What Happens When A Car Dealer Goofs?

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Leesbro63
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What Happens When A Car Dealer Goofs?

Post by Leesbro63 » Thu May 03, 2018 1:13 pm

Following up on another current post regarding a car dealer who rolled the metal then, a few days later, realized there was a goof requiring a co-signer. I'm curious what happens internally? Do car dealers have the ability to assume some of the liability on a loan that a bank won't make otherwise? Or are there opportunities to discount the loan to the bank enough to get them to buy the paper?

Or is the only remedy to hope the customer will comply or return the now-used car and have to unwind a deal that might be complicated with a trade-in, etc?

dcabler
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Re: What Happens When A Car Dealer Goofs?

Post by dcabler » Thu May 03, 2018 1:37 pm

Not sure about that particular case, but I have one of my own. I had just graduated college and bought my first new car. Everything was done and then I moved to Texas. Several weeks later I got a letter from the dealer that they didn't charge me sufficient sales tax. Guess where that letter went. :D

Never heard another peep from them....

spectec
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Re: What Happens When A Car Dealer Goofs?

Post by spectec » Thu May 03, 2018 1:43 pm

I'd say the dealer always maintains the edge - they know virtually everything that can go wrong and how to protect themselves against the risks. They do this stuff multiple times every day, whereas the average buyer does it every few years. So who's likely to be left holding the bag when something unexpected happens? Not saying it never happens, but in 70 years I've never heard someone say "We sure got one over on that dealer." On the other hand, I've heard dozens upon dozens of stories that ran in the opposite direction. That's what led me to the conclusion that the single largest wealth destroyer in our economy is the car buying activity of the average American.

(After seeing the reply that went up while I was typing, guess I'll have to edit this remark by saying I heard someone say on the internet they did it. Once in 70 years.) :)
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

maroon
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Re: What Happens When A Car Dealer Goofs?

Post by maroon » Thu May 03, 2018 2:26 pm

I once leased a car, drove it off the lot, then the dealership called and said I needed a cosigner. Oops. Eventually my dad cosigned for me, but only after the residual was substantially reduced. At the the end of the lease term, I bought the car. Probably my dad had turned a lousy deal into a not-so-lousy deal for me. (This was my first car after college, when I had no credit.)

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Watty
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Re: What Happens When A Car Dealer Goofs?

Post by Watty » Thu May 03, 2018 10:19 pm

I have seen vague clauses in the paperwork that basically said that it there was a problem that they would arrange a car loan and car insurance with the provider of their choice. I would assume that the terms would be so onerous that you would be very cooperative in getting the problem resolved to avoid that.

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Rainier
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Re: What Happens When A Car Dealer Goofs?

Post by Rainier » Fri May 04, 2018 6:00 am

They ate a few thousand dollars on a deal we did.

Everything was signed, we took the new car and a few days later we got a call from the finance guy saying we needed to write a check for $2,500 because he forgot to add the sales tax.

I said no, I said our deal was $45,000 (or something like that) all in....sales tax, fees, etc and that is what we agreed on. I said I'd be happy to return the car.

Well, they ate the sales tax. Not sure what they did (either wrote a check or lowered the sales price).

mmmodem
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Re: What Happens When A Car Dealer Goofs?

Post by mmmodem » Fri May 04, 2018 7:10 am

Leesbro63 wrote:
Thu May 03, 2018 1:13 pm
Following up on another current post regarding a car dealer who rolled the metal then, a few days later, realized there was a goof requiring a co-signer. I'm curious what happens internally? Do car dealers have the ability to assume some of the liability on a loan that a bank won't make otherwise? Or are there opportunities to discount the loan to the bank enough to get them to buy the paper?

Or is the only remedy to hope the customer will comply or return the now-used car and have to unwind a deal that might be complicated with a trade-in, etc?
What you have to understand is that there is no goof at least not in regards to that story. If I can get an unsecured loan for 10's of thousands of $'s on a credit card without speaking to a single person, I'm pretty sure a car dealer can get you approved for a loan on the weekend. There's something fishy going on with the co-signer. Just by common sense, what days do most people shop for vehicles? And does it make sense for the banks to not be available to approve loans on that day?

