Dealer says incentive was mistake

Colorado74

New Member
Jurisdiction
Virginia
We just purchased a vehicle this past Saturday. Today (Monday) the finance person called and said there was a mistake and there was a $2,000 incentive applied to contract that should not have been. When we were in finance office, we were adamant that our payments be a certain amount. The person working the finance desk discounted certain packages (GAP, etc) and we scrounged to put the last little bit we could down ($6.000) to get our payments where we needed. He is now saying we need to come in and resign contract and that our payments will go up WAY higher than we told him we could afford while in the dealership. We do not have any other money we can put down and we can not afford the payments to go up anymore than they are on the contract we signed. Do we have to comply? We traded in a vehicle and I believe it is slated to go to auction.

Thank you for any assistance
 
They cannot force you to re-sign. I work at a dealership and it is very easy to make mistakes on rebates. When we make a mistake we take the loss. UNLESS they have a document that you signed that says you will re-sign if such a mistake is found, or if you mis-represented something that caused them to believe that you were eligible for this particular rebate. If I were you I would tell them sorry that you made a mistake.
 
I agree.
Either they honor the contract that you signed or you return the vehicle with complete refund of your down payment and return of your trade-in.
It is likely easier for them to take the loss.

You certainly DO NOT have to sign a new contract and accept new terms.
 
Update:
I called the finance office today and explained to him that we signed the contract based on all terms and conditions that were disclosed on THAT contract. I asked him to provide to me, in writing, WHAT he wants to change and WHY (what error was on contract and why it was an error). I also asked him to provide a copy of the contract highlighting the verbage that gives him the authority to make said changes. I also told him I would NOT be signing a new contract that would increase the monthly payments, I would take his written statements to council and would get back with him regarding whether I would turn vehicle in and request my trade in back or pursue in another fashion. He said he could not keep the $2k incentive listed as is and asked me if I would come in and re-sign paperwork if he discounted price in some other way to keep payments the same. (either the GAP, warranty or bottom dollar of the car).

I have agreed to come in and re-sign as long as payments and bottom line price are the same. You better believe we will go over that contract with fine tooth comb before signing!
 
I have agreed to come in and re-sign as long as payments and bottom line price are the same. You better believe we will go over that contract with fine tooth comb before signing!


Excuse my intrusion, but it does you little good to worry about monthly payments.

Monthly payments can become whatever you wish them to be, which might turn a 36 month contract into a 360 month contract.

Heck, a 360 month contract might even get your interest rate reduced by .50%.

You should be asking what this vehicle will cost you over the entire term of the contract.

Let's say you're buying a $40,000 car, tax title, license, fees make the purchase price $45,000, which is what the lender will finance.

You also want to know what it means if you're charged 6% interest versus 10% interest to what a $40,000 car will end up costing you.

Take a look at some mythical numbers I ran, and you can do your own testing.

$45,000 Car Loan Payments Calculator - Saving.org

$45,000 Car Loan Payments Calculator - Saving.org

$45,000 Car Loan Payments Calculator - Saving.org

$45,000 Car Loan Payments Calculator - Saving.org

If you must finance a car, it is best not to do anything more than 36 month financing.

If monthly payments are important to you, you can always reduce the amount of money you spend, as in a $25,000 car instead of a $45,000 car.
 
I should have been a little more clear in my responding post. The payment and monthly term is not to change. Same monthly amount for same amount of months as previously agreed upon
 
I should have been a little more clear in my responding post. The payment and monthly term is not to change. Same monthly amount for same amount of months as previously agreed upon

You were clear enough for me to comprehend your post.

I was attempting to share with you some strategies to investigate when you are purchasing an automobile.

I stopped financing automobiles and other stuff 30 years ago.

I pay in full for things I buy today, including automobiles.

If I were ever to finance anything, I'd always run my own numbers.

I'd also set a price in my mind before I trudged off to a car dealership to negotiate a purchase.

But, hey, I'm not the boss of you, mate.

I'm just one of billions of internet dummies.
 
I appreciate the input. If I could afford to pay for all things I buy today in full, I would. Unfortunately, some of us don't have that ability. We did have specific max price and ideal range to be in before we went. We got right on the money where we wanted to be price and term wise-which is why this out of the blue call back wanting to re-do the deal threw us for a loop.
 
Their first goal is to get you to come back in. The second goal is to get you to sign.

Just remember, no matter what they might tell you, that you do not have to do anything at all. Walking away is always an option.

Read the contract extra carefully and make sure you understand how they have corrected their mistake and that it is not costing you in the long run.

I suspect they will try and increase your loan term to spread the amount out more and keep your monthly payment down, costing you more long term.
 
They can certainly make sure the payment stays the same, but you will be giving up something, such as GAP or Warranty. The only thing acceptable would be if they lower the price of the vehicle. You need to tell them that everything else has to be the same. Term, rate etc.
 
He stayed true to his word. He discounted GAP and Ext Warranty to make up the difference on the incentive. Term, payment, final amount out of pocket all same. (actually slightly less than what we were paying)
 
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