Don't know what to do
 

Hi, so I had a deal all set up, waited for the car, it just arrived to the dealer yesterday. Yay? No. The dealer emailed me that he messed up the pricing. I worked out a 3 year lease with him including the premium package and cold weather packages, with 30K miles per year. Put the deposit down. Now he emailed me and said oops, he made a mistake and only put in for 20K miles per year. I know I'll go over that. The 30K mile lease is $150 more than what we agreed.

So, he worked out financing instead. That works out (5 year finance) to about what I was going to pay before. Now I just can't decide whether to get the extended maintenance or not. Originally it was great, I'd have the car for 3 years, put 100K miles on it, they'd do all the maintenance and I'd give it back. Now I'm thinking about maybe not doing the extended maintenance.

I don't know, the whole thing leaves a bad taste in my mouth now. Please let me know your thoughts? I may just go with the stupid Hyundai Accent/Elantra instead and be done. Your comments are appreciated!

Did you get the original deal on paper? You have a copy that details all of what you posted? If so, I'd tell them to honor what they wrote. Otherwise, I'd walk.

You'd walk instead of changing it to a 5 year finance deal? Just want to make sure I'm understanding you. Thanks

I'm sure the 5 year purchase is financially as good or better as the lease.

So, if you were planning to get the maintenance with the lease, and you're still going to drive it 100K in 3 years, what difference does it make that you're financing it? Will you keep it more than three years because of the term now?

Without any numbers, it is difficult to comment. And you should have the original deal in writing if you gave them a deposit. Dealers do make mistakes, but $150 a month is a BIG mistake. You can always go to another dealer. If they will not honor the original deal you made, the most important question - is the deal they are offering you (in writing this time so you can take it home and look it over) a good deal or not?

martha21,

Oh that bites!!

The extra two years on the payment sounds painful. I guess you need to figure out the total cost of your pocket from 3 years to 5 years. And also, factor in the insurance as well.

Sorry, can't really offer any real advice without the actual numbers.

Right. If I read correctly, you were expecting to make $x per month for 3 years, and now it might be $x for 5 years. Lease or finance doesn't seem to matter to you cause you'll be ditching the car (if I read correctly).

In that case, I'd walk if they didn't honor the original deal.

Thanks, guys. I don't have the signed deal with me, it's at home. I will check when I get home tonight but I'm figuring I just didn't notice the error.

The original deal was $318/month but the "corrected" price is $455/month. That's for the lease. For the finance, it's $303/month without the extended maintenance, $335/month with extended maintenance, both for 5 years. I guess I was thinking that with the lease, it didn't matter that they would only do the recommended maintenance for free because I'd be giving it back in 3 years anyway. If I'm buying it, I may want to get more frequent oil changes or something to try to make it last longer.

I guess I could still sell it after 3 years and 100K miles...that's what I'll put on it in 3 years no matter what. That's what I'd put on any car because I drive a lot. So if I'm buying it and selling it in 3 years maybe I won't do the extended maintenance. I'm going to search for threads about the maintenance to get a better idea. It just seems different if I'm keeping it, you know?

I also don't know what I'd be able to sell it for in 3 years once it has that many mile on it. Especially if I still owe 2 years of payments.

I don't know if I'll ditch the car, seems like after 100K miles a lot starts going wrong with it.

Errors and Omissions insurance would cover your inconvenience if he has it. It would be worth asking. Things like that is what the coverage is for.

Wouldn't I have to sue to get that? I don't know much about it.

The real difference I think is that after the 3 years, she will find herself with no warranty at all, unless she purchases a warranty that goes over 100k miles which is another added cost. Then, she'll face a larger depreciation hit due to the high mileage. After purchase, averaging 30k miles a year, the car will have 150k miles on it. :eek2: I think she'll be better off paying the extra $150/month which only turns out to be about at extra $5400 during the life of the lease.

A "signed deal" and a "signed contract" are two different things. Which do you have?

Pretty sure it's a deal. It's just one piece of paper and I put a deposit down. Evasive makes a good point, exactly what I was trying to say. But I don't think I can handle that high a monthly payment. I'm already putting $4500 down on the car. I'm just so torn now! I do appreciate all of your comments and would love more too. Thanks!

Saying "made a mistake" is an often used tactic to just turn around and charge you more and increase the profit so the store and salesperson make more. Not saying this is the case....but as they say.."buyer beware".

