Dealer is saying they accidentally credited me $1,000 cash on delivery and are now trying to enforce spot delivery agreement unless I pay the difference.
Location: North Carolina
Update 3: Wanted to say thank you everyone for your time and efforts. This has been incredibly stressful but y’all helped a lot. I’ll keep all advice in mind for my next car buying experience.
UPDATE 2: received the following from them after I pointed out their error and said I don’t intend to pay:
“The buyer's order you signed would leave an outstanding balance of $1000. We have made a concession to remove the $699 that we are not obligated to make. The $280.03 is due by 7:00PM today, which is a full 24 hours after we spoke on the phone yesterday. We either need the outstanding balance paid or the vehicle returned by COB today. As it stands, we cannot complete the registration or transfer the title to you with the balance outstanding.”
Original Post:
Last Friday I bought a car with cash at a large, national used car dealer. They brought the purchase agreement to me and with cashier's check, cash on hand, and credit card payment, I met the total price on the purchase agreement and drove the car off the lot. Then, a couple days ago I get a random email with an invoice attached for a $280 balance due with no explanation. I emailed back asking for an explanation of the charge but no response.
Then, today, I get a text from another dealer associate saying there was some sort of issue with the final price calculation and that they need the $280 or they will need the car returned. I said I paid the final price on the purchase agreement and wanted clarification why they are now changing the price post sales agreement--no response.
THEN I get a call just now with a voicemail saying there was a $1,000 cash on delivery credit inadvertently added and that since that wasn't collected, I owe a $280 difference within 24 hours. I was admittedly irate but stayed respectful. The guy on the phone brought up the spot delivery agreement. I've read the terms and this appears to only apply to financing. No funds were being collected from a third party.
I feel like this is a slam dunk that I don't owe them anything. It was their own error. I even brought up the $1,000 line item in the dealership and they said that it was them crediting me the cost of a fee ($699) that I asked to be removed. I didn't point out that $699 is less than $1,000, but neither did the associate. This is where the $280 difference is coming from (with tax calculation included).
Should I just pay this and get it over with? Or do I have a legitimate reason to contact an attorney or the State consumer protection agency?
UPDATE: Asked for things in writing and they have stated the following:
"As we discussed today, we are short $280.03 on your deal. As you requested, this is a detailed explanation of the situation. As you will see in the attached copies of your paperwork, the total owed for the vehicle is $28346.55. Per the copy of the receipt a total of $26846.55 was collected, in addition to the $500 deposit you placed to hold the vehicle, coming to a total of $27346.55 paid. This is $1000 short of the $28346.55 out the door cost of the vehicle. Now, as you will see on the buyer's order, part of that OTD cost is Appearance Protection for $699. As a courtesy to you and to aid in getting this issue rectified in the easiest, fairest, and most expeditious manner possible, we have removed that $699 from the OTD cost of the vehicle. As that is a taxable amount in NC, the OTD will decrease a total of $699 + 3% * $600, so $719.97 total reduction in the OTD. This leaves a total OTD of $27626.58, less the $27346.55 already paid, leaving a balance of $280.03 remaining. As discussed, you received a digital payment invoice for that amount. With regard to the 24 hour notice I gave you by voicemail and that we also discussed on the phone earlier today, that is in accordance with section 3 of the spot delivery agreement you signed, which I have also attached. I hope this clarifies any questions you have, and I appreciate your assistance in this manner."
--End email--
There was a "Grand Total" on the purchase agreement of $28,346.55. But just below that is the credit of $1,000 cash on delivery followed by a "Balance due if sold for cash" of $27346.55. Section 3 of the Spot Delivery Agreement states the following:
"In the event that financing is not obtained from a third party for my purchase/lease of this Vehicle or the Dealership is unable to assign the Retail Installment or Lease Contract to a third party within 8 days, I will return the vehicle to the dealership within 24 hours of receiving written or oral notice from the dealership. If I have entered into a retail purchase agreement, I may pay the dealership the balance due as reflected in the retail purchase agreement."
I paid the dealership the balance due as reflected, no?