Hi Hackers - two weeks ago I negotiated a sweet deal on a Ram 1500 Bighorn. MSRP is $61K.
It came out to $495/month with tax + tags included and $2k down on 15k miles. Everything has been signed and I have the truck in my possession for two weeks.
Two days ago, the finance manager called me demanding that I sign a new edited lease at 7.5k miles. They claim there was an error and my lease should be 7.5k miles and not 15k.
They are getting desperate and they are telling me I have to come in to the dealership or my area to sign a new contract. Theyāre making me seem like I have no option but to sign the edited lease.
Since then, I called the lender (large commercial bank) who underwrote the lease and they informed me the dealer has not sent the final paperwork. It appears the dealer is waiting to send the final paperwork until they get a revised contract from me.
It is coming up on the end of the month and they likely want to get this submitted.
Does anyone have advice on how I should handle the situation? Or been in this situation before?
Do I have to go and sign this new lease? I have a signed copy by both parties and donāt really want to lose half my miles.
It very well may be a case where the lease wouldnāt get funded by the lessor so itās still the ādealersā truck at this point.
Keep in mind on those āsignedā contracts that their is a clause that addresses these type of scenarios that you agreed to. As stated above just agree to return the truck and for them to have a check waiting for you.
Do you need 15k a year? Would 10k work? If 10k works then just re-sign at that. If you need 15k itās most likely going to be outside of a ādealā but if you need it, you need it.
Dealers have a ācontract in transitā or CIT list. These are unfunded deals. Most of the time it is paper contracts being sent to the bank or contracts returned for missing an initial on the bottom of page 2 (SORRY BOSS IT WONāT HAPPEN AGAIN!!!). This list and more importantly the aged items on it are a huge problem for both the finance department and GMs.
If your contract says 15k/yr hold out as long as possible. Make it hurt. The cost for 15k/yr is 4 points of residual value. Tell them if they want it resigned, that you will pay 1 point and they have to eat 3. This is a counter offer of them asking YOU to eat 4 points. They will decline the counter offer. They might counter by them eating one point and you paying for 3. Decline that and close the deal at both of you eating 2 points of residual. Offer a perfect survey and give them a 5 star google review.
once you accept the deal and sign the new contractā¦
NUKE THE SURVEY.
This kind of mistake/unprofessionalism is unacceptable. Give them a 3 on the survey and DETAIL what happened in the comments.
I agreeā¦ while Volvo guyās approach is much more entertainingā¦ It seems like a case of Hanlonās Razor to me. Probably easiest to just take a slow approach and wait for the lawyers.
I think it makes more sense for @mmore17phi to just wait for the dealership to send a certified mail correspondence outlining their error and request for him to surrender the property back to the dealership. And expressly define the condition that returning the vehicle will void the previous contract. Otherwise thereās a reason that vehicle sale contract is a ARB agreementā¦ itāll go to arbitration.
Heāll have some reasonable number of days to comply, and basically gets to drive a free truck for a while. And setting aside the contracted recurring monthly payment just in case feels prudent.
Thereās a likelihood the dealer just eats the 4 points than deal with the diminished asset value and paperwork involved to do this type of legal process.
If I am alive 7 years from now. Then we will cross that bridge. Every night when I drive home I hope to run into Justin Timberlake just so I can go, āBye Bye Byeā
If you run into a Norfolk Southern train, itāll be as effective as a drunk JT. You seem to make a lot of deliveries to the wrong side of the rail tracksā¦
Did you intend to sign a deal for 15k miles per year, or is there an obvious error on the contract? It seems there is a mismatch between the contracted miles and the residual on the contract if the dealer wants you to sign for 7500 miles.
I think itās tough to blame @mmore17phi for this one. I guess if @mmore17phi knew the resid was wrong but kept his mouth shut during deal closing, he could be responsible lol.
The miles being 15k per annum on the contract but the resid being for 7.5k would be tough for a customer to catch.
Except for seasoned LH users, I donāt see normal customers offering with a resid or buy rate MF in their proposals. 99.9% of lease-customers just take the resid in their contracts since the dealer filled it in for them.
Think of how many countless leases this dealer has done where they marked up the MF after monkeying with the annum miles to fit a monthly payment.
And thatās where they make their mistake. They should know something about leasing before they lease. MF and residuals are no exception.
Exactly! Many people will say that it doesnāt matter how they got to your payment as long as they get there. It DOES matter. I require the dealer to follow my proposal with every i dotted and t crossed. If they screw up, Iām going to catch it. Otherwise, a mistake may have been made forcing the fund provider not to fund the lease in some cases.
Being in a hurry also causes mistakes. Ever watch an F&I guy? Geezā¦ these people are in a hurry to die.
lol, imagine if @thevolvoguy became an F&I guy. He would be the first person to somehow commit suicide twice. Where thereās a will, thereās a way.
Survey would be a 7/10 with this verbatim ā¦ āKeith was great and I got everything signed in 14 minutes. But there was a lot of blood and brain matter on my new Volvo key fob. Wonāt repeat.ā
In California, the dealer has 10 days to void the contract if the deal does not get funded. On day 11, even if the deal does not get funded, if a request was not made to return the car, the dealer would be out of luck and would need to fund the deal themselves.
@derekoh1991 - $240k a year in Wichita is like $1,000,000 when adjusting for Long Island COL. All you need to do is sell that underbody rust-prevention spray and some wheel protection.
