This customer of mine is going to get screwed out of 7k

[manufan10]

Even with pretty decent credit I'd go in with the notion that I would be putting 10% down. Don't tell the salesman that though, just keep it in the back of your mind that you might need to or should put 10% down.

2nd chance financing would be 20% down.

The % down is determined by one of two factors.

1. Your credit
2. How much profit the dealer is trying to make.

Number 2 isn't a factor of you get a good deal. Number 1 isn't a factor with good to excellent credit.

Seems like a credit score of 710-715 or higher still qualifies you for 0 down. However very few banks are doing 0 down. Its nearly non-existent. Anything under 700 I'd expect to puts at least 10% down based on reason number 1.

Thanks for that info!

[Ed Helicopter Jones]

That's not correct. You can look up the numerous times these things have gone to trial. In this case the deposits is a supplement of the purchase contract. The 3-day cooling off period still applies. I've actually been involved with 2 trials with this issue. One involved a FSBO car purchase and the other was a yacht. Both eventually realized that they would get screwed over with litigation and settled after initial arguments. However, I doubt this kid has the legal backing to do so.

I'm not trying to say what you guys did was bad, you warned him plenty of times. However, anytime people end up screwing others to this large extent the smallest errors (like taking $500 for no real services) will often cause your interest to fail in trial. You guys should be aware of things like this, it'll save headaches later.

I've seen this in real estate in one of my own deals and with other people I know buy and sell real estate. The loophole in the whole thing is the fact that the buyer has received no consideration, and so it's ruled that no actual transaction or exchange has occurred. I lost a deposit on a remodel I was selling that way from a buyer whose financing failed in spite of having a prequal letter. I contended that the "consideration" the buyer received was me taking the house off the market for two weeks and me losing other potential sales of the property during that time. But I learned that there's no real way to legally keep an earnest deposit on real estate if the deal fails. So I'm not sure why folks, including myself, continue to go through the motion of asking for earnest money, other then it shows that the buyer is serious about the purchase, and has the means to write a large check.

I'm not sure if contracts on trailers are at all similar to those on real estate, but it will be interesting to see how this plays out.

However, regardless of whether I felt confident in my ability to keep the money or not, no amount of arm-twisting would have allowed me to take the $7K from this dumb kid. I've never seen someone have no other choice in a situation but to take someone's money who clearly was in over his head. I'd of told the kid to GTFO and kicked his ass out the door. I don't need his money that bad.

[Jekka]

I have no knowledge of anything specific in this case or the case law regarding it but I do know the simple defense of "he signed a contract" doesn't always mean much. If something is illegal no amount of contractual obligation makes it OK. Like I said, I have no idea if that applies here, but it is something to consider when bringing up that the kid signed a contract.

I'm also with EHJ here. Just because the kid was dying to screw himself here doesn't mean you have to provide the oversized black dildo without the lube.

-Manny

[ploto]

Just because you CAN do something does not mean you SHOULD.

[rAm]

Hey B2B you may be right, but you and your boss are both s for knowingly jacking this kid.

[rAm]

I'm also with EHJ here. Just because the kid was dying to screw himself here doesn't mean you have to provide the oversized black dildo without the lube.

Well put my man.

[BacktoBasics]

Hey B2B you may be right, but you and your boss are both s for knowingly jacking this kid.

I advised him against it. He didn't want to lose the trailer. I'm not going to refuse his business. That would be absurd.

[lebomb]

I advised him against it. He didn't want to lose the trailer. I'm not going to refuse his business. That would be absurd.

I agree with B2B.......................he told the guy it was a bad idea to no avail. *shrugs*

Kinda like when your parents say..........."that is crazy, I would advise leaving her alone", and you marry her anyhow.

[BacktoBasics]

I've seen this in real estate in one of my own deals and with other people I know buy and sell real estate. The loophole in the whole thing is the fact that the buyer has received no consideration, and so it's ruled that no actual transaction or exchange has occurred. I lost a deposit on a remodel I was selling that way from a buyer whose financing failed in spite of having a prequal letter. I contended that the "consideration" the buyer received was me taking the house off the market for two weeks and me losing other potential sales of the property during that time. But I learned that there's no real way to legally keep an earnest deposit on real estate if the deal fails. So I'm not sure why folks, including myself, continue to go through the motion of asking for earnest money, other then it shows that the buyer is serious about the purchase, and has the means to write a large check.

I'm not sure if contracts on trailers are at all similar to those on real estate, but it will be interesting to see how this plays out.

