How far along the process is too far to back out?
A friend of mine is being double minded on a deal on which he signed the paperwork last night, left a $1500 deposit & the dealer swapped in the car this morning. He thinks he doesn’t want the car anymore, dealer tells him it’s too late at this point. I’ve told him as long as he hasn’t taken delivery yet, he can walk out. Although it is sort of a jerk move…sympathy for the devil? Paging the LH community for their thoughts here.
He can walk, but might lose his deposit. What did the deposit contract state about being refundable?
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Yeah so $1k was a deposit $500 was first month pmt.
I think his deposit is refundable
Should be fine, wouldn’t recommend going back to the dealer though.
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But if part of the $1500 was the first months payment then it sounds like the $1500 was really just the DAS amount and not a deposit to hold the car?
If he’s signed the paperwork and paid the DAS (basically everything but pick up the car) then I can see it being much harder for a dealer to back everything out if they’ve already submitted the paperwork and punched the car, etc.
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Clarification: $1k DAS and $500 first month payment. Paperwork was signed and all.
Do you think the dealer punches the car right away? My understanding was its done after the customer takes delivery
If I was the dealer, and I swapped it in, I would keep the $1500.
If it was an in stock unit, I would feel different. But, if they went through the effort of a swap…
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Everything is refundable if you have enough time.
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The laws are state dependent. In some states if you don’t take delivery of the car the deal was not completed. In other words the contract was not executed and cannot be enforced.
Getting your money back (in the real world) though will take some finesse.
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Agree with all this ^^^
He should get the money back but the process for doing so will suck.
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Well to be fair, he was told the car is in their “overflow” lot. This morning they said they went ahead and purchased a $30k car for him and he should take it and all that. When they say “purchased a $30k car” I assume it means swap.
Also state is NJ
Youll have to forgive me…I dont fully understand that.
Fair enough lol.
Yesterday evening (7/27) when he was signing the paperwork, he was told he’ll have to take delivery of the car tomorrow (7/28) since the vehicle is in their overflow storage lot which is a a few miles from the main dealership (essentially in inventory). This morning (7/28) he was told it’s not right that he is second guessing his decision since they went ahead and purchased a $30k car for him (which I assume is a swap)
Ohhhhhhhhh got it
Sounds like the swap is a lie.
I cant imagine they could do it that fast…
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Thats what I was thinking too. Literally the paperwork was signed at 7:30 PM last night, and today at 11 AM they told him they swapped in a car.
If they signed paperwork last night, that means they knew the VIN of the vehicle and either had the car already or a deal in place for the swap. They aren’t going to sign paperwork for a non-existent car.
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A $500 a month payment for a $30k car sounds like he’s right to want to back out!
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You will probably get your money back but it won’t be at the top of the dealership’s priority list.
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It’s a jerk move by the dealer too. Even if the car has been delivered, most of the NJ/PA dealers I work with have, at least, a 72 hour exchange policy. It just doesn’t sound right that the dealer doesn’t have some empathy other then a “deal is done your stuck with it” approach.
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a $500 payment is a crappy lease but perhaps not too bad for a purchase provided the loan term isn’t too long.