Deposits to hold a car

[HOOLIGAN]

I was wondering what the normal/safest procedure is for the following situation:
I may be striking a deal tonight but I cannot take delivery until this weekend. I don't want someone else to snatch it up first. I don't know the seller personally. What is the routine?

[jy211]

Ask the seller how much of a deposit he requires to hold the car. Then get that agreement amount in writing with both your signatures on it, showing that you gave him money to hold a car. Also have a witness, watch the signature process.

[rob07002]

How much deposit we talking?

I feel, an appropriate deposit to hold a car for that short period is about $250-500, depending on the asking price. Maybe 5-10% max, if its a high dollar piece. If the seller is a stand up dude, that should be more then acceptable to give you a few days to arrange transport.

No matter what, I've always drafted a deposit receipt with VIN, details of transaction, dates, intention to pickup, and complete transaction and signed by both parties. Ensures if either flakes out, you have some written recourse to get your deposit back, or keep a deposit if the situation is reversed.

If you are doing this from longer distances, I would use a escrow service. A neutral party with legit reputation to hold in a non-interest bearing account where both parties can verify the funds, but cannot touch until the transaction is complete or dissolved.

[minendrews68]

How much deposit we talking?

I feel, an appropriate deposit to hold a car for that short period is about $250-500, depending on the asking price. Maybe 5-10% max, if its a high dollar piece. If the seller is a stand up dude, that should be more then acceptable to give you a few days to arrange transport.

No matter what, I've always drafted a deposit receipt with VIN, details of transaction, dates, intention to pickup, and complete transaction and signed by both parties. Ensures if either flakes out, you have some written recourse to get your deposit back, or keep a deposit if the situation is reversed.

If you are doing this from longer distances, I would use a escrow service. A neutral party with legit reputation to hold in a non-interest bearing account where both parties can verify the funds, but cannot touch until the transaction is complete or dissolved.

X2 what he said.....

[dadto2jays]

I have never been big on deposits if it is that great of a deal call in sick to work get the money and go buy it.

[preston]

I'm a fan of non-refundable deposits. You give him $250, if you don't buy the car he keeps the $250. If you do, it goes to the purchase. PRetty easy, no paperwork, you have skin in the game, if you don't buy he's not exaclty happy but at least he gets $250 for his trouble. If you buy you're not out any money, if you don't , well, that's why you gave him a deposit !

[TonyHuntimer]

...just fear the Jack@ss who takes your deposit and decides to sell the car out from under you because somebody calls and offers more than what you've agreed to pay. The said Jack@ss may even call you and ask if you're willing to pay as much as the second guy is willing to pay... It's happened. Since it's sometimes hard to read a guys' moral compass, you're better off just buying the car ASAP.

my $.02

[Flash68]

...just fear the Jack@ss who takes your deposit and decides to sell the car out from under you because somebody calls and offers more than what you've agreed to pay. The said Jack@ss may even call you and ask if you're willing to pay as much as the second guy is willing to pay... It's happened. Since it's sometimes hard to read a guys' moral compass, you're better off just buying the car ASAP.

my $.02

Bingo.

[minendrews68]

Yeah, Tony's right! Unfortunately the world has gotten to be "do not trust" place. Well, not really the world but a few people in it. I also agree, take a couple of days off work go look at the car in person and to the deal in person. Not saying this particular person will nail you, but I'm also not saying they won't either...
Carl