Don't put deposits down on caravans

[RogerL]

No-one can have escaped the fact that the credit cruch has caused severe difficulties for our economy which has led to a full blown recession and the rate of business failure has increased significantly.

The lending/borrowing impasse at banks is making the situation even worse - businesses who might survive this recession by downsizing and restructuring often can't arrange the finances to do so - some basically sound businesses will fail, in addition to the ever increasing number of unsound businesses.

Deposits on purchases while awaiting delivery are almost always lost without hope when businesses fail as customers aren't regarded as preferential customers, unlike Inland Revenue etc.

With a big increase in business failure expected, some of which will inevitably be in the leisure and caravanning industries, it would be a bad time now to place deposits against new caravans. Dealers and manufacturers are over-stocked because of poor sales so there should be no reason for waiting for a factory order.

It's easy to get carried away at shows and put a deposit down but without knowing the financial position of the seller, it's a very risky business.

Don't run the risk of losing a deposit, we caravanners are feeling the pinch personally, as well as the businesses. I don't suppose anyone's got money to lose like that.

 

[rob_jax]

Roger - great advice - Robert

 

[JTQ]

Under UK law you ought to be safe using a "Credit Card" for the deposit. However even the Banks going to the wall is a possibility though now a pretty remote one following yesterdays injection.

 

[colin-yorkshire]

hi Roger

that is indeed good advice, I tend not to pay a deposit on anything these days as I got my fingers burned about 10years ago when I paid a deposit on a new conservatory the company went bust and so did my deposit.

if you have to pay a deposit make it the absolute minimum and ask for a delivery date, then give them a post dated cheque for the day of delivery on the understanding "no delivery" the cheque is cancelled. if this is not accectable walk away.

colin

 

[Alan Partridge]

It's a good idea to pay at least

 

[Guest]

There used to be a company in Nottingham, called RDH, who sold Benimar motorhones.

It wasn't a particularly large & glossy operation, in fact it was very similar to dozens of similar dealerships throughout the UK.

Except for one important difference - when RDH went bust, the owner first refunded every penny of the deposits that his customers had placed on vehicles.

The owner of RDH deserved a medal for his honesty and integrity - and I'm sure I'm not alone in being able to think of a dozen other caravan/motorcaravan dealers who would pocket the deposit money and walk away without a second thought.

 

[RogerL]

Selwyn - that's excellent news for the potential customers of RDH, he really does deserve a medal. It is of course the exception that proves the rule, virtually all other businesses would hide behind their limited company status.

 

[Dustydog]

Hi Roger

Well there will be some very pi$$ed off dealers at the NEC this week. No deposits!! Excellent. And why not get free delivery thrown in for good measure.

What really bugs me is that the Treasury get first bite when a company goes bust and there goes your deposit.

Cheers

Alan

 

[RogerL]

When a business is insolvent they cease trading, give any remaining assets to preferential creditors with ordinary creditors just getting valueless bad debts. The directors and managers soon reappear somewhere else in a new venture.

When a family is insolvent it has to go through purgatory to survive because there's no such concept as "limited liability".

I have a lot of sympathy for people at this time but none for businesses.

In a recession, any customer wanting to buy a product (and has the money to do so) is king - if you're going to the NEC or any dealership, negotiate from a position of strength. Don't let salesmen give you hard luck stories, they're professionals trying to extract money from amatuers, even the odds up a bit.

I bought my last caravan in 2000 for delivery in 2001 - it was a boom year - I eventually got 10% discount by negotiating - if I were buying now I'd be offering to accept 20%, wait until the laughter dies down and do the deal. If they genuinely can't get close, walk away find another seller.

I predict that some dealers taking deposits at the NEC will go into receivership shortly afterwards and customers can kiss goodbye to their deposits. I hope I'm wrong, it'll give me no satisfaction to be proved right.

 

[Alan Partridge]

⇨I predict that some dealers taking deposits at the NEC will go into receivership shortly afterwards and customers can kiss goodbye to their deposits.

If you were really cynical you might think some banks would wait until the dealers had banked their show deposits before putting the receiver in.

 

[Colinn]

Alan, you don't need to be cynical about that...the plugs were pulled on airlines Zoom and Excel only at the end of the summer season when everyone had paid their fares in full.

You're right to summise that the same could happen with caravan manufacturers once they get money in (and not before).

