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If a buyer negotiates with a salesman for a purchase price of a new vehicle using financing terms, the salesman WRITES down a final price/fills out a purchase order can the buyer then say "OK I'll buy it but I want to buy it cash outright with no financing" can the seller then raise the purchase price (because he won't be getting any money off the interest)?
No they can't raise the purchase price but what they may be able to do is charge a fee in some areas for having to have run a credit report and for the time it took to fill out loan documents. Its dishonest to negotiate that way if you know going into it that your paying cash say so.
The only "deal" they have OK is the exact one on paper, and it is not a deal till it is accepted and signed by some manager, not just the salesman, and "consideration" is paid, so by contract law there is no contract or agreement till money is paid, then both parties are bound by the terms of the agreement,
So if you want to "hold" them to the purchase price, they can also "hold" you to your agreement to finance.
Chuck is correct. If the contract called for financing then by changing the contract you give them the right to change it also.
What you should have done, is go ahead with the loan then pay it off after a couple of payments.
Just making sure there is no pre payment penality.
And in most cases if you are not dealing with a buy here pay here place, but a actual dealer, you can often get a better "cash" deal if you pay cash and don't have a trade in.
Just to clarify, no contract was signed, NOTHING WAS SIGNED. The salesman was explaining the cost if buyer chose to lease or buy and if buying using their own bank or Toyota's finance company. When doing so he wrote the price of the car (w/spoiler, color, AC) on a purchase order (if that's what you call it) and circled it as the final price. The buyer wasn't being dishonest and was simply unsure of which path to take. Then realized that if paid all at once/no interest would be cheaper. But you are right they just added more $ elsewhere. Thanks for all your answers.
One also has to take into account the potential investment income lost by paying cash.Quote:
Originally Posted by Foil
And more often than not, if merely the salesman says a "final" figure, he then says he has to get his manager to approve it, and guess what, often they come back and say he would not but they would do another deal.
It is not a real firm and final price till it is done from a person with the authority to make that final deal ( thus why I will never deal with a sales person, either the salesmanager or higher deals with me or I just walk out.
Every comment in this thread so far has been innacurate in some way and not given by an authority on the subject... just saying...
Care to prove your blanket statement?Quote:
Originally Posted by jpbuzzworthy
Quote:
Originally Posted by califdadof3
I can try...
1. NO deal is final till you DRIVE off the lot AFTER contracting... period.
2. counting on investment income in lieu of paying cash for something went out in the 80's
3. You don't get a better deal if you pay cash and have no trade... the dealer makes money on financing AND sometimes will give you a better deal if he really likes your trade and knows he'll do well on it.
4. getting the loan and then paying it off in a few months was not necessary in this scenario.(the only scenario that makes sense in is if you're getting a rebate for financing through the MFG. then you take it and pay it off three months later)
5. It's illegal to charge "FEES" to fill out loan docs or run credit reports, above the "dealer fee" which is on every deal.(in some states it's even illegal to WAIVE that fee as well)
In closing to answer the ORIGINAL question.. YES he can raise the purchase price, he can lower it, he can tell you to leave the premises, he can ask you to trade in your shoes on the deal... AND you have the right to walk as well... again , nothing is REAL until you go into financing and sign... AND.. as they say in the car business "bust bugs" "cross the curb" however you want to say it.. the car must be driven off the lot by YOU...
PS - I didn't mean to sound argumentative when I posted earlier... it's just that there were no answers from Car experts and a lot of old wives tales being thrown around.
Quote:
Originally Posted by jpbuzzworthy
Just sayin' you've given some very inaccurate and off topic advice all over the Boards today.
How old are you and what is your area of expertise or what is your degree?
Quote:
Originally Posted by jpbuzzworthy
Care to quote the law on that one? In NY you both sign the Contract, you are BOUND by the contract. I never heard of signing a Contract, meeting the requirements and not being bound by that Contract until you drive "off the lot". Period.
Quote:
Originally Posted by JudyKayTee
You could use California no cooling off period law as an example. Here's an excerpt... when a customer purchases or leases a new motor vehicle, there is no “cooling off period” rule. What this means is just because you may think that (after signing and taking delivery) that it’s not the right vehicle for you, your payments are too high, or other various reasons that the sale/lease can be cancelled – it cannot. The moment you complete the sale/lease documents and take physical delivery of the car (drive off the lot), there is no “cooling off” period in which to return the vehicle and rescind the sale. At this point it is yours.
The only exceptions to the “no cooling off period” are dealer fraud, or if the dealer has delivered the vehicle on a “subject to lenders credit approval” conditional sale, and it later turns out that the dealer cannot secure the necessary financing to complete the sale.
..
I'm 40 years old have a Bachelors in Business Management from Rutgers University and have been in Auto Sales/Management and Finance for many years.
As far as the other posts I have made today, none we off topic or innacurate as most were opinion based. I commented on a dog topic stating I'm no expert. Told some girl to take good care of her baby and told a kid to stop taking Steroids... you sound like a typical case of someone who has been on a board for a long time picking on a new poster just because you didn't like my style or tone. Get over yourself.
Sorry but your try fails!Quote:
Originally Posted by jpbuzzworthy
1. A deal is final when there is a signed contract. This is basic contract law. A signature on a contract implies a commitment. Several responses pointed that out.
2. I didn't say "counting on investment income", but it should be factored in. It is true that ROI is very low these days so it may not be as much of a factor as it was.
3. This is only partially true. In some cases, dealers actually have already purchased the cars, so getting may be an advantage.
4. I stand by what I said. If a better price was obtainable by getting financing, then a pay off after a few months may have been a better choice.
5. This is correct, but I don't believe anyone said anything different.
The original question was, whether the dealer could change the deal under the circumstances. Most of the responses said yes, which is what you are saying.
One does not have to be a "Car" expert to know contract law. The bottom line here is that I see no responses that were inaccurate or old wives tales. And your detailing doesn't back up what you said.
The old "I was wrong and got caught on it" defensive post.
I fail to see that the explanation addresses the "drive off the lot" question OR that California Law has anything to do with this. All States are different but contract law is exactly that - contract law. Once you sign that contract you are BOUND by that contract. The bank/the dealer don't really care if you park it IN the lot and never leave. You owe the money and you own the car.
Find your generalizations to be out of line. Also this - https://www.askmehelpdesk.com/emotio...ed-476062.html There is no mention of rape. What makes the boyfriend a rapist?
Or this - chest pains ARE an emergency. https://www.askmehelpdesk.com/other-...ns-476364.html
If you post something you HAVE to be able to back it up - I get called on posts all the time. 99% of the time I can back up what I say. You need to do the same.
Sorry you're leaving, sorry you feel driven off - but, again, you have to back up what you post. Take it from The Queen Bee -
Sorry but wrong again. This is what California actually says in reference to their DMV.Quote:
Originally Posted by jpbuzzworthy
(quote)
•A used car buyer may obtain a two-day sales contract cancellation option.
(end quote)
So your drive off the lot theory doesn't work in that case either.
For more info go to the California website.
Ref:
Car Buyer's Bill of Rights (FFVR 35)
I am closing this, the new poster has given so many wrong answers I am afraid someone my actually listen to it.
Pleae do not sign a contract, and then say you changed your mind since you ddi not drive off the lot, once you signed the contract and they have counter signed, its binding. There is no "drive off the lot laws in any state I know of. ** one of my sons and my cousin own used car lots.
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