Dealer overvalued my car

motorconsumer

Looking for some thoughts here...

Dealer verbally offered my £19-19.5k for my car as a buy, this was based on the details I sent him in an email

Went to dealer to discuss deal (I needed a new car to replace). He sources me a new car at £17.2k and arranges new finance deal, part of this agreement is to pay me £19.2 for my car (which they have now viewed) so I get a check for £19.2 to cover my old outstanding personal loan.

Do the deal - sign and execute the finance for new vehicle, and do the swap on Monday night this week.

Tuesday morning the dealer rings and tells me that they have overvalued my car and its only worth £15k. Offers to meet me half way - i.e. they will give me a cheque for only £17.2 am I ok with it.

I think instantly no way! Your mistake (which they admitted) but they are now holding my anticipated check at there headoffice pending if I will take a 'gentlemens' agreement and take the £17.2 - otherwise it will be escalated from the dealer to the head office and the 'legal team'

In my rush to leaver the dealership I didn't take any copies of agreements etc so I am worried that I don't have much evidence.

Spoke to consumer advice today (because of this legal thing) and they say that because the finance agreement has been executed and because the trade in appraisal was carried out without due care etc that basically the garage are at fault and they should suffer the loss.

So... I worried about two things... 1) They still owe me the check 2) The dealer says that he hasn't 'brought' my car yet?

I'm pretty sure that both the sale and purchace were on one document (as per some legal thing) so the fact the new credit agreement is executed basically seals the whole deal? right?

Any advice/similar stories/ways to proceed much received!

blacksta

why not take the 17.2k and be merry

anotherbaldrick

How come you left the dealership without the cheque in your hand ? Were you in That much hurry to make your getaway ?

atrixblue.-MFR-.

blacksta wrote: »

why not take the 17.2k and be merry

berk homes values your house to buy for £90.000 you sign the house over then they ring you to tell you they over valued your house and say theyre withholding the check of 90k because they believe the house is worth 72k would you be happy? after signing all the docs? then they offer you 79k as a goodwill offer for their mistake, i suppose you'd just suck it up huh?

shaun_from_Africa

When I sold a car to a dealership a few years ago, the branch where I went were not able to issue cheques.
They had to give me a bank draft which came from the finance dept of their head office.

why not take the 17.2k and be merry

Because the dealer has agreed a contract to give them £19.2K
I don't know about you, but I wouldn't be willing to simply give away £200 and "be merry".

I wonder what the garage manager would have said if the OP went back on Tuesday morning and told him that he made a mistake and despite signing a contract he now wanted £21K for his car instead of the £19.2K agreed on by both parties.

Chunks

I cannot argue with what has been stated previously.

You have two options.

A deal is a deal (a contract can be verbally agreed too) and if you have some paperwork to back it up, they owe you the full amount - period and you are in the driver's seat. I would take this option personally.

If £17.2k is actually a good/fair/great price (cannot judge obviously) you might want to push them a bit. E.g. "I have taken advice and we have a contract at an agreed £19.2k" ...."I am fair-minded...." "....although I am very surprised you want to vary our agreement" ".....If we can agree £18k now, I will settle at this lower price and thereby help you out".

This takes some doing, I freely admit and if you are unsure the 'legal department' may try and put the squeeze on you (trying to make you feel guilty/liable for their mistake). If you have access to proper legal advice (via your house insurance perhaps?) you might want to force them to honour the agreement - no negotiation – and get a follow-up letter from a solicitor.

The above might be considered faff and hassle (and not worth it therefore). Give the haggling method a go. If £17.2k is actually a good price, you have already won.

Good luck.

Chunks

adamc260

You've signed an agreement with them stating to give you £19,200 for your car.. if they can't value cars right thats their problem.

You signed a contract and they are bound to the terms of it. Let it go all the way to be honest. They should take the hit and learn from it after all, what have you done wrong in all of this .... nothing, so why should you be out of pocket for their error?

I bet if it were the other way around and they undervalued it, they wouldnt be rushing to give you more

harveybobbles

If nothing was signed and the OP has nothing then there is nothing the OP can do to be honest.

Even if an ORDER FORM was signed, it still has no real value as such as there order forms are worded the same at the bottom which enale to dealer/customer to pull out of a deal.

shaun_from_Africa

as there order forms are worded the same at the bottom which enale to dealer/customer to pull out of a deal.

But the deal has been made and concluded last Monday. "Do the deal - sign and execute the finance for new vehicle, and do the swap on Monday night this week."

The contract as agreed between the OP has the dealer has been finalised apart from the dealer giving the OP the money that they legally owe them.

ukjoel

Let them escalate it - YOu dont mention the group but I presume from the words head office and legal team that its a national.

They have committed and probably capped your car at book but their group buyer then comes in Monday and throws a paddy as he knows they are going for 85% of book at auction and he will only underwrite the lower figure.

Think you should insist on progressing the original deal - they saw the car and you agreed based on those terms.
IF they had quoted you another 2k for the car you were buying you would have gone elsewhere.


Some places do this as part of the sales process - ie promise big then knock the px when it arrived. Not mentioning names but think worlds most irritating advert and you get the idea.

I dont think this was the case this time but I would push for original agreed deal. You will get it if you should loud enough.

Moneymaker

motorconsumer wrote: »

So... I worried about two things... 1) They still owe me the check 2) The dealer says that he hasn't 'brought' my car yet?

I don't understand this. What are they supposed to be checking and from where/why is he bringing your car?