It's common knowledge in business circles that a number of well known High Street names are going under - but the plug won't be pulled until after the Christmas bonanza.

So although the bankers might not be directly responsible for a business's insolvency, they sure as hell are for sucking people's hard-earned into the bankruptcy pot.

Yes, if any business asks you for a deposit at the moment, definitely make sure it's as low as pos and by credit card only...

 

[Guest]

I think that I'm also being affected by the growing paranoia over insolvencies.

We were lucky enough to be able to buy a new car a couple of weeks ago, part-exchanging our previous model, with a finance settlement due to be paid by the dealer.

It's a large motor group, who according to the web, are millions of pounds in debt. This was great for the new car as they were absolutely desperate to sell it, and knocked over

 

[Rodone]

I think that I'm also being affected by the growing paranoia over insolvencies.

We were lucky enough to be able to buy a new car a couple of weeks ago, part-exchanging our previous model, with a finance settlement due to be paid by the dealer.

It's a large motor group, who according to the web, are millions of pounds in debt. This was great for the new car as they were absolutely desperate to sell it, and knocked over

 

[Guest]

Think its probably best to find a good local dealer with a good reputation who will look after you rather than going for a big discount as the main priority.

 

[Chrisbee]

Over the years I have always been loathe to pay a financial deposit to any seller - unless I am committing them to an expense that is non - recoverable by them if I opt out. I will always offer a letter of intent, and frankly, if they won't take my word and accept it, I go somewhere else. Last year I purchased a new car, and I arranged to collect it about aweek after the deal was done. They asked for

 

[caravanoracle]

i understand what you are saying but a lot of dealers will insist on a deposit and will not allow you to buy without, especially if they have to order your new caravan from the factory. no deposit could mean a dealer ordering a caravan for the customer to simply say when it arrives that they dont want it any more. a deposit for most dealers sorts out the real buyers from the tyre kickers and also ensures the caravan is not sold to someone else.

remember most dealers are very safe even if things have got a little tighter.

 

[Rich]

i understand what you are saying but a lot of dealers will insist on a deposit and will not allow you to buy without, especially if they have to order your new caravan from the factory. no deposit could mean a dealer ordering a caravan for the customer to simply say when it arrives that they dont want it any more. a deposit for most dealers sorts out the real buyers from the tyre kickers and also ensures the caravan is not sold to someone else.

remember most dealers are very safe even if things have got a little tighter.

I think a deposit even a small one would be needed to stop time wasters. But getting a good discount will be important as the credit crisis will lower the value of ALL vans so you would suffer greater depreciation on an undiscounted van. We are going to the show specifically to buy a new van and PX our less than 2 year old Abbey. Luckily we don't need finance so we have more of a lever to get what we want as the dealer will see cold hard cash. I was told Swift were upping prices but as manufacturers are going to the wall I would think they need to sell every van they build even at a lower profit! Having all that money tied up stock is not good and larger dealers who have vans sitting there will be given incentives to sell more so they will have a better margin over the smaller ones anyway.

 

[Rich]

Sorry I posted originally in comments.... Crap forum layout! PC need get a better layout!!

I think a deposit even a small one would be needed to stop time wasters. But getting a good discount will be important as the credit crisis will lower the value of ALL vans so you would suffer greater depreciation on an undiscounted van. We are going to the show specifically to buy a new van and PX our less than 2 year old Abbey. Luckily we don't need finance so we have more of a lever to get what we want as the dealer will see cold hard cash. I was told Swift were upping prices but as manufacturers are going to the wall I would think they need to sell every van they build even at a lower profit! Having all that money tied up stock is not good and larger dealers who have vans sitting there will be given incentives to sell more so they will have a better margin over the smaller ones anyway.

 

[Alan Partridge]

I don't think this thread, taken in its entirety, is saying don't buy a new caravan; and despite the warning in the title, you *can* pay a deposit *and* protect yourself.

 

[trevor_374376718]

Commendable to see someone prepared to make a stand in the interest of caravan buyers,(see goodbye)be very careful who you give deposits to, biggest is not always best,if you are not sure visit www.iii.co.uk and research which dealer group really is up against it 300 postings cant be wrong.

 

[caravanoracle]

it certainly made very interesting reading, and i am personally appauled at the certain dealers` attitude to the trade and customers. if they are like that they deserve to go to the wall. they are seriously letting the caravan industry down.