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View Full Version : When Can a Dealer Cancel It's Order?



SeanMSIII
10-22-2006, 08:33 AM
Hey, anybody know at what point a dealer can cancel it's order for a car with Mazda? The reason I'm asking is a lot of people have given non-refundable deposits and I'm wondering if there is a point where a dealer would be stuck with a car ordered on the basis of a non-refundable deposit. This would be a possible justification for keeping such a deposit to my mind, if they really believed it would be hard to sell the car to someone else. Otherwise, if they can cancel, I'd say no harm, no foul, give back the non-refundable deposit.

B1GHAM
10-22-2006, 10:00 AM
I dont know about cancelling a car completely, but I know they can be changed right up to like 1-2 weeks before its actually built. I can check and see if theres an exact timeline for changes, etc.

jadonP5
10-22-2006, 10:03 AM
wouldn't the justification for keeping a non-refundable deposit be to call it a non-refundable deposit in the first place?

SeanMSIII
10-22-2006, 12:25 PM
wouldn't the justification for keeping a non-refundable deposit be to call it a non-refundable deposit in the first place?

Life is never so simple. People change their minds. To me, if there's no harm, then there's no foul. Give the "non-refundable" deposit back and move on or make an enemy for life who will bad mouth you at every opportunity.

Hikaru9
10-22-2006, 01:57 PM
I also had to pay a non-refundable deposit, and they made me sign a piece of paper which stated "non-refundable deposit except in the event of cosmetic or mechanical defect".

I agree with Sean on this because if I don't buy the car for whatever reason,
I'm certain somebody else will. I can come up with two possible reasons why a dealership would make such arrangement.

1. They don't have a lot of confidence in the car, and they're worried that they'll be stuck with a large inventory if buyers change their minds.

or

2. They want to lock you into a commitment, so you won't have the option to shop elsewhere in case a better deal appears.

Of course, I don't think #1 has any validity since this is a limited production vehicle which already carries a cult like following.

I just consider such practices unfair because... what if something happened to you, and you could no longer afford a new car? As I said earlier, I'm sure someone else will badly want to purchase the car even if I don't.

Just my two cents. ^_^

SeanMSIII
10-22-2006, 07:48 PM
I also had to pay a non-refundable deposit, and they made me sign a piece of paper which stated "non-refundable deposit except in the event of cosmetic or mechanical defect".

I agree with Sean on this because if I don't buy the car for whatever reason,
I'm certain somebody else will. I can come up with two possible reasons why a dealership would make such arrangement.

1. They don't have a lot of confidence in the car, and they're worried that they'll be stuck with a large inventory if buyers change their minds.

or

2. They want to lock you into a commitment, so you won't have the option to shop elsewhere in case a better deal appears.

Of course, I don't think #1 has any validity since this is a limited production vehicle which already carries a cult like following.

I just consider such practices unfair because... what if something happened to you, and you could no longer afford a new car? As I said earlier, I'm sure someone else will badly want to purchase the car even if I don't.

Just my two cents. ^_^

My point is more narrow. If the dealer can cancel the order, then I think they have no justification to keep your deposit. If the car is already on the way, maybe they can sell it, maybe they can't. Or maybe they can sell it, but for less money. I still think it would be a bad policy to keep the deposit where they can't sell it or can only sell it for less, but they do lose something in those cases. But, if they can cancel, they've lost nothing.

gardonani
10-23-2006, 01:59 PM
My point is more narrow. If the dealer can cancel the order, then I think they have no justification to keep your deposit. If the car is already on the way, maybe they can sell it, maybe they can't. Or maybe they can sell it, but for less money. I still think it would be a bad policy to keep the deposit where they can't sell it or can only sell it for less, but they do lose something in those cases. If they can cancel, they've lost nothing.

I'm on that boat right now.
http://www.msprotege.com/forum/showthread.php?t=123649899

p5sundevil
10-23-2006, 06:11 PM
I know rules are rules but when they make it sound like the are doing a huge favor giving you the car at MSRP with a pre-order because"they're selling for 3-4 grand over MSRP" off the lot you would think they wouldnt mind a cancel, in their words they stand to make more money just bringin it in and selling it off the floor.

