Automotive

vehicle purchase agreement with trade-in

  • Last Updated:
  • Jul 5th, 2020 1:51 pm
[OP]
Newbie
Jun 30, 2020
2 posts

vehicle purchase agreement with trade-in

so i need advise,

i signed a vehicle purchase agreement with a trade in of my car
with a 2000 deposit thats refundable. i thought i could handle the payment finance set but now what i did not expect was the insurance difference from my old car to the new one.
they took my original car owner ship and gave me a photo copy

they are waiting for financial approval

my problem is that . i am having buyers remorse because i might have gotten something thats to much for me and yes i think i made a big mistake with the change in insurance for the car.
ihavent signed any finance papers yet.
whats steps can i take
im going to the dealership to try and talk to them nicely and back out. lexus dealership
what will happen to my car trade in. can i get my original ownership paper back?
14 replies
Deal Expert
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Jan 27, 2006
19261 posts
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Woodbridge
My boy's friend went through this last month...

He changed his mind after 24 hours and delivery was a few days. He also had a trade-in with a stack down as a deposit.

He showed on Tuesday, the day of delivery and was able to cancel the deal but lost the stack he put down.
"I'll put up color bars before I'll put you in front of our cameras."

- MacKenzie
THE NEWSROOM (HBO)
[OP]
Newbie
Jun 30, 2020
2 posts
was he already aprroved? did he sign the finiancial papers?
Deal Expert
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Jul 30, 2007
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Toronto
Pretty sure dealer can accommodate your request to cancel deal but will want financial compensation for their time and resources spent. They can keep your deposit and perhaps even asking for more $. So, just be prepared for the worst
Deal Expert
Aug 22, 2011
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Center of Universe
Didn't wait any longer to let them know your intention to cancel.
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Jan 27, 2006
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ramyun0916 wrote: was he already aprroved? did he sign the finiancial papers?
Yes. Like I said it was ready for delivery.

Expensive lesson.
"I'll put up color bars before I'll put you in front of our cameras."

- MacKenzie
THE NEWSROOM (HBO)
Deal Addict
Jan 1, 2017
1807 posts
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Balling on a budget... but without really following the budget lol.... buying a Lexus but getting buyers remorse because you can’t afford the insurance? *facepalm* Buy what you can afford next time, as other have said this will be an expensive lesson.
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Jul 30, 2007
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.... or OP has just read the other rfd thread on how easily a Lexus can easily be stolen off from his/her driveway. Just playing it safe. Smiling Face With Open Mouth And Smiling Eyes
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Jun 10, 2011
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Some of these sales people are magicians. They take someone like OP and bamboozle them into buying a car they can't probably afford and get them to sign their soul on the spot.
OP, insurance, maintenance and gas cost should be your priorities before making a car purchase.
It will be an expensive but valuable lesson for you going forward.
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Dec 23, 2003
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This is one of the times where I don't blame the car salesperson but the customer for their lack of due diligence. Salespeople are going to sell you a vehicle and try to make it appear that it is cheap. You need to have common sense to know what you can really afford vs. what you think you can afford.

Part of purchasing a new vehicle is to look at the TCO (Total Cost of Ownership), which is but not limited to the following:

- The cost of the vehicle (are you comfortable to spend this much on the car if you had the cash in the bank account for this amount)?

- Monthly payments for Finance or Lease and what interest rate you are paying.

- Change in the insurance difference between your old and new car (a quick call to your insurance company and they can provide you with a quote)

- Maintenance cost for the vehicle over the period of the Lease/Finance. Go to the website and look up the car maintenance that you are interested in. Visit their service centre with the printout schedule and ask them what service 1 or A, service 2 or B, etc. costs. Factor in a 2% increase per year on those prices and use that in your TCO calculation

- Depreciation costs. People seem to forget about this one. This will truly give you a good sense of how much a car will really cost.

- Fuel costs compared to your existing vehicle (if the new vehicle requires or recommends premium, factor in the price of that in your car).

ramyun0916, you can try to get out of this but you will lose a good chunk of the deposit if not all because it was your fault for not looking at the above factors before buying something. The terms of the agreement on the back of the document will state that you will lose your deposit if you chose to cancel the deal. Chalk this up as lessons learned. I would rather walk away and lose a few $K vs. getting stuck with something you simply can't afford.
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durrsak wrote: Some of these sales people are magicians. They take someone like OP and bamboozle them into buying a car they can't probably afford and get them to sign their soul on the spot.
OP, insurance, maintenance and gas cost should be your priorities before making a car purchase.
It will be an expensive but valuable lesson for you going forward.
How are they bamboozling someone? The OP Clearly didn't do their due diligence before going to the dealership. Blaming someone else is not the solution even tho I agree the sales guys can be pretty scummy. As you mentioned, this will be a lesson going forward for the next time OP goes car shopping. $hit happens, but how you manage it is key. One can go in life and blame everyone else and you will keep making the same issues.
Deal Addict
Aug 1, 2012
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Cambridge
I think people are being too harsh here, buyers remorse is not a unique feeling and even more so with big ticket purchases.
Yes, OP should have thought more about it before signing than after.. but at least they are thinking about it now. Not everything is lost yet.

OP, I'm not sure what your situation is like but as others have mentioned, luxury vehicles have a lot of other expenses than just the vehicle cost. So you need to think harder and determine was your earlier decision in buying the car done hastily or you're just getting cold feet now and trying to get out of the deal in a hurry. Decide on the best course for your financial situation.
Do you still want to buy a car and not just this Lexus? I haven't dealt with Lexus, but I know sometimes Acura/Honda dealerships are side-by-side under same management, is there a Toyota dealership with this Lexus one? If yes, would you consider buying a Toyota? You may be able to save your deposit this way.

Taking original papers of your trade-in is a usual practice (I'm due to pick up a new lease tomorrow while trading in my current lease and my current car's papers are with dealership).
IMO, worst case for you is that you'll lose your deposit, I don't think they can keep your car's papers or demand more money to return papers because you're backing out of the deal. From my understanding, that's what deposits are for.
Best case scenario, if dealership hasn't done any work in trying to get your car yet and they want to keep you as a customer for future, they might just give your deposit back (but don't keep your hopes high). You can negotiate so they can keep some of it and return the rest. But you'll only know once you talk to them.
Deal Fanatic
Jul 26, 2007
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Toronto
OP probably walked in looking boss, flinging money into Lexus.
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Nov 7, 2016
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When I bought my last car I called the insurance company and asked how much it would be to insure. They said ~97.xx full coverage. So I bought the car and the insurance then said it would be ~$140.xx to insure it. I told them to fly a kite, that I was going elsewhere and we had a few talks about it, and finally got it back down to almost 100.xx even for full coverage... Don't let them push you around.
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Oct 13, 2007
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ramyun0916 wrote: so i need advise,

i signed a vehicle purchase agreement with a trade in of my car
with a 2000 deposit thats refundable. i thought i could handle the payment finance set but now what i did not expect was the insurance difference from my old car to the new one.
they took my original car owner ship and gave me a photo copy

they are waiting for financial approval

my problem is that . i am having buyers remorse because i might have gotten something thats to much for me and yes i think i made a big mistake with the change in insurance for the car.
ihavent signed any finance papers yet.
whats steps can i take
im going to the dealership to try and talk to them nicely and back out. lexus dealership
what will happen to my car trade in. can i get my original ownership paper back?
I wouldn't worry. You say that the deposit is refundable and the dealers that I've been to always state 100% refundable. You should expect to get your full deposit back and your original papers. It's as simple as that. You will not lose any money.

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