement, then you can opt to put the deposit on the credit card. But for them to ask for a credit card just for an offer?! That's ********! Better yet, get pre-approved by your bank or credit union and negotiate from there. Don't be afraid to be aggressive with them when negotiating. It's a tough industry right now and there's plenty of competition.

[misterburns]

luckiliy, the salesman I dealt with didn't pull this on me and he was actually pretty fair. maybe it was because the salesman was new and was a fellow RFDER so he knew how serious we are. :D

But, I had a really negative experience with the sales/F&I manager. The manager knew I was new to car buying she tried to give me pressure just cause I was a first time car buyer. Lots of purchase agreement revisions and all that was possible since they couldn't find the car color I wanted.

let me ask you guys this:

do you need to pay a deposit to FIND a car? cause that's what happened here at Markham Honda. is it standard practice that the dealership start finding a car after you put a deposit or is this practice standard at crappy dealerships?

I would probably think that without a vin attached to the agreement, that the car doesn't exist yet. So you could potentially be waiting for the car to be made.

[julcae]

When shopping for a new car, I visited several dealerships, and most of the salesperson would ask me to give him my credit card when I presented him with my offer? He then would go to his sales manager with my credit card and the offer. Is this the industry standard?
I am pretty hesistant giving out my credit card since I ran into a shady dealership once where my card was swiped even though I didn't agree with the price. Any suggestions anyone?


Do not give your credit card unless you are very firm to buy that car..That is the bottom line..Some time they charge your credit card if you had a loose talk with sales person and they may try to see you as a potential customer..

[HP_John]

The problem is that it almost feels like being a hostage if the dealer has the CC. Please don't take this personally, my general thoughts on salespeople is that they really don't have a clue about their jobs, no formal education (training is NOT the same), terrible people skills, bad reputations and image. I actually enjoy going to a doctor and dentist MORE than visiting a dealer. I'm actually dreading this october when I have to get a new lease. On the last one I just went in with a CCC report, told them $X above invoice, yes or no? Politely. I did not want to waste their time, and I didn't want to waste my time. My theory was, "Ok fine, they're not completely screwing me over, but they get to sell me a car in 20 min and spend the rest of the day r@ping other sheep that come into the dealership, win-win, quick easy sale"

Salespeople need to change peoples perception of them because right now they are near the bottom of any other profession, maybe tied with a lawyer :) Handing over your CC is a big thing. Just like I don't understand when cellphone companies want your SIN on your 3 year contract application?

Oh well, if I get asked to show that I'm serious next time around, I'll whip my pants down, slap my balls on the table and say "OH! I'M SERIOUS!!" I wonder if that will speed up the paperwork..

I graduated from U of T (University of Toronto). The amount of stuff we're supposed to read is more than what I had to read for my university courses (of course, I'm sure about half of the sales staff don't read everything they're supposed to). I can tell you that to have extensive product knowledge of the entire line of cars Honda has, requires much more reading than any of my university courses. These days, dealers tend to focus on hiring people who have good peoples skills, & being consumer-friendly oriented (yes, I'm serious).

Handing over your CC doesn't force you into a binding contract, not until you sign the CC slip. Here's what happens, customer says "I"m willing to pay X amount". "OK, I'll see if my manager agrees to that number, may I have your CC please?" If manager doesn't accept your number, no deposit is taken. So a deposit is only taken if your offer is accepted. As I mentioned earlier, it is to protect themselves, as most people in the past just said "thanks" & then went to another dealer & got another $100 off.

From the dealer's perspective (not mine's), if you're not actually willing to buy the car for the amount you say you are, then it's not really an offer. I no longer work at any dealer, I'm just sharing my experiences with those on this board.

[CaptSmethwick]

I graduated from U of T (University of Toronto). The amount of stuff we're supposed to read is more than what I had to read for my university courses (of course, I'm sure about half of the sales staff don't read everything they're supposed to). I can tell you that to have extensive product knowledge of the entire line of cars Honda has, requires much more reading than any of my university courses. These days, dealers tend to focus on hiring people who have good peoples skills, & being consumer-friendly oriented (yes, I'm serious).

Handing over your CC doesn't force you into a binding contract, not until you sign the CC slip. Here's what happens, customer says "I"m willing to pay X amount". "OK, I'll see if my manager agrees to that number, may I have your CC please?" If manager doesn't accept your number, no deposit is taken. So a deposit is only taken if your offer is accepted. As I mentioned earlier, it is to protect themselves, as most people in the past just said "thanks" & then went to another dealer & got another $100 off.