If mistakes are made, the dealer eats the loss just like any other company. It is in the best interest of the finance manager not to make mistakes. Too many and they get fired. And sadly, if they are unable to secure financing to too many, they also get fired. Hence, we have the co-signer scam.

Jack FFR1846
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Re: What Happens When A Car Dealer Goofs?

Post by Jack FFR1846 » Fri May 04, 2018 7:47 am

spectec wrote:
Thu May 03, 2018 1:43 pm
I'd say the dealer always maintains the edge - they know virtually everything that can go wrong and how to protect themselves against the risks.
Usually, yes. Always? No.

I bought a truck using a GM supplier program price and discount. Between the order and the arrival of the truck, the dealership was sold. I went to the new dealer just to be sure the order was still valid. They verified it was. Since I was completely aware how pricing was done, I offered my help to this new dealer to double check the pricing since the order ended up skipping to the new model year and new prices. The dealer was quite, QUITE confident that they knew exactly how to do their calculations and didn't need help from some customer.

Well, the truck came in, I only skimmed the numbers and they were close enough to the numbers I originally calculated, so left them a check and drove my truck home.

3 weeks later, I get panic'd phone messages to call, come in, smoke signal them. I call. They mistakenly sold me the truck for their cost instead of the very clear GM pricing for suppliers. They started threatening "We have ways to get out money!". That was it for me. Holding the title in my hand, I told them that since they were threatening and had not accepted my help in calculation, they can eat the shortfall. They said they'd speak with GM and because of me, the whole supplier program could be in jeopardy. Oh really? I'd love to be on the phone listening. Hello, GM.....we're too incompetent to calculate a price for a supplier. GM: "hahahahahaha....what a maroon".
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Alexa9
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Re: What Happens When A Car Dealer Goofs?

Post by Alexa9 » Fri May 04, 2018 9:12 am

If you plan on going to the dealer again, you should meet them in the middle if it's an honest mistake or expect some kind of compensation if it's significant. Otherwise a contract is a contract.

Jags4186
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Re: What Happens When A Car Dealer Goofs?

Post by Jags4186 » Fri May 04, 2018 9:19 am

I am always a little suspicious of people who say “I have excellent credit, great income, and now the dealer is giving me the run around.”

I have excellent credit, good enough income, and no dealer has ever given me the run around. Not saying it can’t happen, but usually there is a piece of information missing.

That said, I believe having the dealer do as little as possible is the best way to buy a car:

1) Pay cash for your car, don’t worry about dealer financing
2) Get a loan from your bank/credit union, as far as dealer is concerned you’re a cash buyer

Leesbro63
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Re: What Happens When A Car Dealer Goofs?

Post by Leesbro63 » Fri May 04, 2018 10:45 am

Jack FFR1846 wrote:
Fri May 04, 2018 7:47 am
I'd love to be on the phone listening. Hello, GM.....we're too incompetent to calculate a price for a supplier. GM: "hahahahahaha....what a maroon".
Sounds more like a moron than a maroon. :)

sport
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Re: What Happens When A Car Dealer Goofs?

Post by sport » Fri May 04, 2018 11:19 am

I once ordered a car to my specs from a dealer on a cash deal. A few days after signing the papers, the sales manager called me and said there had been a mistake in the pricing. I said I was happy with the deal. He then tried to get me to add options that I did not want. I said no, thanks. Finally, I just asked him "Are you going to honor the deal, or not?" He glumly replied, "Yes, I'll honor the deal". I expect he was being honest when he told me there had been a mistake. However, that was not my problem. As I recall, the amount was a few hundred dollars. (1980 dollars).

michaeljc70
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Re: What Happens When A Car Dealer Goofs?

Post by michaeljc70 » Sat May 05, 2018 10:25 am

When I bought one new car it was late on a Saturday. The dealer wanted to run my credit. I said no, I am paying cash (well, it was a check). They said it is too late to call the bank and if I leave with the car and the check bounces, it would be bad for them. I said take it or leave it, I am not coming back and I am not going to have an inquiry on my credit. They let me take the car. If they ran the credit and it was good and the check was still bad, not sure how that would have helped them anyway.

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