Hi guys,

So with a lot of excitement I ordered my first F56 Mini at the end of May. Specced out just how i wanted and after much negotiating signed the paperwork and paid 10% deposit on a 2015.

Patiently waited until now. Got a call from finance department and was told to pay the outstanding balance. However, the final price is about $900 more than what I was told and what i signed!

Then I was contacted by the sales manager. Turns out they never had a 2015 allocation and a 2016 was ordered. Obviously the MRSP has gone up slightly (in Canada) and some of the packages are more expensive too. I was not told of the price increase AT ALL!

The pressure really started after I told them I would not be willing to pay more than the price we had settled on. He essentially started negotiating with me again like I was shopping for a new car. Telling me they did me a favour buy ordering a 2016 etc... Became incredibly rude and obnoxious like a used-car salesman. Even accused me of being cheap!

In the end I told him I wanted my deposit back (sad to see the MINI i wanted slip away but I seriously lost trust in these buffoons!). Then he told me the deposit is non-refundable!!!

Looked at the agreement I signed and it does say in small print 'partial-payment is non-refundable unless a condition is requested'. What does that mean?

Going into the dealer tomorrow to deal with it in person. Any advice?

Thanks!

 

Does your contract clearly state you were ordering a 2015 MINI? If so, you should be able to argue that this is what you ordered and what you want. You never authorized substitution of a 2016 MINI or a change in price. It then is the dealer that is failing to abide by the contract if it fails to deliver in accordance with the terms of the contract. As for being cheap, you might reply it is the dealer that is being cheap and deceptive by not waiving any price increase when it decided without consulting you to substitute a different car and change financial terms.

I do not know what province is involved in the contract. In various provinces, dealers have been charged with deceptive practices regarding car deposits. There may be applicable law or authority in the province that gives you additional rights. The link below provides additional information for consumers regarding vehicle purchases, including links to information regarding the laws and authority in specific provinces.

http://www.consumerinformation.ca/ei...eng/00630.html

You may have grounds to complain to the responsible provincial authority regulating motor vehicle dealers, if the dealer fails to refund the deposit when it is unable to supply the car you ordered. You may also threaten to report this to the media or a consumer affairs group. This is not a case where you changed your mind. This is a case where the dealer may have engaged in a bait and switch or other deceptive practice by inducing you to order and put a deposit on a 2015 MINI which it could not deliver, failing to promptly inform you of this fact and then trying to substitute a 2016 car at a higher price without your consent to a change in the contract terms.

For example, if you are in Ontario, you may have 90 days to cancel the contract under the Motor Vehicle Dealers Act, if the dealer failed to provide accurate information, such as the model year of the vehicle. While I am not a lawyer in Canada, if you are able to cancel the contract the term regarding non-refundable deposits may no longer apply.

http://www.ontario.ca/driving-and-ro...le-your-rights

Below are links to a couple additional articles that may be instructive.

http://www.canada.com/story_print.ht...0a9af&sponsor=

http://www.cbc.ca/news/canada/edmont...sits-1.3112713

 

Seriously?


I understand, the bait and switch, but damn. You get a newer, more developed car, and it cost a fraction more? You really willing to bail on the car you actually want for $900?


Go haggle with them, Make it very clear, you ordered a 2015. Meet them 1/2 way on the price increase, and be happy in your mini..


Oh, and if you really want your money back, start mentioning your lawyer, and punitive damages... That's is what usually get's their attention

 

Lol, you sound just like my dealer! It's down to the principle of business. They clearly do this to lots of people hoping most would settle. Both the assistant and sales manager were acting like buffoons and I no longer want any dealings with them.

Thanks MichiganMike! Really useful info. I'm in Alberta and there does seem to be a Motor Vehicle consumer group I can complain to if things don't work out!

 

I agree that it is important to understand the principle behind this behavior, that some dealers feel like they can jerk around customers in order to get extra profit. A good deal is where the customer and dealer agree to a price that provides the car the customer wants at a reasonable profit for the dealer. That is not what is happening here.

If you can afford it, I would consider offering to meet them at some price to get your car, a 2016 to boot. If you can't afford it, then you are under no obligation.

