Need Advice

[NCStangFanatic]

On March 17th I put a $5K deposit on a GT500 with the dealership I had been talking to over a year. While I was there I was informed that the dealership had been bought and a new owner would take over on 4/1. I was also told that the contract would still be good even after the change. I have a signed contract that the car would be sold for "no more than MSRP" and that I would receive a refund of my deposit if I chose not to buy the car. The check was not deposited until 4/4.

 

Since the new owner has taken over, the genaral manager I was working with has been let go. I talked to the new owner this morning and he is not intending on honoring the contract. He told me my contract was with "Burnette Automotive" not his dealership (Boyette). He is to call me on friday to let me know what he is going to do.

 

Do I have any legal grounds to stand on? Where should I go from here?

[ColdwaterHotrod]

On March 17th I put a $5K deposit on a GT500 with the dealership I had been talking to over a year. While I was there I was informed that the dealership had been bought and a new owner would take over on 4/1. I was also told that the contract would still be good even after the change. I have a signed contract that the car would be sold for "no more than MSRP" and that I would receive a refund of my deposit if I chose not to buy the car. The check was not deposited until 4/4.

 

Since the new owner has taken over, the genaral manager I was working with has been let go. I talked to the new owner this morning and he is not intending on honoring the contract. He told me my contract was with "Burnette Automotive" not his dealership (Boyette). He is to call me on friday to let me know what he is going to do.

 

Do I have any legal grounds to stand on? Where should I go from here?

 

sounds like a good question for Lawdude.

 

Sorry for your luck & hope the law is on your side so you don't end up on a cliff being .

[1969HOT]

I dont know much about law, but this sounds like a loop hole tha dealership is trying to use. Sounds like they are going to argue that a technicality acurred. So the present dealership is no longer reposible for your contract. I dont think their is much you can do. But I hope that I'm wrong Good Luck.

[Three Cobras]

NC -

It would guess your recourse would depend on who cashed your check (and when they deposited it, not when your account payed it), the exact wording of your written agreement, and the terms of the sale of the dealership (that is, did the buyer assume all the outstanding obligations of the seller). Lawyer territory.

[Joe G]

Do I have any legal grounds to stand on? Where should I go from here?

 

Not sure about the law, but here's what I would do:

- let the new owner know that he may not be under legal obligation to honor the contract (again, check with a lawyer - many will give you free consultations, hoping that you'll use them if you sue), but that you and he both know it's the RIGHT thing to do.

- if he still blows you off, ask him if he'd like to be visited by a few local TV/radio/newspaper reporters. Maybe having the local news do a "5 on your side" kind of story about a "bad business picking on the poor consumer" kind of story might change his mind. As a new business owner, bad PR is a killer - even if he's not "guilty", bad opinions can last a long time with consumers. Plus, with the negative news on Ford recently (Billion $ losses etc) FoMoCo doesn't like it's dealers to have more bad press.

 

I know that most news operations (TV, radio, papers etc) LOVE to do "personal" stories. This may be good for others here who have been "wronged" by dealers who backed out of promises.

 

Good luck.

[lawdude]

lawdude says pay an attorney to review all relevant info and give you advice. If attorney says law is on your side, pay lawyer to send letter demanding specific performance of valid contract. Sit back and wait for new dealer's lawyer to reply. Hopefully your state allows for attorneys fees for the winner.

[GT500OnOrder]

On March 17th I put a $5K deposit on a GT500 with the dealership I had been talking to over a year. While I was there I was informed that the dealership had been bought and a new owner would take over on 4/1. I was also told that the contract would still be good even after the change. I have a signed contract that the car would be sold for "no more than MSRP" and that I would receive a refund of my deposit if I chose not to buy the car. The check was not deposited until 4/4.

 

Since the new owner has taken over, the genaral manager I was working with has been let go. I talked to the new owner this morning and he is not intending on honoring the contract. He told me my contract was with "Burnette Automotive" not his dealership (Boyette). He is to call me on friday to let me know what he is going to do.

 

Do I have any legal grounds to stand on? Where should I go from here?

 

[NCStangFanatic]

On March 17th I put a $5K deposit on a GT500 with the dealership I had been talking to over a year. While I was there I was informed that the dealership had been bought and a new owner would take over on 4/1. I was also told that the contract would still be good even after the change. I have a signed contract that the car would be sold for "no more than MSRP" and that I would receive a refund of my deposit if I chose not to buy the car. The check was not deposited until 4/4.

 

Since the new owner has taken over, the genaral manager I was working with has been let go. I talked to the new owner this morning and he is not intending on honoring the contract. He told me my contract was with "Burnette Automotive" not his dealership (Boyette). He is to call me on friday to let me know what he is going to do.

 

Do I have any legal grounds to stand on? Where should I go from here?

 

 

Update.......the owner of the dealership called me back this afternoon to tell me what he was doing. He contacted both his attorney and insurance company(?) to determine if he was obligated to honor my contract. He told me that he was 80% sure that he would have to deliver the car to me as stated in the contract. He was sending the contract to his attorney for review just to be certain he could not get out of it. The sticking point is that they cashed my check. He told me if they hadn't cashed the check we would be discussing a new contract.

