Price Rise question?

[goodfa]

If you negotiate a price on a car and you have to wait 2 months for the car to arrive and in the meantime the car has a $1,000 RRP price increase,is the dealer obligated to honour the deal or do you have to pay the extra $1,000 as the RRP has increased while you were waiting for the car???

[boorny88]

well if you signed a contract stating the price i dnt see why u wud have to pay the extra but i thin Gman will be the best to inform you.
but as i said if you signed something for lik $50,000 and it goes up to $51,000 while you wiat for it you i wouldnt think you would have to

[AfterBurner]

Shop elsewhere if they try n sting u the extra...

[hazrd]

Spot on...

correct me if i am wrong but......

example 1 - car in lot for 30k, you go in and get an on road quote for 32k, that is the price regardless - for the life of the quote (unless the quote states otherwise)

example 2 - car in lot for 30k, you purchase it with on roads for 32k total, thats it, nothing more to pay

example 3 - car in lot for 30k, you see it, drive it like it, walk away to think about it... price goes up, too bad, leaves it pretty much upto the dealers discression

[sadavidsriturbo]

Unfortunately unless it is in writing a verbal agreement means nothing

[Wraith]

If you negotiate a price on a car and you have to wait 2 months for the car to arrive and in the meantime the car has a $1,000 RRP price increase,is the dealer obligated to honour the deal or do you have to pay the extra $1,000 as the RRP has increased while you were waiting for the car???

If you've 'negotiated' a price and you've paid a deposit, you should therefore have a contract or some sort of paperwork for it at that price...

So if there's a price rise it won't apply to you...BUT make sure to always read the contract in its entirity to make sure of the above or better still ask them the question/s !

However if it was verbal only, there's no reason for the dealer to honour the negotiated price from 2 months prior, unless he/she can or really wants your business...

At the end of the day, ' if ' your happy with a negotiated price and you've decided to definitely pull the trigger on that car and take delivery in 2 months time, then get it all in writing :)

[chrissn89]

Im sure if it was cheaper they wouldnt be offering the saving on so easily.

Tell them the quote/contract states $40,000, that is what ...... ..... .... (car dealer) and myself accepted on the ....... (date), as signed in the contract and if your not willing to honor our contract and the price we negotiated, im happy to shop else were.

[rjastra]

I think you will find that the dealer can increase the price only if agreed to by you. Otherwise you or them can cancel the contract.

[goodfa]

Apparently contracts state that price rises are the responsibility of the Buyer.

Are there any salesmen on this site that can verify this,as I think if this is the case it would make for one very unhappy customer.(especially if they have shown loyalty by waiting two or three months)

[sadavidsriturbo]

Apparently contracts state that price rises are the responsibility of the Buyer.

Are there any salesmen on this site that can verify this,as I think if this is the case it would make for one very unhappy customer.(especially if they have shown loyalty by waiting two or three months)

Im not a sales man but if that is stated on your contract in fine print well unfortunately that how it is.

Thats why you need to read the fine print religiously i myself have a habit of just signing when needed which i should stop.

Sales is a dirty game and they will do anything to secure a sale sometimes borderline dishonest if you are not obliged to buy see if you can get a better price else where maybe if they have another joint dealership they will just get the car from them save you waiting .... Also what car??

[aza28]

Details are pretty vague/insufficient so you can't expert any more than guidance as opposed to meaningful advice.

First thing to note is contracts can be oral, in writing or partly oral and partly in writing. In some circumstances they they can be implied. The problem with verbal or implied agreements are it becomes very difficult to enforce the terms of that contract because they aren't clearly defined in writing.

If you have a written contract, first thing i would be looking through would be the terms and conditions. The contract price is the contract price, it cannot be unilaterally varied by the dealer or buyer unless that party has a specific contractual right to do so.

If there is a contractual right, it'll be in the terms and conditions. I would also expect it to say what rights or obligations you have if they choose to exercise that right. I'd be very surprised if you didn't have an ability to terminate.

The best advice i can give you is read the bloody contract.

If its oral and u've paid a deposit, i would go back to the dealer and get the agreement reduced to writing.

If its oral, u haven't paid a deposit and they try to increase the purchase price, just walk away!!:)

[oneightoo]

Shop elsewhere if they try n sting u the extra...

this is your best and probably only piece of advice you'll need..

if they try and pass on any increase then just tell them, this wasnt what you agreed to last week, and then tell them you're im going elsewhere..

simple really..

[TheOperator]

Short answer YOU are responsible for ANY price rises that occur between when you sign the contract and when the car is delivered!!!

It specifically states this in the fine print of ALL new vehicle contracts unless that dealer has had the clause removed which is extremely uncommon ;)

MOST dealers will honor the original price or honor it after you have kicked up a stink over it cause it's not worth them losing a sale over such a small amount when they potentially are losing more than that in holdback payments from the factory not to mention margin in vehicle also ;)

If they won't budge go elsewhere but be prepared to forfeit deposit if car has been ordered and not floor stock !!!

* And yes my company owns 20+ dealerships (i DON'T sell cars) so i know the procedure *

[goodfa]

Short answer YOU are responsible for ANY price rises that occur between when you sign the contract and when the car is delivered!!!

It specifically states this in the fine print of ALL new vehicle contracts unless that dealer has had the clause removed which is extremely uncommon ;)

MOST dealers will honor the original price or honor it after you have kicked up a stink over it cause it's not worth them losing a sale over such a small amount when they potentially are losing more than that in holdback payments from the factory not to mention margin in vehicle also ;)

If they won't budge go elsewhere but be prepared to forfeit deposit if car has been ordered and not floor stock !!!

* And yes my company owns 20+ dealerships (i DON'T sell cars) so i know the procedure *


I really believe that this is not fair to the buyer.

I told a friend of mine who has ordered a CDX Cruze(waiting time 3 months) that since the price has gone up $500 since he ordered it that the dealer may hit him for the extra $500 when it arrives.

He said that he was willing to wait up to 3 months as he is loyal to the Holden product and if the dealer asked for an extra $500 to what was negotiated he would be very irate and he would take his business elsewhere.In his words("If this is how they want to treat me for patiently waiting for a car they could not supply they can go an get stuffed")

Why should the buyer have to pay extra when the Car company could not supply the car in a reasonable time.

If anything they should be rewarded for their loyalty(waiting up to 3 months) when they could have purchased another brand a lot quicker.

I think that this clause should be taken out of all contracts.What is the use of negotiating a price only to be told "sorry it is going to cost you more now."

Car companies should be made to give price protection to dealers for cars that have already been ordered.

[imay]

If you have signed a contract to buy you are legally obliged to honor that contract;
If the contract contains a clause that allows the dealer to increase the price of the product, by signing the contract you have agreed to this condition;
If you have paid a deposit and chose to withdraw from the contract, you will most likely lose that deposit, as the dealer will claim it against cost of getting "your" car to his yard;
You could (and I certainly would!) plead - bet it won't do any good though - and see if they come the party with "absorbing" the price rise or part thereof on your behalf. Threatening to take you business elsewhere probably won't upset the dealer terribly;
If you do choose to take your business elsewhere, you can still lose this deposit - even if you choose to buy the same type of vehicle elsewhere - and the dealer probably still has the legal right to pursue further compensation from you (if he wanted to get real nasty).

Basically, if you have signed a contract you are legally obliged to honor this agreement and purchase whatever you have signed for - just as the dealer is obliged to supply you the product.

Good luck and let us know how this situation ends up.