BMW calls me saying that I owe $600 for security deposit

valdeztke · 02-19-2008, 06:57 PM

Quote:

Originally Posted by phantom330

so the dealer realizes they are going to lose money on the deal due to the unexpected rate bump and they want you to come back to give them the SD (and sign a new contract)

I wouldnt say the dealer is going to LOSE money unless they gave you BMWFS buyrate. If they dumped it up and now have to eat some of the org bump over the set MF then they are just not making as much as they'd like, but they shouldnt be LOSING money. Unless like I said they gave him the base buy rate.

Explorer3253 · 02-19-2008, 09:45 PM

so would you all suggest that i should redo the contract and pay the $600 or should I try to ask for something for compensation

BMWE90 · 02-19-2008, 09:58 PM

Quote:

Originally Posted by Explorer3253

so would you all suggest that i should redo the contract and pay the $600 or should I try to ask for something for compensation

That's up to you. Go to see if other dealers will match the deal (without the $600). IMO if it's too much hassle, it's not worth it. I would just pay the $600 and be happy with the car.

valdeztke · 02-20-2008, 05:49 AM

Quote:

Originally Posted by BMWE90

That's up to you. Go to see if other dealers will match the deal (without the $600). IMO if it's too much hassle, it's not worth it. I would just pay the $600 and be happy with the car.

especially if the service was as good as you stated earlier

e90fanatic · 02-20-2008, 07:09 AM

find out if $600 is stated like what others suggested. if not and they force you to pay, sue them for breach of contract and ask for a M3

Explorer3253 · 02-20-2008, 08:51 AM

Quote:

Originally Posted by BMWE90

That's up to you. Go to see if other dealers will match the deal (without the $600). IMO if it's too much hassle, it's not worth it. I would just pay the $600 and be happy with the car.

k...i'll just see what they have to say...i already have the car so i can't go shopping around anywhere else...not to mention this was a custom build

valdeztke · 02-20-2008, 10:09 AM

Quote:

Originally Posted by e90fanatic

sue them for breach of contract and ask for a M3

for what? You attorney fees would be more than just paying the $600.00 and you burn a bridge with what sounds like a rather enjoyable dealership expierence - not to mention on a car setup JUST like you wanted.

The CA made a mistake - they are human.

Bama M3 · 02-20-2008, 10:11 AM

There is no way you should be required to pay this now. Even if BMWFS is insisting the $600 SD must be paid, the dealer is in error here (assuming you withheld no information or made any misrepresentation) and should either 1.) assume responsibility for their error and pay the SD on your behalf or 2.) compensate you for an equal amount by lowering the MF, eliminating their "processing fee" (if any was charged), give you a $600 credit for parts/service, etc.

Good luck to you either way.

e90fanatic · 02-20-2008, 10:59 AM

Quote:

Originally Posted by valdeztke

for what? You attorney fees would be more than just paying the $600.00 and you burn a bridge with what sounds like a rather enjoyable dealership expierence - not to mention on a car setup JUST like you wanted.

The CA made a mistake - they are human.

you're too tolerant. there's more than one dealership around and it depends on the cost/benefit. and more importantly, it's obviously i was joking.

halfpast3 · 02-20-2008, 11:11 AM

Gentlemen, the security deposit is required by BMWFS for new FS customers HOWEVER, the dealer can mark up your money factor in order to have the actual security deposit waived. Either way you pay more to FS but you may not have an actual refundable deposit.

As far as the original post, check section 9. of your lease contract. If it says $600 security deposit, you were supposed to pay it. However, if the total due at signing at the end of section 9. matches what you have given them you are all done.

