How binding are purchase orders?

[airfuel]

I have a signed retail purchase order from a dealer and a hefty deposit down on a car.
The order is in the Ford system, (COTUS) so it was sent in.... it just needs to be pulled and production started.
Can a dealer try to not honor it and sell the car to another buyer?

I am having a slight issue with a dealer and I am hoping the contract is binding and he has to honor it.

Thanks in advance.

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[racrguy]

I'd imagine they aren't too binding. You can back out of buying the car with the loss of your deposit, so I'm not certain what's preventing the dealership from selling the car you put a deposit on to someone else and refunding you the deposit. I'm not a lawyer, and you'd want to talk to a contract lawyer to see what remedies you'd have should the dealership back out of the agreement.

 

[melwff]

try to resolve the issue and avoid anything having to do with lawyers

 

[TTown]

It's probably an enforceable contract if both parties signed and it details what is being bought and price. But, I have a hard time envisioning a dealership trying to enforce it at the courthouse if it's anything that can be easily sold (like a Mustang). The time and money that would be expended (to enforce the contract through a judgment or specific performance in some manner) would make it a waste of resources and time. I suspect you'd lose the deposit.

 

[gnatsuM]

as mentioned, just the deposit would be lost.

 

[TomcatDriver]

as mentioned, just the deposit would be lost.

And my guess is that if they sell the car for the purchase price you agreed (or more), you could ask for your deposit back, and if you took them to small claims you would probably win. But IANAL. Read your purchase agreement.

 

[MustangAddict]

Unless it is in writing that it is a non refundable deposit you can and should get your deposit back. If your order is placed and the car has not even started production then what has you worried the dealer is going to sell the car to someone else?

 

[Dave TBG]

I think I'm reading the OP differently than everyone else, I don't think it's the buyer that's looking to get out of the deal so any discussion of lost deposits seems off topic. I don't have an answer, as above it is probably an enforceable contract, but what damages would you be able to recover if it came to that?

 

[airfuel]

If your order is placed and the car has not even started production then what has you worried the dealer is going to sell the car to someone else?

Yes.
This order was placed for a Bullitt at list price.
Dealer contacted me (emails) in April stating they had an allocation for one Bullitt and I signed papers for list price. Nothing happened for months and then I contacted the sales manager and he stated no information on allocations for the Bullitt and he didn’t know when it would be produced.

I am probably anticipating when and if it gets built, he will try to get way above list like all the other dealers here. I am sick of waiting and that’s why after seeing the new Camaro, I am considering jumping ship.

I will probably wait a few more months until the next round of allocations start again. If nothing from this dealer, I will order something. (Either Camaro or Mustang)

 

[Mustang1260]

LOTS of misinformation as to car orders.
In short- IF the car is built and shipped to your dealer you have strong legal arguments as to the purchase order being a contract....at least enough of a potential to draft a complaint, court file it along with a restraining order/injunction blocking the dealership from selling the car to anyone until the issue is sorted. If your a litigation attorney and do all this yourself easy peasy. Otherwise might be worth $250-500 to get a lawyer to write up a very nice civil businesslike but also clear threat letter. The dealer should cave- not worth the legal fight and flooring costs of the car stored for months on end (if injunction blocking sale to anyone else is granted). DEPENDING UPON THE LAWS IN YOUR STATE ON SUCH COMMERCIAL TRANSACTIONS FOR LIMITD SUPPLY GOODS. Time to act is damn short— title to the dealer while in transit, if dealer stalls on pricing you need to get the injunction blocking any other sale before the dealer pulls off a sale. Im talking hours to act not days or weeks.

It is also a matter of the law in your state. In MOST states new car order deposits are FULLY refundable as a matter of law. You guys need to understand you are NOT ordering a car from Ford. That will NEVER happen. Ford only accepts orders from and sells to dealers. You are ordering from your dealer. If Ford wont provide the car to the dealer then no contract. So until Ford transfers title to the dealer (usually in transit) the dealer cannot enter into a binding contract for the car as it doesnt have the car and cannot force Ford to make it....thus in most states if the dealer ain't bound neither is the buyer thus buyers can walk and recover deposits. It is a matter of contract law (and this is a very over simplfied discussion of the legal principles involved).

 

[Jimmy G]

Yes.This order was placed for a Bullitt at list price.....I am probably anticipating when and if it gets built, he will try to get way above list like all the other dealers here....

If he screws you for a lousy $5K gain he loses you (and your family, maybe friends) as customers for life. Not a good business decision.

Hold tight, hopefully it'll work out ok.

 

[TaraFirma]

Based on how many potential GT350 buyers got screwed by greedy stealerships by them not honoring purchase orders for MSRP deals and selling to idiots willing to pay over sticker for cars, I would suspect that’s probably what they are going to do with your Bullitt. There is more than likely some small print that lets them out of the deal as long as they refund your down payment.

 

[Silver Bullitt]

There must be some really shady dealers out there. Glad I have a good one near me.

 

[TaraFirma]

There must be some really shady dealers out there. Glad I have a good one near me.

I'd say most of them are shady AF!
At the least they are staffed with ignorant morons that know nothing about what they are "selling" and will say anything, to include bold face lies, to get someone to spend money.
If you have a good one near you, you are lucky as they are few and far between.

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