Legal Question in Consumer Law in Massachusetts

Vehicle Purchase Contract

I recently signed an agreement to purchase a new vehicle. I am now reconsidering the purchase. No deposit was requested or left, and delivery hasn't taken place. The vehicle I wanted wasn't in stock. I am currently waiting to be notified that the vehicle with my preferred options & colors has arrived from the manufacturer (in a standard inventory allotment). I understand that my not performing under the contract would be a breach. Assuming no liquidated damages are specified, I am wondering what relief may be granted the dealership should they sue? The vehicle I contracted for is in demand and presumably would sell for at least as much as my contracted price and reasonably quickly.


Asked on 3/09/08, 6:57 am

2 Answers from Attorneys

Gregory Lee Gregory P. Lee, Attorney at Law

Re: Vehicle Purchase Contract

You signed a contract, and apparently sought out the vehicle. Thus, you might will be liable in breach.

However, the dealer will have the obligation to "cover" by making a reasonable effort to sell the car. The dealer's damages thus will be limited to the additional carrying costs for the vehicle while it sits on the lot, plus any reduction in price required to "move" the vehicle.

I suggest that you consider an up-front approach, such as offering a small sum in "liquidated damages." I'm thinking a round number, such as $100.00. Do so in writing, with the check enclosed. Put a restrictive endorsement on the back ("Acceptance of this check constitutes a full release for all claims against the maker.") If the check is endorsed, get the original back from your bank.

This is a far less expensive approach than hiring an attorney, and might just work.

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Answered on 3/09/08, 7:20 am
Gabriel Cheong Infinity Law Group

Re: Vehicle Purchase Contract

I have encountered this very issue personally so I will share it with you. However, I wouldn't consider it legal advice because I do not know the terms of your particular contract.

When I was shopping for my current car a year and half ago, I went to a dealership and placed an order for it. It was backordered everywhere and no one had the model and color that I wanted.

I had called every dealership in the New England area and asked them to call me if they had what I wanted in stock. The wait for the car was several months and I didn't want to wait that long.

Approximately 2-3 weeks after I placed the order (with a signed contract but no deposit), I got a call from another dealership letting me know that they had my car in stock and I could come in and purchase it if I wanted to. This was a problem since I had already signed a purchase contract with the other dealer.

I went into the contract dealer and simply told them I no longer wanted the car. I told them it was too expensive and that I think I needed something more economical. They didn't have a problem with it since the car I had ordered (a Prius) was in high demand and they could turn around and sell it off the lot at any time. So they released me from the contract and I purchased the other car from the other dealership.

So from my experience, try going to the dealership and simply asking them to release the contract. They'll probably agree with some persuasion. Of course, if they agree, GET IT IN WRITING (either in a written letter or the manager writing CANCELLED on the contract and signing it).

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Answered on 3/09/08, 9:34 am


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