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Dealer reneged on purchase (failed dealer trade)

4K views 19 replies 9 participants last post by  BB1857 
#1 ·
So... Saturday, had a list of dealers with whom I'd been corresponding, had several good deals worked out verbally, contingent on in-person meeting and discussion. The first one made a deal (and there was a dicey "miscommunication" having to do with valuation of my trade-in, which I'd decided to give the benefit of the doubt on) on a vehicle that was on a dealer's lot an hour away. Signed ALL the papers and everything - bought it - with them telling me they'd secured the vehicle and that we would do the handoff within the next couple of days. So spent a whole day doing that, and missed out on the other deals I could have closed that day.

The dealer I was working with kept talking about how out of his control it was when the dealer with my "secured" (his words) Jeep didn't respond to him. So today, he lets me know that the other dealer has been working on a deal on that Jeep for a couple of days, so they basically won't give it to him. So, I'm outta luck.

I'm done working with this dealer, and so is everyone else I know or talk to about buying Jeeps (and I'm a writer of Yelp reviews, usually glowing, but about to write a lengthy account of this experience) but I'm just curious... anyone had this happen? Because, I know after signing all the papers, I was on the hook for the deal. But the dealer can just flake/renege because he couldn't do his job and fulfill his end of it?

Unbelievable.
 
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#2 ·
Check all the papers you signed and see if they have a VIN number on them. If so you can really raise hell because they contracted a vehicle that wasn't in their possession and wasn't theirs to contract. It won't change anything concerning the availability of the Jeep but it can help your case if you want to find another vehicle with them price wise.

Another thing is to make sure you get ALL copies of the papers signed including the ones they kept. If they won't give them to you make sure you see them get shredded.
 
#3 ·
I disagree with BB1857's assertion regarding contracting for goods not yet in one's possession- perfectly legal and enforceable- hell, wall street does it all day long. So do car dealerships. When you order a vehicle, you're basically entering into a contract to purchase a specific vehicle from a dealership before that dealership has title or possessory interest of any kind.

But depending upon what those papers actually said, you could either be SOL or maybe be entitled to specific performance (i.e. they'd have to get you an identical vehicle for the agreed-upon price). My suspicion is that all of the small print boilerplate on the dealership paperwork already covers their ass by specifying that the deal is contingent upon their receipt of the vehicle from a third party dealer.

Know any lawyers? Probably not worth paying one (because if you pay an attorney, you're better off just getting a more expensive vehicle from some other dealership instead) but if you're buddies with one, ask him to take a look at the paperwork!
 
#10 ·
I disagree with BB1857's assertion regarding contracting for goods not yet in one's possession- perfectly legal and enforceable- hell, wall street does it all day long. So do car dealerships. When you order a vehicle, you're basically entering into a contract to purchase a specific vehicle from a dealership before that dealership has title or possessory interest of any kind.

I don't mind that you disagree but the car business is not Wall St and you 100% can't contract a vehicle not in their possession. If they do and he has a contract with a VIN on it they messed up bad. That is very illegal and is done this way to protect dealer inventory. If you order a vehicle it is a completely different scenario but it is still not a binding contract unless there is a VIN associated with the deal. You may lose your deposit if you bail out of a custom order but you can walk away from ANY custom order unless the paperwork has the VIN on it. Even this practice is not encouraged until the vehicle is delivered. I was in the car business for many years so that's where my knowledge of behind the scenes comes from.
 
#4 ·
Remember this one thing: If a dealer waffles, wastes your time or tries to change the deal, they are attempting to rip you off. Walk away and don't look back. Honest sales teams don't pull crap like that. Find a dealer you trust and stick with them. Another thing to keep in mind is; just because a dealer has been around for a long time doesn't mean they are a good dealer. That just means that people who don't know a damn thing about buying cars keep buying cars from them because they've been around for a long time.
 
#6 ·
It certainly is not worth the money and time in court but this is a big no no in the car business. It is done this way to protect dealerships from other dealers selling their inventory. There is absolutely no terminology on the paperwork stating the deal is contingent upon vehicle arrival from a third party dealer. All contracts must meet both state and manufacturer legalities and if they don't it is not a legal binding contract. If you want to make a stink you can but the bad taste in your mouth will never go away. Best bet is to walk away and find a more upstanding dealer.
 
#9 ·
It certainly is not worth the money and time in court but this is a big no no in the car business. It is done this way to protect dealerships from other dealers selling their inventory. There is absolutely no terminology on the paperwork stating the deal is contingent upon vehicle arrival from a third party dealer. All contracts must meet both state and manufacturer legalities and if they don't it is not a legal binding contract. If you want to make a stink you can but the bad taste in your mouth will never go away. Best bet is to walk away and find a more upstanding dealer.
No offense, but how do you know? I know you used to work for a dealership, but have you seen the exact papers OP signed?

