Dealer Canceling Order

[TMully06]

I have an interesting (and extremely aggravating situation) that came to my attention yesterday and I wanted to see if anyone out there has specific knowledge (or experience... I hope not) with a similar situation.

I ordered a 2017 GT350 (900A) from a small dealer in IL (I am going to keep names out of it at this point as I am also seeking legal counsel) at MSRP on April 23, 2016 (small dealer that does not do ADM’s). I signed an order sheet (with pricing) and gave them a deposit which they actually cashed... they gave me an order # that Deysha (Ford Service) was able to confirm was in the system on “unscheduled material hold”.

This week, on 5/23/16, the dealership was sold and at the closing they reviewed the “orders”… and it was verbally stated that “the order would be honored”… although it was not specifically written in the purchase contract… just the standard language about “normal commercial transactions” etc.
Yesterday, 5/24/16, I received a call from the dealer (new owner was running it for less than two hours) that stated that they would not be honoring my order and I needed to schedule a time to come get my deposit.

Does anyone else out there have any experience with a similar situation?... Or a good recommendation on how to approach?... I really want the car (as I ordered it… and them to honor my order)… but I don’t want to spend more in legal fee’s than I could go out and find another order for if I don’t have legal footing.

Appreciate any insight.

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[Mustang Marcus]

Man there was a bunch of this going around last year.
Nothing like what you have with the dealership being sold. But deals falling apart and the dealership saying they wouldn't sell the car for what they had originally said they would.
What the people who knew what that was all about basically was this....

Until you sign the final paper work and take the car... you really don't have much legal recourse.

Hopefully someone else pipes in with more and better information but that is what I remember. The deals that went down were more like.. dealer agreed to MSRP but changed their minds near the end of it all.

I don't know if what you have going on is worth going after them.

Best of luck

 

[rahtid]

It may be a lost cause. If they did not have an allocation for a GT350 they cannot order one for you. The status “unscheduled material hold” also doesn't mean they had an allocation as well. The only way to know is if you got a VIN. I'm sorry you are going through this experience.

 

[FAST FRED]

As long as you are getting your deposit back,
I don't think you have a leg to stand on. But my question is, did the old dealer know that they were getting sold.

My .02

 

[nastang87xx]

My two guesses are that either they never had an allocation and FoMoCo denied them or they had someone offer more money.

 

[ShadowBlackR]

Unfortunately the bottom line is you have no cause of action or recourse. Happened to me on an R model last year. It's very tough but go on down the road and find another one.

 

[TMully06]

Appreciate all the replies... just to clarify the allocation was / is there... dealer was part of the program in 2016 and received one... and this was their "one" for 2017.

I personally believe the new owner is going keep himself or "sell" to a family member... as we are talking about $5K max of additional profit...

Anyone that has actually been a part of this out there actually tried to fight this? It may not make financial sense but I am leaning towards doing it out of principal...

 

[ShadowBlackR]

Appreciate all the replies... just to clarify the allocation was / is there... dealer was part of the program in 2016 and received one... and this was their "one" for 2017.

I personally believe the new owner is going keep himself or "sell" to a family member... as we are talking about $5K max of additional profit...

Anyone that has actually been a part of this out there actually tried to fight this? It may not make financial sense but I am leaning towards doing it out of principal...

You have NO damages! What are you going to sue for?

 

[TMully06]

You have NO damages! What are you going to sue for?

Well not yet technically... but there is the cost of finding a new allocation... and what if that cost is more than my original agreement (If I can't locate another deal at MSRP)...

No it is not big dollars... but I would rather have that dealer spend his "additional" $5-7K of profit defending his poor customer service decision... I can't imagine he will like the press or Ford would be happy about these decisions of new dealer owners.

 

[FPCV8YO]

Well not yet technically... but there is the cost of finding a new allocation... and what if that cost is more than my original agreement (If I can't locate another deal at MSRP)...

No it is not big dollars... but I would rather have that dealer spend his "additional" $5-7K of profit defending his poor customer service decision... I can't imagine he will like the press or Ford would be happy about these decisions of new dealer owners.

That is correct, no damages unless you buy somewhere else for a higher price.

 

[Tank]

Attorneys will typically offer free initial consultation. I am not an attorney and have not read the documents you and the previuos dealer signed...I am thinking a legal recourse might be to compel fulfilling IF you had a contract. Also, all the ADMs folks have been paying should be brought to the attorneys attention in relation to your MSRP deal. Might mean nothing but I would go w what atty says. Don't pay anything up front, go for a free consultation.

 

[ShadowBlackR]

Well not yet technically... but there is the cost of finding a new allocation... and what if that cost is more than my original agreement (If I can't locate another deal at MSRP)...

No it is not big dollars... but I would rather have that dealer spend his "additional" $5-7K of profit defending his poor customer service decision... I can't imagine he will like the press or Ford would be happy about these decisions of new dealer owners.

I get it! Been there. Frustration. :frusty:
My order "blew up" after 6 months in the system!
In a day or two you will understand that spending your time finding another GT350 with no ADM will be a better use of your time. Good luck in the hunt!

 

[MisterGT]

You have NO damages! What are you going to sue for?

While I agree that he may not have actual damages, tons of attorney's make a living off of suing when no real damages have been done. I can imagine if I was in his position, I would be ticked and have thoughts of suing. Maybe even place an order with another dealer and sue for the difference of pricing. Anything is possible with today's legal system. Our company has been on the losing side of "no damages" law suits.

I'd focus on finding another 350 as the same price though. They are out there for non-R's.

 

[oldmachguy]

You have NO damages! What are you going to sue for?

Depending on what documentation you have, and what legal remedies are available in that state, you might be able to sue the dealer, and the employee who you did the deal with, for specific performance and attorney's fees.

Will cost you up front to retain a lawyer, but get a good one - i.e., one who the dealer's lawyer, and the local judges, will immediately know is no joke, not cheap, and that you mean business.

Cost / benefit goes both ways.

Just my .02.

 

[mattlqx]

Get your deposit back in person and then drop a bunch of very loud F bombs on the slow walk out that lets any potential buyers in the room know how you feel.

Or if you're more passive about it, write a Yelp review, file a BBB complaint, maybe file with the dealership association in your area.

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