Legal Question in Consumer Law in Florida

New car purchase

We purchased a new car from FORD two days ago. We signed papers with the agreed upon purchase price, interest rate and monthly payment. We both have A+ credit and were told that our rate would not be higher than the mentioned rate. I'm not sure if you are familiar with the FORD contract. Today we received a phone call from the finance guy at the dealership who said that we needed to come back in to sign new papers because the interest rate is now a whole point higher than agreed upon.

Furious, my husband went to talk to the GM who basically said tough luck and would not allow us to return the vehicle. What are our rights legally? We agreed upon all of the numbers and signed a the contract.Can we return the car since they have now changed the contract? Do we have to sign a new one and be stuck with the new interest rate?


Asked on 11/27/06, 10:08 pm

1 Answer from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: New car purchase

The answer to your question most probably depends upon what the actual contract (or contracts) say. I suspect that you actually have TWO separate contracts . . . . actually, 1 contract and one application. The contract with GM is to buy the car and then a separate document with the financing people (GMAC?) which may say that it is an APPLICATION ofr a loan, subject to approval at a specific rate (not a promise or contract to loan money).

If the GM contract to buy is not contingent upon receiving financing at a specific rate (like many house contracts are, for instance) then you may indeed be stuck with the obligation to buy the car.

READ YOUR CONTRACTS very carefully to see whether there are any "outs" or if financing is a contengency. GO to the dealership (not over the phone . . . . its harder for them to deal with people face to face) and speak with the salesman and the manager, go up the chain of command, and try to get your issue resolved. Even if they don't have to redo the deal, they should want the hope that you and your friends will be repeat customers. Use that leverage, at least to try to shame them into fixing your problem.

Read that (or those) contracts and see what your rights are.

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Answered on 11/27/06, 10:24 pm


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