How Much Deposit

[disneyfanatic60]

My DD has finally found a used car to buy. I just got off with the owner and she cannot locate her title. Thus, it will be 7-10 days before we can register it until she receives another copy (doesn't make my DD a happy camper). I agreed we would drop off a deposit. I certainly do not feel comfortable paying for the car in full until we can actually register it. She will keep the car in her possession until we pay the final payment and she can turn over the title.

How much deposit do you think is fair to leave? I asked her if she had an amount in mind. She said "$1500" and I was surprised at such a high amount. I told her I would meet with her to finalize and pay the deposit on Friday. Does this amount seem high and over the top to anyone? I haven't bought a used car in more than 20 years so I wasn't sure what to expect.

Also, is there anything else I need to do when I pay the deposit other than the obvious of getting a receipt, etc? Also, we still have to finalize an amount. If someone was asking $4,000 would one think it would be fairly safe to think they could negotiate to maybe $3,500 or am I being unrealistic?

 

[Cindy's Mom]

Too many red flags for me.... how did the seller come to the conclusion that it will only take 7-10 days to receive a duplicate title. In Illinois that would be a miracle. What happens if it takes 2-3 months for the title - are you still committed to buying this car?

Why the high deposit? I think that $200-300 would be sufficient.

Remember that everything is negiotiable? But if this were me - I'd just go to Carmax.

 

[The Mystery Machine]

Yes, $1500 is too high for a deposit. She wants to make sure you do not back out. In 7-10 days you will probably find a better deal.

As far as $$$??? What is the car, year & mileage?

 

[clh2]

I would put down only as much as you can lose. Personally I think in the $100 to $200 range would be OK. $1500 is out of the ballpark, and far more than I could afford to lose.

What would you do if she spent the $1500, and then decided to sell the car to someone else.

I agree with the other poster, there are too many red flags.

 

[The Mystery Machine]

DH says do not leave a deposit since there is no title. If you want to then he suggests giving them a check for no more than $100.00 and NO CASH!

Make sure you type up something, like a receipt & have her sign it.

Seriously, I wouldn't do it. If you are selling then she should have been ready. Plenty more fish in the sea.

 

[disneyfanatic60]

Thanks everyone. I just checked the NYS Dept. of Motor Vehicles website and it does only take 5-7 days to get a duplicate copy (depending on the process she used to request a dup copy). I was surprised also because I thought it took much longer than that. The car is owned by a woman who I would say is in her late 20's/early thirties. I honestly expected to give a her check for $100 for a deposit pretty much like what has been suggested. I don't know if I caught her off guard by asking (I only asked because it's been so long I wasn't sure myself what was suitable). Based on her age, etc. I do not think she is "experienced" in selling a vehicle. Therefore, one reason she's not organized and asked for such a large deposit. She did say the deposit amount was "negiotable" and we would work something out. It almost seemed to me that she was almost "speaking off the cuff so to speak" and that's just what amount came out. I'm certainly not making excuses for her--don't get me wrong.

The car is a nice car for the dollars asked and in line with the blue book price, etc. She even mentioned she would have the car detailed before Friday. I was surprised because there was nothing more than the normal crumbs, dirt inside and the outside was very clean. I'm wondering if maybe we should still keep looking. My DD is not going to be happy--she's really excited about this car....

 

[horseshowmom]

I agree with everybody else - $1500 is way out of line. Your idea of $100 is more realistic. I might even go as high as $500, but no more than that for sure. I also agree about the contract stating what you've paid, what it was for, and how much is due when. Good luck!

 

[The Mystery Machine]

The car is a nice car for the dollars asked and in line with the blue book price, etc. She even mentioned she would have the car detailed before Friday. I was surprised because there was nothing more than the normal crumbs, dirt inside and the outside was very clean. I'm wondering if maybe we should still keep looking. My DD is not going to be happy--she's really excited about this car....

What is it? Make, model, YR, and the MILEAGE?

 

[disneyfanatic60]

It's a 2000 Ford Escort. It has 80,000 miles on it with 4 new tires, new brakes, just inspected in February. Interior and exterior in excellent shape. It's fully loaded with a rear-spoiler and sunroof. Based on what we've seen for the same price, it's a nice car. Most of what we are finding has mileage well over 100,000 miles and is older.

 

[Cindy's Mom]

I don't like the sound of this seller - She sounds as dumb as a fox. I think she doesn't even own the car and the finance company has the title. IMO that would take 7-10 days, and even though the NY web site says 5 days, I'll believe it when I see it - I worked in state government for 15 years and NOTHING takes 5 days! Also, even thought there the allotment of miles per year for a car has risen to 15k. I still think that 80k is too high, the Escort your describe sounds pretty sporty, and I bet those 80k are HARD miles. I have a 2000 car and I only have 36k, DH has a 2000 and only has 75k. There are much better cars out there. I think DD fell in love with the idea of having a cool car; who is going to fix this cool car when it starts to fall apart? .

 

[EthansMom]

I agree with others. I would give a $100 deposit in check made out to the seller. I would make a notation on the face of the check along the lines of: "Deposit for 2000 Escort Vin#XXXXXXXX". Also, make sure that you get a receipt that states the buyer's name, seller's name, deposit, selling price, car information and that a clear title will be delivered by X date or you would get your deposit back in full.

You're in a difficult position. The seller has no proof that she has clear title on this car. It's possible that she is asking for $1500 because she needs some money FAST! And it's possible that she has just never sold a car before. But, it can't hurt to be cautious.

 

[ChristmasElf]

What about checking those Car ad magazines near the entrances to grocery stores? Auto Trader I believe it is called.
I would also look into CarMax or even on the sides of the roads that are busy, where the owners put a for sale sign in the windows.