Tips on Buying Cars: No vehicle, retail installment sales, arbitration agreement

Question
QUESTION: My husband and I recently went to a car dealership requesting specific things and color on a new vehicle we wanted to purchase.  Of course the salesman bent over backward to get us what we wanted.  They showed us and we test drove a vehicle that they had, their, in the lot but they did not have the color we wanted.  The salesman said he had found one a couple hundred miles away and he could get it to us in about 2 to 4 days.  Well we agreed but it has now been 9 days and he still has nothing.  We signed the following documents:
*MOTOR VEHICLE RETAIL INSTALLMENT SALES CONTRACT SIMPLE FINANCE CHARGE
*CONDITIONAL SALE AND DELIVERY AGREEMENT
*RETAIL PURCHASE AGREEMENT
*ARBITRATION AGREEMENT
*SECURITY AGREEMENT
*AGREEMENT TO FURNISH INSURANCE POLICY
*ODOMETER DISCLOSURE STATEMENT
*NOTICE TO COSIGNER
*VALUE CARE PROGRAM
*ANNL-WE OWE (says that we gave them a $500.00 check and that we owe them another $2500.00 that will be applied as the down payment)
I went to speak with the dealership to tell them I wanted something else in exchange for my wait.  For example, a better price or a better interest rate or to cancel everything.  Our salesman was not there at the time, so another salesman said he could not do that and we could cancel the deal.  Of course he said he could not give me back my $500.00 check that we originally gave them because the business office was closed.  He told me to come back tomorrow.  I told him mail it to me.  I had just stepped in my house when I received a call from my salesman saying I could not cancel anything that we signed the papers above and we are still financially responsible for the vehicle.  I just don’t trust them anymore and don’t want to do business with them.  Can I get out of this deal without being financially responsible for this vehicle?  He wants us to wait another 5 days.  Which would make the wait to 13 days. He also wanted to try to sell me another vehicle with less  equipment for about 1000.00 less.  Can he better the price or interest rate on the original deal as compensation for the wait?  Also I believe the car he originally sold me is long gone.  Do I have to take another car even if it has the same equipment but different VIN#?  He kind of said that as long as it has the same equipment as the one we signed for it does not matter if the VIN number changes.


ANSWER: Kay,

Thanks for your question.  Your salesperson is right and wrong at the same time.  He is wrong because you are due everything back, and can back out of the car deal, without being financially responsible for anything.  A car deal is not compete until you take delivery of the vehicle that you purchased.  Now, with that being said, they can change the VIN on the contract, but you would have to initial the contract for the change.  This is very common, that a dealership trys to locate the vehicle that you want, thinks they have it, and the other dealership won't give it to them, so they have to scramble around to find one with the same equipment but different VIN.  Now, it does seem odd that it is taking this long, but it is possible.  

Now, as to can they make the deal better - the answer to your question is yes.  Simply tell them that look - you are still interested in purchasing the vehicle subject to your inspection - by the way check the miles on the car when you inspect it - but that you have had to wait way to long with little or no communication from them, and you want something in return.  What they can do is all based on profit that they made on you.  If they didn't make much of  profit, then they won't be able to do a lot.  As far as the interest rate, it is a completely separate department.  The finance dept may have given you the best rate they have, but I don't know that.

Most dealerships will work with you in this situation, but don't expect a lot.  Dealerships just don't have much profit these days - at least not as much as the consumer thinks.  They are also having to pay to get the vehicle in transport fees or whatever, which will eat into their profit on that deal - making them have less to offer you for your inconvenience.  

Hopefully this helps.  

Thanks - JB

---------- FOLLOW-UP ----------

QUESTION: Thank you so much.  I have a few more questions.  We are not financially responsible until we take delivery of the vehicle.  What does “delivery of the vehicle” mean, when the vehicle arrives at the dealership or when we take the vehicle off the dealership?  If they try to change the car (VIN) and the vehicle, equipment wise, is the same as the one they sold me I can say, “NO we don’t want it the deal is off”?  If we decide to cancel everything what are the steps we should take?  Could it be that they are taking so long since we are buying a 2010 and there is not yet enough inventory out their?  We got 5% interest.  If they don’t budge in getting us a better deal should I try to get some of the extra things for free they try to sell you when you are about to sign, like the extended warranty,  the extra insurance, oil changes, etc… We need the vehicle as soon as possible that is why we could not wait on the extra incentives in the coming months but if they cannot give us what we want we should have just waited for the extra incentives.  And the lying and lack of communication is making us want to take our business elsewhere.

Answer
Kay,

Thanks for your follow up.  I apologize for the late response, but I did not get an e-mail saying you had requested a followup.  

To answer your questions.  You are not financially responsible unit YOU take physical delivery of the vehicle in which you contracted on.  That means the VIN and everything has to be the same.  Otherwise you have to sign a new contract or initial the changes on the current contract.  If this doesn't happen, you are not responsible for the payments, but you will have to fight them, because they won't like it that you know the truth.  

If you decide to cancel everything, you simply have to alert them, and tell them that you have not taken physical delivery of the vehicle, therefore the contracts are not valid.  

You can try to get extra things thrown in, but that all goes to the car deal as well, so if they don't have the profit to give you those extra things, then you need to understand that.  If they have the extra profit, then they should be more than willing to give them up to save the car deal.  

Hope all of this helps.

Thanks - JB