Automotive

(ONT) Dealership contract error (possible)

  • Last Updated:
  • Dec 4th, 2020 12:41 pm
[OP]
Sr. Member
Nov 13, 2016
902 posts
539 upvotes

(ONT) Dealership contract error (possible)

Hello Friends:

Looking for your opinions - if a dealership signed a contract with you and at time of delivery wants to renegotiate claiming they made an error in calculating manufacturer rebates (not posted publicly - some drawbacks offered by manufacturer to dealer) - what would you do? I understand that you can walk away from the deal but you will be out of a ride for possibly a week until you can renegotiate a new deal. Need vehicle for work so have to rent while this gets resolved. Am I out of pocket? Currently driving a rental provided by the insurance which will end on the day of negotiated current delivery.

Is the dealer obligated to deliver the vehicle and eat the loss for the mistake? What are my rights?

CD

Nov 29, 2020 - Update (see post #27) : The issue has been resolved by the dealer principal and a delivery date has been set according to the original signed deal.
Last edited by Canadadesi on Nov 29th, 2020 11:37 am, edited 3 times in total.
31 replies
Deal Expert
Aug 22, 2011
38894 posts
25491 upvotes
Center of Universe
ON?
Refer to OMVIC.
Deal Addict
Oct 3, 2013
2765 posts
4203 upvotes
West
If this was the other way around, and it turns out they missed some rebate or overcharged you...

They should've dotted their i's and cross their t's before they signed. As the above poster stated, try to refer to a regulatory body if the dealer won't play ball, and let the dealer know they'll be footing the rental bill for as long as they want to drag it out.

They may just be testing the waters to see if you'll eat the cost. Remain firm.
Deal Expert
User avatar
Oct 6, 2010
15526 posts
10173 upvotes
Toronto
Canadadesi wrote: Hello Friends:

Looking for your opinions - if a dealership signed a contract with you and at time of delivery wants to renegotiate claiming they made an error in calculating manufacturer rebates (not posted publicly - some drawbacks offered by manufacturer to dealer) - what would you do? I understand that you can walk away from the deal but you will be out of a ride for possibly a week until you can renegotiate a new deal. Need vehicle for work so have to rent while this gets resolved. Am I out of pocket? Currently driving a rental provided by the insurance which will end on the day of negotiated current delivery.

Is the dealer obligated to deliver the vehicle and eat the loss for the mistake? What are my rights?

CD
I'd stand firm on the deal. You already have a signed BOS with the dealership. If they are denying you the deal, contact whatever body governs vehicle sales in your province. Start a claim and notify the dealership of your intent. You'll surely at least either get the vehicle or your money back. Now, second, I would remove the dealerships details from the BOS and start asking other dealerships to price match.
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[OP]
Sr. Member
Nov 13, 2016
902 posts
539 upvotes
Thank you. I am planning to do the same - just want to know options for the extra costs that I will now have to incur due to their error.
We are still in the early phase - just preparing for next stage...

CD
[OP]
Sr. Member
Nov 13, 2016
902 posts
539 upvotes
vkizzle wrote: ON?
Refer to OMVIC.
Sorry for the omission - updated the OP subject :).

CD
Deal Expert
Aug 22, 2011
38894 posts
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Center of Universe
Canadadesi wrote: Sorry for the omission - updated the OP subject :).

CD
Ball is in your court.
Up to the dealer if they want to take it into OT.
Deal Addict
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Aug 30, 2020
2668 posts
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Tell them to pound sand. If they refuse delivery, escalate to OMVIC, CBC Marketplace, CTV News, Global News, and CP24

In b4 dealership boot licker defense force.
[OP]
Sr. Member
Nov 13, 2016
902 posts
539 upvotes
Hello Friends:

Here is the update on this situation:
I have a signed bill of sale with VIN# and credit approved by the dealerships leasing (manufacturer's leasing) company and deposit paid.
The Sales manager has refused to deliver the vehicle claiming that the manufacturer rejected their rebate application for this car and will not lease it as per agreed terms. They offered to return the deposit incase I do not agree to the revised Bill of Sale.

Contacted OMVIC and they cannot do anything as long as the dealership is offering to refund the deposit - they cannot force them to honor the contract. Asked me to seek legal advice and gave me number for free legal clinic.
In the meanwhile the insurance provided free rental is ending next weekend. Anything beyond that is my cost.

Here are my options:
1. Accept the new deal and suck the additional charge - basically what the dealer want me to do. I tried to work out a compromise - but it seems they are not interested to sacrifice any of their profits. For representation purposes lets say the original deal was supposed to be $30K, now the new one is $32K - all amount taxes included.
2. Shop for the same vehicle from another dealership - have a comparable offer from another dealer. $31.5K - higher than my discounted deal but lower than the new deal being offered by the original dealership.
3. Due to limited inventory of the model and color I need the next option is to go for a lower trim say $26K

I need to understand how any of the options #2 and #3 work if I have to take the dealership to court. I understand that small claims work on actual loss suffered - if I go with a different dealer and the original dealer refunds the deposit - how is the loss quantified? Again if I move to a different trim - how do we quantify the loss?

