Refundable deposit shenanigans

[ct4vBWpath]

I decided to back out of my order for a CT4-V BW because after mulling it over, I'd actually like to go for the CT5-V BW. Salesman stated my deposit is refundable throughout the whole process.

I email yesterday about backing out, salesman says nobody else has ordered in my spec and because the car is in production, he wants to wait until he sells it to somebody else to refund my deposit.

Is this common practice? Not sure, haven't worked with GM dealers before. I've definitely gotten my deposit refunded immediately everywhere else I've been (that had the policy of refundable deposits). My best guess is that as long as he has my deposit on it, no other salesman can sell the car I built, and that's the real reason he wants to hold it.

If it's not common practice, I am considering burning bridges by writing a bad review on google, as this "refundable deposit" policy was not shared with me at any point in the process. It was overall very smooth and easy to go through, so I was considering ordering the CT5-V BW with them, but now I'm having second thoughts.

 

[ArgentWing]

Doesn't sound kosher to me!

 

[MatthewAMEL]

Almost every 'refundable deposit' becomes non-refundable once the car hits production. Is your order in a 3000 status?

Do you have it in writing that its refundable through the 'whole process'?

Why can't they just transfer your deposit to a BW5 order?

 

[1Evil55]

blast them and find a dealer that wants to help. Bullshit they want to keep your money if the agreement was that it was refundable.

 

[raptor5244]

I decided to back out of my order for a CT4-V BW because after mulling it over, I'd actually like to go for the CT5-V BW. Salesman stated my deposit is refundable throughout the whole process.

I email yesterday about backing out, salesman says nobody else has ordered in my spec and because the car is in production, he wants to wait until he sells it to somebody else to refund my deposit.

Is this common practice? Not sure, haven't worked with GM dealers before. I've definitely gotten my deposit refunded immediately everywhere else I've been (that had the policy of refundable deposits). My best guess is that as long as he has my deposit on it, no other salesman can sell the car I built, and that's the real reason he wants to hold it.

If it's not common practice, I am considering burning bridges by writing a bad review on google, as this "refundable deposit" policy was not shared with me at any point in the process. It was overall very smooth and easy to go through, so I was considering ordering the CT5-V BW with them, but now I'm having second thoughts.

Most dealerships have no issue refunding deposits but technically it is based on the contract you sign when leaving the deposit. Most documents will state in writing that the deposit is fully refundable. Sometimes the dealer will have a published policy on the matter. I always try to negotiate the lowest deposit amount possible, usually around $500.

That said, I think your dealer is pretty bad to hold your deposit hostage, especially if you are a repeat customer or looking to purchase a CT5 BW. And what is so crazy about your build such that they won't be able to find a buyer for the car?

 

[1Evil55]

Most dealerships have no issue refunding deposits but technically it is based on the contract you sign when leaving the deposit. Most documents will state in writing that the deposit is fully refundable. Sometimes the dealer will have a published policy on the matter. I always try to negotiate the lowest deposit amount possible, usually around $500.

That said, I think your dealer is pretty bad to hold your deposit hostage, especially if you are a repeat customer or looking to purchase a CT5 BW. And what is so crazy about your build such that they won't be able to find a buyer for the car?

It's a 4

 

[RancidSumo]

Most dealers I called about ordering a Blackwing and ordering an M3 said the deposit was refundable until production.

 

[ArgentWing]

Most dealers I called about ordering a Blackwing and ordering an M3 said the deposit was refundable until production.

So my dealer has had my deposit since June 1st. That means they've had the use of my money for six months. The car was produced two and a half months ago. There is still no indication the car will be delivered anytime soon. If I don't have a car yet by Spring and I decide I want my deposit back you're saying I'm not entitled to it? How long does the dealer have to deliver a car? Months? Years?

I need a lawyer!!!

 

[ct4vBWpath]

Almost every 'refundable deposit' becomes non-refundable once the car hits production. Is your order in a 3000 status?

Do you have it in writing that its refundable through the 'whole process'?

Why can't they just transfer your deposit to a BW5 order?

Yeah, it hit 3000 status. So that is the practice that could be in play here. In any case, I haven't signed anything stating the exact deposit policy.

I was thinking about just transferring it to the BW5 order, but I was still considering whether to go with this dealership or another one.

The important thing is that he says he'll refund it "when he sells the car". Why would they have such a policy in place? It's weird, it's not like they're not going to be able to sell the vehicle. It's Wave metallic with black rims, manual transmission. That can't be THAT out there right?

 

[MatthewAMEL]

So my dealer has had my deposit since June 1st. That means they've had the use of my money for six months. The car was produced two and a half months ago. There is still no indication the car will be delivered anytime soon. If I don't have a car yet by Spring and I decide I want my deposit back you're saying I'm not entitled to it? How long does the dealer have to deliver a car? Months? Years?

In my experience, the deposit is good for a specific order number. Order numbers do not carry over from model year to model year. If you car isn't produced by the time 2023 production stops, your order is automatically cancelled and your deposit should be immediately refunded. If it's been produced, but not delivered, that becomes a bit of a gray area.

 

[M2Cto4BW]

What state are you in?

Yeah, it hit 3000 status. So that is the practice that could be in play here. In any case, I haven't signed anything stating the exact deposit policy.