 

This is not the first communication I have had with the dealership since it has changed hands. When I spoke to them before the GM was let go everything was good with the contract. The new owner told me today that the Ford rep was there yesterday hyping up this car. The Ford rep told him that he could probably get $20K over sticker. I believe that is why they are wanting to back out of my contract. Why would the Ford reps be promoting dealer markups? If these dealer reps are actually employed by Ford than it is my opion that FORD is to blame for all of the dealer markups.

[lawdude]

The new owner told me today that the Ford rep was there yesterday hyping up this car. The Ford rep told him that he could probably get $20K over sticker.

 

So for public consumption they send a letter telling dealers to be good. But for private consumption they tell 'em to ream consumers without using vaseline? That's a fine how-do-you-do.

[Snakehead]

NC-

 

Unlike some examples of purported dealer misconduct on this forum, I agree with you that this dealer would be wrong to not honor your deal. Unfortunately, "wrong" and "liable" are not one in the same.

 

Lawdude provided you with technically accurate advice on how to proceed. Unfortunately, on a very small claim such as this, it may not be economically feasible to hire counsel. Even if state law allowed for attorney's fees, you would still need to prevail on your underlying claim to get your fees paid. You may find a lawyer who would handle this on a contingency basis, but he or she won't be easy to find. It is impossible to assess your potential liklihood of success on these limited facts, but with a change in ownership in the dealership, I suspect it won't be crystal clear in any event. That is why we have courts.

 

My recommedation to you is to take your claim to a small claims court and represent yourself. Tell your story in a clear and succinct fashion. A timeline would be helpful and you will need copies of all documentation. It is unlikely the dealer will spend time to represent himself and will be forced to hire a lawyer. If you loose, you may need to pay court costs, but they are typically nominal. I would also call your state consumer protection agency. Finally, a little bad press for this dealer might be in order as well (as suggested by Joe G.)

 

Either way, best of luck.

[1969HOT]

Update.......the owner of the dealership called me back this afternoon to tell me what he was doing. He contacted both his attorney and insurance company(?) to determine if he was obligated to honor my contract. He told me that he was 80% sure that he would have to deliver the car to me as stated in the contract. He was sending the contract to his attorney for review just to be certain he could not get out of it. The sticking point is that they cashed my check. He told me if they hadn't cashed the check we would be discussing a new contract.

 

This is not the first communication I have had with the dealership since it has changed hands. When I spoke to them before the GM was let go everything was good with the contract. The new owner told me today that the Ford rep was there yesterday hyping up this car. The Ford rep told him that he could probably get $20K over sticker. I believe that is why they are wanting to back out of my contract. Why would the Ford reps be promoting dealer markups? If these dealer reps are actually employed by Ford than it is my opion that FORD is to blame for all of the dealer markups.

 

 

 

That just dosent seem right that once a dealer has made a deal that they would try to push out a customer for a better deal I know that ford dosent have controll over what the dealers charge, but with all the on this car regarding Ford ,then to have some dealers screw people the overall view of Ford in my books looks bad. I hope it works out okay and they dont srew you out of this car.

[Joe G]

The new owner told me today that the Ford rep was there yesterday hyping up this car. The Ford rep told him that he could probably get $20K over sticker. I believe that is why they are wanting to back out of my contract. Why would the Ford reps be promoting dealer markups? If these dealer reps are actually employed by Ford than it is my opion that FORD is to blame for all of the dealer markups.

 

Does it really surprise you?? If true... F ck Ford!

 

All of us here understand your story and are on your side. Again, don't be afraid to let your local press tell your story as well. Document what you know, tell your story in a calm manor, but most importantly - keep the pressure on!

[lawdude]

 

You may find a lawyer who would handle this on a contingency basis, but he or she won't be easy to find.

 

Unless there is some smart money available that is not apparent to yours truly, good luck in finding a lawyer to handle it on contingency.

 

<added> Definition of "smart money":

 

smart mon·ey

 

 

noun

 

Definition:

 

3. U.S. law damages awarded to punish defendant: damages awarded to a plaintiff in excess of the usual level of compensation to punish a defendant in cases of serious negligence or willful misconduct

</added>

[DutchGT500]

Unless there is some smart money available that is not apparent to yours truly, good luck in finding a lawyer to handle it on contingency.

 

<added> Definition of "smart money":

 

</added>

 

 

I am sorry to hear this. But I think it will end up good for you. Cashing the check 3 days after the take over is the crux in this story. Good luck.

[svttim]

I am sorry to hear this. But I think it will end up good for you. Cashing the check 3 days after the take over is the crux in this story. Good luck.

