I have been working with a dealer and they know I am quite seriously about to buy an S4. However when I spoke to him about making the next move he said they will need to take a deposit before doing a credit check. I didn't ask how much, but this seems rather odd to me. He knows I have the money and the interest is serious, but he says its to show their bank (this is for a lease) that I am a serious shopper.

What's the story here? Is this typical for Audi dealerships?

 

the deposit is $500, thats what they asked for me when i was first shopping for an audi

 

well i guess it could be usual.. but if you arent sure.. call another dealership.. or go there.. and see

 

I would get financeing elseware if possible.
I can't see any reason for a deposit for a credit check unless they doubt your going to buy it.
Smiley

 

New to these forums and trying to help whoever may read this, I know it was posted several months ago and may not apply to toysnob...

Dealers that make similar claims about "proving to the bank" or any type of jibberish regarding a deposit are trying to pressure you into buying the vehicle. If you put money down you are less likely to walk away from the deal and they will often elude to the fact that the money is non refundable. In Iowa, that is illegal (to keep the money from a deposit).

There are only four reasons to put money down:

1. Lowering your payment (purchase or lease).

2. Marginal credit. Will lower the bank's investment (risk) or lower the payment to a level that the bank thinks you can afford.

3. To off-set negative equity.

4. To hold a vehicle until you can finish a transaction at a later time. Similar to purchasing a house, applying money or "financial consideration" to a deal should lock everything in place.

There may be a few more variations of the above reasons.

~Eric