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I heard that in buying a new car you can always bring it back to the dealer and resell it to them if you feel like you don't want to pay for monthly payments. Is it true? In effect could you have leased the car without a contract?
I guess new cars are reliable but I hesitate because although monthly payments aren't too bad short term, on the long term you are losing a lot of money to the car which is expensive. And I've heard of stories online about buying cars for cheap and driving it for a long time without major fixes.
Not to be rude, but are all of these posts of yours for real? Among your posts so far, are such gems as:
"Can you resell a car you bought to the dealer?"
"Would you buy a used car without a title nor VIN number?"
"95 honda civic, 178k, a blown head gasket for $800?"
It sounds like you're on your way to a Top Ten list of the worst possible ways to buy a car. As far as: "I heard that in buying a new car you can always bring it back to the dealer and resell it to them if you feel like you don't want to pay for monthly payments. Is it true? In effect could you have leased the car without a contract? "
NO, you can't lease a car without a contract. You might lose 25-30% (roughly) selling the car back to the dealer within 6 mo. or a year. They will think you're a moron of course.......
Interesting choice of screen name too. What oddball scenario are you going to ask about next? I got a few that will get you lots of hits...
"Should a dealer refuse to sell a 90 year old woman a Viper?"
"Why should I have to put a deposit down on a custom order Toyota Corrolla with flip flop paint, lambo door conversion and a fish tank in the trunk? I want all that done before I sign papers."
And then: If I buy a leftover 2012 Suzuki Kizashi will it appreciate in value and become a collector's item?"
A new car loses 10% of the value as soon as you drive it off of the lot. Keep it a month or two and sell it to the dealer or anyone else and you will still owe money unless you had a large down payment.
Not in all cases.....
Look on ebay at what a 2014 Corvette is going for (over sticker as a used car), new body Range Rovers and Ferrari 458s are all trading for over sticker money. My buddy drove a new Ferrari 458 spyder for 4 months, 1600 miles and sold it back to the dealer for a $40,000 profit (they obviously made money too selling it for 75K over sticker to someone else).
Cars are supply and demand......if there is demand, the prices tend to rise.
Last edited by Ultrarunner; 09-30-2013 at 05:39 PM..
Did you read the site you posted? I have to agree with Donn2390. There is no cooling off period with a new car contract. There can be with a used car if you purchase an extra contract clause that allows you two days. ON used cars only... For Used Car Buyers Only
A used car buyer may obtain a two–day sales Contract Cancellation Option Agreement.
Note: There is no “cooling off†period unless you obtain a Contract Cancellation Option Agreement.
Consumers who purchase a used car for less than $40,000 must be given an opportunity to purchase a two–day Contract Cancellation Option Agreement.
Exception:The Contract Cancellation Option Agreement does not apply to used cars priced at $40,000 or more, new cars, private party sales, motorcycles, off–road vehicles, recreational vehicles, or vehicles sold for business or commercial use (Does not include a pickup truck purchased for personal use).
Look on ebay at what a 2014 Corvette is going for (over sticker as a used car), new body Range Rovers and Ferrari 458s are all trading for over sticker money. My buddy drove a new Ferrari 458 spyder for 4 months, 1600 miles and sold it back to the dealer for a $40,000 profit (they obviously made money too selling it for 75K over sticker to someone else).
Cars are supply and demand......if there is demand, the prices tend to rise.
How about the guy that bought a new off the showroom 2006 Ford for 160k and sold it this year for 210k...
Look on ebay at what a 2014 Corvette is going for (over sticker as a used car), new body Range Rovers and Ferrari 458s are all trading for over sticker money. My buddy drove a new Ferrari 458 spyder for 4 months, 1600 miles and sold it back to the dealer for a $40,000 profit (they obviously made money too selling it for 75K over sticker to someone else).
Cars are supply and demand......if there is demand, the prices tend to rise.
Good point. It's only the other 20+ million cars that will be sold this year than can't be quickly resold for a profit.
I'm not a lawyer, so this may not be absolutely correct ... however, this is my understanding of how the waters get muddied in car deals ...
the implied right of rescission in many states comes with the way that car dealers are allowed to operate re financing.
The sticking point is that you have signed a contract/sales order to purchase, which obligates you to buy the car. But you may have been induced to do so by a dealer representing that they could get financing for you at certain terms with a given down payment. You give them your down payment and trade and leave with your purchase. There is some language in the documents you signed that the car loan is still subject to a final review and acceptance by the lender, but the friendly F&I person at the dealership assures you that all looks good at the time and he's gotten a verbal committment from the lender that your deal is good. Since most cars are sold with financing, the down payment and monthly payment terms are a critical aspect of the sale, not an incidental feature of no consequence.
What happens after you've driven away is that the dealership calls you up a few days later with the news that you didn't qualify for the car loan as offered. You either need more money down or the interest rate is higher, or the low monthly payment you agreed to can't be honored and the bottom line is you need to come up with more money to keep the car.
Of course, they tell you, that you can't return the car, it's now used merchandise and not what they sold you and besides, you signed the sales order contract so it's yours. But what if you don't have the additional money or cash flow to make the higher payments?
The conflict here is that on the face of things, you've bought a car and locked in the purchase details while the dealership hasn't been completely candid with you as to what their obligations are for the contract. Your understanding is that you've made a deal and the dealer's understanding is that they've got a deal which isn't completely finalized.
From the standpoint of contract law, there isn't a complete meeting of the minds over what is being exchanged to the benefit of both parties. And that's where contract law comes in to play. You made a deal, but the dealer really didn't; they'll hold you to your end of the bargain but not perform to their end as you understood it when you left the dealership.
The wiggle room for the dealer was buried in very fine print in all the contract clauses, and you probably signed it without reading all the faintly printed terms and conditions on the back side of the contract which are incorporated into the contract. It's a standard sales tactic, much abused by the car sales industry.
So, some states have statutes which allow for some consumer protection from these practices by recognizing that many folk don't understand all that legaleese that they sign away on for a deal and allow for a "cooling off" period even for car purchases. Still other states assert that you don't sign a contract for consumer goods without understanding it and don't allow for the cooling off. It pays to know what your state has for laws regarding these consumer protection concepts before you make a car purchase with financing, especially dealer arranged finance.
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