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Started By
Message
Legal/Dealership Question
Posted on 8/2/15 at 11:24 am
Posted on 8/2/15 at 11:24 am
Louisiana law.
Excuse the brevity, I'm posting on a phone.
I am not involved in this situation; I'm just curious what td thinks about this situation.
Customer comes into the dealership and purchases a car. The dealership mistakenly states that there are $10k rebates on the particular vehicle, and the customer leaves with the car. Before the mistake was discovered, the financing was approved by a lender. When the mistake is discovered, the dealership calls the customer to bring the car back; the customer refuses.
Now, the customer signed a bailment agreement, which states, among other things, that the sale is conditioned on the financing being approved. It also states that the sale is void and null if the dealership cannot find a company to finance the deal.
It was originally approved with the $10k rebates; with the rebates removed, the bank would not finance.
Does td think that this sale would be void and null because of the bailment agreement? Technically, financing was approved.
Or is this dealership going to have to show a unilateral vice of error in order to rescind the sale?
I am just curious about this weird situation.
Excuse the brevity, I'm posting on a phone.
I am not involved in this situation; I'm just curious what td thinks about this situation.
Customer comes into the dealership and purchases a car. The dealership mistakenly states that there are $10k rebates on the particular vehicle, and the customer leaves with the car. Before the mistake was discovered, the financing was approved by a lender. When the mistake is discovered, the dealership calls the customer to bring the car back; the customer refuses.
Now, the customer signed a bailment agreement, which states, among other things, that the sale is conditioned on the financing being approved. It also states that the sale is void and null if the dealership cannot find a company to finance the deal.
It was originally approved with the $10k rebates; with the rebates removed, the bank would not finance.
Does td think that this sale would be void and null because of the bailment agreement? Technically, financing was approved.
Or is this dealership going to have to show a unilateral vice of error in order to rescind the sale?
I am just curious about this weird situation.
This post was edited on 8/2/15 at 11:43 am
13
Posted on 8/2/15 at 11:27 am to TSLG
Here comes the lawyers....
Posted on 8/2/15 at 11:29 am to TSLG
He has to return the car.
This post was edited on 8/2/15 at 11:30 am
Posted on 8/2/15 at 11:33 am to KosmoCramer
I think the problem here will be that the dealer will not only want to raise the price of the car to the before mistake price, they will not want to take the car back if the buyer does not want to pay the price.
Posted on 8/2/15 at 11:34 am to achenator
Personally I think the answer should lie somewhere in the middle.
Posted on 8/2/15 at 11:36 am to TSLG
If I was a lawyer I'd tell my client they have every right to keep the vehicle with the rebate and we'd sue the dealership for emotional distress caused by putting my client through this mess because the dealership didn't have their shite together.
Too bad I'm not a lawyer though
Too bad I'm not a lawyer though
Posted on 8/2/15 at 11:37 am to achenator
The dealership only wants the car back. His trade is waiting for him.
Posted on 8/2/15 at 11:39 am to TSLG
Not a lawyer, but when my parents bought me my first car ('97 Cavalier) we paid $11,500 and they called us a few days later explaining that we should have paid $13,000... My dad told them to pound sand and they hassled us and threatened legal action but never followed through.
Posted on 8/2/15 at 11:40 am to 13SaintTiger
The customer's brother is a Ms attorney. Besides the ed claim, that is exactly what he told the dealer.
He said their stance was that the sale is perfected, and the dealer should file suit if he disagreed.
He said their stance was that the sale is perfected, and the dealer should file suit if he disagreed.
Posted on 8/2/15 at 11:51 am to TSLG
Just tell them that you are in Oregon with the car, and if they want a car back with an extra 5k miles, they can have it and sell it as a used car. They're gonna lose money either way if that is the case, and ya boy can go get the same exact car at another dealership with the $10k in rebates
Posted on 8/2/15 at 11:54 am to Hammertime
Depends on if its a ford. If so, its better to just return it.
Posted on 8/2/15 at 12:00 pm to TSLG
It still amazes me that people think lawyers are just itching to come on Tigerdroppings and give free legal advice based on abstract, hypothetical, and utterly vague questions.
Hint: No sane lawyer is going to answer your question.
Hint: No sane lawyer is going to answer your question.
Posted on 8/2/15 at 12:00 pm to Sparkplug#1
car dealer may hold off on license and title.if the title goes through it will be used.
Posted on 8/2/15 at 12:01 pm to TSLG
If they signed the finance contract it's their car.
Posted on 8/2/15 at 12:09 pm to TSLG
Wait til you actually have legal action taken against you, then give in and sign the car back over to them. Just tell the judge you wanted to make sure the legal paperwork for a complex case like this was taken care of correctly in front of you. And if they threaten and harass you, but never actually take legal action, you get to hold onto your car and know you are one of the few who actually got the better of the dealership 
Posted on 8/2/15 at 12:16 pm to Bayoutigre
does he just like the car and the deal, or is he planning on the rebate,?are the rebates in writing?does he see this as an opportunity to stick it to the man?
if the factory says rebates on this model have expired,the dealer will be left to honor the rebate.they will probably go to court before paying.not a lawyer. just my take
if the factory says rebates on this model have expired,the dealer will be left to honor the rebate.they will probably go to court before paying.not a lawyer. just my take
Posted on 8/2/15 at 12:17 pm to Hammertime
quote:
Just tell them that you are in Oregon with the car, and if they want a car back with an extra 5k miles, they can have it and sell it as a used car. They're gonna lose money either way if that is the case, and ya boy can go get the same exact car at another dealership with the $10k in rebates
Actually, most bailments also state that the customer has x amount of days to bring the vehicle back if financing falls through. After that timeframe the dealership can charge a daily fee plus mileage charge like you would a rental car. If the binder does in fact state this the customer can be sued for this amount to cover the value loss. Bottom line, don't be a little bitch, bring the vehicle back.
Posted on 8/2/15 at 12:22 pm to BRL79
How much was the actual rebate if not 10K?
Posted on 8/2/15 at 12:33 pm to BRL79
quote:
Actually, most bailments also state that the customer has x amount of days to bring the vehicle back if financing falls through. After that timeframe the dealership can charge a daily fee plus mileage charge like you would a rental car. If the binder does in fact state this the customer can be sued for this amount to cover the value loss. Bottom line, don't be a little bitch, bring the vehicle back.
How is forcing the dealership to honor the purchase agreement (which they signed) "being a little bitch"?
In this case it doesn't sound like financing fell through. The dealership is simply trying to change the price on a closed deal after the fact to erase their error. They made a mistake and they are trying to walk away from it and unwind the deal unilaterally.
Posted on 8/2/15 at 12:35 pm to BRL79
I don't know because they went through the trouble of being approved for financing and all paperwork signed.
That should be on the dealer. They let it sell for that agreed price.. It's not right to then retract after and try to claim an error once possession is given over.
That should be on the dealer. They let it sell for that agreed price.. It's not right to then retract after and try to claim an error once possession is given over.
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