Dealer backing out of deal

[billlh]

I had a similar situation many years ago buying a car for my Mom. I'm a tough negotiator and I got what I figured, based on my knowledge of what the car was worth, a good price. Well, I brought my Mom into the dealer when the car was ready and the owner pulled me aside and told me they had made a mistake on the price but that he would honor the deal. Basically, cause since I had a signed deal he didn't have much choice. I knew I had done well but it wasn't like he was losing money on the car. More like he just wasn't making as much as he figured he should. She bought the car anyway at the agreed price and I never bought another car from them again. I also to this day have never forgotten how he made me feel. A deal is a deal, and of course, he never showed me any paperwork showing his supposed mistake. Needless to say, he lost a customer for life and I told many people over the years about this and I'm sure it cost him business in the long run. Some people just never learn to overcome their own greed.

 

[bumperm]

Well, I brought my Mom into the dealer when the car was ready and the owner pulled me aside and told me they had made a mistake on the price but that he would honor the deal.

I'm not sure why you would hold that against him? Sounds like he was just letting you know they screwed up, but not saying he wouldn't honor the agreed upon price.

My company got the contract for an alarm system at a public school (we had all the schools in the area). When I reviewed the contract before we did the work, I discovered that sales had made a mistake and were overcharging by $1K. I told staff to call them back and say we couldn't honor the contract . . . pause . . . and then tell them we had overcharged and would resubmit the contract at the lower price. Integrity is important.

It all depends on whether their mistake was honest, but either way, especially if it's close, they should take the hit and honor the price.

 

[kenlip]

That's where I'm at.

Believe it's an honest mistake, I see where they mixed up the model numbers. Not a $5k difference or even close but I'm already stretching. Looks like I have a binding contract but seems to me the biggest plus to buying new is a good relationship with the dealer, can't imagine it's worth it to go to the mat.

Just can't imagine making a mistake like that and then turning it back on the customer.

If it is a genuine mistake, the dealer can try to rectify it to some extent by offering you some additional items at no cost to you.
For example, let's assume the difference is $500. If he adds on a free canopy for your ROPS, that retails for $500, but costs him, say $250. You get the $500 item and he only loses $250.

 

[kenlip]

Looks like I have a binding contract

You don't have a binding contract to buy the tractor at whatever price he chooses after you have agreed on a price. Your contract was for you to buy the tractor for $X. He has a binding contract to sell it to you for $X and you have a binding contract to buy it from him for $X.

The 'binding' aspect of a contract applies to both parties.

 

[smokewagon]

Why haven’t we heard anymore from the OP? We would like to know the outcome!

'Cause I forgot!

The amount in question was around $2.5k on a $32k-ish tractor with third function install, delivery, etc. Not a lot in the grand scheme but a lot to me at the moment. I have no doubt it was an honest mistake and that the salesman got the model number wrong on a rebate deal.

If they'd honored the price they'd agreed to I think they would've come out at about what they had in it. But they said they needed to make money on it and couldn't go lower than a fixed % over their cost regardless of our handshake. They were very apologetic and came down some but not much less than I could've gotten it from the next closest dealer.

While I was mulling this over I found a similar machine with 30 hours on it for about $6k less. So I bought it. Got my deposit back from the first dealer and walked away.

Not the way I would've conducted business but very little in the world seems to happen the way I think it ought to anymore and I don't have the time or the energy to fuss about it. I think I'd stay pissed off most of the time if I tried.

My (almost) new tractor got here last week and I've been busy trying to figure out how to use it and chisel a little money off some used implements.

 

[Alan46]

'Cause I forgot!

The amount in question was around $2.5k on a $32k-ish tractor with third function install, delivery, etc. Not a lot in the grand scheme but a lot to me at the moment. I have no doubt it was an honest mistake and that the salesman got the model number wrong on a rebate deal.

If they'd honored the price they'd agreed to I think they would've come out at about what they had in it. But they said they needed to make money on it and couldn't go lower than a fixed % over their cost regardless of our handshake. They were very apologetic and came down some but not much less than I could've gotten it from the next closest dealer.

While I was mulling this over I found a similar machine with 30 hours on it for about $6k less. So I bought it. Got my deposit back from the first dealer and walked away.

Not the way I would've conducted business but very little in the world seems to happen the way I think it ought to anymore and I don't have the time or the energy to fuss about it. I think I'd stay pissed off most of the time if I tried.

My (almost) new tractor got here last week and I've been busy trying to figure out how to use it and chisel a little money off some used implements.

“Not the way I would've conducted business but very little in the world seems to happen the way I think it ought to anymore and I don't have the time or the energy to fuss about it. I think I'd stay pissed off most of the time if I tried.

My (almost) new tractor got here last week and I've been busy trying to figure out how to use it and chisel a little money off some used implements.”

Congrats on the new ( to you ) tractor
Enjoy the new toy bro!

 

[CobyRupert]

If they'd honored the price they'd agreed to I think they would've come out at about what they had in it. But they said they needed to make money on it and couldn't go lower than a fixed % over their cost regardless of our handshake.

They could of got some profit, but they can’t go lower than a fixed % over cost? Ok, then you get nothing!

