Dealer neglected to make me put a deposit down?

[sprubs]

I have an order confirmation from Ford. The dealer either forgot or maybe waived the deposit. Any risk of this causing an issue?? I honestly don't know why there is a deposit at this point anyway. The dealer would benefit greatly if I walked away from this thing later.

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[paneubert]

A deposit is not required by ford. Any deposit policy is 100% at the discretion of the dealership. Including the amount. Some want $100. Some want $1,000.

 

[jesusdad]

The dealer would benefit greatly if I walked away from this thing later.

Not if they COVP'd it. Allowable fault rate on COVP is decreasing, and penalties for dealers delivering vehicles to someone other than the name on the order are increasing. And they are no joke penalties.

 

[sprubs]

A deposit is not required by ford. Any deposit policy is 100% at the discretion of the dealership. Including the amount. Some want $100. Some want $1,000.

I knew that part. Just to avoid any shenanigans I pointed it out to them and I'll put the deposit down. Not a huge deal for me financially or anything.

 

[sprubs]

Not if they COVP'd it. Allowable fault rate on COVP is decreasing, and penalties for dealers delivering vehicles to someone other than the name on the order are increasing. And they are no joke penalties.

google didn't help me with COVP. what is that?

 

[jsus]

Did they tell you there would be a deposit and then not collect one?

Otherwise, how do you conclude that they "neglected" to collect one?

The only reason why a dealer would want to collect a deposit was to make sure you were serious about it, so you had some "skin in the game", as they say.

But they don't need that, as the dealer could easily sell the vehicle for well above MSRP if you back out for any reason. No loss to them.

 

[sprubs]

Did they tell you there would be a deposit and then not collect one?

Otherwise, how do you conclude that they "neglected" to collect one?

The only reason why a dealer would want to collect a deposit was to make sure you were serious about it, so you had some "skin in the game", as they say.

But they don't need that, as the dealer could easily sell the vehicle for well above MSRP if you back out for any reason. No loss to them.

yes, they said there would be one and then put an order in without one. Seems like it was just an error on their end where two people were working together and maybe didn't communicate.

 

[jesusdad]

google didn't help me with COVP. what is that?

When the dealer enters the order, it is attached to a customer's name, and the dealer submits copy of customer's DL to verify. Ford requires this on some models (all of MY22 Mavericks, for instance). This is to prevent dealers from placing a bunch of orders for "Jon Smith" to get more trucks on their and then often sell them at marked up prices.

If in a given month, a dealer has too many orders which do not get sold to the name on the order, dealership gets punished. Backing out of deals after vin is created is bad for dealers.

That being said, some salesmen still are going for the option of breaking the rule, taking the punishment, and being able to sell the vehicle for well above msrp.

 

[jesusdad]

No loss to them.

Read posts before commenting. Big loss to the dealer when vehicle is not sold to customer named on COVP.

 

[sprubs]

When the dealer enters the order, it is attached to a customer's name, and the dealer submits copy of customer's DL to verify. Ford requires this on some models (all of MY22 Mavericks, for instance). This is to prevent dealers from placing a bunch of orders for "Jon Smith" to get more trucks on their and then often sell them at marked up prices.

If in a given month, a dealer has too many orders which do not get sold to the name on the order, dealership gets punished. Backing out of deals after vin is created is bad for dealers.

That being said, some salesmen still are going for the option of breaking the rule, taking the punishment, and being able to sell the vehicle for well above msrp.

that all make sense, thanks. but what does COVP stand for?

 

[Eagle11]

I have an order confirmation from Ford. The dealer either forgot or maybe waived the deposit. Any risk of this causing an issue?? I honestly don't know why there is a deposit at this point anyway. The dealer would benefit greatly if I walked away from this thing later.

Why do you think a deposit is required?

 

[jsus]

yes, they said there would be one and then put an order in without one. Seems like it was just an error on their end where two people were working together and maybe didn't communicate.

Gotcha. Again, any deposit is at the dealer's discretion. Ford doesn't care whether you've given the dealer a deposit; Ford doesn't see your deposit or even a record of it.

If the dealer still wants one from you, they'll work with you to get it if they haven't already. No worries.

 

[sprubs]

Why do you think a deposit is required?

because they told me that on the phone.

 

[KyleM]

I called my dealer before order banks opened and was told a deposit would be required. Once I went in and actually plqced it no deposit was necessary.

 

[sprubs]

I'm sure we'll get it sorted out.

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