I was thinking about just transferring it to the BW5 order, but I was still considering whether to go with this dealership or another one.

The important thing is that he says he'll refund it "when he sells the car". Why would they have such a policy in place? It's weird, it's not like they're not going to be able to sell the vehicle. It's Wave metallic with black rims, manual transmission. That can't be THAT out there right?

What state are you in? As your options may vary by state.

For instance, all deposits are refundable in CA regardless of what a dealer says, as long as you don't complete the purchase - regardless if the car is sitting in front of you in the showroom when you decide to cancel or still only an order number.

The fine print says they don't have to refund until they sell the car (if it exists) but most dealers aren't that stupid or petty, so it doesn't come up.

 

[ct4vBWpath]

What state are you in?

What state are you in? As your options may vary by state.

For instance, all deposits are refundable in CA regardless of what a dealer says, as long as you don't complete the purchase - regardless if the car is sitting in front of you in the showroom when you decide to cancel or still only an order number.

The fine print says they don't have to refund until they sell the car (if it exists) but most dealers aren't that stupid or petty, so it doesn't come up.

CT ordering from NY.

 

[ct4vBWpath]

In any case, if anyone is interested in a CT4-V Blackwing event code 3000 as of today, 11/28. Wave metallic, black rims, sky cool gray interior, head up display, sunroof, manual transmission. I can put you in contact with the sales person if you dm.

Edit: As mentioned above, the dealer is in New York.

 

[raptor5244]

It's a 4

4BWs have been selling pretty well in my area.

 

[raptor5244]

Yeah, it hit 3000 status. So that is the practice that could be in play here. In any case, I haven't signed anything stating the exact deposit policy.

I was thinking about just transferring it to the BW5 order, but I was still considering whether to go with this dealership or another one.

The important thing is that he says he'll refund it "when he sells the car". Why would they have such a policy in place? It's weird, it's not like they're not going to be able to sell the vehicle. It's Wave metallic with black rims, manual transmission. That can't be THAT out there right?

It is probably the manual transmission if they are a dealer that typically doesn't sell to enthusiasts. A lot of Cadillac dealership locations have demographics that consist of more "mature" folks not really interested in rowing their own gears anymore.

There are a lot of dealers in my area, not just Cadillac that will not order any vehicles with a manual transmission for stock inventory. You need to custom order them since they all become afraid of being stuck with the car. Meanwhile, they say that and then the car with a manual seems to sell right away.

 

[Snowwolfe]

It is probably the manual transmission if they are a dealer that typically doesn't sell to enthusiasts. A lot of Cadillac dealership locations have demographics that consist of more "mature" folks not really interested in rowing their own gears anymore.

There are a lot of dealers in my area, not just Cadillac that will not order any vehicles with a manual transmission for stock inventory. You need to custom order them since they all become afraid of being stuck with the car.

Same here. When I first started my quest for this car my dealer told me they required a $5,000 no refundable deposit to order a manual. For the A10 it was $1,000 and fully refundable.

 

[raptor5244]

Same here. When I first started my quest for this car my dealer told me they required a $5,000 no refundable deposit to order a manual. For the A10 it was $1,000 and fully refundable.

There are just not that many of us left that prefer to row our own gears. In fairness, most of the dealers don't even understand what the 4BW/5BWs are even about. They typically don't sell "drivers cars". This is the branding problem with GM.

Ironically, the take rate for the manual was much higher than they anticipated and I am sure that most dealers are not aware of that either. TBH, this is my first Cadillac and it felt a bit weird buying the car at a dealership where the average customer age was older than me and I am 50. I really like the V Series vehicles but something is still missing with the branding. Maybe it is just that it is tied to the Cadillac brand, which usually represents an older buyer and pretty boring vehicles. Selling more enthusiast cars could change that image but I guess it doesn't really matter at this point since GM is all in on electric.

 

[ArgentWing]

Same here. When I first started my quest for this car my dealer told me they required a $5,000 no refundable deposit to order a manual. For the A10 it was $1,000 and fully refundable.

I put down a $500 refundable deposit on a manual car. I'm not sure why anyone would put down a $5000 non refundable deposit. Especially with the known part supply and delivery issues! This idea people have that manual cars don't have a market is ill informed. People that want a manual will search high and low for one.

 

[Exia]

Generally a deposit is always refundable, however in the case the vehicle has moved to 3000 status or beyond it is now a grey area and between you and the dealer. I believe some states do allow refundable deposits even if the vehicle has been ordered but otherwise its a conversation between you and the dealer.

Was anything signed? Usually when you get an allocation the dealer would like some things looked over and signed to ensure they don't get stuck with a car if you back out once its been ordered. This usually entails a deposit, if you back out the dealer can keep it or refund it once they find someone else to take the vehicle.

If nothing was signed and they simply took a deposit then you can get it back easily enough since you didn't sign anything. If you did sign then worst case you get the deposit back once the vehicle is sold to someone else.

In some cases a dealer may not take a deposit if they know the vehicle is something in demand as they can easily sell it, maybe for over MSRP if the original buyer backs out.

 

[M2Cto4BW]

It looks like you'll get your refund in 1 of 2 ways:
- they get it on the lot and someone else buys it
- it gets to 30 days+ the ETA on your sale agreement and you can ask the dealer to pay up
Legislation

You'll get it back either way at some point, so only the waiting game now.