What does the buyer hear, having passed through all circles of hell of doubt and uncertainty that he chose the right car, and coordinated a bunch of questions with his own greed and wife? “Your car is ready, get down”? Nothing like this. Instead, they say to him: “Make a prepayment and wait.” Somehow it's unfair … Or is it fair? One way or another, in response to such a proposal, I would like to ask a few questions. And the first one is …
Strictly speaking, the amount that the dealer requires to pay at the cash desk when concluding the contract of sale is not an advance payment. Proudly declare “I paid in advance” can only be the one who paid for the car in full - immediately upon signing the documents. Unfortunately for dealers, this rarely happens.
More often, a potential buyer pays an advance or a deposit to the cashier. Each of these terms has a cumbersome, legally verified definition. These definitions sound differently, but mean approximately the same thing: as a sign of intention to fulfill their obligations under the contract, the buyer pays a certain amount of money even before he sees the goods. The only and main difference is that in case the transaction does not take place for some reason, the advance payment will be returned - regardless of what the seller thinks about this.
With a deposit more difficult. If the buyer suddenly changes his mind to take the ordered car for any reason, then the amount indicated in the contract as a deposit will not be able to be returned and it can only be requested outside the criminal code. However, if the seller is not able to fulfill his obligations, he is obliged to pay the distressed buyer not just a deposit, but an amount twice its amount.
In the language of a lawyer, Advance is a sum of money or other property value that a debtor transfers to his creditor before the start of fulfillment of a counter obligation. Deposit - a certain amount of money that one party to the contract transfers to the other as evidence of the conclusion of the contract, to account for its execution and to ensure the fulfillment of obligations under this contract. By virtue of one of its functions, the deposit relates to security of obligations. In the language of a lawyer, Advance is a sum of money or other property value that a debtor transfers to his creditor before the start of fulfillment of a counter obligation. Deposit - a certain amount of money that one party to the contract transfers to the other as evidence of the conclusion of the contract, to account for its execution and to ensure the fulfillment of obligations under this contract. By virtue of one of its functions, the deposit relates to security of obligations.
An advance is a certain amount of money or other property value that the debtor transfers to his creditor before the start of fulfillment of the counter obligation.
Deposit - a certain amount of money that one party to the contract transfers to the other as evidence of the conclusion of the contract, to account for its execution and to ensure the fulfillment of obligations under this contract. By virtue of one of its functions, the deposit relates to security of obligations.
If in the contract of sale the amount made at the time of signing (usually a certain percentage of the cost of the car) is not indicated at all, then we are talking about an advance. In the same case, when the seller wants to receive a deposit, this word should appear on paper signed by both parties.
It would seem that it is more profitable for an official dealer to take a deposit from us. But this is only at first glance. The second and all subsequent ones reveal a number of reasons why the delivery of the car may fail, and these reasons may not fall under the definition of “force majeure circumstances”. Consequently, the dealer will have to return two deposits already, and to each of the affected customers. Agree, not everyone will pass such a test.
How legitimate is the advance requirement?
Demanding to make an advance, the dealer does not violate any laws. Moreover, an advance is one of the ways to insure financial risks. So, suppose you ordered something exotic - for example, the Toyota Prius in a bold red color. And this, to put it mildly, is not the most popular car. The importer company requires dealers to buy cars before handing them over to customers. What to do to the dealer? That's right: go to the bank for a loan - that is, buy cars for not free money at all. If the client refuses to pick up this car, a car will hang on the balance sheet of the dealership, which can only be sold to a militant color-blind ecologist who is mad at saving the planet. And in anticipation of such a hypothetical client, a car purchased with borrowed funds will have time to bring significant loss. In the meantime, you, seduced by some special offer, will drive a different brand of car for a long time. But if you did make an advance (or a deposit, then it’s all the same), changing your mind will be more difficult. Yes, and the dealer does not interfere with additional working capital.
So, we invest in a dealer?
Replenishing with their advance payments the working capital of dealer enterprises, customers, of course, are likened to investors. There are cases when some crafty businessmen built up “pyramidal” financial schemes: they collected money from some customers to buy cars for others - those who managed to conclude contracts earlier. So you can live for some time without borrowing from credit organizations (and thereby increase profitability), but the end is generally known: as a result of the work of such a structure, a certain number of “deceived investors” are formed. The dealer, meanwhile, goes bankrupt and goes down to the Seychelles. It's a shame.
How not to fall into the clutches of scammers?
The most recent bankruptcy stories of overly inventive dealers have already celebrated their second, or even third birthday. Since then, the law has changed, so opening up one-day dealerships with a business plan involving flight to the other side of the globe has become much more difficult. The policy of official representations has also tightened up: today it is simply impossible to sign a dealer agreement without investing a few currency millions in a business. So, any official dealer must play cleanly. So here’s an old proven recipe for you: don’t buy cars from anyone. Then the advance payment will be fearless.
How to return the advance?
In order to return the money brought in when signing the contract to your own pocket, you need to prove that the other party (that is, the seller) does not fulfill its obligations. There is a delicate moment. As a rule, dealers by any means seek to avoid the inclusion in the contract of a clause on the timing of delivery of vehicles. You, as an honest buyer, have the right to insist on the inclusion of such an item. Is the dealer stubborn? Remind him that he is not the only one in this country who sells cars of your favorite brand.
A less conflicting way is to choose cars from the nearest deliveries or directly from the parking lot. In this case, it will be easier for the dealer to assume obligations, and you will be sure that the delivery time does not depend at least on customs.
And if the dealer refuses?
If the dealer does not fulfill his obligations and does not want to return the advance, it is possible and necessary to threaten him with a court. Well-written pre-trial claims sobering up with a detailed account of all the “executions of Egypt” that will fall upon him in case of excessive perseverance are very good. Under certain circumstances, even bankruptcy of a company may be required. In the end, if the dealer is sane, he will want to not only sell you a car (the profit from the sale is usually small), but also keep you as a customer service - the main cash flow generator for any dealer company. So, he probably wants to agree with you. In the framework of the “settlement agreement” (without quotes it happens only in the cinema or after the process you won) you can get a discount on the car, and most often - free additional equipment. In some cases, its value can be measured in hundreds of thousands of rubles.
If it was not possible to agree with the dealer, negotiate with a lawyer. In the most favorable case for you, he will be able not only to return the advance payment, but also to recover from the failed seller a fee for using someone else's money. Or at least a penalty for violation of the delivery time of the goods. Under the Consumer Protection Act, it is one percent per day. Not bad, right?