dealer price increase after contract signed and deposit paid

[reckhard]

Hi all,
I hope to be a new owner of a Keystone Bullet Crossfire 1700BH. Back in early April I negotiated a price, signed a purchase agreement and paid a deposit. Today the dealer calls me telling me the trailer has arrived but that Keystone increased their price so the now cannot honor my agreed to price. They want another 12%.

My thought is that I have a contract with an agreed to price, there is no mention of the price being subject to their costs. As well, I'm in Canada and since I signed the agreement the Canadian dollar has gotten stronger and should have saved them 4%.

It seems to me that this dealer is trying to price gouge me hoping that I walk away from the April price because they know they can sell it to someone else for the higher price. Just wondering if anyone has legal experience in getting a dealer to honor a sales agreement they are trying to get out of

Hoping to be an owner but the dealer is not helping create a great experience...

-Chris

[chuckster57]

Welcome to the forum

My thoughts: you have a signed written agreement, they need to honor it or give you a full refund. I see your in Canada so I don’t know if you have the equivalent of the Better Business Bureau or consumer affairs but I would be making some calls before talking to the dealer.

[xrated]

Originally Posted by reckhard

Hi all,
I hope to be a new owner of a Keystone Bullet Crossfire 1700BH. Back in early April I negotiated a price, signed a purchase agreement and paid a deposit. Today the dealer calls me telling me the trailer has arrived but that Keystone increased their price so the now cannot honor my agreed to price. They want another 12%.

My thought is that I have a contract with an agreed to price, there is no mention of the price being subject to their costs. As well, I'm in Canada and since I signed the agreement the Canadian dollar has gotten stronger and should have saved them 4%.

It seems to me that this dealer is trying to price gouge me hoping that I walk away from the April price because they know they can sell it to someone else for the higher price. Just wondering if anyone has legal experience in getting a dealer to honor a sales agreement they are trying to get out of

Hoping to be an owner but the dealer is not helping create a great experience...

-Chris

This same thing happened to a member on another forum I'm on. The dealer was trying to pull the same thing. Customer contacted someone fairly high up the chain of command in the sales at Corp. and that person in turn contacted the dealer and told them to sell it at the agreed to price. If I remember correctly, the "upcharge" was around $10,000. I have no idea how Corporate and the dealer handled it, but the customer was thrilled to death that ...1. They got the trailer for the price they signed up for. 2. Corp. stepped in and got it resolved.

Failing that, it might be time to let them know that you will have an attorney ready if they don't honor the agreed to price. Maybe the State's Attorney that deals with business practices also. Good Luck

[sourdough]

I'm wondering what the difference between a "sales agreement" and a "contract of sale" is. If you have a signed contract of sale I don't see how they are going to upcharge you UNLESS they put in some sort of clause giving them the ability to do so. A "sales agreement" may very well have that language stuck in it somewhere. Have you read that agreement closely?

As was mentioned, escalation might be required. If it is an individually owned dealership all the rungs to the top are right there. If a large corporation, example CW, there are avenues outside the dealership to take if they fail to honor the agreement. At times I've found overzealous salesmen/sales managers that want to exercise a little more latitude than they actually have (maybe increasing the price 12%?) and once that is run up the chain of command they find that the "higher ups" don't agree with their actions.

As far as legal action; know who you are dealing with. A mom and pop won't have a cadre of lawyers waiting for a call from the dealership to then tie you up and take your money. I would be very careful with that threat with a corporation, mom and pop I would bring it up because they won't know where they stand totally if they have indeed given you a signed sales agreement with an agreed to delivered price.

[jasin1]

https://www.youtube.com/watch?v=57ITzduTsBw

I posted this a couple weeks ago.. this is just Haylett

I’ve seen where home builders have cancelled contracts and given people money back as well .. seems easier then ever to get out of a deal

[sourdough]

I agree that an "agreed upon" price could easily change, by a lot, in our current environment and that's fine....as long as that is understood and a given upon any sales arrangement made. Sounds like the Haylett bunch is doing it right; set a sales price but any documented price increases will be tacked on. It's too prevalent, the increases too large and the landscape far too uncertain for a dealer to just "eat" those unexpected charges daily.

[flybouy]

I wouldn't seel legal advice from a social media website and I certianly wouldn't seek advice from one that has the predominate number of members living in another country. If you have some form of consumer protection in Canada government I'd reach out to them or call a private attorney.

[kneeslider]

sounds illegal to me. not a firm I'd deal with. get refund & tell them to get stuffed!

[Ken / Claudia]

In the US a contract is normally always binding. If breeched by one party it is void. If this was a contract, and it listed "THE PRICE" and now the dealer wants more. He has voided the contract. You have mainly 2 ways to go, you can always agree to other terms. Or walk away and get your money back. The details are in that contract and you must fully understand each word. Tip if you initial a line, that is really important. Understand and read that line carefully, take your time. If they will not refund your money, make them point out that wording.
Being a dealership, they want to keep your money and will offer a different unit. Was it a agreement or contract that was signed? it's in the details somewhere. Would it make any difference? maybe, maybe not.

Here's is a scam that is called bait and switch. This applies to RVs, cars, trucks, boats etc. Its to upsell you into a higher priced unit. In Oregon dealers lost their licenses over doing this.
After you signed a contract and gave a down payment, at some point that item is not available at that price or time frame. But wait they have a better item slightly higher priced. All you need to do is be willing to pay more money. And they just happen to have the higher priced item on the lot.
If you watch their lot it is possible to see the unit you first wanted for sale in a week or so. Maybe at the same price you signed up for.

[Javi]

At this point it doesn't surprise me at all... we're only taking purchase orders with the written agreement that price is based on material costs at time of arrival.. That's how the mills are selling it and so that's how we have to sell it..

I can order 40,000 pounds of steel today and when it leaves the mill in November, I pay that day's price.. currently up 300% and rising with no letup in sight.

[jim1]

Hey reckhard that sucks especially because the prices are over inflated to start with and the we get nailed on the Trudy loonies too. Maybe you should make some calls directly to Keystone corp. and explain the situation. Just remember if you p@#s off the dealer it will be a pain to get any warranty or maintenance done by them. Who's the dealer, I don"t want any of my friends going there if they are just greedy pr@cks. Good luck hope things work out!