Legal Question in Banking Law in Arizona
Contract change
We purchased a car and financed it through the dealership. They gave us a promotional interest rate. They called us back two days later and told us the promotion did not apply to our make and model and they were raising the interested rate and FedEx�d a new contract to us to sign. Do we have to sign it? What action can the dealership take against us?
I knew at the time of the deal that the rate was wrong but I didn�t think it was my job to point out their error.
What ground to I have to stand on if we choose not to sign the paperwork?
1 Answer from Attorneys
Re: Contract change
It's their mistake, and there's nothing that requires you to sign a new contract on a vehicle you already have.
On the other hand, read your contract, because it might give them the right to make corrections. If you don't sign, you might have to take the car back.
If it's expensive, contact local counsel to review the terms of sale, because a minor change (or an obvious misstatement, which you admit) is not necessarily grounds for invalidating the contract.
A court could well order the contract to conform to the deal you struck, in which case you would be liable for the higher rate of interest...and have pissed off your dealer.
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