Comments on: Would You Take a Down Payment on a Car?

By: Madison

Madison — Fri, 30 May 2008 20:33:37 +0000

@ All: You guys rock! Thanks for all the reassurances.

Oh, and 2.5% was $500, so I don’t think he’d want to walk away from it!

By: July Bucks

July Bucks — Tue, 20 May 2008 15:09:57 +0000

That’s a good idea. When my friends were moving out of their old house, they were selling some furniture and when their buyer asked to delay the payment, they requested 5% of the price for a down payment. I think any buyer should be okay with down payment b’se it’s a kind of guarantee both for seller and for buyer. If I ever were in such situation, I would do the same you did.

By: fathersez

fathersez — Tue, 20 May 2008 06:51:45 +0000

This seems to be a good way for the young man to show his commitment.

If he doesn’t not buy, then he forfeits the 2.5%. I don’t know how much this 2.5% is, but should be a figure that should give him a little pain if lost.

By: Thrifty Femme

Thrifty Femme — Tue, 20 May 2008 02:52:05 +0000

Sounds like an excellent way to weed out the people that will waste your time.

By: No Debt Plan

No Debt Plan — Tue, 20 May 2008 01:55:14 +0000

I would make the buyer sign a well worded, clear legal contract stating the terms. Other than that, why not?

By: MITBeta @ Don't Feed The Alligators

MITBeta @ Don't Feed The Alligators — Tue, 20 May 2008 01:33:08 +0000

I think this arrangement is called an \”option\”. Essentially the buyer controls the ownership of the car. He can exercise the option within a certain time or forfeit it.

Sounds like a great plan to me.

By: creditaddict.com

creditaddict.com — Mon, 19 May 2008 16:36:03 +0000

You've been tagged.

By: Jeff@MySuper-Charged Life

Jeff@MySuper-Charged Life — Mon, 19 May 2008 16:16:16 +0000

I think for me that it depends on the situation. If the car had been on the market for awhile with little interest, then I might agree to the down-payment scenario. Of course, if the offer is a good one and you aren’t in a hurry, then no harm done if the deal falls through, right?

By: Andrew

Andrew — Mon, 19 May 2008 16:15:44 +0000

Seems fine to me. I’d simply look at it as a non-refundable deposit. If he doesn’t come through on his end of the deal then you can just find another buyer and pocket the deposit.