People put down deposits for every electric truck in development, leaving dealers in the lurch when they eventually cancel all but one::When an electric truck customer doesn’t show up to pick up their order, dealer are left with a car that might be hard to sell to someone else.
They’re complaining about when people with preorders don’t pick up their order - which means those people basically gave the dealer a free $500~1000 with the only string attached being that the dealer now has one more vehicle on their lot to sell.
I’ve put down a few preorders and across the board the story I get is the same: once I fully place my order (customize and lock it in), I can’t get my deposit back. So the only ones really losing, IMO, are those who assume a preorder means a guaranteed sale. That was never the deal they struck, and it seems they’ve forgotten the wiggle room they built into the deal to manage the pitfalls of losing that ‘guaranteed’ sale.
Particularly when it comes to these trucks, both Ford and Chevy promised “$40k” for theirs and that definitely moved massive numbers of deposits. Both jumped to an entry level price of around $70k, and that’s if they even let a consumer buy the lower trims. If that keeps happening to other models, like the promised $30k Equinox EV, they really can’t get mad when people back out once more details are known, or get cold feet when they realize the market’s not in a good spot for them. Personally, I’m not finalizing any purchase or locking in my deposit if I can’t get hands-on time first. If that’s not workable for dealerships, then good riddance. They have one job, and that’s to educate me and let me test drive.
Are down deposits not refundable?
I cannot wrap my head around people who spend 5k just to preorder a car.
Same here where I am from, the deposit is around $1500 but it’s refundable even after the car arrives to the dealership’s lot.
They’re refundable if you actually buy it. It’s like a down payment. They only lose the money if they decide to cancel the order. That helps reduce the risk that the business will pay for an expensive car only to no longer have a buyer for it.
When these trucks are like $90k new, spending a few thousand to hedge your bets on which one will arrive first is nothing. It’s like paying for faster delivery. Electric vehicles are in insane demand and sellers cannot keep up. Though honestly, I’m not sure dealerships are gonna have issues as a result.
Around here (western-ish USA), EVs are mostly $50k+ SUVs and aren’t super high in demand, and dealers are dropping pretty big discounts. But it’s just starting to put them into affordable territory for me (at least, where I’ve set my expectations) and upcoming models are promising to compete comfortably within my budget so I’m hoping preorders are a decent means to get lined up for what may end up being some very highly in demand new models in a price tier that’s not seen much competition.
I’m hoping it prevents a painfully long wait if these prove to be the go-to new standard everyone’s lining up for once they’re getting previews/reviews. If not, shouldn’t be too painful to get my deposit back if I go another route. I’m hopeful this lets me keep my options open, even if it’s keeping some of my money tied up for now. It syncs up well enough with my strategy of waiting and I can keep an eye out on the market to see if something better comes along in the meantime.