Dealer Changing Price After Finance Docs Signed

fraz1975

Hi folks just a wee query for those in the know.

Basically I went into a main dealer last week and specified a new vehicle with the extras I wanted on it. The sales person spoke with their manager and I was given a vehicle quotation and a finance quotation which I was allowed to take with me while I made up my mind on the details.

I went back in today and signed the order form and the finance form and left quite happy. I have now had a call from the sales person stating that they have been told by their manager that they have made a mistake in the quotations (despite us going over it again today before signing) and as a result my payments will be 33.8% higher than quoted (over £3k over the life of the loan).

They have of course given me the option of cancellation but do I have any rights to insist on the vehicle at the agreed, quoted price ? What is my best route here ?

anewman

I'd have thought it was a binding contract. Read the terms and conditions start to end.

Think of it the other way, if you signed and agreed - yet in the end *you* wanted out of the contract and to get your deposit back, do you think you'd be able to get out of it and the deposit returned?

You may be able to sue, I think it's called "loss of bargain" or something like that, you would be claiming for the difference on what it would cost you elsewhere based on them walking out of a legally binding contract of sale.

photome

My guess is they are within their rights to change the terms at this early stage just as you can cancel at this time (cooling off period).

That is only my opinion though

Hintza

The question is, is it a genuine error or not.

If I were you i would have a quick look elswhere and price it up again or alternatively run it through a loan calculator.

If its a genuine error then there is probably not much you can do but if they are chancing there arm you might want some legal advice.

photome

anewman wrote: »

I'd have thought it was a binding contract. Read the terms and conditions start to end.

Think of it the other way, if you signed and agreed - yet in the end *you* wanted out of the contract and to get your deposit back, do you think you'd be able to get out of it and the deposit returned?

You may be able to sue, I think it's called "loss of bargain" or something like that, you would be claiming for the difference on what it would cost you elsewhere based on them walking out of a legally binding contract of sale.

There was no mention of a deposit by the OP so they could have got out of the contract quite easily

fraz1975

Thanks for the above input.

I have read through the initial quote and they are claiming that the error was in double discounting the vehicle and there are indeed two discounts on the quote. However one is a dealer discount and one is a manufacturers discount and they are for very different amounts.

I have not as yet paid a deposit as I was told that was due on the day of delivery of the vehicle.

On another note I have been advised that the finance quotation should have a clearly stated APR on it. I have read it through thoroughly and there is no APR figure on it at all, not even in small print.

yorkie08

Might be worth checking your rights with Consumer direct?
http://www.consumerdirect.gov.uk/

Wig

Was there a cooling off period where you could cancel, with no financial penalty?
Was there any restrictions on you cancelling, you say deposit only paid on day of delivery, what if you cancelled day before delivery would there have been any financial penalty due?

DealDrivers_company_representative

What is the make/model, we'll be able to tell you if there IS both a manufr and dealer discount on it at present

matthewn.green

A signed order form should be a legally binding contract, as long as it is spot on. and it has to be signed by the garage. If it is, they're changing contractual terms, and can't do it.

If your on finance, talk to the Financial Obudsman service, or go to Trading Standards.

Bob63

Take it as a warning not to do business with that dealer. IMHO you are lucky to have found out, before you got the car and later needed them for after sales service, that they are a bunch of incompetent crooks.

Cancel, walk away and take your business elsewhere.

Mike