Need to give credit card for putting an offer?

[an_y]

When shopping for a new car, I visited several dealerships, and most of the salesperson would ask me to give him my credit card when I presented him with my offer? He then would go to his sales manager with my credit card and the offer. Is this the industry standard?
I am pretty hesistant giving out my credit card since I ran into a shady dealership once where my card was swiped even though I didn't agree with the price. Any suggestions anyone?

[yao416]

We were at Markham Honda today and when we put a "offer" the salesperson ask us for a credit card as well, we refused to give them.

[jasonkwan86]

A credit card is necessary in order to put in the offer. It is proof that you are willing to go through with the purchase and that deposit can be made assuming the manager agrees with your offer.

[lordzod]

A credit card is necessary in order to put in the offer. It is proof that you are willing to go through with the purchase and that deposit can be made assuming the manager agrees with your offer.

I don't believe for a minute that it's necessary.

Back in Feb when I was going through the process of purchasing my Mini, no request was ever made of me for my CC. So maybe that's just the way your dealership does it. My dealer got my CC only when we had agreed on the deal and I used it for my deposit.

But if I was asked I would have refused. If no transaction is taking place, ie an actual deposit, I don't see a valid reason for them to have your CC info.

[EP32k2]

It is the dealers way to force you to commit to the purchase. I say screw that. I have bought 4 new cars without giving out my CC to them. Once they ask me, I just tell them that I am shopping and that if the price is right I will committ. Don't fall for their sneaky tactics. Remember they want your business and there are plenty of dealers to choose from.

The first dealer that asked me for my CC I actually played along, but gave them a card that only had a $500 limit...LOL

[blackmoon69]

dont give the CC negotiate the price first and if it push thru then you can give it to them.

[blackmoon69]

I don't believe for a minute that it's necessary.

Back in Feb when I was going through the process of purchasing my Mini, no request was ever made of me for my CC. So maybe that's just the way your dealership does it. My dealer got my CC only when we had agreed on the deal and I used it for my deposit.

But if I was asked I would have refused. If no transaction is taking place, ie an actual deposit, I don't see a valid reason for them to have your CC info.

my dealer did the same thing as you did.

[lucretius]

I recently was defrauded by a dealership and I had put done a credit card deposit. Deposits are not necessary -- there usaually just a way for dealers to bind you to a deal, yet they can easily back out of it. IMHO, reputable dealers do not need to take deposits. And, I will NEVER give a deposit again!

When shopping for a new car, I visited several dealerships, and most of the salesperson would ask me to give him my credit card when I presented him with my offer? He then would go to his sales manager with my credit card and the offer. Is this the industry standard?
I am pretty hesistant giving out my credit card since I ran into a shady dealership once where my card was swiped even though I didn't agree with the price. Any suggestions anyone?

[m4gician]

I recently was defrauded by a dealership and I had put done a credit card deposit. Deposits are not necessary -- there usaually just a way for dealers to bind you to a deal, yet they can easily back out of it. IMHO, reputable dealers do not need to take deposits. And, I will NEVER give a deposit again!

sorry to hear that, please post their name and location so we can publically boycott them...

[CaptSmethwick]

Actually, it's an old trick to keep you in the showroom during the back-and-forth negotiations. If they have your card (or car keys or whatever), it makes it that much harder for you to walk out in the heat of the to-and-fro.

The least reputable out there also use them to run credit checks.

Frankly, at a reputable dealership where they know you and know you're serious, they won't even ask you for this. Once upon a time, I bought at places that used to ask and I always refused. One time (many years ago), a salesman said to me "I need something to demonstrate to my sales manager that you're serious".

[Anonymouse]

Volvo of Unionville did this to me yesterday. I fell for it. I actually gave them a $3k deposit, which in retrospect seems a little much.

[afretes]

It doesn't make a difference if the dealer has your CC or keys or whatever... If you are not satisfied with the transaction, ask for them back and leave.
What is the big deal? They can't charge it unless you authorize it anyway. Are you intending to buy a car without a deposit or are you simply wasting time?
Put your money on the table when you are making an offer, show you are interested and that you mean business! Don't think that because you have bought 4 or more cars you know what you're doing, we sell anywhere between 40 and 50 cars a month, I believe we have a bit more experience in this area.
It has been a normal business practice everywhere and for all transactions to give a deposit to secure the item you are intending to buy. I really don’t see the point some people are making by not complying with something that makes absolute sense.

[lordzod]

There's nothing wrong with a reasonable deposit. But until, the deal is made, and both parties are satisfied with the price to be paid, there is no reason for the dealership to get CC info prior to this.

They can't charge it unless you authorize it anyway.

So what's the point of giving the CC info then, as you said it's not like you can do anything with it? So why request it?

Actually, it's an old trick to keep you in the showroom during the back-and-forth negotiations. If they have your card (or car keys or whatever), it makes it that much harder for you to walk out in the heat of the to-and-fro.

The least reputable out there also use them to run credit checks.

Frankly, at a reputable dealership where they know you and know you're serious, they won't even ask you for this. Once upon a time, I bought at places that used to ask and I always refused. One time (many years ago), a salesman said to me "I need something to demonstrate to my sales manager that you're serious".

Now this makes more sense as to why some dealerships want the info than to "show that I am serious"

[CaptSmethwick]

It doesn't make a difference if the dealer has your CC or keys or whatever... If you are not satisfied with the transaction, ask for them back and leave.
What is the big deal? They can't charge it unless you authorize it anyway. Are you intending to buy a car without a deposit or are you simply wasting time?
Put your money on the table when you are making an offer, show you are interested and that you mean business! Don't think that because you have bought 4 or more cars you know what you're doing, we sell anywhere between 40 and 50 cars a month, I believe we have a bit more experience in this area.It has been a normal business practice everywhere and for all transactions to give a deposit to secure the item you are intending to buy. I really don’t see the point some people are making by not complying with something that makes absolute sense.

I make a deposit when I sign a sales agreement, not when I put in an offer. The seller doesn't need a CC to consider my offer and if my presence in the dealership doesn't indicate that I'm serious, I highly doubt that the symbolism of letting them hold my CC is better.

At the end of the day, I don't want to be held in my chair having to ask for anything back if I decide to leave at any point in a negotiation.

BTW, the part of your post that I bolded came across to me as rather arrogant - consumer insight is easily as important as yours.

[MichaelKnight]

Could it be to prevent people from making offers only to walk out (after it is accepted) and use as leverage at another dealership?