Id almost want them to write in a clause that its non refundable except in financial distress....cause say I put the deposit down and get in an accident in two weeks i wont be able to afford the car after that, hate to think of the negative stuff but 500 is alot for someone like me.

Hikaru9
10-24-2006, 08:39 AM
I know rules are rules but when they make it sound like the are doing a huge favor giving you the car at MSRP with a pre-order because"they're selling for 3-4 grand over MSRP" off the lot you would think they wouldnt mind a cancel, in their words they stand to make more money just bringin it in and selling it off the floor.

Id almost want them to write in a clause that its non refundable except in financial distress....cause say I put the deposit down and get in an accident in two weeks i wont be able to afford the car after that, hate to think of the negative stuff but 500 is alot for someone like me.

My dealer asked me for a 10% deposit, but I gave them only $1,000. -_-;;
I think the whole "non-refundable" business is nonsense.

p5sundevil
10-24-2006, 12:30 PM
thats still too much, my local dealer asked for 2000 as a deposit...i asked around here and found that was outrageous, told my dealer I had other offers for $500 deposits and all of a sudden the internet manager emails me saying he can do 500....still dont know if I will go with them since they seemed to be a little misleading, but now I have more options....2-3 weeks and the deposit goes in one way or another.

stdntDrvr
10-24-2006, 12:34 PM
the car can be cancelled up to the point of it being scheduled. the non-refundable deposit is simply that. why? well, if you put a deposit on a car and a month later, back out...they've lost a month that they COULD have taken a deposit on the car...and as rare as something like the ms3 is, they could have sold it a few times...so yeah, that's why we have them. i've only had one customer back-out after putting down a deposit...and that was less than 24 hours later, so i gave it back. we tend to give them back anyway...but it is up to the dealer. you signed the form...you knew what you were getting into...why bitch? if you didn't sign a form, you should get your money back...that's my .02

SeanMSIII
10-24-2006, 01:13 PM
the car can be cancelled up to the point of it being scheduled. the non-refundable deposit is simply that. why? well, if you put a deposit on a car and a month later, back out...they've lost a month that they COULD have taken a deposit on the car...and as rare as something like the ms3 is, they could have sold it a few times...so yeah, that's why we have them. i've only had one customer back-out after putting down a deposit...and that was less than 24 hours later, so i gave it back. we tend to give them back anyway...but it is up to the dealer. you signed the form...you knew what you were getting into...why bitch? if you didn't sign a form, you should get your money back...that's my .02

Thanks for the info. Fair enough, except the rareness cuts both ways. If it's truly rare, you get the next deposit almost immediately and regain the prospective lost sale. Even if it's not rare enough to immediately produce another buyer, it's hardly unusual to lose a prospective sale. Kind of the nature of the business, ain't it?

stdntDrvr
10-24-2006, 01:33 PM
well, you do have customers that want odd units...so to keep things fair, everyone is treated the same. yeah, the ms3 is a "hot" item to have, but then again, is it fair to another customer that ordered say a tribute 5-speed that you get your deposit back and he/she doesn't? everyone gripes about how the car business isn't fair to customers, but most of the time it's customers wanting the dealerships to cut corners in their favor which isn't fair to other customers....so, where is the line drawn? granted, the amount of the deposit will vary by type of vehicle, i don't believe that it being "non-refundable" should vary at all...but that's my opinion...and i've done this for a while. if you don't sign a form stating that it is non-refundable, you should get your $$ back. but if you do, you should honor it. why aren't people keeping to their word anymore? that's where a lot of mis-trust comes from between dealers and customers. if people would do what they say they're going to do, we could all get along a lot better than we do now. but you have customers that lie and dealers that lie...that's where the problem is...and i've never lied to my customers...but i have been lied to quite a bit. my experience is that customers are more willing to mis-lead me that i am to mis-lead them.

highwaypizza
10-24-2006, 01:59 PM
A little off topic:

Anyon eremember that Weird Al movie "UHF"?

"I'm Crazy Ernie and I'll club a seal to make a better deal!"

stdntDrvr
10-24-2006, 02:00 PM
hahahahahahahahahaha