Explorer3253 · 02-20-2008, 01:00 PM

nope..no $600 security deposit listed on my contract....maybe ill see if they can compensate me some other way if i pay the 600 security deposit..ill get it back eventually..and i'll probably re-lease through them anyway in 3 years..but maybe i can get some winter floormats and a license plate bracket for my trouble..lol

phantom330 · 02-20-2008, 01:22 PM

Quote:

Originally Posted by valdeztke

I wouldnt say the dealer is going to LOSE money unless they gave you BMWFS buyrate. If they dumped it up and now have to eat some of the org bump over the set MF then they are just not making as much as they'd like, but they shouldnt be LOSING money. Unless like I said they gave him the base buy rate.

I think you got my point.

And a lot of deals are written at buy, either way the dealer isn't getting what they were expecting, so I'd consider that "losing".

Explorer3253 · 02-20-2008, 01:45 PM

Quote:

Originally Posted by phantom330

I think you got my point.

And a lot of deals are written at buy, either way the dealer isn't getting what they were expecting, so I'd consider that "losing".

i think i got the base buy rate...the mf is .0020...isn't that the base MF?

halfpast3 · 02-20-2008, 01:50 PM

Yup. Sounds to me like they didn't bump the rate on you but waived the security. Technically, you have them by the balls if you choose to do so. You have a valid contract and they would have to eat the error. Like you said, maybe you can go in and say look, I know you messed up and and I have the ability to tell you to pound sand so what can you do for me if I resign

Explorer3253 · 02-20-2008, 08:42 PM

thanks guys! i'll wait for them to call me back. I'll see what I can negotiate

sdiver68 · 02-20-2008, 08:54 PM

Wow, some of you failed basic contract law. They've both exchanged something of value, it's a contract.

Unless the contract specifically has an out for "final approval clause" it is a valid and enforceable contract. I'd raise holy hell. And yes, a dealer tried this on me before but backed down when I sent him a letter copied to the State Attorney General, Better Business Bureau, and every consumer investigative reporter in the metro area.

Now if you want to negotiate amends in hopes of a better dealer relationship, that's up to you. IMHO, the best way they can learn to do their jobs right the first time is for it to cost them $600.

ALPINE6SPD · 02-22-2008, 03:51 PM

Quote:

Originally Posted by dmboone25

They are full of shit. I have leased 2 cars through BMWFS--no security deposit was required on either one.

It is up to the dealer whether or not to force you to pay one BEFORE the contract is signed. You can tell them to toss your salad--if they signed it and you signed it, and a security deposit was not BARGAINED for before the contract was executed, they have no right to force it on you now.

Not true anymore. Getting a security deposit waived is not easy to do anymore. In the past yes but now it is not. I paid security on my car and I WORK for BMW. If you have a car financed or leased through them currently or within the last 6 months it is waived and otherwise it is not.

02-19-2008, 09:45 PM	#24
Explorer3253 Lieutenant 66 Rep 557 Posts Drives: 2014 f32 Join Date: Nov 2005 Location: Westchester County, NY iTrader: (4)	so would you all suggest that i should redo the contract and pay the $600 or should I try to ask for something for compensation __________________ '06 325Xi - Jet Black - SOLD, '08 328Xi - Jet Black, Coral, 6spd - SOLD, '07 328Xi - Jet Black, SOLD, '11 328Xi, Deep Sea Blue, Oyster/Black - SOLD '14 428XI, Alpine White, Coral, MSport, Auto, Premium, Tech, Heated Seats/Steering, Drivers Ass, Drivers+ - On Order for ED
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02-20-2008, 07:09 AM	#27
e90fanatic Absolute0 178 Rep 5,078 Posts Drives: Has a Roundel Join Date: Apr 2005 Location: TO/HK/NJ iTrader: (6)	find out if $600 is stated like what others suggested. if not and they force you to pay, sue them for breach of contract and ask for a M3 __________________ To procede or not to procede......
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02-20-2008, 10:11 AM	#30
Bama M3 First Lieutenant 19 Rep 356 Posts Drives: 13 Z4 28i Join Date: Nov 2007 Location: NoVA iTrader: (1)	There is no way you should be required to pay this now. Even if BMWFS is insisting the $600 SD must be paid, the dealer is in error here (assuming you withheld no information or made any misrepresentation) and should either 1.) assume responsibility for their error and pay the SD on your behalf or 2.) compensate you for an equal amount by lowering the MF, eliminating their "processing fee" (if any was charged), give you a $600 credit for parts/service, etc. Good luck to you either way.
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02-20-2008, 11:11 AM	#32
halfpast3 Second Lieutenant 8 Rep 232 Posts Drives: MY16 535i Join Date: Jan 2008 Location: SoCal iTrader: (0) Garage List 2008 335i [0.00]	Gentlemen, the security deposit is required by BMWFS for new FS customers HOWEVER, the dealer can mark up your money factor in order to have the actual security deposit waived. Either way you pay more to FS but you may not have an actual refundable deposit. As far as the original post, check section 9. of your lease contract. If it says $600 security deposit, you were supposed to pay it. However, if the total due at signing at the end of section 9. matches what you have given them you are all done.
	Appreciate 0 Quote

