Automotive

Are deposits for pre-orders usually refundable?

  • Last Updated:
  • Mar 31st, 2022 7:27 am
[OP]
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Oct 30, 2010
381 posts
81 upvotes
Toronto

Are deposits for pre-orders usually refundable?

I went to a Hyundai dealer this morning to test drive the Ioniq 5, and afterwards the sales rep told me orders for the 2022 model are all closed, and if I wanted one, I need to place an order asap or even the 2023 model will sell out. He told me the deposit is $500 and is completely refundable if I change my mind at any time. Given some part of this is probably sales talk, does anyone know if deposits for pre-orders are usually refundable without question? Like I can literally walk in the day before my car arrives and tell them to give my deposit back for any reason, e.g. wait is too long, I changed my mind and want to buy another car, etc?
18 replies
Deal Addict
Dec 9, 2001
1552 posts
73 upvotes
Maple
I got the same story today on a Palisade, but my understanding is that you can cancel until they actually confirm the VIN or delivery date (2-3 months before delivery).
Deal Addict
Jan 8, 2007
2996 posts
1536 upvotes
AB
Yes it is. If you're worried, have them write it on your receipt, even something like deposit refundable pending a test drive or even sitting in the car. A dealer won't take your money if you say no and you hadn't even had a change to sit in one.
They will have no issues selling it when it arrives if you back out that day.
Deal Fanatic
May 22, 2003
8164 posts
5041 upvotes
Vancouver
Yes, if it's written as refundable it's refundable.
Deal Addict
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May 22, 2009
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Caledon
A bill of sale is only valid for 90 days.
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Deal Fanatic
Feb 4, 2015
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Canada, Eh!!
afretes wrote: A bill of sale is only valid for 90 days.
Exactly.

Just to add I believe if there is a delivery date noted then it is 90 days from that.
2022: BOC raised 2 times and MCAP raised its prime next day.
2017 to 2018: BOC raised rates 5 times and MCAP raised its prime next day each time.
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Deal Fanatic
Aug 29, 2011
7645 posts
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Mississauga
What is a "pre-order"? Isn't that just the same as an "order"?
Deal Expert
Mar 23, 2004
31582 posts
12869 upvotes
mrweather wrote: What is a "pre-order"? Isn't that just the same as an "order"?
LOL this "shortages" madness has been what many stealers have been waiting for, for ages.

Now cars have become like videogames where people are suckered into this "pre-order" nonsense. Also you'll pay full price (MSRP) as if "you're getting it first" or something :facepalm:
You know even if it's a model that has been on the market for 2-3 years, still, "It's time to 'pre-order' folks! Join the line before you can't get one. We're already taking 'pre-orders' for 2023, you don't want to miss out!"

All playing on modern-day society's need to "be first", their "FOMO" and all that shit. Surely marketing geniuses manufacturers hire will come up with ways to hype their stuff like it's fashion. Kids idolising "influencers" on YT/instagram/tik-tok/whatever else, growing up with this mentality--sigh. It's a bleak future, a very bleak one, for car buyers if this kind of nonsense continues.
Deal Addict
Nov 16, 2008
2660 posts
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Only catch I would hesitate on would be any changes for 2023's..going through this with a GTA Hyundai dealer on a Kona N Line and they all want my deposit, but nobody knows of any potential changes in a new MY
Deal Guru
Oct 7, 2010
12105 posts
3317 upvotes
ES_Revenge wrote: LOL this "shortages" madness has been what many stealers have been waiting for, for ages.

Now cars have become like videogames where people are suckered into this "pre-order" nonsense. Also you'll pay full price (MSRP) as if "you're getting it first" or something :facepalm:
You know even if it's a model that has been on the market for 2-3 years, still, "It's time to 'pre-order' folks! Join the line before you can't get one. We're already taking 'pre-orders' for 2023, you don't want to miss out!"

All playing on modern-day society's need to "be first", their "FOMO" and all that shit. Surely marketing geniuses manufacturers hire will come up with ways to hype their stuff like it's fashion. Kids idolising "influencers" on YT/instagram/tik-tok/whatever else, growing up with this mentality--sigh. It's a bleak future, a very bleak one, for car buyers if this kind of nonsense continues.
Wouldn’t be surprise this whole Covid thing and oil shortage is all a master plan to enslave everyone. Including the massive unnatural immigration we have. Does growth matter?
[OP]
Member
User avatar
Oct 30, 2010
381 posts
81 upvotes
Toronto
ES_Revenge wrote: LOL this "shortages" madness has been what many stealers have been waiting for, for ages.

Now cars have become like videogames where people are suckered into this "pre-order" nonsense. Also you'll pay full price (MSRP) as if "you're getting it first" or something :facepalm:
You know even if it's a model that has been on the market for 2-3 years, still, "It's time to 'pre-order' folks! Join the line before you can't get one. We're already taking 'pre-orders' for 2023, you don't want to miss out!"

All playing on modern-day society's need to "be first", their "FOMO" and all that shit. Surely marketing geniuses manufacturers hire will come up with ways to hype their stuff like it's fashion. Kids idolising "influencers" on YT/instagram/tik-tok/whatever else, growing up with this mentality--sigh. It's a bleak future, a very bleak one, for car buyers if this kind of nonsense continues.
No one likes this pre-order bullshit either. But what can we do? Boycott all car companies and travel on foot with Canada's absolutely shitty public transport system? Yeah no. Not everyone has another car to even fall back on (like me). It's all fun to complain about how bad capitalism is but life goes on.