From the dealer's perspective (not mine's), if you're not actually willing to buy the car for the amount you say you are, then it's not really an offer. I no longer work at any dealer, I'm just sharing my experiences with those on this board.

I'll agree with what you're saying - to a point.

I'm almost 50 years old and I shop for upscale cars. Do you think I am ever asked for my credit card to demonstrate my seriousness? Of course not. Do you think I ever get the "I'll take your offer to my manager" line? No - heck, it's often a 3-way conversation in an office. Sometimes, it's an e-mail exchange.

Why should it be different for the 19 y.o. shopping for a Cobalt?

But I digress...

When I read between the lines of this discussion - not just your post - the message is that there's not a tremendous amount of trust flowing in either direction. The CC demonstrates to the dealer that, time spent coming to an agreed price will be worth it because the customer isn't going to just end the conversation with "I'll think about it" and then walk out and try to get a better deal elsewhere. In the end, though, it doesn't prevent that from happening at all.

If a salesperson returns from the sales manager with the ritual "you've got a deal" handshake - whether the customer accepts the hand is rather independent of whether or not a CC was handed over. If they've got integrity, the deal is done; if not, they can still walk - with their CC in hand. Psychologically, it might be more difficult and they may burn their bridge at that dealership, but it happens.

So, in the end, the CC is a negotiations device and a symbol. If you see handing it over as no big deal, I would agree that you should do whatever you're comfortable with. I choose to negotiate rather than play with unnecessary symbols. Although, I will concede that, in many circumstances, symbols are important.

YMMV

[Lord_Pithicus]

This is mostly a psychological tactic to put you in the mood for going through with the deal. Just clearly state that they are not allowed to charge unless a deal is reached. If they pull anything shady, you can ask your CC to reverse the charges. It's no more risky than giving your waiter the card.

Keep in mind that many customer use shameless haggle tactics also. Others are simply price fishing. The dealer will be reluctant to reveal his best price unless he believe you will actually go through with the deal.

[circumventer]

if you cancel your sales agreement, a few days before delivery.

how long will it take for dealership to return deposit on CC?

scarborough Nissan told me a few days.

[an_y]

i dont agree with this
again ... on the house .... your deposit is given with your offer to show your commitment


Most of real estate agents won't ask you for a deposit when you put an offer for a used home. You only give deposit once your offer has been accepted by the seller. I have gone through this house buying process several times.

:confused:
you cannot do this
unless you have a condition saying you can

When your offer is accepted by the seller for a used house, most likely you always a condition that the deal is dependent upon the outcome of home inspection to your satisfaction and during this period is when you can always cancel the deal and get your deposit back.
For new home, after you give a deposit to a builder, you have the so called "cooling off" period (few days), where during this time you can change your mind and cancel the deal and still get your deposit back.

[an_y]

if you cancel your sales agreement, a few days before delivery.
how long will it take for dealership to return deposit on CC?
scarborough Nissan told me a few days.

Unless it's specifically written on your sales agreement that you can get your deposit back, it's unlikely you can ever get your deposit back.

[circumventer]

Unless it's specifically written on your sales agreement that you can get your deposit back, it's unlikely you can ever get your deposit back.

sorry i should of been more clear:

it was canceled because of breech of the agreement on there part.

They even said they would do it just that it would take a few days, which sounds fishy. I mean they were able to charge it right away, why not give it back just as fast.

[an_y]

sorry i should of been more clear:
it was canceled because of breech of the agreement on there part.
They even said they would do it just that it would take a few days, which sounds fishy. I mean they were able to charge it right away, why not give it back just as fast.

In order for you to get your deposit back on you CC, they will need to swipe your CC again, and that's it. Can be just as fast as they charge your CC.

[karlb]

It's interesting how different buying scenarios are treated.

I have created and responded to many RFPs through work. In almost all cases, the bidders have to provide a deposit/security/bond. In these cases, the onus is on the bidder to "show that they are serious".

Reminds me of the time I was buying a car. I wanted one specific model in one colour. Most dealers needed a deposit with an offer, even though they didn't have the car on hand. Got told "I'm sure we can get it" without checking inventory levels.
The one I bought it from (not because of this) didn't need anything (bought it via a prenegotiated price, similar to APA). He checked inventory before quoting me a price and had it reserved for 24 hours while I decided.
Turns out I got the last model meeting my requirements in Ontario/Quebec (my Toronto dealer sourced it from Quebec).
I guess I should have asked the other dealers for a security deposit also so that they could show me that they were serious about actually getting the vehicle. :)

Just an amusing little tale. In the end, it's all part of the customary game called car buying; some (customers and dealers) play along, others don't.


