Deposit versus Down Payment?

[jensjer]

Hello All Is there anything fishy that comes up, down the road when taking custody of an order?

I provided 1k, as a deposit. On the paperwork it's called "cash down". But also there's also line item that states "Financed amount" which is minus the "cash down"
I assume when it's time to receive the rig & finalize paperwork there is no penalty or other issues by adding "more cash" to the down payment/cash down (at that time)? Or if I have to finance the stated amount on the purchase agreement then pay the financier my down payment? (Noting I wouldn't take a a loan that has pre payment penalties).

I'm all about a_ss coverage, ty

Sponsored

 

[Jefe1018]

Typically the $1,000 is a non-refundable deposit that rolls into your down payment.

I purchased through a volume store that had a cap of 5% you were allowed to put down to get the best price on the truck so before I drove away I gave them another couple thousand dollars.

 

[jensjer]

Typically the $1,000 is a non-refundable deposit that rolls into your down payment.

I purchased through a volume store that had a cap of 5% you were allowed to put down to get the best price on the truck so before I drove away I gave them another couple thousand dollars.

That sounds Janky as it gets.. capping a down payment!! I'm looking at tossing them either 34,000, or 29,000 in cash at time of delivery. I couldn't imagine a vehicle payment more than my house payment lol!

 

[Jefe1018]

That sounds Janky as it gets.. capping a down payment!! I'm looking at tossing them either 34,000, or 29,000 in cash at time of delivery. I couldn't imagine a vehicle payment more than my house payment lol!

Not really janky, more like a long way around to pay less for the truck. It’s the business model volume stores such as Peterson and Gupton follow. They’ll get you a truck for about 12% below MSRP, my discount was roughly $7,000 under sticker. Give them 5% down and finance through them for 6 months so they receive their kick back from the bank. Then you refinance, flex your checkbook or whatever floats your boat. I paid less than $1,000 in interest over those 6 months before writing the check to save myself $7,000. Give up 1 to save 6 sounds like a deal to me.

Hope you enjoy your truck.

 

[arskemp]

That sounds Janky as it gets.. capping a down payment!! I'm looking at tossing them either 34,000, or 29,000 in cash at time of delivery. I couldn't imagine a vehicle payment more than my house payment lol!

I had a cap on my down payment and had to finance with the dealer to get the best deal. While they asked I keep the loan for at least 6 months, there were no penalties for paying it off early. Once it showed up online I payed for most of the vehicle on the first payment and had it payed it off a few days after 6 months. I think I spent a little over $200 on interest over the entirety of the loan.

 

[Snake Eyes]

we paid the deposit (which was refundable) when car came in we paid for the rest in cash and a trade and got a great deal so did not play with financing and early payoff. All told with taxes came in below MSRP. Got good deal and finance did not try to push a single thing. In fact they looked at the cost I was going to get on the extended warranty from Winkles and they said get it from him cause it was a great deal. My dealer is awesome including the service.

 

[jensjer]

Not really janky, more like a long way around to pay less for the truck. It’s the business model volume stores such as Peterson and Gupton follow. They’ll get you a truck for about 12% below MSRP, my discount was roughly $7,000 under sticker. Give them 5% down and finance through them for 6 months so they receive their kick back from the bank. Then you refinance, flex your checkbook or whatever floats your boat. I paid less than $1,000 in interest over those 6 months before writing the check to save myself $7,000. Give up 1 to save 6 sounds like a deal to me.

Hope you enjoy your truck.

Wow, never heard of "volume dealer" though I suspect I'm in an area that does low volume on jeeps. Sounds like you have to buy something on the lot too..

 

[Jefe1018]

Wow, never heard of "volume dealer" though I suspect I'm in an area that does low volume on jeeps. Sounds like you have to buy something on the lot too..

Actually, only applies to custom orders.

 

[Minty JL]

There is a big difference between a deposit and down payment. One is to secure the order, the other is at time of delivery and finance?

Why would you throw down your down payment before you take delivery.......that's just horrible business and investing.

Sponsored