I do understand the social media and main stream media options - there is not much time for it now.
I don't intend to name the dealership for now to maintain my privacy - incase this gets dragged long enough.

Finally my SO is advising to forget the loss, close the deal and have faith in karma... :)

CD
Deal Fanatic
User avatar
Sep 9, 2012
6160 posts
5291 upvotes
Oakville, ON
Canadadesi wrote: Hello Friends:

Here is the update on this situation:
I have a signed bill of sale with VIN# and credit approved by the dealerships leasing (manufacturer's leasing) company and deposit paid.
The Sales manager has refused to deliver the vehicle claiming that the manufacturer rejected their rebate application for this car and will not lease it as per agreed terms. They offered to return the deposit incase I do not agree to the revised Bill of Sale.

Contacted OMVIC and they cannot do anything as long as the dealership is offering to refund the deposit - they cannot force them to honor the contract. Asked me to seek legal advice and gave me number for free legal clinic.
In the meanwhile the insurance provided free rental is ending next weekend. Anything beyond that is my cost.

Here are my options:
1. Accept the new deal and suck the additional charge - basically what the dealer want me to do. I tried to work out a compromise - but it seems they are not interested to sacrifice any of their profits. For representation purposes lets say the original deal was supposed to be $30K, now the new one is $32K - all amount taxes included.
2. Shop for the same vehicle from another dealership - have a comparable offer from another dealer. $31.5K - higher than my discounted deal but lower than the new deal being offered by the original dealership.
3. Due to limited inventory of the model and color I need the next option is to go for a lower trim say $26K

I need to understand how any of the options #2 and #3 work if I have to take the dealership to court. I understand that small claims work on actual loss suffered - if I go with a different dealer and the original dealer refunds the deposit - how is the loss quantified? Again if I move to a different trim - how do we quantify the loss?

I do understand the social media and main stream media options - there is not much time for it now.
I don't intend to name the dealership for now to maintain my privacy - incase this gets dragged long enough.

Finally my SO is advising to forget the loss, close the deal and have faith in karma... :)

CD
Option # 2
Deal Expert
User avatar
Jul 30, 2007
32378 posts
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Toronto
agree. #2. Why give the orig. the dealer the profit.

If you go to #2 and want to recover the $1500, then go to small claims and see if the judge will side with you. Although getting the damage payout from the dealer will involve lot more effort or not even recoverable perhaps.
Deal Expert
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Oct 6, 2010
15526 posts
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Toronto
Option 2. I would rather take my deposit back and tell that dealership to stuff it. A deal is a deal and I'd be sure to tell them that if the roles were reversed, they'd stick it to you. Get the other car from another dealership just so they miss out on this sale since they are also refusing to discount it further. Karma isn't going to recoup that cash and like I said, if the role was reversed, the dealership would not entertain the idea of even giving you back the deposit. I can just imagine, opps dealer on the day of delivery, I didn't have an extra $2000, please discount or forget it and give me back my depo.

Fu*k em.

EDIT: This also pisses me off with the "dealer is willing to give back depo, nothing we can do" bullshit. It's a signed contract. Ontario is a shithole for car buying and consumer protection.
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[OP]
Sr. Member
Nov 13, 2016
902 posts
539 upvotes
Thank you Guys:

It seems the consensus is to go with dealer #2 and forget the compensation. Its not worth the heartache.

Appreciate it.

CD
Sr. Member
Mar 22, 2004
735 posts
565 upvotes
London, ON
Agreed with #2. Take your business elsewhere, don't reward bad behavior. Also let them know that you are doing so, even if they match your other offer. I'm spiteful and dislike bamboozling like this.
Deal Expert
Aug 22, 2011
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Center of Universe
I concur with option#2.
Deal Addict
Jul 22, 2019
2620 posts
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What’s dealer name?

Tell dealer #1 to go to hell. Tell us dealer so we know which one to avoid.
Deal Addict
Oct 21, 2006
1071 posts
879 upvotes
I would go #2 also, it seems that the original dealership is very dishonest and treated you unfairly. Your SO is absolutely correct, karma will catch up with these low lives. OP please tell me this is not DON VALLEY NORTH TOYOTA you're dealing with?? They have been known to be very slippery.
Deal Addict
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Feb 17, 2015
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90.00° N, 135.00° W
Dealership sold their soul and gave your vehicle to the other customer who is paying MSRP! Dealerships at its best.
Deal Addict
Oct 3, 2017
1227 posts
1159 upvotes
Exactly. They have another buyer who will pay more and they know OMVIC has THEIR back.

OP maybe if dealer 1 throws in snows on steelies you can still make a deal similar to starting all over again. You don't have much time with your rental or you pay a week and a bit for a rental.

With Covid I would go with the least contact exposure even if it wasn't cheapest deal.

Maybe snows on rims saves some face for stealership. But you may already have that in your deal just thinking out loud.
Last edited by George613 on Nov 27th, 2020 11:18 pm, edited 1 time in total.

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