Looking for advice from any dealers or lawyers on here. Deal gone bad.

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jhalkias

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I will try and stick to the cliff notes version of my recently purchased Mach-e.

I purchased a Mach-e a couple days ago from Torrington Ford in CT (Yes I am calling them out on this).

My purchase was through x-plan. The Ford partner site was showing a $2600 incentive through x-plan For my zip code. Dealer seemed a little confused on the incentive and changed several times on what the fine print of it was. Eventually they determined that I would need to use Ford credit and if I took the incentive I could not get the 1.9% interest rate so would need to take a higher 3.99% rate. Told them I would take the $2600 incentive and refinance with another lender later for lower interest rate.

I complete the deal and take delivery of the vehicle. All paper work was signed by both parties.

Yesterday I get a call from the dealer indicated the incentive was actually not valid. They said the only way to get it was if I went with the Ford Options Loan. They told me Ford Credit cancelled the transaction and I had no actually deal. They said they cancelled my registration and I was not allowed to drive the car. They said I could go in, pay them the $2600 or return the vehicle.

At this point I decided to call Ford Credit. They basically had no idea what I was talking about. They said the account was active, they did not reject the loan and the car was currently listed as mine. They suggested calling ford as it sounded like a shady dealer. I did call Ford and didnt really get anywhere. They said they could open a case but dealers are independently owned.

My feeling on this is the dealer just plain effed up. They made a mistake in understanding the terms of the incentive and when they went to recoup it from Ford, they didnt get it and dont want to lose the $2600 on the sale. They are trying to strong arm me into undoing the deal. They lied about Ford Credit rejecting the loan and cancelling the registration was shady at best and I am wondering if it is illegal. I asked several times for written documentation from Ford Credit that the loan and deal was rejected and have not received anything from the dealer.

So looking to see if there are any dealers here or maybe even members who might be better versed on the law in a situation like this. Can the dealer void a completed deal if they made a mistake? Am I legally obligated to actually return the car? Can I just go register it myself at this point?

I wont even go into the numerous crazy things the dealer told me over the course of my conversations with them that just further convince me that they aren’t being strait. Honestly if they just came to me and were completely honest and tried to work this out maybe I would have tried to be reasonable but at this point, nope.

What a nightmare :(
BTW . . . XPlan has nothing to do with the rebate either for Ford Options. You would get that with or without XPlan in that deal. As @timbop said, consult with your attorney after you get your info on the loan from @hybrid2bev. Or just enjoy the car and tell them to pound salt.
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ZuleMME

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The chances are high it's in your paperwork that if financing isn't secured per the signed agreement that they can repossess the car. Depending how they wrote it that'll include the missing $2500/$2600. Chances are high this goes badly for you if you go that route. But you will teach them a lesson... lol.
 

Earplug

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I will try and stick to the cliff notes version of my recently purchased Mach-e.

I purchased a Mach-e a couple days ago from Torrington Ford in CT (Yes I am calling them out on this).

My purchase was through x-plan. The Ford partner site was showing a $2600 incentive through x-plan For my zip code. Dealer seemed a little confused on the incentive and changed several times on what the fine print of it was. Eventually they determined that I would need to use Ford credit and if I took the incentive I could not get the 1.9% interest rate so would need to take a higher 3.99% rate. Told them I would take the $2600 incentive and refinance with another lender later for lower interest rate.

I complete the deal and take delivery of the vehicle. All paper work was signed by both parties.

Yesterday I get a call from the dealer indicated the incentive was actually not valid. They said the only way to get it was if I went with the Ford Options Loan. They told me Ford Credit cancelled the transaction and I had no actually deal. They said they cancelled my registration and I was not allowed to drive the car. They said I could go in, pay them the $2600 or return the vehicle.

At this point I decided to call Ford Credit. They basically had no idea what I was talking about. They said the account was active, they did not reject the loan and the car was currently listed as mine. They suggested calling ford as it sounded like a shady dealer. I did call Ford and didnt really get anywhere. They said they could open a case but dealers are independently owned.

My feeling on this is the dealer just plain effed up. They made a mistake in understanding the terms of the incentive and when they went to recoup it from Ford, they didnt get it and dont want to lose the $2600 on the sale. They are trying to strong arm me into undoing the deal. They lied about Ford Credit rejecting the loan and cancelling the registration was shady at best and I am wondering if it is illegal. I asked several times for written documentation from Ford Credit that the loan and deal was rejected and have not received anything from the dealer.