The bottom line number is the "selling price" of the car. Because your payments are based on that selling price. Are you paying full MSRP? Getting a discount? Know the selling price. Payments are determined from that.

For a lease know the Capitalized Cost. Basically the selling price when talking in Lease language.

Everything might be right...Your MA may have goofed and did a lease at the wrong mileage. But you might try...put on your negotiating hat and see if you can get them to bring the cost down..whether lease or finance

Personally, I would call the deal off. If adding another $150/month is too much to handle, don't force it. You are within your rights to get every penny you put as a deposit since they messed up your deal.

Im willing to bet they'll call you back to make the deal work out for you somehow though.

How soon do you need your car? If not urgent, shop around with other dealerships and see what they can offer. Let them know your situation and they're be more likely to drop the price down for you since they know you're a serious buyer.

Leasing is just money down the drain anyway. Financing gives you something to sell in 3 years. Also have your MA double check but I got the 100k maintenance for free BECAUSE I financed instead of just paying in full. I had to make at least 3 payments so that is what I'm doing. I also got the free premium package deal.
Annette

martha21,

Let's say you finance the car, after 3 years, how much principle do you have remaining on the loan? Then try to estimate the value of your car at the end of 3 years. Theoretically, if you can sell the car for the amount of your remaining principle, then that'll be the best. So you would owe no more money after you sell the car.

But if you still a large amount after you sell the car, then it's a bad deal.

Three things to consider.

First, what written sales order to you have. If it has your terms, that is good.

Second, flip that sales order over. See all that fine print. Look for a clause that says "They can change things" (don't show them, but it is probably there)

Third, How is the dealer going to handle their error? This is tricky. 100% integrity says they eat the error....but this is a car dealer. Get the owner involved, stick to your guns and don't cave in, but, they probably have no legal reason to keep the deal (see #2 above)

if you are putting that many miles on the car you will need the extended warranty. as it will expire at 4 years or 50K miles and the maintenance expires at 3 years or 36K miles.

Hi everyone, thanks so much for your comments! I really appreciate it. I looked at the paperwork over the weekend. It is a signed purchase order, signed by me and written out by the dealer. It has all of my terms on it including the amount of miles. I looked at the back. It said that they may not be able to get the car, etc., but I didn't see anywhere that it said they could change the price and terms.

I also did the analysis suggested by darthhen and it doesn't really work out in my favor.

My mom's boyfriend is a lawyer so he's going to write a letter to them and see if they'll honor the deal they made with me. If not I'm going to purchase the Golf TDI. It's supposed to last 300K miles so it makes more sense for me than buying a Mini, which seems to have lots of problems over the 100K mark.

martha21,

Purchase order huh? Then it sounds like the dealer needs to honor the agreement. I'd assume your mom's BF looked over the purchase order and based on his legal opinion, he believes the dealer has to honor it.

While I don't know the details of your situation, but if the dealership is not willing to honor the deal even though it is written, I'm not sure how much time and energy you want to spent in court. From the dealer perspective, they made a honest mistake. This mistake doesn't benefit you, I agree you. But I think the mental fatigure going to court will not make it worth it. But I guess you can wait to see what the dealer response from the letter first. This is my opinion.

Now, the Golf TDI. That's also a fun car to drive. I looked at that car as well. So I don't think you can go wrong with that car.

Good luck.

I dropped the purchase order at Liam (my mom's laywer bf)'s office this morning. So, he's going to look it over and let me know. We figured it wouldn't hurt to write a letter and see what they say. It can't hurt. I'm definitely not going to court over it, not worth it to me.

Off to the TDI forums to ask a few questions about long idles! I will check back in and let you know what happens. If they won't honor the agreement I will certainly let everyone I know, know that this dealership keeps you waiting for two weeks and then goes against what they said. I missed other March incentives because of this, I was expecting the Mini so I didn't move forward with other cars. So, it hurts me even more in that sense :mad:

I thought the April incentives were the same as the March ones?
Good luck however it works out for you. At least you can walk away and will still end up with a car you enjoy owning and driving.

Annette

They are for Mini, but not for VW. Oh well, it'll work out one way or another. Just a big hassle. If the dealer does reneg I will let everyone know not to go to them!

Just an update, Liam has reviewed the purchase order and believes it to be a viable contract. He's calling the dealer and plans to write a letter as well.