If the dealer refuses to back down, I would definitely not just mention litigation (maybe drop some hints about having a friend who is a lawyer that will ensure you can pursue this without very much cost), but also mention the specific names of consumer protection groups that you will be contacting and even MINI itself. That might force them to ease up.

Even if you come to an agreement, I would definitely consider contact the consumer protection groups and MINI. Bad dealerships give all dealerships a bad name and need to be forced to change for the betterment of the industry.

 

If you're persistent and keep escalating (MINI corporate), you'll get your money back.

 

Be cautious about applying your experience in the US to Canada. Canada is a much less litigious country than the US for reasons inherent in differences in the legal systems.

Contingent fee arrangements are very rare in Canada, so a lawyer generally must be paid for services up front. Punitive damages are also much less common, so where the actual amount in dispute is small as in this case, litigation would rarely make economic sense, even if you are getting a discounted rate from the attorney. The contract may have an arbitration or mediation clause, which, if true, largely guts any threat of involving a lawyer. In short, a threat of litigation or involving a lawyer in a case like this in Canada may not be taken seriously and may actually undermine credibility. A threat of adverse publicity or to involve regulatory authorities will generally provide greater leverage in a dispute like this in Canada.

At this point, the prospective buyer has lost confidence in the dealer. So attempting to negotiate a monetary resolution does not appear to be an attractive alternative.

In my experience, BMW NA generally closes ranks with its dealers. I would not expect much help from MINI in Canada over what is in essence a contractual dispute between the customer and the dealer.

 

A few more points to consider.

http://www.servicealberta.gov.ab.ca/1786.cfm

"Q6 I just bought a vehicle and put down a $1,000 deposit. Now I don't want the car as I've found a better deal elsewhere. How many days do I have to cancel the deal?

You have no right to cancel under these circumstances, and the dealership will probably keep the deposit as damages if you do. They could even hold you to the whole contract. The only exception is if the deposit was made with conditions and the conditions were not met (for example, the vehicle must pass a suitable inspection or that financing was available). The Alberta Motor Vehicle Industry Council (AMVIC) may mediate a dispute involving a deposit that was given unconditionally."

Your situation is different than the one presented above. You did not change your mind, but the dealer has failed to fulfill the contract. Avoid suggesting you changed your mind about buying the car, as this may strengthen the dealer's position. You might advocate that an implicit condition of the deposit is the dealer would deliver a 2015 MINI as ordered. You are prepared to take delivery of the vehicle as ordered, but they have failed to make the vehicle available and now seek to substitute a different vehicle at a higher price. Because the dealer failed to fulfill its obligations under the contract, the deposit should be refunded. Tell the dealer you will file a complaint with the Alberta Motor Vehicle Industry Council and also will pursue complaints both with MINI and various consumer affairs and/or media services, unless you receive the car as ordered or your deposit is promptly refunded. Remain courteous but firm in what you want is nothing more than for the dealer to fulfill the contract or refund your deposit.

You might read and bring a copy of information on the Fair Trading Practices Act for Alberta with you to the dealer. Some of the dealer's tactics may violate provisions of the Alberta FTPA and it may be useful to remind the dealer you are mindful of this possibility.

http://www.servicealberta.ca/pdf/tip...rading_Act.pdf

 

Thanks for the advice. I will try to be as courteous as possible in person (it was challenging on the phone when both managers were acting like buffoons!).

The sad thing is had they apologised and been courteous to me initially, I would have just accepted the increased final sales price. I'm no salesman but I thought the adage of 'you attract more flies with honey than vinegar' is pretty well known!

I fully plan on talking to the AMVIC and letting them know.

Thanks!

 

I suggest you step back and take a deep breath. Try to remove the emotion from your decision making process because you do have a decision to make. If the price increase from 2015 to 2016 is $900 then what they are asking is reasonable. I'm not saying what they did was right, but what they are asking is reasonable. If you can negotiate somewhere in the middle that is great. Remember you will be getting a 2016 for $900 more (or less if you negotiate) than a 2015. That more than makes up for depreciation of the 2015 vs. 2016.

Bottom line: Take all the emotion out of your decision making process and look at it objectively. You may realize you are getting a good deal.

 

^ this. Crazy has it right..