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10% Non-Refundable Deposit for MY 2023 for an Allocation Reasonable?

snstevens

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On my 2021 Taycan 4s the deposit was $5,000, and it was refundable if I changed my mind at any time. However, this was pre-Ukraine and a lot has changed since then with supply chain issues. I doubt I would get the same deal today.
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Tesla2Taycan

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Hi All,

Question, my SA advised the dealer still has allocation for MY 23 Taycan now, however deliver will be btw 6-9mos depending on the heater part issue. He's asking for 10% Non-Refundable deposit to secure my allocation. Is that reasonable? Any thoughts?
FWIW, I paid 10% for my custom build when I signed the contract … but “non-refundable” is illegal in CA so I could have walked away from it if I wanted to. I did not, of course.
 

Mookow

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A deposit isn't unreasonable - non-refundable is. Hell, by law, deposits have to be refundable in some states.
 

Sidicks

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A deposit isn't unreasonable - non-refundable is. Hell, by law, deposits have to be refundable in some states.
Once the order is locked, there’s no further justification for the deposit to be refunded, unless something changes.
 


Mookow

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Once the order is locked, there’s no further justification for the deposit to be refunded, unless something changes.
Disagree. They'll still sell the car without you, but what if you fall on hard times? that 10k should just go poof, then the dealer still sells the car for full price to the next guy?
 

Sidicks

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Disagree. They'll still sell the car without you, but what if you fall on hard times? that 10k should just go poof, then the dealer still sells the car for full price to the next guy?
What if you choose a ‘silly’ specification that no-one else wants or the dealer needs to offer a discount to offload it?
 

TXAG

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A 10% nonrefundable deposit is unacceptable IMO in today's softer market regardless if an allocation is available or not.

My dealer had an RWD allocation available in January 2022, so I paid a $5000 nonrefundable deposit to secure it.
 


Mookow

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What if you choose a ‘silly’ specification that no-one else wants or the dealer needs to offer a discount to offload it?
You sound like a dealer or you drank the kool aid too much - non refundable deposit is blatantly anti-consumer no matter how you justify it.
 

Sidicks

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You sound like a dealer or you drank the kool aid too much - non refundable deposit is blatantly anti-consumer no matter how you justify it.
You sound like someone that thinks this isn’t a two-way issue, and that there is no cost involved in customers dropping out. In practice there can be a cost, and if that is being picked up by the dealer, they will endeavour to pass that on to other customers.

in your world there’s nothing to stop someone ordering multiple cars across multiple dealers and then cancelling all but one when it’s clear which car will be delivered first.

Once the Build is locked to your chosen specifications and can’t be changed, as far as I’m concerned you have committed to buy the car. Of course, if the dealer is able to sell that car to someone else at the same price, they should be returning the deposit to you, but that won‘t always be the case.
 

Mookow

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You sound like someone that thinks this isn’t a two-way issue, and that there is no cost involved in customers dropping out. In practice there can be a cost, and if that is being picked up by the dealer, they will endeavour to pass that on to other customers.

in your world there’s nothing to stop someone ordering multiple cars across multiple dealers and then cancelling all but one when it’s clear which car will be delivered first.

Once the Build is locked to your chosen specifications and can’t be changed, as far as I’m concerned you have committed to buy the car. Of course, if the dealer is able to sell that car to someone else at the same price, they should be returning the deposit to you, but that won‘t always be the case.
The dealer is making their money no matter what, we don't need to defend them. Imagine if you run in to some health issue and need that 10k for health bills. You, as a consumer, didn't plan for this, and you aren't being a wishy washy non committal buyer - is what way is it ok for the dealer to keep your money for providing 0 service or product in this case?

Again - the dealer will make their money no matter what, I don't understand why we need to enable another metric for them to fuck us over - and at least my state government agrees and has made non-refundable deposits illegal.
 

Sidicks

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The dealer is making their money no matter what, we don't need to defend them. Imagine if you run in to some health issue and need that 10k for health bills. You, as a consumer, didn't plan for this, and you aren't being a wishy washy non committal buyer - is what way is it ok for the dealer to keep your money for providing 0 service or product in this case?

Again - the dealer will make their money no matter what, I don't understand why we need to enable another metric for them to fuck us over - and at least my state government agrees and has made non-refundable deposits illegal.
Plenty of legislation is stupid and gives customers rights but not responsibilities.

The dealer won’t necessarily ‘make their money’, there is no reason why they’ll always be able to sell the car at list price, particularly if the car is ‘uniquely’ optioned. But as I explained, if the car can readily be transferred to someone else at the same price, then the dealer would obviously give back the deposit.
 
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WasserGKuehlt

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The dealer is making their money no matter what, we don't need to defend them. Imagine if you run in to some health issue and need that 10k for health bills. You, as a consumer, didn't plan for this, and you aren't being a wishy washy non committal buyer - is what way is it ok for the dealer to keep your money for providing 0 service or product in this case?
First of all, not everyone who argues the opposite of your point is "defending" the dealer - it's just presenting an alternative viewpoint. Secondly, it's a contract - one that the buyer is entering willingly. If the conditions are not acceptable to the buyer, they're free to move on. This is no different than, say, you selling or renting a house, and the buyer backing out after considerable effort and expense on your part. You're not going to "make your money" in all circumstances, and that's what Sidicks was arguing. Imagine a buyer ordering a 200k RWD then walking away - the dealer will be forced to buy that car from the manufacturer, and the chances of them recovering their cost is 0.

It's just about risk exposure (or "skin in the game") - refundable deposits* effectively say the customer is always right and incurs no risk at all. If a buyer can demonstrate their circumstances have changed, most dealers would release their deposit; but one can't expect to change their mind, claim/invoke an "unforeseen expense" and just walk away - whole.

*Note I'm talking about after locking - the manufacturer has committed to build that car, the dealer has committed to buy it/take it into inventory, and naturally the buyer should also commit to purchasing it. Dealers who ask for non-refundable deposits to get on a waiting list can fuck right off.
 
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Hi All - Thanks for your input. Spoke to my SA and got some clarification. So he has 2 available allocations with the last one being on 5/24 and expected delivery around Mid August for MY2024 (So i'm guessing no facelift for MY2024). He's not asking for any deposit for the allocation, but will need 10% non-refundable deposit at the time of the purchase order contract signing (Deposit will go toward the remaining balance for the car). Sounds fair? Anything else I should inquire about?

I apologize, this is my first time ordering from a custom build. Just want to make sure I have everything covered. Thanks!
 

xyeahtony

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I wouldn't sweat a deposit. If you're committed to buying the car then go for it.
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