I think the days of "bartering with the salesperson for a 10% off your car" has been long gone. Post-covid you just buy a car at MSRP and that's it, unless you're like best buddies or related the sales person I guess.
Deal Fanatic
Aug 29, 2011
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Mississauga
Heartcloud wrote: I think the days of "bartering with the salesperson for a 10% off your car" has been long gone. Post-covid you just buy a car at MSRP and that's it, unless you're like best buddies or related the sales person I guess.
If that’s the case, why maintain a sales department? Just have some people at the dealership handing out keys for test drives then checkout at a cashier to pay for your car.
Deal Addict
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Jul 4, 2009
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Windsor, ON area
mrweather wrote: If that’s the case, why maintain a sales department? Just have some people at the dealership handing out keys for test drives then checkout at a cashier to pay for your car.
I would actually prefer that. I hate haggling and dealing with car salespeople.

I recently went to a Mini dealership two weeks ago. Test drove the car, said I'll buy it. I just said give me your best price and that was it. He gave me $2000 off MSRP and I said ok. Even if he said MSRP, I would have said ok.
[OP]
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User avatar
Oct 30, 2010
381 posts
81 upvotes
Toronto
mrweather wrote: If that’s the case, why maintain a sales department? Just have some people at the dealership handing out keys for test drives then checkout at a cashier to pay for your car.
Why have salespeople for a cosmetics department? Why have people in the Apple store?
They're here to explain the product to you and answer any questions, and also come along for the test drive.
kittypink wrote: I would actually prefer that. I hate haggling and dealing with car salespeople.

I recently went to a Mini dealership two weeks ago. Test drove the car, said I'll buy it. I just said give me your best price and that was it. He gave me $2000 off MSRP and I said ok. Even if he said MSRP, I would have said ok.
I'm happy if I get a 1-2k discount on the Ioniq 5, though I'm assuming that'll only happen once I get the actual price/specs of the car when it comes out.
Deal Fanatic
Aug 29, 2011
7645 posts
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Mississauga
Heartcloud wrote: Why have salespeople for a cosmetics department? Why have people in the Apple store?
They're here to explain the product to you and answer any questions, and also come along for the test drive.
Maybe it’s just me but I make sure to do my homework before making a large purchase (like a car). I don’t really need an explanation about the product. (And I don’t need them along for a test drive but I accept that it’s standard now for insurance/liability reasons.)
Member
Jun 12, 2020
217 posts
111 upvotes
I am on the same boat here.
When you place a 'pre-order' or a 'deposit', do you need to go through all standard procedures (confirm OTD price, negotiate for free winter tires/mats/services etc) and sign all necessary documents (sales contract etc) as if you are buying the vehicle for real, except you make sure to write 'deposit is fully refundable' on the receipt?

I am a first time car buyer and would like to make sure I understand correctly before 'pre-ordering' my car. Thanks
Deal Fanatic
Dec 20, 2018
6356 posts
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mrweather wrote: What is a "pre-order"? Isn't that just the same as an "order"?
preorder basically means putting your name in line for an allocation when it's available....

Order is actually putting in an order for car you want and manufacturer will acknowledge it (if they are taking orders)

For example, Toyota/Lexus don't take orders now, so you can't actually put in an order, they only give out allocation when it's available to dealers
Deal Fanatic
Dec 20, 2018
6356 posts
5410 upvotes
pewlykertor wrote: I am on the same boat here.
When you place a 'pre-order' or a 'deposit', do you need to go through all standard procedures (confirm OTD price, negotiate for free winter tires/mats/services etc) and sign all necessary documents (sales contract etc) as if you are buying the vehicle for real, except you make sure to write 'deposit is fully refundable' on the receipt?

I am a first time car buyer and would like to make sure I understand correctly before 'pre-ordering' my car. Thanks
There's no need to negotiate/confirm and even if you do, not much point since it's all subject to change as manufacturer can change price, trim, equipment and of course rates as well
Member
Jan 25, 2019
247 posts
565 upvotes
Everyone wanted the 'Tesla' sales model and now it is here. Place any order, full-price and wait. Everyone wanted no more negotiation BS, being shown and in stock model that was completely different and all the rest of it, well now its changed. Any you get bet every dealer in the country is begging the manufacture to keep it this way going forward.

Back to the OP. Make sure it is written on the bill of sale 'Refundable Deposit' and you should have no problem getting your deposit back.

In this case I am guessing PRE ORDER mean they are taking deposits on a vehicle that they cannot order in their system yet, once their system allows for orders on the 2023 then the orders will go in the system in order of the dates that the deposits were taken.

We are doing the same on the BZ4X (stupidest name for a vehicle ever? )... customers are insisting we take their orders even though I cannot punch it through the Toyota Ordering system... once it is available, then we will input the orders based on the bill of sale.

If you are unsure about a dealership's refund policy.. ask to speak to the sales manager to clarify... the sales people cannot make the call who gets a refund or not. Where I work, all orders are refundable and no questions asked if someone wants their deposit back. Their order stays in the system and we re-assign the vehicle... with almost 600 orders in the system, there is no reason to keep anyone's deposit... there is a wait list for every vehicle we make.

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