 

[billypumper]

Hypothetically.

Let's say I called a dealer and got a price quote on a tractor on a Friday. Came by the dealership the next morning, took the tractor for a spin, negotiated the addition of a $1000 feature, agreed on a price, shook hands, and made a deposit. Got a handwritten receipt as it was late in the morning with the rest of the paperwork to follow on Monday. Monday morning I get a call saying there'd been a mistake, dealer misread the factory discount offer, and the price has gone up signficantly. Otherwise come get my deposit.

Even gave me a hat! Hypothetically.

How would you feel about that one?

walk away

 

[Alan46]

walk away

He did walk away! See post 45!

 

[just_Dave]

Topic is basically over and it sounds like OP walked and found a much better option.
But in terms of the deal, if there was a machine 332 and they use 322 machine numbers... ok I guess I can understand.
Or if the deal was too good to be true where we are looking at a 30k machine and they offer it for 15k where the numbers just are epic wrong and you know your basically stealing it... Then ok I get it.

But a lot of sales pitches are simply bait and switch, get you hooked and then oh wow dang oh um. NO not cool.
In terms of the dealers reasons, I feel they should have honeered it a bit better. % claim on profit is still profit, just maybe not what you wanted.

 

[Edstir]

Really good question and we have all been there or somewhere close over the years a time or two. I'll throw my $0.02 in just because I can and it is an open forum.
There has been a lot of good discussion on here so far. I would consider if this is a one time deal or is this a place you have dealt with in the past? (Think long term relationship) I would consider if this is an honest mistake or what I suppose to be a scam. I would consider the options offered by the dealer for remedy. In the case of an honest mistake, I am not out to burn the dealer. Dealers have to make a profit to remain in business and on most small businesses, margins are frequently razor thin. If it's a big dealer, I would expect the remedy to be equitable to me more than the dealer but still relatively equitable.
If you have read through all of this, my answer is simple. I would go with my gut feeling and act accordingly. I've bought some good deals in the past. I've bought some deals that weren't so good but it was for things I wanted or needed. I managed to live through all of those things and won't be upset if I either buy or walk away from a deal.

I think the gut feeling and act accordingly says it all.

 

[kenhar]

Hypothetically.

Let's say I called a dealer and got a price quote on a tractor on a Friday. Came by the dealership the next morning, took the tractor for a spin, negotiated the addition of a $1000 feature, agreed on a price, shook hands, and made a deposit. Got a handwritten receipt as it was late in the morning with the rest of the paperwork to follow on Monday. Monday morning I get a call saying there'd been a mistake, dealer misread the factory discount offer, and the price has gone up signficantly. Otherwise come get my deposit.

Even gave me a hat! Hypothetically.

How would you feel about that one?

 

[kenhar]

You are over the proverbial barrel on that deal. Go get your deposit and find another dealership and see what you can do there for the same equipment. Honest mistakes are made.

 

[LS Tractor Owner]

You are over the proverbial barrel on that deal. Go get your deposit and find another dealership and see what you can do there for the same equipment. Honest mistakes are made.

Did you bother to READ that back in post #45, he did walk, got his deposit back, and bought a different tractor!

All was good......

 

[rScotty]

'Cause I forgot!

The amount in question was around $2.5k on a $32k-ish tractor with third function install, delivery, etc. Not a lot in the grand scheme but a lot to me at the moment. I have no doubt it was an honest mistake and that the salesman got the model number wrong on a rebate deal.

If they'd honored the price they'd agreed to I think they would've come out at about what they had in it. But they said they needed to make money on it and couldn't go lower than a fixed % over their cost regardless of our handshake. They were very apologetic and came down some but not much less than I could've gotten it from the next closest dealer.

While I was mulling this over I found a similar machine with 30 hours on it for about $6k less. So I bought it. Got my deposit back from the first dealer and walked away.

Not the way I would've conducted business but very little in the world seems to happen the way I think it ought to anymore and I don't have the time or the energy to fuss about it. I think I'd stay pissed off most of the time if I tried.

My (almost) new tractor got here last week and I've been busy trying to figure out how to use it and chisel a little money off some used implements.

Congratulations on your tractor. I've long felt that the sweet spot in tractor buying - or buying most anything else - was in the "near new but one-owner used" category. For myself, I'd rather that someone else deal with any warranty issues, and it will make me even happier if they will do all the testing and improving on it. I'll gladly take possession after the "new tractor" becomes the "proven tractor".

Once a tractor is working right, simple maintenance will keep it that way for a very long time.

Some of the same applies to implements - but in old implements the choice of usable ones es even wider. Unlike tractors, implements are so simple and tough that they can be much older and even abused - yet still be worth considering by a do it yourself home mechanic.
You're just going to drag it through the dirt, rocks, and mud anyway.....

rScotty

 

[Fuddyduddy1952]

Eight years ago my wife and I went to a local dealer to buy two new cars they had on the lot and we were paying cash. I made an offer to dealership owner who said no deal because we were $150 too low!
So we drove 90 miles to a larger dealership and told a salesman the story. He said he would have paid $150 from his wallet making that deal. We bought from them and it was a better price anyway, cars the came color so much better in the end.