Deposit?

[ColoRockiesFan]

Hi all,

When selling your trailer, do you request a small deposit from the buyer to hold the trailer until the transaction is complete?

Thanks for any recommendations.

[Thomas G.]

Yes. Otherwise you may end up holding it while a second potential buyer moves on, only to find out that the original offer was dropped.

Anyone asking you to hold it needs skin in the game.

[Bob Miller]

As a buyer, I insist on making a deposit, usually at least 10%, to secure the deal. I have had more than one trailer sold out from under me by a seller that got a better offer before I got to there with the cash. In one well posted example we drove over 350 miles to buy a Scamp and were "Dumped" when we were less than 5 miles from the sellers house..

When we bought our Lil' Bigfoot, we were the first to see the trailer, made a deal, and handed over a $300 deposit. When we came back the next day for delivery, the seller was willing to give us back 2 times our deposit to sell the trailer to one of several other buyers.

I usually use PayPal for deposits as it is is instant. One time I did have to use overnight mail, but that was with a very honest seller anyway.

In short, it helps keep the seller and buyer both safe and honest.

[rgrugg]

Of course I'd want a deposit. Helps to tell if the looker/buyer is serious.

[GMike A]

Had the same thing happen to me. I was going to pick up a vintage motor bike from a Craigslist and on the way over apparently another person upped the ante on me and I had bupka. For CL its like no gentleman (gentlewomen) rules apply anymore, its who ever gets there first. %#$%#^

[Donna D.]

Accepting a deposit puts all the power in the buyers hands.

Now, the buyer is expecting you to withhold the trailer from other potential buyers. However, there are many reasons a buyer may put down a deposit. Speculating (waiting to see if something better comes along), waiting to get financing (are they qualified?) or timing isn't right (I can't get there for a month...)

In the meantime, you may have other buyers ready with cash, right now!

I would only accept a deposit if the buyer has physically seen the trailer and will pay the balance within one to two weeks.

If the buyer is long distance, we'd have to agree that I (as the seller) has been scrupulously honest about the condition. The buyer asks questions and I answer honestly. At this point in the game, dishonestly on my part, as the seller, should allow the buyer to back out and get 100% of the deposit back. However, if honesty is pure and the buyer backed out for ANY OTHER REASON, I would expected (as already determined) to keep 10-20% of the deposit. That would allow me as the seller to pay for new advertising and pay for my time and effort.

AND, depending on the price of what I'm selling I wouldn't accept less then 10% of the full price (if you're talking trailers) as a deposit.

It's a conundrum and only you can decide what's best for you.

Best of luck!

[Francesca Knowles]

Our policy is deposits accepted so long as they're 100% of the asking price.

Francesca

[Brian M. in NY]

Originally Posted by Francesca Knowles

Our policy is deposits accepted so long as they're 100% of the asking price.

Francesca

Barring a legal degree (which I don't have), I'm with you. First money gets it. All sales, "as is!"

[Bob Miller]

Good Faith Deposits are fair for both buyers and sellers.

When I am selling something and the buyer is either travelling some distance or is gathering cash, I accept a deposit with an expiration date. Either they show up and pay off the total amouint by an agreed upon date or the total deposit is forfitted... period. That said, there is still not reason what I can't collect back-up offers should my buyer default. When we bought our Lil' Bigfoot the seller handed me a list of 6 wannabe buyers that he had in waiting.

As a buyer I am putting forth a small amount to a) hold the item until I am able to inspect or b) to hold the item whilst I scurry to the bank and/or bring my tow vehicle. In the case of a), should the item be a P.O.C. it might be my loss, albeit small, but I can still walk away without to much damage.

In all cases, short of outright fraud, I do not expect to recover my deposit should I elect to walk away for whatever reason.

Most sellers are more than happy to be able to stop answering calls and/or showing with a 10% deposit. Those that aren't, I have almost always found to be less than honest about what they were selling.

[Brian M. in NY]

Originally Posted by Bob Miller

Good Faith Deposits are fair for both buyers and sellers.

When I am selling something and the buyer is either travelling some distance or is gathering cash, I accept a deposit with an expiration date. Either they show up and pay off the total amouint by an agreed upon date or the total deposit is forfitted... period. That said, there is still not reason what I can't collect back-up offers should my buyer default. When we bought our Lil' Bigfoot the seller handed me a list of 6 wannabe buyers that he had in waiting.

As a buyer I am putting forth a small amount to a) hold the item until I am able to inspect or b) to hold the item whilst I scurry to the bank and/or bring my tow vehicle. In the case of a), should the item be a P.O.C. it might be my loss, albeit small, but I can still walk away without to much damage.

In all cases, short of outright fraud, I do not expect to recover my deposit should I elect to walk away for whatever reason.

Most sellers are more than happy to be able to stop answering calls and/or showing with a 10% deposit. Those that aren't, I have almost always found to be less than honest about what they were selling.

Bob,
I agree with your view of what should work. But I don't know contract law in CA or if it is binding in NY. In our litigious society, you would hope that your buyer would be as honest as you are as a seller or vice versa. Sadly, that isn't always true. If your method has worked for you, congratulations, I hope it continues. I would prefer to keep myself out of a small (or larger) claims court situation. Just because you're paranoid doesn't mean no one is following you.