Automotive

Lease Agreement Signed Dealer Wants to Change the Price

  • Last Updated:
  • Jul 17th, 2019 10:47 am
[OP]
Newbie
Jul 7, 2019
17 posts
23 upvotes
Toronto

Lease Agreement Signed Dealer Wants to Change the Price

So I went to the dealership one day, check out a car and was quoted a bi-weekly price at 0.9% rate. I go home to think about it and after a few days go again to show the car to my wife and we decide to accept the offer.

I pay the deposit and wait for a meeting with the Finance Manager to sign a lease agreement (Offer to lease document). He goes over the entire document with me, every line about the payment and sells me some dent/scratch insurance and finally we both sign 2 copies. They didn't have that model on site so they promise to get it to me within a couple of weeks the latest (verbally). I leave with my signed copy of the lease agreement.

They later call me and want to change the bi-weekly price because some glitch in their system about the interest rate which now they want to up to 2.99% and of course my bi-weekly rate.
In the actual document just above the signatures it actually says in large bold font that the sale is final and legally binding.

My question is: Is the agreement legally binding for the dealership too? Can they get out of the deal? What are my options?
Last edited by naSlovoN on Jul 9th, 2019 1:02 pm, edited 1 time in total.
104 replies
Deal Guru
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Feb 11, 2007
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Oakville
naSlovoN wrote:
Jul 8th, 2019 9:50 pm
So I went to the dealership one day, check out a car and was quoted a bi-weekly price at the 0.9% rate. I go home to think about it and after a few days go again to show the car to my wife and we decide to accept the offer.

I pay the deposit and wait for a meeting with the Finance Manager to sign a lease agreement (Offer to lease document). He goes over the entire document with me, every line about the payment and sells me some dent/scratch insurance and finally we both sign 2 copies. They didn't have that model on site so they promise to get it to me within a couple of weeks the latest (verbally). I leave with my signed copy of the lease agreement.

They later call me and want to change the bi-weekly price because some glitch in their system about the interest rate which now they want to up to 2.99% and of course my bi-weekly rate.
In the actual document just above the signatures it actually says in large bold font that the sale is final and legally binding.

My question is: Is the agreement legally binding for the dealership too? Can they get out of the deal? What are my options?
You bought the sent scratch insurance so they think you're a sucker and are trying to screw you even more.
If you have a copy of the agreement, tell them to honor it or you will go to another dealer.
[OP]
Newbie
Jul 7, 2019
17 posts
23 upvotes
Toronto
Do they have to honor it? I mean I don't have the car yet, but can they get out of the deal?
Deal Expert
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Jul 30, 2007
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Ah! The famous excuse ... "glitch in the computer" . If that's the case, then the dealer's IT guy should pay for his mistake for not maintaining its equipment. Smiling Face With Open Mouth And Smiling Eyes
Deal Expert
Aug 22, 2011
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Ottawa
naSlovoN wrote:
Jul 9th, 2019 11:35 am
Do they have to honor it? I mean I don't have the car yet, but can they get out of the deal?
They have to agree to it or let you walk.
[OP]
Newbie
Jul 7, 2019
17 posts
23 upvotes
Toronto
What if I don't want to walk but make them agree to it. Is that possible? OMVIC?
Deal Guru
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Jul 12, 2003
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Markham
OR they can fix the interest rate to match the system, but give you enough discount to off set what you will over pay for the interest difference.
Retired Forum Moderator February 2009 - June 2015
[OP]
Newbie
Jul 7, 2019
17 posts
23 upvotes
Toronto
MP3_SKY wrote:
Jul 9th, 2019 12:36 pm
OR they can fix the interest rate to match the system, but give you enough discount to off set what you will over pay for the interest difference.
I suggested that but they say they can't have that big of a discount. I think it's a genuine mistake on their part but no way I'm paying for it.
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naSlovoN wrote:
Jul 9th, 2019 1:01 pm
I suggested that but they say they can't have that big of a discount. I think it's a genuine mistake on their part but no way I'm paying for it.
If you are willing to let the dealer off the hook but elect to stay in the deal, then you can consider a compromise and work out a 50/50 split in cost with them.
Deal Addict
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Jan 14, 2007
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GTA
OP, ordinarily you can see what the manufacturer's posted interest rates are on their website. What does it say when you configure the vehicle with identical terms? If it comes up at 0.99% then they're trying to screw you. If it is in fact the higher rate, then it's up to you to decide if you want to work with them or back out.
[OP]
Newbie
Jul 7, 2019
17 posts
23 upvotes
Toronto
booblehead wrote:
Jul 9th, 2019 1:03 pm
If you are willing to let the dealer off the hook but elect to stay in the deal, then you can consider a compromise and work out a 50/50 split in cost with them.
I even suggested that and they can't meet it. I do feel (a little) like I'm getting something which doesn't belong to me but at the same time... be more careful next time guys.
Deal Expert
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Jul 30, 2007
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well. if dealer does not want to compromise, then I don't feel you should too. After all, they have already gotten you on their protection plan with typical high margin markup on it to begin with.
[OP]
Newbie
Jul 7, 2019
17 posts
23 upvotes
Toronto
The_Professor wrote:
Jul 9th, 2019 1:06 pm
OP, ordinarily you can see what the manufacturer's posted interest rates are on their website. What does it say when you configure the vehicle with identical terms? If it comes up at 0.99% then they're trying to screw you. If it is in fact the higher rate, then it's up to you to decide if you want to work with them or back out.
It does go up to 2.99% on the website. They've made a mistake 100% then.
Deal Addict
Jun 15, 2003
1739 posts
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Ask the dealer to waive the charges for the protection plan or throw in extended warranty.

I had a friend who purchased a “new” vehicle, but upon pick up the in-service date was actually 6 months ago haha. To make things right, the dealer was able to throw in the extended warranty (extra 2 or 3; can’t remember) for $1500 that normally cost around $5K. The friend was originally considering the extended warranty for $4500.

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