However, regardless of whether I felt confident in my ability to keep the money or not, no amount of arm-twisting would have allowed me to take the $7K from this dumb kid. I've never seen someone have no other choice in a situation but to take someone's money who clearly was in over his head. I'd of told the kid to GTFO and kicked his ass out the door. I don't need his money that bad.

Never once have had to return a deposit. Whether a transaction took place or not doesn't matter the law and its code is clearly written on the contract. This isn't just pertinent to the contract this a Texas State law that protects this dealership or any dealership from losing earnest money.

You guys over and over and over and ing over again fight me as if there isn't a law saying its okay to keep his funds.

If you somehow had to give earnest money back then you had a ty contract because the ones we use have never failed us. twice in the last year we had people contact their lawyers. We just forwarded them the signed contract and that was the end of it.

Maybe this guy gets his money. Telling him to GTFO and refusing his business would probably have been more prone to litigation than taking his money.

Liquidated Damages

In an attempt to set a monetary damage amount in a case in which it may be difficult, the parties may include a provision that specifies the amount of damages in event of a breach. Such predetermined damages are called liquidated damages. For example, a company may put down "earnest money" for space in a mall and agree in the real estate contract to forfeit the earnest money to the mall owners as a damage award in the event of a breach. If the business owner decides not to open the store, the earnest money will be awarded as liquidated damages.

[BacktoBasics]

Again we don't typically keep deposits. Its only in cases where someone wants us to take good product off the shelf and hold it for them for an unusual amount of time.

Seriously do you guy just go into car dealerships thinking that you could leave a refundable deposit and return to cancel the purchase a month later. Absolutely bull .

[Fabbs]

Will this transaction and it's aftermath be made into a county song?
Video?
B2B would you want to play yourself?

[Cry Havoc]

Seriously do you guy just go into car dealerships thinking that you could leave a refundable deposit and return to cancel the purchase a month later. Absolutely bull .

Exactly.

[Cant_Be_Faded]

LOL hey B2B so most of the times someone is waiting on a settlement the lawyer ends up with most of the money?

[BacktoBasics]

LOL hey B2B so most of the times someone is waiting on a settlement the lawyer ends up with most of the money?

In my 6 years here I've never had someone come in and make a purchase with settlement money....and I get 3 or 4 a month that are "going to buy when the money arrives" or "the monies on the way". It never ends up being what they expect.

[TDMVPDPOY]

unless its LAY-BY which is different than puttin down a deposit and forfeiting to purchasing....diff rules apply

[Sense]

Well put my man.

Jekka is not a man at all.

She's a gorgeous lady... and MannyisGod's girl... that lucky basterd.

[ploto]

Jekka is not a man at all.

She's a gorgeous lady... and MannyisGod's girl... that lucky basterd.

The post was signed by Manny.

[Sense]

The post was signed by Manny.

HAcked.

[EricB]

Hey B2B you may be right, but you and your boss are both s for knowingly jacking this kid.

Boo ing hoo



You people ever heard of personal responsibility?


No wonder our country is going to .

[“bright and shiny”]

Boo ing hoo

You people ever heard of personal responsibility?

No wonder our country is going to .

we are used to it.

[BacktoBasics]

Well he got his trailer. Sure enough the insurance company sent him about a third of what they said they would send. His lawyer then ravaged about half of that so he went into full panic mode. Eventually his dad who hunts with the President of a small bank out of Beeville co-signed a loan at 17.5% interest with another 3k down and we were able to get this wrapped up. All's well that ends well. Considering the kid had no credit the co-sign probably isn't a bad thing.

[clambake]

Well he got his trailer. Sure enough the insurance company sent him about a third of what they said they would send. His lawyer then ravaged about half of that so he went into full panic mode. Eventually his dad who hunts with the President of a small bank out of Beeville co-signed a loan at 17.5% interest with another 3k down and we were able to get this wrapped up. All's well that ends well. Considering the kid had no credit the co-sign probably isn't a bad thing.

dad took the bullet.

this will end badly.

[BacktoBasics]

dad took the bullet.

this will end badly.

Dad already had ty credit. I suspect the bank will be calling us in about 6 months asking if we'll consign it for them.

[I. Hustle]

lol His dad is screwed

[CosmicCowboy]

Dad already had ty credit. I suspect the bank will be calling us in about 6 months asking if we'll consign it for them.

Sheeeeut...10K down on a 20K trailer. Bank calls in six months and you take the trailer back for loan payoff. Sell that again and the Boss banks.