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

[philbur]

I would only accept refundable.

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[drkgt3rs]

Are located in NJ? Porsche Englewood?

 

[blame.latitude]

I paid 17k to secure my allocation, 10% of purchase price. it was advertised as non refundable.

 

[iSTATUS]

I think there are 2 parts to this correct? A deposit to 1) get in line for an allocation and 2) 10% non-refundable deposit when signing the contract?

 

[tchavei]

I think there are 2 parts to this correct? A deposit to 1) get in line for an allocation and 2) 10% non-refundable deposit when signing the contract?

I only paid 10k (euro if that wasn't clear) on order. No further value was asked.

 

[Wakesurfer]

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?

I would find a different dealer.................or...................buy a pre-owned from a different dealer. I know that these are different times but my dealer asked for a $2,500 deposit AND it was fully refundable even after the car had been built. No way no how would I do business with a dealer that requires a deposit that is non-refundable. What happens if you have something occurs that makes it either financially impossible or even difficult to complete the deal when the car arrives at the dealership? And, do you think that the dealer would not quickly sell it to someone else?

 

[TXSchnee]

Find a different dealer. For my '23 CT 4S I paid $0 to get on the allocation waiting list, and $0 once my order froze (for reference, I paid $1500 for my Cayenne at order freeze 2 years earlier). Nothing was required until I put money down when I picked my vehicle up. (I am in the US)

 

[xyeahtony]

I put a $15k deposit for my allocation. it was 10% of the MSRP.

 

[BMFC73]

That's unconscionable! This dealer is behaving unethically and I would report them to Porsche North America in Atlanta. Run, do not walk away from these clowns.

Agreed!! My deposit for both of my Taycan’s was $2500 and it was refundable

 

[WasserGKuehlt]

I think there are 2 parts to this correct? A deposit to 1) get in line for an allocation and 2) 10% non-refundable deposit when signing the contract?

Correct, there are several parts:
- deposit: this is at the latitude of the dealer, and it’s used to “sort out the chaff” (serious buyers, for an in-demand model). Should be fully refundable until at least an allocation is obtained, but usually refundable until the build is frozen. Depends on the model or MSRP (as ssim explained).
- earnest money/down payment: this is agreed upon signing the intent to purchase (contract with the dealer), and is a percentage of the sale price - typically 10% because this is the standard/accepted definition of a binding contract. Upon locking the build, the deposit is applied towards the purchase price, and any delta to the aforementioned percentage is due. This payment is, in principle, no longer refundable.
- additional dealer markup (adm): this is extor^H dealer profit for a hot model. Probably unlikely in the current market conditions. It’s usually collected upfront - so once the deposit becomes earnest/is no longer refundable, the dealer have realized already their profit.

Dealers in different markets/with different sales volume will have different practices. P of Bellevue, for instance, required a 5k deposit for base/S, and 15k for GTS and higher. The other dealers in the state asked for much smaller deposits.

Lots of good advice in this thread. Keep looking, and good luck.

 

[whitex]

Dealers in different markets/with different sales volume will have different practices. P of Bellevue, for instance, required a 5k deposit for base/S, and 15k for GTS and higher. The other dealers in the state asked for much smaller deposits.

My experience from 2021 was P of Bellevue asked for a refundable $5K to get on waitlist, then 10% MSRP at lock time. P or Tacoma on the other hand wanted non-refundable $15K ADM to get on the waitlist, no idea how much at lock time as we never got that far into the conversation. They've since changed that ask though, called me not long ago implying they'd sell at MSRP, again we didn't get much further as I had just picked up my new Taycan then.

Dealers will ask what they can get away with. Non-refundable money down at lock time is not unreasonable IMO. Any non-refundable money prior to locking the build/price/schedule is not acceptable to me.

 

[Sidicks]

In the UK it’s typically £5k deposit (fully refundable) and then some dealers will ask you to increase the deposit to 10% of purchase price, once you firm up the specification and this becomes locked onto Porsche systems.

 

[feye]

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?

Wow! 10% and then non-refundable. Have they lost their mind?

 

[Electron]

I had a $2k refundable deposit, which became non-refundable upon receiving the allocation and signing the contract.

 

[cabin fever]

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?

I bought a 2023 Taycan RWD that was part of the dealer stock order that had been built but not yet been sold and was in transit. I put a $5K refundable deposit down. When the heater issue came up and I was informed the car was potentially going to sit at the port of entry for 6 months waiting for the part I cancelled that order, got my $5K back and bought one that was in stock from a nearby dealer. they too wanted $5K to hold it until I completed the transaction.

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