How do you deal with 'holding deposits'?

[Ocsltd 133]

I usually try and avoid taking 'holding' or 'securing' deposits over the phone, I much prefer a customer to view a car first, then decide if it's for them etc...

I've advertised a car (£3k), which hasn't arrived yet. Had a chap message me through eBay, I advised that the car wasn't in yet, but would let him know when it arrived. I then had 2 walk ins, for the same car, explained the same thing to both of them, took their numbers and said I would call them once it arrived, but explained I had 3 interested parties.

Ebay chap comes back a day later, saying he doesn't want to miss out on the car, can I give him first refusal? I explain that I've got 2 other interested people and all I can do is be as fair as I can to everyone, and ring everyone once the car arrives. Couple of days later (car still not arrived into stock) asking if he can leave a 'holding deposit' and if so, how much?

Now, due to the amount of interest I'm reluctant to take a deposit, as it's going to sell quickly, however, he was the first to make contact and is obviously keen as mustard!

What would you do? Take a 'holding deposit'? 

[david gott 58]

It's sods law you if you take the deposit this is what will happen........You will lose the other 2 customers, the chap who put the holding deposit comes to look at it, takes it for a test drives and rips it to shreds, asks for his deposit back, you then can't ring up the 2 previous customers because they will be thinking why didn't the other person not  have it, there must be something wrong with it and you will end up stressing yourself out, just say to the 3 people, first come first serve, if you know it's a minter you'll be ok 

[SC Derby 259]

Take it but non refundable.

otherwise it's of no advantage to you whatsoever 

 

[Ocsltd 133]

2 minutes ago, david gott said:

It's sods law you if you take the deposit this is what will happen........You will lose the other 2 customers, the chap who put the holding deposit comes to look at it, takes it for a test drives and rips it to shreds, asks for his deposit back, you then can't ring up the 2 previous customers because they will be thinking why didn't the other person not  have it, there must be something wrong with it and you will end up stressing yourself out, just say to the 3 people, first come first serve, if you know it's a minter you'll be ok 

Yeah you're absolutely right! I did say in my previous message to the chap on eBay it was first come first serve! I suppose I just don't want to alienate him too much and for him to think I'm unwilling to assist, but ultimately it doesn't sit very comfortably with me.

Not only that, if I take a deposit, he'll be contacting me every 5 mins asking if it's arrived..... 

[Rory RSC 596]

take his deposit and don't tel the other customers until this guy has viewed.

sell loads of cars our end with holding deposits on them and they really work well for us. 

[Ocsltd 133]

4 minutes ago, Rory RSC said:

take his deposit and don't tel the other customers until this guy has viewed.

sell loads of cars our end with holding deposits on them and they really work well for us. 

How much do you take as a holding deposit? Are you happy to take card deposits over the phone and are they refundable? 

19 minutes ago, SC Derby said:

Take it but non refundable.

otherwise it's of no advantage to you whatsoever 

 

Exactly my thought......

[Scooby who 40]

I would take the deposit but as mentioned by others, let him know that it is non refundable under any circumstance.

Either way you will be up a few hundred.

You may think you have 3 buyers for the same car and that you may have it under-priced or whatever, but the longer it takes for you to get it into stock the more likely you will be left with just the one or none at all.

 

[Rory RSC 596]

£100 refundable holding deposits taken over the phone to secure viewing. Short term and will generally only take 24/48hr in advance.

It has worked positively far more than negatively. Have only had to refund on a couple of occasions and its been no issue.

If the car is what you say it is, it gives a bit of confidence for a buyer travelling a long distance and one of the biggest concerns over placing a deposit over the phone is they travel 200 miles to see the car with you and it's an absolute nail and the dealer is going to stand there saying no deposit back. 

 

Works for us and increased sales.

 

[umesh 336]

Happened to m ea few times , I take the deposit ONLY on the basis he's buying it unless I've not described it properly ( But willing to give deposit back in full if its down to me) - Odd times it the deal doesnt go through I refund , call the next customer and tell them the truth the deal didn't happen because you couldn't' agree a deal with the 1st lead / or px issue etc etc.. usually the 2nd one buys ! 

Just tell the 1st guy the truth you have 2 others who want to buy the car but because he asked 1st you're going to be fair but don't want to be messed - most genuine buyers understand and go with it....

If you don't take a deposit but they all know there are interested parties they may feel that they may miss out so will will continue looking and when it does arrive and you call them - you've lost them all as they've bought elsewhere? - just a thought ! 

[It's me 611]

first rule

never advertise anything until its had its full appraisal

theres no way you can price it correctly until then because otherwise it ends up too cheap or too dear

 

just my two pennorth of 40 years experiance

[Tom 164]

2 hours ago, s and b said:

first rule

never advertise anything until its had its full appraisal

theres no way you can price it correctly until then because otherwise it ends up too cheap or too dear

 

just my two pennorth of 40 years experiance

Exactly, I've done that in the past priced a car before cleaning it, and afterwards looked at it and thought thats worth a lot more now. Advertising a car before its arrived/prepped does make the phone ring but puts you under a lot of pressure. 

[Mat C 77]

You cant take a non refundable deposit due to distance selling regualtions surely?

I take £100 'reservation fee' which becomes a deposit once the customer confirms on site.

I think its only fair if someones travelling to give them first refusal.

I'd take the mans £100, call him when the car arrives, give him first refusal, if he doesn't buy, call the other 2 and offer the same.

Love having customers fighting over cars!! ha ha

[Max Branning 149]

I will only hold a car with a minimum £100 deposit. I would not refund it unless the car turns out to be misdescribed in some way  or the customer finds a fault. The way i look at it is once the car has been taken off the market then i am potentially losing money as i could of sold the car 3 times over in the time its been sat waiting for the holding customer to turn up.

[grant8064 219]

You lot are a bit cheap, £100??

Minimum £300 holding deposit from us. Commits the customer to the car more than £100. Also removes some of the time wasters because if £300 is a problem to find then the £6995 screen price is going to be even harder stump up.

[Steve92 80]

We take £500 as a holding deposit which will keep the car 7 days, it's refundable if it's not as described. It stops the messers, I'd take the deposit, at least that way you have a better chance of getting the sale rather than losing 3 customers.

[Max Branning 149]

1 hour ago, grant8064 said:

You lot are a bit cheap, £100??

Minimum £300 holding deposit from us. Commits the customer to the car more than £100. Also removes some of the time wasters because if £300 is a problem to find then the £6995 screen price is going to be even harder stump up.

Does depend on the retail price and also your own comfort zone. I am happy with £100 if the car is ready to go, if it needs an mot , service etc i would go more like £300 to cover the costs. 

[grant8064 219]

4 hours ago, Max Branning said:

Does depend on the retail price and also your own comfort zone. I am happy with £100 if the car is ready to go, if it needs an mot , service etc i would go more like £300 to cover the costs. 

Yes I agree, personal preference is part of it and also every customer is different. Our stock is rarely ready to go hence the £300 just to make sure they are committed.

I did a Freelander last week and asked for £1000 deposit because I was sceptical the deal would go through but he's turned out to be one of the nicest customers I have dealt all year!

[SC Derby 259]

Took one on Thursday £200 and it got collected today without a hitch but doesn't always run that smooth on the price / age we sell I guess.