Thread: Down payment 50%?
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09-08-2005 05:07 PM #1
I second Tech's "they who" question
It is common for custom projects to be done on a progress payment schedule. If "they" didnt do so, you could go in and have them start a 29 Essex roadster and then bail on the project. The builder would be left hanging.
IF the delivery is a short one (one or two months), then 50% up front is typical......IF delivery is longer, then 50% is kinda steep.
On the other hand, the progress payments should kinda follow the $$ added to the car.... ie, if they are going to be 25% done in October, it is not unreasonable to pay 25% of the bill. The builder has to pay his help and bills long before your car is done so this is fair.
At the far end of the project, some holdback is nice for the buyer since he can withhold the payment until things are right.... IF you pay 100% before you get the car, there is little incentive for the builder to finish the car if he has other cars that have payments based on progress.
Normally, we divide a custom project into four or five milestones such as 30% with order, 20% at start of assembly, 30% upon power up and 20% at delivery. The milestones need to be concrete and easily defined.....
Remember that the shop wants/needs his money as early as possible and you want to pay as late as possible. Find a happy medium where neither of you get screwed. Dont pay too far ahead....what happens if he needs your money to finish the car before yours?
I know a builder who has 150K in an unfinished car and his customer has paid in only 100K......leaving the builder out 50K. The customer has lost interest and shows little interest in finishing. What does the builder do? Not too much of a market for a custom vehicle that suits the other guy's tastes.
mike in tucson






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Yep. It’s pretty sad.
Dead!