New York New Car Dealer Accepts Deposit; Refused to Honor Price/Terms Neogiated

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abusedtom

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Contacted dealer, inquired about a vehicle, was told it was available.

Negotiated a deal with said dealer.

All communications were in writing via email. (I have every piece of mail sent and received)

In nearly every communication I asked them to confirm the vehicle specifications, deal and terms. They Did.

They took a $500.00 Deposit and had to do a search for the vehicle. (Beginning of December)

After requesting an update on the vehicle search status, I was told they located the vehicle and to come in to do final paperwork, also they needed give me a trade value on our current car…

*Note the deal negotiated was absolutely NOT predicated on the trade, which was to be an entirely separate transaction. I have an email absolutely establishing/confirming this.

We went in today. Before commencing paperwork, they basically insisted my wife take a car for a test drive. (This is where I started to get uneasy, as a good sales person will NEVER continue selling AFTER a deal is essentially closed and the customer is ready to sign.)

After the test drive they kept us waiting for a LONG time. Then came back and informed us that the best they can do is a monthly payment more than 50% higher than what was previously negotiated. To add insult to injury that 50% higher payment now also included out trade value.

They offered no other option except take the "new" price/terms or they would refund the deposit.

When I signed the refund request, under reason I wrote out "Dealer refused to honor previously negotiated terms". When they handed me a copy, the manager had crossed that out and simple wrote "price". At that point we were essentially escorted out of the dealership. Also the dealer failed to return the title and note of lien satisfaction on our current vehicle, we were so frustrated that we didn't notice till we returned home.

To sum up negotiated a deal in writing via email. Dealer requested and accepted a deposit. At time of signing dealer completely changed pricing, payments and terms.

Where does the law fall on this situation? Did requesting and accepting a deposit in any way obligate the dealer to honor the terms that were established for that deposit in the first place? What are my options?
 
Your options have previously been exercised by you.

You received your $500 deposit.

Despite your protestations to the contrary, your emails carry no legal weight.

Why?

You had no signed contract.

Things change in the credit market daily.

I suspect the dealer was unable to obtain better financing for you.

Trust me, had a deal been possible, they would have preferred selling you a car.

That said, emails are of very little, evidentiary value in most legal matters.

Be thankful you're not out of any additional funds.

Don't buy cars (or expensive merchandise) via email.
 
They are not liable to provide 3rd party financing. When they present terms based on financing, they use the best case scenario to make the price the most appealing. When you are in love with the car, the finance manager then gives you a sob story about the financing, trying to raise the rate a point or so, for profit purposes. This is assuming your credit is good. If your credit is bad, the rate jumps significantly, because they know you really want/need the vehicle. I am actually waiting for a call from a dealer now. They agreed to a price match on a hard to get truck, however are trying to make the money on the backend trade. I told them the deal goes at my price. They said they would call me today and let me know. The negotiation stops, when the title work is signed, the car is in your driveway. That is if financing is not in progress. You could wait another month, to know that for sure.
 
The agreements you make are always subject to credit approval. To avoid this problem, get your loan from a bank rather than financing through the dealer. This way you know exactly how much you can spend and the dealer never has to look in to your credit. This way your negotiated price is not likely to be messed with.
 
Followup on my situation. Dealer put the parts of the deal together and crapped. Would not honor the numbers he agreed to, when he saw them as a package. Oh well. Guess I don't get a new truck. It was the last 2011 4 wheel drive under $27k within 500 miles. On a brighter note, the Spark will be coming out soon.
 
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