So looking to see if there are any dealers here or maybe even members who might be better versed on the law in a situation like this. Can the dealer void a completed deal if they made a mistake? Am I legally obligated to actually return the car? Can I just go register it myself at this point?

I wont even go into the numerous crazy things the dealer told me over the course of my conversations with them that just further convince me that they aren’t being strait. Honestly if they just came to me and were completely honest and tried to work this out maybe I would have tried to be reasonable but at this point, nope.

What a nightmare :(
Contact the Department of Motor Vehicles

https://portal.ct.gov/DMV/Dealers-a...File-a-Complaint-Against-a-Dealer-or-Repairer
 

Carmel Mach E Auto

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Told them I would take the $2600 incentive and refinance with another lender later for lower interest rate.
Maybe you want to think about accelerating your timeline for this, and do it sooner than you had perhaps imagined, such as... today? I realize that the source of the conflict is the dealership at this point, and that Ford Credit says everything looks fine on their end. Still, given the circumstances, it seems to me that the further away any part of your vehicle's legal paperwork is from any Ford corporate entity, the better.

I believe that in CT, like most states, the lender holds the title, so getting that into the hands of your bank or credit union, rather than in the hands of Ford Credit where - strictly legal or not - the dealership may attempt any number of sketchy tactics to try to and void the contract would seem to be a good thing.
 

Orangefirefish

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No it is not a Ford Options deal, it is a standard loan. I understand that I should not get the rebate. The dealer made a mistake. However they have lied about the situation and instead of just saying they screwed up and could we work on a solution, they cancelled my registration, told me Ford Credit rejected the loan, called the deal fraudulent, said there was no actual deal and many other lies. They have handled this so poorly.
Mistakes are often legally enforceable despite escape clauses, since that information was used to their benefit, ie it incentivized you into signing the contract, and you would have had less info as a customer. Your dealer was acting as Ford’s agent so even if it was wrong information you still have a valid claim. However there may be an easy way that might make everyone happy, if you’re going to refinance anyway, why not just re-do it as options?
 


malba2366

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This was their screw up. As a sign of good faith give them the option of redoing the financing as Ford Options. I know you are upset that they lied to you - but your offer to allow them to remedy their error will be helpful if they try to sue you or something. If they refuse to do that then tell them to pound sand...I doubt Ford Credit will invalidate your financing just because the dealer tells them to. You can register the vehicle yourself with DMV by filling out the paperwork and presenting the bill of sale.
 
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Scarpia

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My contract has a section called "Seller's Right To Cancel".
It does seem clear that a mistake was made, but more details would need to be known to determine whether this situation falls within their rights to cancel.
Edit: I'm in CA, so the contract in CT may be different, of course.
 
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CHeil402

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I agree with most people here. The $2,500 incentive is for Ford Options only regardless of X-Plan. There is also a $100 incentive for Blue Cruise which is independent of X-Plan and Ford Options. If you're ok with Ford Options, I would suggest just asking them to switch you to that. Most states also have a 'return policy' within a certain number of days, so technically you could return the car and re-purchase it under new terms.

Otherwise, there might be an 'errors and omissions' clause in the contract and you could certainly fight it if the dealer really wants to pursue it. In general, it's better for all involved (despite the crummy situation which is the dealer's fault) to find a mutually agreeable solution so they don't withhold the title and you don't have to get a lawyer which might offset the $2,500 anyway.
 

Crow979

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I'd probably tell them to pound sand. If you believe people are generally good, they might have made a mistake and gave you a discount on the car that they now cannot receive from Ford. That's still on them, as you made the agreement based upon their representations. If you believe people are generally bad, it could be that the dealer knew this the whole time and did this to entice you into buying the vehicle with the intention of recouping the $2500 at a later date. That's what is called fraudulent misrepresentation. Regardless, I think you have the legal upper hand here. I'd just ask them to send you a written explanation of their position and you will discuss with your attorney. I doubt you will hear anything else from them after that. If they do send something, post it and let the groupthink do it's magic. In the meantime, enjoy the car as possession is 9/10ths of the law.
 

ARK

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I think you should try talking to a Connecticut lawyer. Many will talk to you to give you their thoughts without charging you, see if you have a case.

