Validity of Automobile Purchase Agreement

[ljgizmo]

We recently signed a purchase agreement with a local Mazda dealer. We were trading in a 2005 Mazda 3 that we estimated as owing $11,500 on which the salesman wrote on the back of the agreement. The signed purchase agreement stated that we had $3500 from the trade-in that would be applied to the down payment which would put the monthly payment at $231-$241 per month (also stated on the purchase agreement). We gave them a $500 dollar deposit to seal the deal. I called the next morning with an exact payoff of $10, 947 which he also wrote on the agreement. When we went to pick up the car they refused to honor the purchase agreement because the salesman had erroneously told the finance manager that we owed only $4500 on the Mazda 3. They made no offer to right their error or offer us any alternatives. Is a signed purchase agreement with an automobile dealer a legal contract and should they have to honor this agreement?

 

[Michael Wechsler]

We recently signed a purchase agreement with a local Mazda dealer. We were trading in a 2005 Mazda 3 that we estimated as owing $11,500 on which the salesman wrote on the back of the agreement. The signed purchase agreement stated that we had $3500 from the trade-in that would be applied to the down payment which would put the monthly payment at $231-$241 per month (also stated on the purchase agreement). We gave them a $500 dollar deposit to seal the deal. I called the next morning with an exact payoff of $10, 947 which he also wrote on the agreement. When we went to pick up the car they refused to honor the purchase agreement because the salesman had erroneously told the finance manager that we owed only $4500 on the Mazda 3. They made no offer to right their error or offer us any alternatives. Is a signed purchase agreement with an automobile dealer a legal contract and should they have to honor this agreement?

Good question and typically this would depend upon whether this "mistake" was so large to be spotted as a mistake. I'm not sure as to the reason for the discrepancy - could you explain how they got $4,500 when you had $1K less?

If you have a signed copy of the agreement it would seem that the dealer would have a difficult time explaining how you don't have a deal. Unless he can show a valid reason, e.g. the person signing the agreement had no authority, there was a clear mistake of fact that you should have known was a mistake, etc. it would seem to be an executable deal. A mistake by one party does not necessarily negate the entire deal.