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Contract Obligation

sberrrisberrri Posts: 8
edited July 2016 in Land Rover
I was recently given a signed lease agreement by Landrover here Colorado. I then signed it and went back to the dealer 2 days after the month ended. I was dealing with them long distance. When I got there they said the lease had gone up another $50/mo because Chase Financial Group had upped the interest rates.

Is this legal for them not to honor the deal from one day to the next when I had a signed agreement. Can they really raise the price on me after we have a contract that is dated and signe by them?

Comments

  • kyfdxkyfdx Posts: 148,386
    sberrri said:

    I was recently given a signed lease agreement by Landrover here Colorado. I then signed it and went back to the dealer 2 days after the month ended. I was dealing with them long distance. When I got there they said the lease had gone up another $50/mo because Chase Financial Group had upped the interest rates.

    Is this legal for them not to honor the deal from one day to the next when I had a signed agreement. Can they really raise the price on me after we have a contract that is dated and signe by them?

    So, they made an offer one month, but you didn't accept it until the next month?

    That's not an agreement.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • sberrrisberrri Posts: 8
    edited August 2016
    No we accepted it. I had a deposit on the car. And it was 48 hours later that we were able to get to the dealership. All emails correspondences illustrate the offer was accepted by both parties. We signed the documents prior to the month end. But when we got back to the dealer a few days later to drop off the docs and pick up the car. We were told they would need change it.
  • kyfdxkyfdx Posts: 148,386
    sberrri said:

    No we accepted it. I had a deposit on the car. And it was 48 hours later that we were able to get to the dealership. All emails correspondences illustrate the offer was accepted by both parties. We signed the documents prior to the month end. But when we got back to the dealer a few days later to drop off the docs and pick up the car. We were told they would need change it.

    Well, I'm definitely not a lawyer. But, when it comes to automobile delivery/contracts, it almost always seems that if delivery hasn't taken place, then there is no valid contract.

    That doesn't mean that the dealer acted properly or ethically, just that there isn't anything enforceable.

    Did you take the car on the new terms, or walk?

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • isellhondasisellhondas Issaquah WashingtonPosts: 20,225
    Money Factors can change from month to month. The Dealer should have warned you that this could happen. In any case if you didn't take physical delivery you could walk.

    Something here I think I'm missing....
  • sberrrisberrri Posts: 8
    Yes, I walked.
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,225
    Honda once did something very dumb in my opinion. In the fall of 1997 with a total redesign due for the soon to arrive 1998's Honda found themselves with a ton on V-6 Accord in stock. Since V-6's don't sell nearly as well as the 4 cylinders I think they panicked and went WAY overboard in a desperate attempt to clear the inventory.

    They decided to run a 199.00/mo lease with very little out of pocket upfront. We couldn't believe it!

    To make this possible, they made the residual WAY WAY too high! In other words they mortgaged tomorrow to
    make a sale today! We did our best to make sure our customers realized they had the chance of a lifetime to literally steal a car. Some believed us but most, it seemed had no idea or thought we were being typical salespeople.

    24 months passed and faced with too high residuals most people wanted to roll into another lease!

    We didn't want to take these trades in for more than they were worth and we didn't! We offered the customers what the market values were. In order to roll into a new lease on a similar Accord their lease payment would more than double!

    A lot of unhappy customers shaking their heads. Most walked away and bought or leased a lesser Honda to keep their payments affordable. Honda lost thousands as those Accords went through the auctions.
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