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<\/p>\nIn the second-hand car market, it\u2019s not uncommon to encounter sellers who are looking for some security to close a deal. That is, if you are hoping they will hold onto the vehicle while you stump up the cash, then it\u2019s only fair that a deposit be placed. Not only does this show that your interests are legitimate but it protects the seller in case you pull out of the deal when they have other interested buyers.<\/p>\n
When it comes to the new car market, a deposit isn’t strictly essential when applying for finance to secure the car you want. However, by doing so, it can make your life a whole lot easier, as you’ll have a larger choice of financiers to deal with, not to mention, scope to achieve better terms for any finance on the vehicle.<\/p>\n
With this in mind,\u00a0before you make the decision to put down a deposit for a car, consider these vital points.<\/p>\n
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Because there are often caveats dictating the instances in which a car deposit may be refunded, or the ability to back out of a loan, there is nothing more important than being sure this car is the car for you. It\u2019s one thing to\u00a0think<\/em>\u00a0that the car is what you\u2019re after but until you\u2019ve taken it out for a spin, and looked into its detailed history, you\u2019re really just taking a punt \u2013 and a risky one at that.<\/p>\n Be sure to arrange a test drive. If it’s a second-hand vehicle, look into the vehicle\u2019s service history and general condition to see if there might be any gremlins hiding under the hood. Most importantly, check the Personal Property Securities Register (PPSR) to ensure that the car has a clean bill of history \u2013 that is, it\u2019s neither stolen, written-off, or under finance.<\/p>\n <\/p>\n If there was ever a more important thing when it comes to buying a car, it\u2019s hard to go past a contract. This will not only outline the terms of the sale, and for any finance you have secured, but define each party\u2019s rights in the event of a disagreement.<\/p>\n Verbal discussions and agreements might be fine for low value asset purchases but a car is not one of them. Always draft a contract \u2013 even a simple one \u2013 to define the terms surrounding the deposit and under what circumstances you can reclaim it. Every reputable dealer will also deal with you through a contract, so if you ever have any resistance on that point, run!<\/p>\n <\/p>\n <\/p>\n Although a dealer or private seller may claim to have other prospective buyers waiting in the wings, it\u2019s crucial you do not rush the abovementioned due diligence on account of feeling pressured into the sale. Whether it is the terms of the sale, conditions of the deposit with your financier, or the dollar figure associated with either aspect, always try to bargain your way to a better outcome.<\/p>\n If you feel as though the dealer or seller is trying to close the sale quickly, there may or may not be legitimate reasons. But remember, reversing a bad decision is a far more complex and unlikely task than finding another suitable vehicle to buy.<\/p>\n <\/p>\n The trade-off between a deposit or higher up-front purchase price will follow you for years to come. So always make sure that you weigh up your financial position, including ability to meet repayments, job security and the like. Speak to a financial adviser if necessary, as it’s important you get that loan-to-value ratio spot on.<\/p>\n","protected":false},"excerpt":{"rendered":" In the second-hand car market, it\u2019s not uncommon to encounter sellers who are looking for some security to close a deal. That is, if you are hoping they will hold onto the vehicle while you stump up the cash, then it\u2019s only fair that a deposit be placed. Not only does this show that your […]<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[6741,6742,6743],"class_list":["post-13083","post","type-post","status-publish","format-standard","hentry","category-buy-new-car","tag-car-deposit","tag-deposit","tag-down-payment"],"_links":{"self":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts\/13083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/comments?post=13083"}],"version-history":[{"count":1,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts\/13083\/revisions"}],"predecessor-version":[{"id":13084,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts\/13083\/revisions\/13084"}],"wp:attachment":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/media?parent=13083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/categories?post=13083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/tags?post=13083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}A contract speaks louder than everything else<\/strong><\/h3>\n
![\"\"](\"https:\/\/fincar.com.au\/wp-content\/uploads\/2019\/01\/pexels-photo-259130.jpeg\")
<\/p>\nRelieve pressure by negotiating<\/strong><\/h3>\n
Put down what you can afford<\/strong><\/h3>\n