Pay Deposit and Wait While $$$ With Agent??

singcarpour SG

Can I ask all if it is the normal practice to pay the deposit for a car (eg S$30,000), wait for the arrival of the car and then start paying the monthly instalment?

That sounds not very fair to car buyers if the wait is for a long time, eg. 5 mths. The interest that can be earned while the deposit is with the agent is (S$310), assuming very low interest of 2.5% for 5 months.

That is the case for very popular cars and ultra long waiting time like the Honda Civic, I understand now the waiting time is 6 months (abit ridiculous).

Experts out there, please advise.

Ponders SG

You can negotiate with the salesman....

i negotiated my $10,000 to $2000.

he was hesitant saying that I later change my mind and run away... so he need $10k to protect himself.

then i tell him, you think i am so free as to give you $2000 to tell you "i might run away"

it took me about 15 mins of nego before he was convinced lah.

ody2004 SG

Normally they require jus a deposit to secure the booking. For CAT B car is normally $5k. No one will need to pay more then this.

fondue SG

agree with ody2004. $5000 is more than enough.

Btw, where to get 2.5% interest ?? I also want !!! Very Happy

singcarpour SG

So can i conclude that it is possible to pay up 20% of the deposit upfront? So for example, deposit of S$ 30,000, can pay about $5K or $6 K when booking for it, and then pay up the difference when the car arrives. Thereafter, then monthly instalments.

Is the above understanding correct?

Ponders SG

yes. a deposit is just for them to safeguard themselves.

the sales agent is just scared that while waiting you got a better deal outside or worse, COE suddenly just drop that you rather cancel the agreement and sign on another one at cheaper price.

by right any amount of deposit is ok. I say anything between $500 to $3000 should be reasonable already.

It's not like you would like to give $500 freely.

Just that when the car comes, be prepared to pay the downpayment.