Sales contract binding ?

Guns22

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Just wanted to know if anyone on here knows if my signed deal with dealership is binding on there end , I put down 5,000 deposit, they allowed 30,000 for my trade which I am still driving , when I set the deal my truck had 74000 miles on it now I’m about to turn 80000 , the deal was signed by manager, sales guy , and me . What is everyone’s opinion on this ? I’m praying they have to honor it .
 

Brad1331

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Just wanted to know if anyone on here knows if my signed deal with dealership is binding on there end , I put down 5,000 deposit, they allowed 30,000 for my trade which I am still driving , when I set the deal my truck had 74000 miles on it now I’m about to turn 80000 , the deal was signed by manager, sales guy , and me . What is everyone’s opinion on this ? I’m praying they have to honor it .

That is a link to an updated article where a chevy dealer tried to markup a c8 $10k over the agreed upon price when it was reserved and according to the now owner of the c8 he threatened legal action and they took off the markup. And it is true they legally cannot do that.

What you are asking is a little different because they agreed to pay you a price for a rapidly depreciating asset "sometime" in the future and they had no idea when the actual deal would be closing. If I were you I would first read over the entire contract carefully to see if there was a clause about "market price" for your trade or "this price is subject to change".....If there is nothing you might have a case to hold their feet to the fire when the TRX finally shows up but if you are not a lawyer it would likely cost you way more in legal fees than the couple thousand dollars extra your trade depreciated while you were waiting. The good news is your trade is already out of factory warranty and there isn't a huge difference in trade value between a 4 year old power wagon with 74k miles and a 5 year old power wagon with 90k miles and $30k back in August for your trade was likely a very conservative number so they might just honor it even if that is on the high end of the evaluation by the time your TRX comes in since you are paying MSRP and especially if you finance through them as they will be making a ton of money off the sale.

I personally have a signed contract for MSRP and a negotiated value of $52k for my trade back in august but I was one of the unfortunate hellcat orders in 2015 that never saw my car in the first year and got moved to a 2016 model so I had the foresight to work into the deal with them that I agreed the price of my trade would depreciate $0.15 per mile and an extra $1,500 in the new calendar year 2021 and they threw in a clause that it has to be in the "same condition" as when they saw it in August and that the whole trade value would have to be renegotiated if the deal wasn't done by November 2021 or 36k miles (that's when my bumper to bumper factory warranty expires) But this was because the salesmen and I had both personally been involved with FCA product orders that took up to a year to be completed and went in with low expectations that FCAs promise of people would be taking delivery in Q4 2020 would be kept.
 

smlaw

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To what document are you referring? A purchase order for the TRX? Happy to opine (any advice given herein will not be offered as legal advice but rather circumstantial) if I have more information to what you executed. Scott
 
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Guns22

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It is my retail order sales slip , shows purchase price, cash down , trade , and balance owed after taxes.
 

smlaw

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Thanks. Interesting as I didn't execute a purchase agreement in advance of making a deposit..and I wouldn't have done it anyway. Perhaps dealer did that due to your trade in. Dealer will argue they a right to decrease trade value based on mileage and no fault of theirs due to FCA delay, I'm sure...you counter that by saying you "justifiably relied" on their figure within the agreement. I suspect there is a "force majeure" clause somewhere within the agreement that allows for change in price due to no fault of their own. It is not as if we have any wiggle room to negotiate as once we drop out of the agreement someone will be there to scoop up the truck. Sorry, wish I had a better answer even as a mergers & acquisitions attorney for 17 years oftentimes the corporation controls all.
 

Kerry0805

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Thanks. Interesting as I didn't execute a purchase agreement in advance of making a deposit..and I wouldn't have done it anyway. Perhaps dealer did that due to your trade in. Dealer will argue they a right to decrease trade value based on mileage and no fault of theirs due to FCA delay, I'm sure...you counter that by saying you "justifiably relied" on their figure within the agreement. I suspect there is a "force majeure" clause somewhere within the agreement that allows for change in price due to no fault of their own. It is not as if we have any wiggle room to negotiate as once we drop out of the agreement someone will be there to scoop up the truck. Sorry, wish I had a better answer even as a mergers & acquisitions attorney for 17 years oftentimes the corporation controls all.
Nice to see and hear from other attorneys in this forum... ;)
 
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Guns22

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Thanks for the great input, the only thing we verbally agreed on was that if the truck got damaged I could get my deposit back , and we also had a discussion about the mileage in that the manager asked that I try not to do any cross country trips but he also understands I need to drive it daily but that was when he thought I would have the truck by November. Fingers crossed I guess
 
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