Car Dealer Changes Price Of Car After Order Agreed

Jimster71

Hi,

I wanted to see if any of the knowledgeable people on here know where we stand on the following:

We went to a dealer to look at used cars. Saw one we liked so took it for a drive and then haggled over price a bit. Decided to sleep on it and go back the next day.

Next day, saw a newer car of a similar type and suggested to dealer that we'd go for the newer one if we could get a decent deal. Haggled over price, shook hands, signed order form (which was also signed by sales manager).

We were due to pick up the car tomorrow, we have sorted out insurance for the new car to start tomorrow and the dealer has taxed the car in our name.

Dealer phones us today to say that they had made a mistake on the car price and that they can't sell it to us at the price we had agreed. They said we could always pay the extra or go for a cheaper car! The dealer also said that they were within their rights to withdraw the car from sale.

The car was being paid for on finance, plus the part ex value of our current car. The values of both are stated on the order form we have. The reg number and value of the car we agreed is on the order form.

Can we force them to stick to the price we agreed or can they pull the rug from under us?

deltic_2

Talk to Trading Standards and the CAB. Technically you have a signed contract which they should honour, however you may have to sue them in order to get them to honour it and that would take time and money and create a lot of unnecessary stress.

My suggestion would be to put in writing to the dealer that you will only complete the purchase if the original signed deal is honoured. State that if they do not honour it, it is breach of contract and you will exercise your right to cancel.

No dealer likes to lose a sale and it would hurt them if you walk away as they will have spent money preparing it and will now have to suffer more depreciation on it while they wait for another buyer. If they are a good dealer they will honour their deal.

If they walk away then you have had a lucky escape. This tactic of increasing the price after the sale is agreed look to be becoming more common and personally I think it is a sales trick to earn more money.

If you can't trust a seller you should never buy from them !

taxiphil

Have you given them a deposit? Are they threatening to keep it if you don't pay the extra money they want?

If so, and if deltic's suggestion doesn't work, I would pay the extra money strictly on an "Under Protest" basis. Make sure you accompany the payment with a letter stating they are in clear breach of contract but their actions have put you in a position where you will incur financial losses (known in law as "loss of bargain") if the deal falls through.

Also state in the letter that you intend to reclaim this extra money through the courts, but have given them the opportunity to honour the original price in order to mitigate their losses arising from court fees etc, and they have refused to do so.

Then go about reclaiming that extra money through the courts if necessary. I'm pretty sure you'd win, as this is breach of contract, pure and simple.

Jimster71

Thanks for the advice. We will be going down to the dealers tomorrow to see what we can sort out.

If we are going to kick up a stink, it's best to do it on a saturday afternoon when they are the busiest

We have given them a small deposit to reserve the car, but we haven't discussed what happens over it.

Jimster71

I spoke to consumer direct this morning about the matter. They told me that until the finance has been excecuted, either party can oull out of the deal. Since we haven't signed the finance papers yet, they don't have to sell us the car.

It would be good customer service for them to honour the price, but legally they don't have to.

Bob63

If this dealer has done it to you, he will have done it to others. He is a shark and your best option is to get your deposit back and walk away. If he is going to rip you off over the car price then he will almost certainly rip you off on servicing as well.