Paying full amount for a new car before taking delivery (Austin: sale, rent)

[cvsvm2007]

Friends,

I live in DFW area.

I paid a deposit of 500 and booked my vehicle with a Toyota dealer in Austin Texas. My Vehicle is expected when I will be travelling for 10 days. The dealer is saying that he cannot wait while I am travelling and he is asking me to pay entire money by personal check and he is saying he will keep the car until I come back.
Is it safe to pay entire Balance without getting delivery of Vehicle? What safety measures I can take so I am protected? Any other suggestions are welcome.

Thank You
CVS

[tmtex]

So many questions but I wouldnt do it. If you put a deposit down and he cant hold it for a week or so, then he doesnt care about your business. Plenty of other dealerships around. If its something you must have and planned to pay for it in full anyway, then yes, I would think your safe with the correct paper work but I wouldnt do it.

[1200RT]

The reason the dealer is suggesting this is because they want to report your sale to the manufacture prior to the end of month. Presumably your call will arrive between now and the end of June, and they want "sell it" before then.

Since inventory is incredibly tight right now, and you've been waiting for this car, I not recommend walking from the purchase unless you want to start the process over again.

As an alternative, you can suggest an auto loan to the dealer (the terms don't matter) - which means you will not need to put your cash up front. You can then pay off the loan after you take physical delivery (I've purchased several cars this way - it allows the dealer to feel secure that they have funding, and you to have your cash in your bank).

That leaves the question of inspecting the vehicle prior to purchase - you'll want to have something "written" that says any damage to car will be repaired (or something like that). Or have them leave the shipping wrapping on.

[cvsvm2007]

Thanks for both the replies.

While I am going to speak with the dealer about Auto Loan, will there be additional fees such as financing charges?

Since this specific vehicle has wait time, Here is what I am planning:

1. Ask the dealer for VIN number since he claims it is in Transit
2. Quote the VIN in the check and ask for Ack
3. Write a mail to the dealer explaining the circumstances and ask them to fix any damages

Is there something else I can include to safe guard myself? Please suggest or give your advice. This is the first time I am doing this type of transaction.

Regards

CVS

[tmtex]

Auto loan = Yes on Finance charges unless you qualify for zero percent if they even offer it.

[1200RT]

Originally Posted by cvsvm2007

Thanks for both the replies.

While I am going to speak with the dealer about Auto Loan, will there be additional fees such as financing charges?

Since this specific vehicle has wait time, Here is what I am planning:

1. Ask the dealer for VIN number since he claims it is in Transit
2. Quote the VIN in the check and ask for Ack
3. Write a mail to the dealer explaining the circumstances and ask them to fix any damages

Is there something else I can include to safe guard myself? Please suggest or give your advice. This is the first time I am doing this type of transaction.

Regards

CVS

Yes, obviously there would be finance charges, but if you have cash in hand to pay for the vehicle, that doesn't matter. If you pay off in a few months, you'll pay less than $100 in interest. The loan is temporary - which is why I said terms (length / rate) don't matter. You'll "finance" the car for a month, two months, whatever, and then pay if off in cash directly w/ the lender. The only real downside to this is it'll take a bit longer to secure title, since original title will be issued to lender. I've never had an issue with this, however.

Do yo not already have a VIN? I was assuming you ordered this car specifically for yourself... Normally a dealer will send you the details of the car beforehand (when its built). You'll need the vin in advance anyway for insurance.

[cvsvm2007]

Originally Posted by 1200RT

Yes, obviously there would be finance charges, but if you have cash in hand to pay for the vehicle, that doesn't matter. If you pay off in a few months, you'll pay less than $100 in interest. The loan is temporary - which is why I said terms (length / rate) don't matter. You'll "finance" the car for a month, two months, whatever, and then pay if off in cash directly w/ the lender. The only real downside to this is it'll take a bit longer to secure title, since original title will be issued to lender. I've never had an issue with this, however.

Do yo not already have a VIN? I was assuming you ordered this car specifically for yourself... Normally a dealer will send you the details of the car beforehand (when its built). You'll need the vin in advance anyway for insurance.

Thanks again to both of you.

I do have VIN. I am thinking of writing on the check that this is for purchase of Vehicle with the VIN.

[numbersguy100]

Originally Posted by cvsvm2007

Thanks again to both of you.

I do have VIN. I am thinking of writing on the check that this is for purchase of Vehicle with the VIN.

That might help you sue the dealer if they fail to deliver the car. But if you're worried even in the slightest that they're going to take your money and fail to give you the vehicle, why not just finance it and pay it off once you take delivery? The couple hundred you spend on interest and fees will be well worth knowing you didn't just write a big check that you may spend your own time and money recovering if things don't work out. And while you fight to get that $ back, you'll be out whatever it costs to buy or rent another car.

[Tranzplant]

Just pay the full amount for the car and pick it up when you are ready. Its not that complicated. You have the record of paying the dealer. So if there is any issue during the actual pickup, ask for a refund from the dealer. In this environment, the dealer will be happy to issue a refund so they can flip the same car for thousands over MSRP.

I think you are over thinking this. I don't see any issue with paying for the car outright before taking delivery.

[widespreadfan]

Originally Posted by cvsvm2007

Friends,

I live in DFW area.

I paid a deposit of 500 and booked my vehicle with a Toyota dealer in Austin Texas. My Vehicle is expected when I will be travelling for 10 days. The dealer is saying that he cannot wait while I am travelling and he is asking me to pay entire money by personal check and he is saying he will keep the car until I come back.
Is it safe to pay entire Balance without getting delivery of Vehicle? What safety measures I can take so I am protected? Any other suggestions are welcome.

Thank You
CVS

Hell no! Don't pay for until you pick it up.