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OT - deposit quandry

DavidL

DavidL

Active member
Thought I'd ask for a little perspective on this situation.
I have a car going in for some work in a month, discussions have been on going for a couple of months.

Now I like the co, they seem a good bunch and I'm happy with the quote etc and I have no reason at all to think everything wouldn't be fine.

But I've been asked for a 50% deposit at time of booking, which is now for delivery of my car in a month.
This is where I'm getting a bit twitchy as the amount will be well into 4 figures. The money just goes into their co accounts not a holding account or similar.

I've asked why the deposit but really I know what its for - confirmation of the booking (so I will turn up and not leave them without work for a month) and to allow purchase of parts so they can get on asap - every co needs cash flow.
It just seems to be their policy and they don't seem short of work.

But I going to feel a proper numpty if I turn up on the day to find the place empty and closed and me with no work done and 50% already paid.

I feel I'm taking all the risk but I know I'm coming and they don't, for certain.

I want the work done and I don't want to come across as the awkward customer and the jobs they had in were much larger and more expensive than mine will be.
I wondered about putting something on the invoice to the effect that the money is not part of their co assets until work commences even though they would have it and can use it. I've no idea if this has any legal power but it might help as a creditor.

Any thoughts anyone or am I just being paranoid.
 
Personally I would not pay an up front deposit, but would be happy to make stage payments, say weekly, as and when work is satisfactorily completed. I believe that if yyou do choose to make an up front payment you will be better protected if you do it by credit card rather than other forms of payment e.g. Debit card, cheque, cash. I recommend you ask this question on the Pistonheads "Speed, Plod & The Law" forum as there are practicing lawyers on there, and this is not actually question on which knowledge of the Porsche 944 has a bearing.
 
I agree with Lowtimer - you should get some legal advice - and check with Consumer Action Group (or similar) for complaints about the company. As you say you have been in discussion with them for a couple of months, this may be their method of weeding out the "tire kickers". If they are as busy as they appear it is hard to believe they actually need money up front for parts, etc. as most companies purchase on account so they usually do the work and have been paid by the customer long before the account at the parts supplier is due. A big concern for me, if they are operating so tightly that they need money up front, is are they going to be around to address any problems with their work after the fact.
 
Without knowing the work, I'd say 50% up-front isn't unreasonable. When I ran large landscaping work, the materials could be 80% of the job.

The obvious thought is to suggest a credit card. That way you get the airmiles, and are covered if it goes wrong. Failing that, does a debit card offer the same protection?

Whatever clever contract you draw up, it's no help if you turn up to an abandoned workshop and the phones disconnected! [&:]
 
Hi David

I wouldn't do it under any circumstances.... the motor trade in general has been hit very hard and this to me seems not so much a deposit but funds that the garage needs to be able to get the parts needed to do your car. If this is the case then they are living on the bread line that could come to an end at any time and if it did your money could go with it. It wouldn't matter what you had them write on the invoice to protect your money if they were declared bankrupt by one of their creditors all money and assets would be seized and given out equally to their creditors. Your car however would be safe once you had proven ownership to the receivers but it would be seized along with anything else in the garage at the time and held until they were satisfied you owned the car.

Pete
 
Its not the 944 its some bodywork and bits on my old range rover.
I shall just have to speak to them again and if it all goes tits up so be it. It would be a shame as it has taken me ages to find someone half decent, just an odd way of doing things.
I think its a credit card and no fee or no go.
 
I'd be wary, as others have said. I've never heard of any mechanic asking for money up front for work, and would most certainly be proceeding with much caution.

McNulters, the division of cost between materials and labour is probably quite different in the landscaping business, as are the business practices. Interesting to hear of your experience tho'.


Oli.
 
I guess it depends IMO.

Sometimes I have acquired cars from garages where either the buyer was unable to pay the bill at the end (be it they lost their job, or the cost was higher than expected) as well as cars which customers have forgotten about despite 'promising' to collect them. I remember a Jaguar Specialist near me used to always have XJ40s for sale for this reason; People would come in with an XJ40 requiring rust repairing, paintwork on top in addition to many other little jobs (like any Jag they do soon begin to tot up). Upon hearing the bill the garage would not hear from the customers ever again, leaving the garage out of pocket for months, not to mention the issues of owner transfers!). Saying that, I once did get many bits from a classic car this way, and the car only went into the garage for a clutch and engine tune up (it ended up being left outside the side of his garage for almost a decade with the rest of the car deteriorating badly (sills and floors shot from being solid for one...).

Saying that I have also seen 'busy' garages doing nothing despite being paid up front. Are the other cars clearly being worked on there? In your shoes I would try to see if they can be more flexible on the deposit, and at the very least pay via a credit card.
 
I would be prepared to pay a smaller deposit now using a credit card and a further amount if absolutely necessary when the car goes in. Both with a clearly printed receipt and definitely by credit card.

If they have an issue with a normal means of payment and request cash then, well: I think that you know.
 
Hmm it seems you are already suspicious, I say walk away.

I have never heard of a garage asking for a deposit (other than for the purchase of a vehicle)
 
McNulters, the division of cost between materials and labour is probably quite different in the landscaping business, as are the business practices. Interesting to hear of your experience tho'.
Click to expand...

The division isn't mentioned, hence my asking!

If the job is "fit a £1000 special-order, no refund part, labour one hour", then 50% up-front is pretty reasonable. [8|]

Without all the facts, it's hard to say where a deposit might be considered fair. I'd certainly not walk away from a supplier when they cover themselves with a fair request for their costs up-front: it's the same risk that the customer won't pay, so they are being sensible when covering that risk.

I think we're suggesting a way to secure a fair deposit here, so the credit card option is good.
 
Hi David

You can register here for free - http://companycheck.co.uk/ - and get basic accounts info on any registered company. It may not be a true reflection if they do a lot of cash deals but may give you some peace of mind to either use them or to find someone else
 
As others have said if you do use this garage pay by credit card for peace of mind... btw not sure how the law stands when paying for service work on a car but if you were buying a car or anything else for that fact and paid a deposit with your credit card and the company then goes bust you are covered for the entire cost of the item concerned, no matter how small a deposit paid.

Worth knowing..:)

Pete
 
You can also get information on company directors. If someone has been a director of a long string of short-lived, dissolved companies you might view doing business with them in a different light.

ORIGINAL: Hairyarse

Hi David

You can register here for free - http://companycheck.co.uk/ - and get basic accounts info on any registered company. It may not be a true reflection if they do a lot of cash deals but may give you some peace of mind to either use them or to find someone else
Click to expand...
 
I can speak from the other side of the fence.

Those who know me know I run a small bodyshop that specialises in small repairs, not accident damage, restoration or full resprays.

Ocasionally we need to fit parts, which need to be ordered in advance so they are in stock when the customers car arrives a few weeks after booking. We have been caught out several times with customers not turning up, selling the car, writing it off in an accident or having a sudden death in the family. Most main dealers will let you return the parts if they are in unopened boxes minus 20% restocking charge Guess what, we need to open parts boxes to check they are the right part [&:]

We always take a card payment for any parts we need to order when the car is booked in because we are a business and can't afford lots of parts hanging around if the customer cancels on us. Our average parts bill is well under £100 so it's not much of an issue for the serious customer.

I totally understand why you're a bit hesitant David but if you pay by credit card you'll be protected.

 
I Wouldn't have a problem with paying for parts up front, as long as the receipt confirms title of goods were mine and not the garage's and again only if I paid by credit card.

I would not pay for any labour charges until I was happy.

Not many places you can order goods without paying up front, other than the building trade [&:]
 
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