I agree with what a few other people have said. Many times, these sale agreements have fine print that says if the financing falls through, they get the car back, and can charge you the cost of the repo and their lawyer fees if you don't cooperate (as with most businesses, the fine print is usually favoring the house). You should see if yours has these terms. Importantly, they might not be waiting to take action because they are 'scared' or know they are 'wrong'. A lot of the time, the fine print says they have to wait X number of days before they can call the repo man after they have told you to bring the car back.

There is also such a concept as mistake when it comes to trying to enforce a contract. Sometimes one side can get out of a contract by claiming mistake. Perhaps something like the dealer (and you) believing that the dealer could get the $2,500 rebate through Ford for a non-Ford Options loan would qualify - Connecticut lawyer could tell you. If so, it means they get to undo the deal.

Practically speaking, why not just redo it with Options? I don't think there is any pre-payment penalty for it, and I also think if you pay off the loan early, you avoid having to pay the interest (i.e. I don't think it's pre-calculated and added to the loan so that you are stuck with the interest no matter when you pay). I also believe the Ford Options loans have better interest rates than what you were offered - I think mine was 2.25% for four years?
 
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Carmel Mach E Auto

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And like others suggested, why not just switch to Ford Options?
Sure, but this immediately begs the question - why was the incentive only available for Ford Options financing to begin with? It most likely ultimately comes down to total value of the loan, and presumably there is more margin available to work with in the Ford Options case. So by switching to that financing plan, he's probably going to be agreeing to pay more interest over the life of the loan. However, without knowing the Ford Options rate he'd have been offered, we don't know how much more.

The thing is, since he was always planning to refinance, Ford Credit ultimately wasn't going collect more than a tiny amount of interest from him either way. So is it really worth everyone's time to refinance as a Ford Options loan? If the goal is to somehow make this right for everyone, then the simplest approach is for Ford and Ford Credit to simply treat the sale as if it were Ford Options from the dealership's perspective, thereby allowing the dealership the cut they'd have received, let the OP go refinance elsewhere, and everyone is happy. Sure, this means an exception and special process on the part of Ford, Ford Credit, and the dealership. But why should the OP have to care about that? He doesn't need to have his signature associated with anymore financial transactions and legal obligations in all of this. The corporate entities should just figure it out and let him move on.
 

EELinneman

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What they did was called a "Spot Delivery" with the assumption that the loan would go through. Honestly, this could be a mistake or malfeasance, but it doesn't matter. There is language in the paperwork to cover this and they can and will screw you if you do not cooperate up to calling the cops on you.

This happened to a friend of mine and the lawyer he had to hire to make the grand theft charge go away was a lot more than the $2600 you are going to get hit with. You always have the option of returning the car and walking away.

I know this is not what you want to hear, but this happens more often than you would want to know. Google Kevin Hunter spot delivery to learn more about this. It sucks, but it is what it is.
 

CHeil402

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Sure, but this immediately begs the question - why was the incentive only available for Ford Options financing to begin with? It most likely ultimately comes down to total value of the loan, and presumably there is more margin available to work with in the Ford Options case. So by switching to that financing plan, he's probably going to be agreeing to pay more interest over the life of the loan. However, without knowing the Ford Options rate he'd have been offered, we don't know how much more.
The Ford financing and Ford Options rates are published and known (assuming your credit is good enough to qualify)... Here's a spreadsheet where you can do the math to check out the comparison between traditional loan and Ford Options. In general, the Ford Options has a higher interest rate, but if you factor in the $2,500 incentive it costs less overall. A moot point if you pay it off after a month either way (or refinance through private financing).

The benefit of the Ford Options plan is that Ford will guarantee a minimum buy back price at the end of the term (3 or 4 years). If you decide you want to keep it, you just pay off the balance and you're done. But I think Ford is assuming you'll trade it in at the end for a new (preferably Ford) car; hence why it's beneficial to Ford.

https://www.macheforum.com/site/threads/poll-ford-options-vs-finance.2883/post-92089
 

Scarpia

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Sure, but this immediately begs the question - why was the incentive only available for Ford Options financing to begin with?
This is completely irrelevant. The rates and incentives are what they are, they were available and should have been known to both parties at the time of the contract signing, and the reason for Ford setting those rates has nothing to do with this.
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