Automotive

Delivery date on the agreement versus 90 days period

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  • Sep 5th, 2021 11:24 am
[OP]
Newbie
May 30, 2016
71 posts
20 upvotes

Delivery date on the agreement versus 90 days period

Hi,

Can somebody tell me the point of having a "Delivery Date" on a vehicle purchase agreement if the dealer has the right to deliver within 90 days of the date of the agreement?

Below are the terms of the agreement. It does not explicitly say that I can't cancel the agreement past the "Delivery Date". But it does not either say that I will get back my deposit.

DELIVERY BY DEALER. It is mutually understood and agreed that in the case of a new motor vehicle, where no date for delivery is shown on me face of the Agreement, or where the date for delivery is three months or less from the date of the Agreement, and in either case where the Dealer is unable to make delivery within three months of the date of the Agreement, the Dealer shall forthwith notify the Purchaser on the expiration of the three month period and:

i. The Agreement may be extended within five days of the giving of such notification, by mutual consent to be evidenced in writing or,
ii. If the Agreement is not extended, the Agreement may be canceled by either party giving notice in writing to the other and the Dealer shall forthwith return the deposit/down payment if any, and the motor vehicle is given as a trade to the Purchaser and such return shall operate as a full release of all claims which the Purchaser may have against the Dealer. Where the motor vehicle given as a trade has been sold by the Dealer, the Purchaser, on cancellation shall be entitled to recover only the amount set out in the Agreement as a trade-in allowance.
6 replies
Deal Guru
User avatar
Jul 12, 2003
12326 posts
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Toronto
Superbobby wrote: Hi,

Can somebody tell me the point of having a "Delivery Date" on a vehicle purchase agreement if the dealer has the right to deliver within 90 days of the date of the agreement?

Below are the terms of the agreement. It does not explicitly say that I can't cancel the agreement past the "Delivery Date". But it does not either say that I will get back my deposit.

DELIVERY BY DEALER. It is mutually understood and agreed that in the case of a new motor vehicle, where no date for delivery is shown on me face of the Agreement, or where the date for delivery is three months or less from the date of the Agreement, and in either case where the Dealer is unable to make delivery within three months of the date of the Agreement, the Dealer shall forthwith notify the Purchaser on the expiration of the three month period and:

i. The Agreement may be extended within five days of the giving of such notification, by mutual consent to be evidenced in writing or,
ii. If the Agreement is not extended, the Agreement may be canceled by either party giving notice in writing to the other and the Dealer shall forthwith return the deposit/down payment if any, and the motor vehicle is given as a trade to the Purchaser and such return shall operate as a full release of all claims which the Purchaser may have against the Dealer. Where the motor vehicle given as a trade has been sold by the Dealer, the Purchaser, on cancellation shall be entitled to recover only the amount set out in the Agreement as a trade-in allowance.
Yes, they do have 90 days to find and deliver the car to you, although they usually not in purpose to drag it out. The quick they deliver the car, the quicker they closed the sale and get their commission/bonus.

It didn't mention deposit, but if the agreement is void (failed to deliver after 90 days). then I would assume the deposit would be then return to customers.


To buy a new car and that you need the car soon, I would tell the Salesman or Manager to add a condition to having the car deliver in 30 days and have them signed on the agreement.
If not, they can hold up your deposit up to 90 days and you cannot even buy another car elsewhere or you may lose the deposit if you end up not buying the car there. .
Retired Forum Moderator February 2009 - June 2015
[OP]
Newbie
May 30, 2016
71 posts
20 upvotes
MP3_SKY wrote: Yes, they do have 90 days to find and deliver the car to you, although they usually not in purpose to drag it out. The quick they deliver the car, the quicker they closed the sale and get their commission/bonus.

It didn't mention deposit, but if the agreement is void (failed to deliver after 90 days). then I would assume the deposit would be then return to customers.


To buy a new car and that you need the car soon, I would tell the Salesman or Manager to add a condition to having the car deliver in 30 days and have them signed on the agreement.
If not, they can hold up your deposit up to 90 days and you cannot even buy another car elsewhere or you may lose the deposit if you end up not buying the car there. .
Thanks for the info. Not in the hurry but I still don't understand why there is a 'Delivery Date' mentioned on the agreement. It has been 2 weeks since I purchased the car and they were supposed to deliver the car this weekend. Now they are saying that they can't find the model (Mazda3 2021) and the color(Blue) I requested and they will try to deliver in mid-May with no promise. The way it goes, I don't think they will. I will probably get it only in June.
Deal Guru
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Jul 12, 2003
12326 posts
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Toronto
Delivery date is to protect themselves. Imagine a customer agree to buy the car and the car didn't show up in a week and still in transit, the customer unreasonably fed up waiting and buy another car elsewhere. The dealership, the salesman lost all their time on you and your purchase and gets nothing from it,

They promise has no legal power, is it recorded? is it written on the agreement? If not, they can extend the "promise" for another week.
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Jan 27, 2006
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Woodbridge
The 90 days is their insurance.

Contract is basically voided and purchaser is given full power to do as they wish.

It happened to me back in 2001 and recently to my sister where the dealership needs more time. We both cancelled the purchase and $500 deposit is refunded no questions asked.
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[OP]
Newbie
May 30, 2016
71 posts
20 upvotes
For anybody looking for answers....

I wrote to the OMVIC (Ontario Motor Vehicle Industry Council) and here's what they replied:

"If they are ordering the vehicle from the manufacturer specifically for you then they have 90 days in which to get that vehicle to you." They also told me over the phone that when a dealer orders directly from the manufacturer, it will be mentioned in the agreement. In that case, there is usually no delivery date mentioned since it is impossible to determine such a thing.

If the dealer is not ordering from the manufacture and the delivery date mentioned in the agreement has passed, you can cancel the agreement and get back your deposit.
Newbie
Sep 2, 2021
3 posts
Hi,
I signed a car lease document "New & Used Vehicle Lease Agreement & Disclosure Statement" with a dealer and few things I am highlighting from the lease below that might help you to clarify me,
  • I have not taken possession of the vehicle as the stock is not available. The date of delivery is specified as 18-Sep-21.
  • The VIN is not mentioned as the vehicle is yet to be tracked from inventories for availability. No Trim information provided.
  • Preference of colors was given as gry/black/silver mentioned in the document. (So basically 3 colors mentioned in the document)
  • Lease start date given as 18th Sep.
  • Given a total deposit of $500 for licensing & first month payment.
  • No Bank details given yet (such as void cheque or any finance info).
What I wanted to do is basically to change the payment process to Financing the vehicle instead of leasing. The dealer told me verbally, once he gets the stock & VIN and he will inform me and I can choose the payment options either leasing or financing before he hands over the key. But will he do a credit check again & what if he claim my credit is not approved for finance but it is approved for lease since it was done in first place. can such thing possible ?
  • I am kind of little worried that if the dealer back's up at a later point during the registration process that I should go with lease since I have signed etc, am I obliged to the leasing agreement or will I lose my deposit if I had to go through the hassle of cancelling the entire thing if I don't get the finance option to change over?
or
  • If the dealer fails to deliver me the vehicle by the date specified and if he says it would take long, in this can can I cancel & get back my deposit ?
I took a customer copy of the lease document where VIN was not provided. Also Is this a quotation/ purchase agreement or this is the finale bill of sale ? When I get for delivery there would be a revised sale agreement again ?

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