Also, just a quick legal tip: There is no such thing as a "manufacturer legality." :thumb:
 
#7 ·
Next time, look at inventory online, make a phone call and drive the hour. Its worth it if you're serious. The dealer made a mistake, but probably regarded you as an internet tire kicker. They must deal with hundreds of dead internet leads per month.

Forget the Yelp thing, thats goofball stuff.
 
#8 ·
I bought my jeep this way and had to sign a contract that I was purchasing so the other dealer would release the vehicle. They didn't want the dealer I was at taking inventory if it wasn't a sale.

My sales guy told me that they're usually aren't issues, but if they don't deal with the other dealer frequently they can be asses about it. Sorry it didn't work out for you but I don't think your dealer was trying to screw you over. He probably makes trades frequently and assumed it would go through.
 
#13 ·
Everyone is assuming the dealer tied up the other car (which it should have before contracting to sell it to you.) That would have given the other dealer no out and it sounds like either 1. you got strung out by the dealer you dealt with or 2. The other dealer was working both ends to the middle and took the local sale over the swap so he gets a customer too. I would ask the dealer you dealt with what they are going to do to make it right? Regardless of the fine print, they have a moral obligation and business need to keep you happy- up to a point. Ask them what they propose.
 
#16 ·
Regardless of legal or not one thing that often happens unfortunately is this scenario below

Customer sends out a couple Internet leads for a specific vehicle. That customer goes to a closer dealer for convenience and gets a deal done on a vehicle on another lot. That dealer attempts to secure said vehicle but before he does so the. Manager asks his sales people if they have any strong leads on the vehicle trying to be secured. Someone who handles Internet leads says "yup I just had some correspondence about this vehicle and worked some pricing". When this happens the manager almost always will not let that vehicle go because in most cases they are assisting the other dealer in getting a sale that they could possibly have because they are talking to the same customer. Sucks for sure
 
#18 ·
Did you put down a deposit on it? My new JK was a dealer trade, and after we agreed on a price i had to put down a $500 deposit before they went to get it from the other dealer. My deal went through at the agreed upon price with no problems, they even flatbedded my jeep from the other dealer 40 miles away, it had 6 miles on it when i took delivery.
 
#19 ·
Hi, all -

Thanks for your thoughts. I don't know the legality of it all, but it definitely wasn't the way this is supposed to work. (I've bought numerous cars that involved dealer trades, and nothing like this has ever happened.) There was no deposit, but all the purchase paperwork, in its entirety, including financing and a downpayment, supersedes that.

Still, the dealers don't have any formal process, so it all does come down to their relationships and basic good faith. Just an unfortunate way things unfolded. I would have preferred the dealer clearly state that the deal wouldn't be absolutely final until the vehicle was in their possession. (As it was, when I asked about anything else needed, he said "you're done, we just need to swap keys once we get the car here.") I do believe he fully expected the Jeep to show up.

So after my initial post here, I decided to call the owner of the dealership. I told him I wasn't calling to get anyone in trouble, and that I believed everyone had done what they were supposed to do, but that I was really frustrated with the situation and as a business owner I would want to know about this. To his credit, the owner was very easy to reach, and he listened to me and was very sincere and apologetic. He talked to the salesperson to understand exactly how this happened, and then he told me he would call the owner of the other dealership, because "this is NOT supposed to happen" and see if the vehicle had actually been sold or if it was still there.

A little while later, the owner called me back to say that the deal the other dealer had been working on had fallen through, and that he could get it for me. (Basically, it sounds just like what BB suggested; the other dealer were putting off my dealer while they tried to work every possible deal they could. The other dealer's GSM even emailed ME right after my dealer's owner had called theirs - after not responding to my inquiries about this vehicle last week - saying "hey did you find a Wrangler yet?" Turkeys. I just said "yep. Never heard back from you."

Anyway, this hasn't been a great experience, but I will supposedly be getting the Jeep tomorrow. (At this point I insisted that they deliver it, as I iive an hour away.) It's unfortunate that I had to call the owner of the dealership to make the deal happen. But, he did handle it exactly right, and I appreciate that. If it weren't for that (and the fact that this is the only one in the state or in transit that is just the color/specs I want), I would have shined the whole thing.

I was in sales for a number of years, and I think transparency and setting realistic expectations is really key. But, while I would have preferred they said they weren't 100% sure they could get it, I also understand that then people would keep shopping and they'd lose sales. It's one of those strange byproducts of the way the internet has changed car shopping for both sides. It's complicated, I'll admit. So, not the best experience, but the owner made it right and hopefully (fingers crossed) there will be a happy ending tomorrow.

Thanks for the thoughts, opinions, commiseration, etc!
 
#20 ·
Glad it worked out for you...or will when they finally come thru...sometimes just expressing disappointment instead of anger will get you much farther! Kudos to you for keeping a level head:)
 
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