Paying a Deposit

  • This topic has 25 replies, 6 voices, and was last updated 3 months ago by Marcus.
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  • #148332 Reply
    Tracie
    Participant

    Hello. I am new to the motability scheme and will be ordering a car soon. We have several we like that require a deposit (we know some cars don’t need a deposit). My question is; when changing a car every 3 years, do you have to pay a deposit each time ? Or is the deposit just a one-time thing at tbe begining of joining the scheme?

Viewing 25 replies - 1 through 25 (of 25 total)
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  • #148334 Reply
    vinalspin
    Participant

    No deposits are required for cars when ordering on the scheme, any deposit asked for by a dealer is for them and has nothing to do with Motability.

    I have never paid a deposit and when I have been asked for one I refused, only once did I have to go to a different dealer as they wouldn’t accept an order without one and insisted it was non refundable so I walked away.

    If you want to risk giving a deposit then that is between you and the dealer and may be difficult to get back should you have to change/cancel your order for any reason.

    #148336 Reply
    Abdikareem

    Do you mean advanced payment?

     

    if so you would need to pay every 3 years depending on the AP at the time.

     

    #148352 Reply
    FiestaRed

    Not sure if by “deposit” you mean the Advance Payment (AP)?

    If it is the AP you mean, this has to be paid every time you lease a new car. The AP varies quite a bit between the different makes and models of car although some are usually available with zero AP.

    Hope this helps.

    #148353 Reply
    Appleman

    They call it an advanced payment,you pay this when you collect the car , on that day only,not before,you can see the advance payment when you look at the cars on website,every time you get a new car there will be a new AP to pay some there is non,others a lot,due to price,the advance payment is for the shortfall in car value after 3 years as the benefit payments do not quite cover total cost including tyres,service etc

    #148389 Reply
    michaelTurner

    Hi, Just guidance, please never trust a dealer that requires any form of a deposit other than for anything extra outside of what Motability agree to have fitted free.

    When you pay a deposit it becomes legally non enforceable to get back unless you can prove to a Court you were deliberately misled.

    The payments you are required to pay for a car are for part of the costs of the car, the dealer get what I am told is less than £100.00.

    Please report any dealer that refuses to action your order without a deposit to Motability in writing stating the Company location, the sales persons name from their card, the date and time of your attending the dealer.

    The dealer stands to lose their contract with Motability as they are not following agreements.

    Cheers and happy motoring

    Michsel

    #148398 Reply
    72 dudes

    What nonsense.

    And you wonder why Motability customers get treated as second best.

    A deposit shows the dealer that you are serious about ordering the car.

    We’ve had two on the scheme and both times we’ve put down a deposit of £500. We did add options.

    No way would we have been able to order an Audi or a Volvo without a deposit.

    Having said that, it’s correct that the deposit forms a contract between the dealer and the Motability customer. So people don’t change their minds.

    I hope the OP gets it back but the dealer has no obligation to do so.

     

    #148399 Reply
    Wigwam
    Participant

    Well, 72 dudes, we ordered a Volvo last Saturday and no deposit was asked for or expected. You show you are serious about ordering the car by signing a form on behalf of Motability.  Never have paid a deposit.

    #148416 Reply
    Glos Guy
    Participant

    We’ve recently ordered a BMW and added quite a few extras that take the retail price to around £41k. We haven’t paid a penny deposit, nor were we asked for one. I have paid £500 deposits before, but that was because I got the dealer to order 2 months before our 3 month order window opened (due to long lead times) and the dealer was technically ‘at risk’ by doing so, as it couldn’t be placed on the Motability system until 2 months after we ordered. However, I think that Tracie is probably referring to the Advance Payments which, as we all know, are unavoidable every time you order a new car.

    • This reply was modified 4 months ago by Glos Guy.
    #148418 Reply
    Tracie
    Participant

    Hi Everyone, thank you so much for all your responses! This is all new to me, and each one of your answers have been very valuable in what I needed to know.

    Have a lovely evening!

    Tracie 🚙

    #148420 Reply
    Glos Guy
    Participant

    Hi Everyone, thank you so much for all your responses! This is all new to me, and each one of your answers have been very valuable in what I needed to know. Have a lovely evening! Tracie 🚙

    Well I’m amazed that you got the info that you wanted Tracie as two of the responses gave several pieces of factually incorrect information!!

    #148422 Reply
    Tracie
    Participant

    Hi Everyone, thank you so much for all your responses! This is all new to me, and each one of your answers have been very valuable in what I needed to know. Have a lovely evening! Tracie 🚙

    Well I’m amazed that you got the info that you wanted Tracie as two of the responses gave several pieces of factually incorrect information!!

     

    @Glos Guy  This thread has answered what I specifically wanted to know, so it served its purpose.

