April 20, 2007

Hi Tony

I guess what I understand it means is that someone will give you some quote in payment then after you sign the purchasing agreement and contract they can turn around and make you come back to re-sign paperwork at a higher interest rate and higher payment. And if you don't sign the new sales contract then they supposedly can come and take your car after you have purchased it.

Now my question is this: Is this true that they can come back and take your new purchase back after all the initial paperwork has been signed if you don't want to sign the new paperwork?

What happens if you refuse to sign the new rate and contract? And is this legal in the state of Florida? I always thought that once the deal went thru and you signed paperwork or sales contract that the deal was done.

Please clarify this for me because I don't really want to go through this, and if the issue does come up then I would know what to do.

Arlene D.

Answer:

Hi Arlene,

First of all Arlene thank you for your very kind words about my website. They are very much appreciated.

Now for your questions:

I must preface my remarks by saying that I'm not a lawyer, and I can't give you any legal advice. I do not know if these practices you mention are legal in Florida or not. You may want to contact your state's Attorney General's office for clarification on the legalities.

A "Low Ball" is an unrealistically low price that the salesperson gives the customer before the customer leaves to shop price at another car dealer.

Not all car dealers or car sales people do this, but if they're convinced that you're not going to buy from them "Today," and they suspect you are going to shop at other car dealers, then before you leave they might quote you a price that is thousands of dollars below what they can realistically sell the vehicle for.

They do this because they know that no other car dealer can even come close to that price so they figure you will undoubtedly come back to them to take advantage of the low price or "Low Ball!" Once you go back they will tell you they can't sell you the vehicle for the quoted price, and they will tell you the real price!

They will try to calm you down from being ticked-off at them, because you certainly will be, and believe it or not . . . many people will end up buying from them anyway! The smart ones tell them to stick their deal and go somewhere else! That's a "Low Ball!"

Now, the other situation you ask about is a little different. There is a process that some car dealers use called a "Spot Delivery." You can read about this procedure at: Beware of the Spot Delivery!

I have also written about this in my blog at the following post: "The Spot Delivery" - a Disaster Waiting to Happen!

The simplest way to avoid any of the potential problems a "Spot Delivery" can cause is to arrange your own financing. Read Car Financing Tips and The Most Closely Guarded Secret in the Car Business! for the truth about how car dealers make lots of money off of you in their Finance Department.

Don't let them finance the car for you unless it's some special low rate or 0% rate through the manufacturer. This will eliminate any problems with a "Spot Delivery."

I hope all this helps. Good luck with your purchase.

All my very best . . .

Tony Iorio