GM Lease Confusion

[Ted Phillips]

Jurisdiction

Michigan

We leased A Cadillac on February 16, 2019. Everything went well at the closing and we were happy with the purchase. However, I had told the dealer that my sister worked at GM and he said we would qualify for the GM employee discount. We signed the agreement and I told the dealer that I would call my sister for the pin number. It turned out that my sister was a contractor and did not qualify for the discount. I also tried a cousin and a friend and neither would sponsor me because they felt it was unethical.

Now, the dealer is demanding that we pay the $3800 difference for the contract or they will take legal actions. In my opinion, we should not owe anything and this is the dealer's responsibility as the contract is signed and we have the vehicle.

Can the dealer sue us like or they just bluffing ?

 

[army judge]

Can the dealer sue us

If someone has the necessary funds to file a lawsuit (or does so in forma puperis), anyone can be sued, just because someone wants to sue another person/party.

Based upon your recitation of events above, I'd cough up the $3800 to avoid the unpleasantness of a lawsuit and negative impact one could have on your pristine FICO.

If you are a veteran, or have a relative who was a veteran, USAA has a discount that is as competitive as the GM Employee discount.

This might help:

https://www.gmfamilyfirst.com/about-the-discount/

 

[adjusterjack]

In my opinion, we should not owe anything and this is the dealer's responsibility as the contract is signed and we have the vehicle.

You'd be wrong. You told the dealer you qualify for the employee discount. The dealer relied on your assertion and applied the discount to the sale. Turns out you did not qualify for the discount. You owe the $3800 and you will lose if you get sued for it, or maybe the car will just be repossessed.

 

[Tax Counsel]

In my opinion, we should not owe anything and this is the dealer's responsibility as the contract is signed and we have the vehicle.

Can the dealer sue us like or they just bluffing ?

Well, the problem here is that you misrepresented a material fact on which the dealer relied in making the contract. So if the dealer sues, you are likely to lose.

 

[Zigner]

Generally, contracts for cars are clear that the contract is the binding document, and that any verbal assertions that are not contained in the contract are void. If the contract made no mention of the discount at all, then I believe that the OP doesn't owe anything. However, if the contract makes mention of the employee discount being applied, then yes, I agree that the OP should pay it.

 

[zddoodah]

Can the dealer sue us like or they just bluffing ?

Anyone can sue anyone for anything. Whether this particular dealer will or won't sue you is obviously something that no one here will have the slightest way of knowing.

Now, the dealer is demanding that we pay the $3800 difference for the contract or they will take legal actions. In my opinion, we should not owe anything and this is the dealer's responsibility as the contract is signed and we have the vehicle.

Your opinion is probably legally wrong (I say "probably" because of the point that "Zigner" made and because we have no ability to to read your lease contract). The contract was made under the assumption that you qualified for a particular discount. It having been discovered that you don't qualify, the lease should properly be reformed (i.e., changed) to reflect that.