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Signing Negotiated Price Scribbled on Paper

7K views 32 replies 20 participants last post by  WolfeWS6 
#1 ·
Hello,

I negotiated the price of a new vehicle with a dealership and they had the numbers scribbled on a piece of paper and I signed it then we shook hands on it. Thats all i have done so far. Now i have found an extremely better deal elsewhere.

is this like legally binding contract that i will purchase the vehicle, or is it just an agreement on the price i would pay when/if i buy it.

this is for a Ram 2500

the kicker.....and my worry.

My wife and i are still waiting on delivery of our brand new grand cherokee from the same dealer. we got an Extremely good deal on it because they screwed up majorly on some stuff, but havent signed the papers for it yet, and it should arrive this week.

am i legally bound to purchase that 2500, if i dont, will they try to mess with me on my jeep deal?
 
#4 ·
the problem with that is....

mostly this is my fault....

Both them, and I, new about the price of the other one available (its like 4 hours away). The other place wouldnt dealer trade them for it either. When i signed that paper, i really just meant to go there and check out the one they had, but they all got to talking numbers. I got them to throw in some side steps, and bring the price down. I finally just said ok. Now i have spent a day and a half regretting that....

id be missing out on:

-leather heated/ventilated power seats
-alpine 9 speaker audio system
-keyless enter n go system
-remote start
-7inch display in the speedo cluster
-dual climate zone
-garage door opener system thing

for about 4k more....as of now because the place 4 hours away said they might be able to get me more on trade if i bring it in (but thats not for sure). i also think i can probably get them to throw in the side steps too. but the price is an internet price and they cant come down on it for sure they said.

-thats 11k off msrp for the other one
-9k off msrp for the one i signed the scribble paper on.

apparently the other place has theirs at an extremely low price, and they wont dealer trade. I have confirmed it to be extremely low via online pricing sites, but then again, the one i did sign for says its almost extremely low too...
 
#6 ·
Your scribbled paper is just an "agreement on price". It's not a purchase order. It doesn't sound like you even have a deposit...and those are often refundable, too. Give the other dealer has the vehicle you really want at a price that's "unbeatable" by the local dealer, I'd be buying it. Your local dealer can always enjoy your service business which they likely make a lot more money on anyway.
 
#7 ·
thats what i was thinking. I'm just worried they can turn around and do something similar to me on my wife's jeep order...

plus, i have to be able to call and make sure the other dealer still has the other truck and make sure they can meet the same financing, then call the other dealer to tell them what im doing before they install the side steps monday morning....cause then ill really feel bad.....

but seriously who the h drives a 4x4 truck with no steps....a giant. they should come with it anyways. haha
 
#9 ·
There's no binding contract to purchase here (disclaimer, I am not a lawyer but I do deal in contracts every day), as Jim said its simply an agreement on price.

if you have a better deal, take it. Its business, its not personal. You're a good person for feeling bad, give them the opportunity to match it out of that courtesy...but if they can't or won't...take the deal.
 
#10 ·
And for the amount of money you're investing in a fine vehicle, you should be getting what you want, not "what they have" on the lot.
 
#12 ·
Not every state has such a law...but in this case theres no contract to purchase.
 
#13 ·
This sort of scribbled paper agreement is worthless. Basically, it's leverage for them to guilt you. "You signed an agreement!"

While I try to honor my agreements whenever possible (especially handshakes), these sorts of things dealerships do are just plain silly. Follow you conscience but in terms of legality you're fine if you decide to buy somewhere else.

Tony
 
#18 ·
When I purchased my first new car, the salesman did the same exact thing. It's definitely designed to excite and pressure. IANAL, but it's not a contract. Handshakes are important, but they also should work to keep your business if they want it.
 
#17 ·
What harm could come from mentioning your disappointment and letting them squirm a little? I'd bet they offer you some kind of deal just to keep your business. Even if they meet you half way its a win, right?
 
#22 · (Edited)
While I completely agree in honoring verbal and hand shake commitments, I think in the car buying world a price scribble on a piece of paper is really like a "memorandum of understanding" rather than a binding contract. In other words, it is an agreement to proceed along a path of negotiation (to the eventual closing) but neither party is agreeing to be bound. If the parties wanted it to be binding, they would have signed a purchase agreement instead.

You are free to walk away... :thumbsup:

(gavel bang)

Next case.
 
#25 ·
I guarantee that if between the time of your agreement, and the time he places the order, that if the price from Jeep were to increase, the dealer would not honor your agreement. He would pass the cost increase along to you. Until you sign the paperwork to take title, all the scribbled piece of paper means is that you have a gentlemen's agreement, and would not hold up in court.
 
#27 ·
^^^^^^^

Ummmmm......we're talking about car dealerships, right? :D
 
#28 ·
Absolutely lol. I'm a big defender of car dealerships (and I've taken lot of heat for that on here), and being in sales myself I think customers are really pretty terrible to car salespeople overall...BUT...its business. Theres no reason to overpay when you KNOW you're overpaying because you came to a tentative agreement on price with one dealer before you had all the facts. if its a couple hundred bucks, sure I would go ahead and honor the agreement and buy it from the person that has invested time in me assuming I like them, but if we're talking real money...give the original dealer the opportunity to match it, and if they can't or won't buy it where its cheaper.
 
#29 ·
^^^^^^^

I agree --- I wouldn't quibble over a few hundred dollars and would be loyal to a good salesperson.....but I still would ask him to match it. Given all the nonsense that dealers and sales people do at the dealerships, it is really hard to have any loyalty whatsoever. Tough business to be in I suppose.
 
#30 ·
In the end, it is your checkbook that writes the check. I will always try to find the best price. If they will not match the price, move on to the dealer who gives you the best price. Why would I be loyal to someone who is trying to get more money from me than another dealer. If they want you to be loyal, then they must be loyal, and match the price. Loyalty works both ways. I flew to Texas, and drove back to Minnesota to get the best price. In the end (after all expenses for the trip paid), I saved thousand of dollars.
 
#33 ·
Have them locate another Truck for you. Besides you don't want to spend 8hrs driving to pick up a new truck when you can have them located one with similar options for say $500 more than the other dealer.

If you want the options don't settle for what is on the lot. It is not like the truck is one of a kind.
 
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