...karl

[CaptSmethwick]

It's interesting how different buying scenarios are treated.

I have created and responded to many RFPs through work. In almost all cases, the bidders have to provide a deposit/security/bond. In these cases, the onus is on the bidder to "show that they are serious".

Reminds me of the time I was buying a car. I wanted one specific model in one colour. Most dealers needed a deposit with an offer, even though they didn't have the car on hand. Got told "I'm sure we can get it" without checking inventory levels.
The one I bought it from (not because of this) didn't need anything (bought it via a prenegotiated price, similar to APA). He checked inventory before quoting me a price and had it reserved for 24 hours while I decided.
Turns out I got the last model meeting my requirements in Ontario/Quebec (my Toronto dealer sourced it from Quebec).
I guess I should have asked the other dealers for a security deposit also so that they could show me that they were serious about actually getting the vehicle. :)

Just an amusing little tale. In the end, it's all part of the customary game called car buying; some (customers and dealers) play along, others don't.


...karl

I don't see a parallel with bidding. Putting up financial security with a bid is quite common in larger services (and sometimes, goods) procurement. This is protection for the buyer who would have to go through significant trouble to find an alternative should the winning bidder walk away.

I'd love to have this set-up buying a car: if the dealer can't find me the precise car we've agreed upon and within the agreed timeframe, I would get to keep a deposit for my troubles of finding a replacement elsewhere.

A stroke of brilliance, karlb! :)

[slapshot12]

Just a scam to get you feeling like you're buying... so they can close you at a price higher than you should accept.

REFUSE!!!

[jed]

It comes down to the integrity of the person buying and the integrity of the dealership. If both are serious about the process, you shouldn't even need a deposit, let alone a CC.

But, it seems that nowadays we are left with dealing with the lowest common denominator. So, to make sure you, the buyer, aren't just "kicking tires" some dealers have done this. And you would be very surprised at the time wasters out there who go bug the salesperson while their wife is shopping. Talking and getting information is one thing, but pretending to buy a car is another. When was the last time you pretended to buy a house?

I'm not condoning the practise and it was never done at the dealership where I worked. But I can see the frustration on both sides.

[Ebtek]

This is mostly a psychological tactic to put you in the mood for going through with the deal. Just clearly state that they are not allowed to charge unless a deal is reached. If they pull anything shady, you can ask your CC to reverse the charges. It's no more risky than giving your waiter the card.

Keep in mind that many customer use shameless haggle tactics also. Others are simply price fishing. The dealer will be reluctant to reveal his best price unless he believe you will actually go through with the deal.

how can we know their "best" price without getting competitive quotes? anyone that knows anything about business knows to get at least a 2nd quote to be sure you're not getting hosed.

[steve-0101]

how can we know their "best" price without getting competitive quotes? anyone that knows anything about business knows to get at least a 2nd quote to be sure you're not getting hosed.

CCC report should help you out in that regard.

[Lord_Pithicus]

how can we know their "best" price without getting competitive quotes? anyone that knows anything about business knows to get at least a 2nd quote to be sure you're not getting hosed.

I'm not saying there's anything wrong with price shopping. Just don't expect the dealer to give you his best price if he thinks you are.

[HP_John]

how can we know their "best" price without getting competitive quotes? anyone that knows anything about business knows to get at least a 2nd quote to be sure you're not getting hosed.

I'm not saying dealers are right, but want to offer you their perspective. In truth, many Honda dealers will price-match. What is often a universal rule amongst dealers is that the 1st dealer to give their best price loses.

Even if a dealer gives a great number immediately, like $300 over invoice, people will go to another dealer who will match it, or knock off another $50. Since the 1st dealer told them it was their best price, customer doesn't want to waste anymore of their own time & just buys it at the 2nd dealer (even if most of the time, the 2nd dealer just matches it, doesn't beat it). After all, why waste more time when the 1st dealer already said it was their best price (going back to the 1st dealer won't get them a better price, so why not just buy it at the 2nd dealer).

Unfortunately, a lot of customers aren't considerate of the time spent by the 1st dealer in presenting the features of the car, taking them on a test drive, etc. Many are just concerned about 1 thing, price. As long as the 2nd dealer gives the same deal, they buy it (even though the 2nd dealer didn't spend the time with them.

In my times in auto sales, there were many customers who would buy even though they weren't getting a better price (just matching price). Sure, they`d want a better price than what the 1st dealer gave, but if they couldn`t get it, oh well, tired of spending more time at dealers & buy at the 2nd dealer, even though the 2nd dealer (in many cases, us) didn`t spend the time with them.