Can the dealer sue me?
I wanted to buy a c5 so I put down a deposite(200$) and sighned a contract
that stated I was going to purchase the
vechile, so the dealer gave me couple of weeks to get a down payment of 10k, before I was to get a loan for the rest of it. So couple of weeks pass and came to realize that I can't afford it including the
insureance, so when the dealer calls me to pick it up I told him I had changed my
mind and bought a cheaper car. He was pretty pisssed off and said he was going to sue me but isn't there a ontaio law of buyers remorse, that a buyer can back out of a contract. Am I screwed and should take out a line of credit so I can buy then sell? Or will I win this thing? He claims he has done the etest and safety already, even regestered it under my name. I know I did the
wrong thing but I was really excited after test driveing it but after looking at my bills and fianances and sleeping on it, I really can't afford it
I know that Ontario has a "Cooling Off" period as it is commonly referred to..for things like buying cars, gym memberships, and all other things that you can get pressured into.
If I recall, it's only 7 days though, so you may be in a tight situation... I would do some research on the cooling off period and see what comes up!
If you signed a conditional sales contract you have a certain amount of time to back out of it, the amount of time changes with each province, Manitoba & Alberta are 72 hours in my memory serves me correctly & most other province are about the same but check with your comsumer affairs department and they should be able to tell you everything you need to know.
Originally Posted by moparman23
see what I'm finding is that you forfeit your deposit, you haven't officially been given a VIN< or title to the car, so he can't officially register the car in your name until you sign off the amount paid or financed in full, he's an idiot if he's registered the car in your name,
and MOST if not all dealership contracts have to be a "conditional agreement" to allow sufficient time to arrange financing, money etc. I mean what do you do if you get turned down by every bank in Ontario, how in the heck are you to pay for the car???
ok so I just spoke with a BIG dealership in Ontario, a very reputable one, given what you have stated, not only did the GM of the dealership laugh, the used car manager was pulled in as well to hear the story, your dealership is feedin ya!!! you may again have to forfeit the deposit ($200) but he cannot sue you as ALL used car contracts are "Subject to financing" and therefore until you sign off on eth total purchase value and the money has been given to teh dealership or financed they have nothing, it's a threat tactic to keep the deal together as he's losing big commision on the car and car sales aren't up so sales guys are fighting for your business.
His advice was to eithe contact the general manger directly, don't deal at a sales level. or call OMVIC, they handle these type of issues.
Hope that helps, you need anything more, pm me.
thanks alot that really helped I can just not worry about it and sleep well at
Originally Posted by X's Revenge
night mybe even buy a more affordable car like a trans am :D thanks for the responds guys
I'd like to know the name of that dealership
Originally Posted by X's Revenge
^ hahahaha very true my friend very true hahaha,
but like i told moparman23, unless he has a signed bill of sale in his hand, the dealership has nothin, he may have to forfeit the deposit, but again, I'm sure a friendly letter to the general manager would help make aware of the reputation their staff are conveying.
Not trying to ruin your night but Google is not your friend.
Guess your glad you only put down $200 instead of $10,000
I think your going to need to get a copy of what you signed to find out what all the conditions were.
Only then can you be sure what your options are.
keep in mind, this is not a new car but a used vehicle, different conditions apply here, this isn't inventory the dealership ordered in for this customer, but a vehicle already on the lot. The one question I brought up and was laughed at immediately, is why would a dealership register a car in someones name when they don't have the money for the car, whether it's financed through the dealership or through a private bank, until they have a signed bill of sale with all funds or finacing in place they can't legally register the vehicle.
The other statement noted was that the sales guy gave this customer 2 weeks to come up with $10,000, so at the end of 2 weeks he can't come up with the money, then what, the dealership automatically turns the car over to him? They can't. What gets me is that they have charged this customer for a safety and an etest, which is something EVERY dealership does to EVERY used car that they purchase, and gets built into the resale price. You're telling me that the dealership can tuck the etest and safety into the price, then demand payment for it as a stand alone default, then charge the next guy the cost??? that's double dipping and illegal. If moparguy pays the $2-300 in services and walks away, does the car price drop by $2-300 because he'd paid for it? Highly unlikely.
The only reason I know the tactics, is I did the software install for the dealership in question so I know the costs are padded into the resale price of the car. I spent over a year and a half at 80% of the dealerships across Ontario (Orangeville rocks by the way) and I know what we set the parameters of default fees were. Not that it makes this situation any easier, it just backs up the point that there is a conditional sales agreement in place and subject to the dealerships conditions ($10,000 in 2 weeks) and that didn't happen, the dealership has a deal that has fallen through.
Last edited by X's Revenge; 02-09-2010 at 11:54 AM.
You lose any deposit he has..
If he wants to sue then let him sue.. I think, and I am 95% sure its a bluff..
and if he does sue and wins...
THEY CAN ONLY BE AWARDED THE AMOUNT OF COMMISION AND DELIVERY COST TO DEALERSHIP ..
Which DOES NOT incl the cost of the car because they can still sell it..
So No judge will award them the cost of the car. But commission and dealership delivery cost and court cost.. You'll looking at a few grand.
Also Judge will award them that much if they ALREADY HAD a loan approved for you thru a Lender not thru dealership self financing..
I will not buy the car and then try to sell. and I will let them go ahead with the law suit.
Once its file then worry about it..
FYI a Law suit does not apprear on your credit. You have to go to court first and if you lose then the judgment is filed. But if the judgment is paid ASAP it will not appear on your credit,,, It takes about 45 days or more to appear.
Don't let them bully you..
Last edited by BullishV8; 02-09-2010 at 12:22 PM.
^ yeah we figured the deposit may be gone, but I agree, it's a bully tactic to keep the deal. If in doubt contact OMVIC, that's what they are in place for.