Recently inquired with a Lexus dealer about the new GX 550. After being pitched a 2023 model for a few weeks, I get the below text message saying they are starting to take $1,000 deposits.

Does anyone have experience with these types of deposits? I'm hesitant to give them $1K without more details, but maybe this is how the stealerships operate these days.

"$1,000 deposit that will go towards the purchase.
As of now, they only gave us a green light to go down our lists.. and start officially taking the deposits,
to reserve your spots on the list. As soon as we have more information to share about the GX's arrival, we will notify you.
Spots are reserving fast.. let us know as soon as possible.
Thank you."

The term "stealership" is incredibly dumb.

But to answer your question, it's required by a lot of manufacturers. They are used to signal to the manufacturer that there is a legitimately interested buyer such that the reservation or order being placed isn't just a ploy by the dealer to get a preferable allocation.

Before deposits, dealers could place "orders" for the desirable trims, colors, options, etc. so they have the best cars on the lot vs. just getting whatever they're allocated.

I recently placed a reservation with a dealer and was told if they get caught making phony orders, the manufacturer will dock them future vehicle allocations in addition to other penalties.

Any deposit you make is refundable if you ultimately don't take delivery of the vehicle.

In Texas, all deposits on vehicles are 100% refundable if you don't buy for whatever reason.

I think it's pretty standard if you are ordering through a dealership and waiting. I did 1000 for my Corolla hybrid and had to wait 2 months. There was a standard form, and I got a copy. As said above, in Texas the deposits are refundable if something happens

This is common on a new order situation at Lexus. There was a $2500 deposit for a new 2023 GX in 2022 at Westside.

They apply it to the price of the car when it comes in. It's refundable as mentioned.

Note: Our Lexus contact informed me at the time when we placed our order (I help my aunt and uncle with car purchases), they start manufacturing in Japan, ship to LA and make their way to Texas. Seems like it took 5 months. Impressive if true. This was back when inventories were incredibly sparse.

Appreciate the responses. Sounds like this is fairly standard operating procedure.

She tells me she is unsure if the deposit is refundable.

This Cavender dealership is telling me the deposit is NONrefundable.

That is considered theft (stealing), correct?

CaptnCarl said:

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Appreciate the responses. Sounds like this is fairly standard operating procedure.

She tells me she is unsure if the deposit is refundable.

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Legally, a dealer in Texas can't keep the deposit if the deal is not completed.

The buyer can back out at any time and get the deposit refunded.

Not dumb. Have yet to find an honest dealership. About 3 notch's below *****

dodger02 said:

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The term "stealership" is incredibly dumb.

But to answer your question, it's required by a lot of manufacturers. They are used to signal to the manufacturer that there is a legitimately interested buyer such that the reservation or order being placed isn't just a ploy by the dealer to get a preferable allocation.

Before deposits, dealers could place "orders" for the desirable trims, colors, options, etc. so they have the best cars on the lot vs. just getting whatever they're allocated.

I recently placed a reservation with a dealer and was told if they get caught making phony orders, the manufacturer will dock them future vehicle allocations in addition to other penalties.

Any deposit you make is refundable if you ultimately don't take delivery of the vehicle.

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Think about it,... They used to be able to order the things that they know they would be able to sell... Now they're required to take deposits in order to receive whatever the manufacturer is willing to give them?

Many people hate the dealership experience because of all the shady stuff dealerships pull, but manufacturers contribute to the problem as well. Convoluted bonus structures and allocations make the process insane.

I'm ready to tear it down and see what the next system will be.

CaptnCarl said:

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This Cavender dealership is telling me the deposit is NONrefundable.

That is considered theft (stealing), correct?

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**** cavenders. Freakin crooks!