Legal Question in Civil Litigation in New Jersey

Problem with contract buying new car

Heres my problem, I recently bought a new car from a dealership in my area.I applied for an owner loyalty discount($500) and was told that I would receive the discount.The dealership later called me and told me that I was not in fact eligible for the $500 discount. However, when the papers were written up, the dealership forgot to take out the $500 rebate, thus making a $500 error in my favor.A few days after the papers were signed and I picked up the car, the dealer told me about the error, and that I owed them the $500. The only reason I finally bought the car was because of the price, and I do not feel that tagging on the $500 after the deal has been made is fair or legal. When the dealer questioned me, he threatened that if I did not pay the money, then he would hold up my car title and all other papers, and I would in turn be driving the car illegally.Now I had a contract with the dealer and both parties signed it, that contract included the fees for processing of the documents that he threatened to with-hold, fees that I already paid and signed to have done. I just want to know where I stand, am I required by law to pay this money even after the contract was signed and the deal was done?


Asked on 9/27/99, 7:03 pm

2 Answers from Attorneys

Daniel Clement Law Offices of Daniel Clement

Re: Problem with contract buying new car

The issue is were you aware of the dealer's mistake or did you rely on the written contract.

If you relied on the contract and were unaware that the $500 was not deducted from the price, then you will prevail. Regardless, you are entitled to your papers.

Daniel Clement

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Answered on 9/28/99, 10:25 am

Re: Problem with contract buying new car

I say the following based upon the limited facts presented. There are a number of unanswered questions. I hate to say it, but you REALLY need to consult with an attorney.

The dealer can claim unilateral mistake, meaning they made a mistake, and you recognized the mistake and signed the papers. The question is, did you see and know of the mistake, or did you not notice the error or thought they worked on the price to try to make you take the deal. If you didn't think you were getting over on them, than I'd say 2 things:

1) You shouldn't have to pay the extra $500, as you relied upon the final numbers to make your decision to purchase.

2) In any event to threaten and coerce you is prohibited - PERIOD.

You may wish to let the deal be vacated, meaning you return the car, however they will be reluctant to do so because the car may now need to be sold as a used vehicle if it has too much mileage on it.

You may also have a consumer fraud act claim here, but I'd have to investigate that.

The final question is what do you do? To consult an atty or get one involved will cost you all or part of the $500. You can just send them a letter and say they made a mistake and they have to live with it. Then put their threats in writing (I have been threatened with ... by ABC). Conclude with, "I expect my paperwork to be processed promptly or I will be filing a complaint with the Atty. General's office and a civil suit. I will hold (Dealer's name) responsible for any repercissions to my insurance and associated liability." If that doesn't make them behave you will have a headache on your hands, as well as a good legal suit.

Since this is only a $500 dispute, if you want, I'll talk with you on the phone.

Good luck,

Kevin J. Begley

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Answered on 9/27/99, 9:42 pm


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