02-20-2008, 01:00 PM	#33
Explorer3253 Lieutenant 66 Rep 557 Posts Drives: 2014 f32 Join Date: Nov 2005 Location: Westchester County, NY iTrader: (4)	nope..no $600 security deposit listed on my contract....maybe ill see if they can compensate me some other way if i pay the 600 security deposit..ill get it back eventually..and i'll probably re-lease through them anyway in 3 years..but maybe i can get some winter floormats and a license plate bracket for my trouble..lol __________________ '06 325Xi - Jet Black - SOLD, '08 328Xi - Jet Black, Coral, 6spd - SOLD, '07 328Xi - Jet Black, SOLD, '11 328Xi, Deep Sea Blue, Oyster/Black - SOLD '14 428XI, Alpine White, Coral, MSport, Auto, Premium, Tech, Heated Seats/Steering, Drivers Ass, Drivers+ - On Order for ED
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02-20-2008, 01:50 PM	#36
halfpast3 Second Lieutenant 8 Rep 232 Posts Drives: MY16 535i Join Date: Jan 2008 Location: SoCal iTrader: (0) Garage List 2008 335i [0.00]	Yup. Sounds to me like they didn't bump the rate on you but waived the security. Technically, you have them by the balls if you choose to do so. You have a valid contract and they would have to eat the error. Like you said, maybe you can go in and say look, I know you messed up and and I have the ability to tell you to pound sand so what can you do for me if I resign
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02-20-2008, 08:42 PM	#37
Explorer3253 Lieutenant 66 Rep 557 Posts Drives: 2014 f32 Join Date: Nov 2005 Location: Westchester County, NY iTrader: (4)	thanks guys! i'll wait for them to call me back. I'll see what I can negotiate __________________ '06 325Xi - Jet Black - SOLD, '08 328Xi - Jet Black, Coral, 6spd - SOLD, '07 328Xi - Jet Black, SOLD, '11 328Xi, Deep Sea Blue, Oyster/Black - SOLD '14 428XI, Alpine White, Coral, MSport, Auto, Premium, Tech, Heated Seats/Steering, Drivers Ass, Drivers+ - On Order for ED
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02-20-2008, 08:54 PM	#38
sdiver68 Expert Road Racer 62 Rep 1,329 Posts Drives: 07 335i e90, 09 335i e93 Join Date: Jul 2006 Location: St. Louis, MO iTrader: (3)	Wow, some of you failed basic contract law. They've both exchanged something of value, it's a contract. Unless the contract specifically has an out for "final approval clause" it is a valid and enforceable contract. I'd raise holy hell. And yes, a dealer tried this on me before but backed down when I sent him a letter copied to the State Attorney General, Better Business Bureau, and every consumer investigative reporter in the metro area. Now if you want to negotiate amends in hopes of a better dealer relationship, that's up to you. IMHO, the best way they can learn to do their jobs right the first time is for it to cost them $600.
	Appreciate 0 Quote