 

 

 

I would wait to see what the Owner comes back with. If he declines to honor the contract, you can either give up or take lawdudes advice. My suggestion at that point is to calmly tell him, ok I understand, I will check with my attorney, Thank you

[VNMOUS1]

On March 17th I put a $5K deposit on a GT500 with the dealership I had been talking to over a year. While I was there I was informed that the dealership had been bought and a new owner would take over on 4/1. I was also told that the contract would still be good even after the change. I have a signed contract that the car would be sold for "no more than MSRP" and that I would receive a refund of my deposit if I chose not to buy the car. The check was not deposited until 4/4.

 

Since the new owner has taken over, the genaral manager I was working with has been let go. I talked to the new owner this morning and he is not intending on honoring the contract. He told me my contract was with "Burnette Automotive" not his dealership (Boyette). He is to call me on friday to let me know what he is going to do.

 

Do I have any legal grounds to stand on? Where should I go from here?

 

 

In the highly unlikely event that he does try to stiff you, take it to small claims court. If you can find a friend or aquaintance thats a lawyer, have them help you. In small claims court, "discovery" many times doesnt happen. If you actually hire a lawyer, part of the discovery process will probably be having the owner provide a copy of his contract of sale/purchase for the dealership. In that document, you'll likely find the details of what assets and liabilities the new owner accepted....this would include any current contracts, such as yours. If yours is in there and he bought the dealership with it as part of it, he legally accepted that liability and he's hosed.

 

 

bj

[ford4v429]

Boy, I'd have liked to have heard the context used about saying they might get 20 over...If rep was saying"well you might get 20 k over, but we would frown on that(read choke allocations)" thats fine- but if they suggested they might be able to make a killing and to go for it...that just gets me fuming to think about...

 

what happened with the letter ford was supposed to be releasing trying to control the ADM fury thats pissing so many folks off?

[Fastbackman]

I've heard too many stories about Ford reps hyping up the car and encouraging dealers to sell for as much as possible. Ford only claims to condemn this practice. In reality it would seem that they are all for it.

[harley99fb]

I

[SteelSteeds]

Ya know, this is getting beaten to death. I'm not willing to pay more than MSRP. Hell, I can't afford to, I'll be paying for my Shelby for years to come. BUT, given that there are plenty of people out there with more money than they can spend, some of them want the fastest production Mustang on the planet and don't care if it costs them $60k. In that case, can I fault a dealer for taking some fool's money? NO. I would if I were in that position.

 

The simple fact is that the markups are there, and that they will come down. I will wait until they do. I am confident it will happen. If more of us do the same, the crazy rich people will find themselves with a car that is worth way less than they paid for it a year from now. THEY WON'T CARE. Neither should we.

 

The car is worth whatever someone is willing to pay for it, regardless of what the sticker on the side window says. The longer a dealer has to sit on an unsold car, the more it costs them in fees/taxes/storage. The dealers want to sell the car in as short a time as possible, for the most $$ possible. There is a tradeoff. When the Shelby sits too long, they will come down. We're all laughing at (or swearing at) the dealers who are demanding $20k over MSRP for a car they don't even have yet. Thing is, it costs them nothing to look for idiots willing to pay it (especially when they have a list in their hand of people who want one), and some of those dealers will find one. Kind of like the shotgun theory of picking up women. Approach one woman at a bar and ask her to go home with you, and you're gonna get slapped. Ask 100 women a night to go home with you, and you'll get slapped 99 times...

 

We just have to be patient and accept that the dealers exist to make money. Yeah, they can be pretty slimy about it at times, that's just the world of automobile sales. If you have a good, honorable dealer, great, share with us and we can buy from the good ones. The only thing going on that I think really deserves the venom and backlash is those dealers who are going back on their word. THOSE holes deserve our hatemail!

 

Okay, off my soapbox.

[Guest markham51]

I am not a lawyer but I have bought and sold many vehicles in my day (as well as businesses). as such this qualifies as business advice NOT legal advice. legal advice you should get separately.

 

If he backs out make him put it in writing. If he sends you your money back, don't cash the cheque. Have your lawyer send him a letter demanding specific performance under your contract (subject of course to proper legal advice) or you are going to buy your Shelby from a competitive dealer and sue him for the difference. That way you get him where it hurts most, in his pocket book! He won't want to see his competition make a market premium at his expense. The important thing here is you need to be firm and act decisively.

 

I recently had a situation where a Chrysler dealer took advantage of my daughter and delivered a new car with fewer options than it was supposed to have...salesman error. They didn't charge her for the missing options but told her they couldn't get her another car because Chrysler had alreday processed the leaseby the time she had noticed the missing options. I bypassed the Sales Manager and salesman and wrote a letter to the General manager telling him I counldn't care less and that I was going to buy another car from another dealer and I was going to sue them for any money my daughter had given them to that point. They soon backed down, found another car and took the problem vehicle back into inventory.

 

No business needs a lawsuit. Kick ass and take names! If he thinks you will back down he may well use his position of power to try and bluff you. I have won more arguments by threatening to sue than I have ever won in court. As they say, you don't get what you deserve, you get what you negotiate!

 

Good luck!