    #153206 Reply
    Davy

    If the ap is now 200/250 cheaper for exact same model why do you have to pay the greater amount

    #153207 Reply
    Davy

    Ps car has been delayed since May 4th

    #153208 Reply
    mitch
    Participant

    davy, motability guarentee that the ap when you sign is the ap you pay, as in many cases the ap goes up rather than down.

    however any decent dealer will usually allow you to cancel and reorder if the ap goes down.

    its purely a paper exercise and wouldnt delay your car or cost the dealer anything as they get a fixed fee regardless of the ap.

    just ask the dealer.

    #153209 Reply
    Wigwam
    Participant

    To add to what mitch said, the dealer wouldn’t be cancelling the order for the car, just the process with Motability, so they can issue you a new offer with the lower AP.

    #155217 Reply
    Tharg
    Participant

    When ordering a car on the scheme recently, the dealer said he wanted a £500 deposit because “we always take a deposit for all new cars”. Pointed out, courteously, that he will be most unpopular with Motability because it says dealers should not ask for deposits like this. After a quick word with his boss, he agreed that no deposit would be taken. My point? If asked for cash up-front, tell ’em politely, they shouldn’t be asking. Might save you stumping up too soon.

    #155219 Reply
    Glos Guy
    Participant

    When ordering a car on the scheme recently, the dealer said he wanted a £500 deposit because “we always take a deposit for all new cars”. Pointed out, courteously, that he will be most unpopular with Motability because it says dealers should not ask for deposits like this. After a quick word with his boss, he agreed that no deposit would be taken. My point? If asked for cash up-front, tell ’em politely, they shouldn’t be asking. Might save you stumping up too soon.

    Tharg – whilst it is preferable not to pay a deposit, Motability does not state that dealers must not ask for one. To quote from the Motability website regarding ordering a car;

    In some cases, according to individual dealership policies, your dealer may ask for a deposit to be paid when you are ordering your new car. Any deposit paid will be deducted from the Advance Payment you need to pay when collecting your car.

    #155221 Reply
    Tharg
    Participant

    Thank you, GG. I didn’t know that.

    #155228 Reply
    Gary

    I’ve paid a deposit on the Volvo, I’d also paid on the VW we cancelled (returned as theyd not placed the factory order in 6 months)

    Im happy to pay a deposit, however, its not always required.  That said, if you cancel an order, then they are also entitled to request a cancellation fee (I guess it would be a case of what stage the order is at)

    #155238 Reply
    Wigwam
    Participant

    Gary. The contract to buy the car is between Motability and the dealer.  You cannot be held to account by the dealer if you decide not to go ahead with your lease from Motability.  So they can’t ask money from you.

    #155240 Reply
    Paul

    I just thought .Paying the advance payment is not a requirement however ,dealers can ask for deposit payment towards any extras that may be required with the car.Which i think is fair .

     

    #155241 Reply
    Glos Guy
    Participant

    Gary. The contract to buy the car is between Motability and the dealer. You cannot be held to account by the dealer if you decide not to go ahead with your lease from Motability. So they can’t ask money from you.

    Agreed, and the contract that we agree to is with Motability Operations as well, not the dealer, so the dealer is merely acting as an agent and cannot hold customers to account financially as we never enter into a legally binding agreement with them.

    #155242 Reply
    Wigwam
    Participant

    Paul, dealers can, and indeed do sometimes, ask for a deposit towards extras, although it’s not something I have experienced.  We are equally entitled to refuse and if necessary order from another dealer. I don’t see a dealer’s cashflow to be my responsibility.

     

    #155243 Reply
    Glos Guy
    Participant

    I just thought .Paying the advance payment is not a requirement however ,dealers can ask for deposit payment towards any extras that may be required with the car.Which i think is fair .

    In the past I have paid for options up front and, as mentioned in a previous post, I have paid a deposit before when a dealer agreed to order a car five months before our lease ended, as they were ‘at risk’ due to not being able to assign it to Motability until three months before. As you say, that seems fair.

    It does vary by dealer though. Some ask for a deposit towards the AP (which they are quite at liberty to do), others ask for the cost of options up front, some require both and others require nothing. We recently ordered a BMW and added a few grands worth of options yet the dealer didn’t even ask for a penny deposit – for the AP or the options. Great if they will do that as, if the car is subject to prolonged delays, or something better arrives in July’s list, I may cancel and re-order although, in the current climate of prolonged delays everywhere, I’m not sure that I want to go to the back of the waiting list again!

    #155251 Reply
    Marcus

    I payed the AP up front as a form of deposit. This is because the dealer has ordered the car 7 weeks prior, to my lease renewal letter arriving. I thought this more than fair and I was more than happy to do so.

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