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Dealer changed payment after signed contract, can we negotiate the new price?

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Dealer changed payment after signed contract, can we negotiate the new price?

Hi everyone. I put down a deposit for a lease the other day, and signed a contract with an agreed upon price. I received a phone call from the finance department stating my credit score was in a lower tier and the payment will now go up. The price was based upon the highest tier score. I am aware that my score isn't perfect, I have been working on improving it over the past year, and it has gone up dramatically. The dealer told me I was at a 600 on Transunion. I just checked my transunion score and it is high 600's. Do the dealers use a different system? I know my credit has improved and I was suprised to hear this. If this is all true, can I still negotiate the new price they are now giving me (which is $100 more per month). Thanks for any advice !

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Frequent Contributor

Re: Dealer changed payment after signed contract, can we negotiate the new price?

Dealer's typically pull an auto-enhanced version, such as the TU Auto 08 score. I would tell them if the payment is going up, then you will be bringing the vehicle back ( you should have to re-sign contracts if there is a change in the financing terms.) This should motivate them to figure out a solution to keep you happy.

AMEX BCE ($39,500) CITI AAdvantage ($20,500) Region's Platinum Card ($14,400) Discover IT ($23,000) Macy's ($7,000) Chase FU ($10,000) Barclay's Aviator ($22,000) TU:778 EX: 781 EQ:791
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Re: Dealer changed payment after signed contract, can we negotiate the new price?

Depending upon your state, this could be an illegal action on the part of the dealer.

 

Many states require dealerships to honor the finacial terms you signed, even if they are unable to find a financial institution to do so. Even if the dealership made you sign a piece of paper that the offer is contingient on finding a financial service (these are not binding in many states).

 

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Frequent Contributor

Re: Dealer changed payment after signed contract, can we negotiate the new price?


@Kree wrote:

Depending upon your state, this could be an illegal action on the part of the dealer.

 

Many states require dealerships to honor the finacial terms you signed, even if they are unable to find a financial institution to do so. Even if the dealership made you sign a piece of paper that the offer is contingient on finding a financial service (these are not binding in many states).

 


This. 

 

Many states have rules about this kind of thing, called Bushing or Yo-Yo financing. I don't know about any other state other than WA but in WA, they have 4 business days (ends at COB on 4th business day) to figure it out or they're on the hook for the original terms however necessary. Definitely worth checking into it for your state.

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Re: Dealer changed payment after signed contract, can we negotiate the new price?

In MN, you would just return the car. My Subaru dealer provides a conditional delivery disclosure. It's basically saying that they are letting you take delivery based on what they believe will be the financing. Should Subaru Motors Finance (Chase) choose not to fund the lease, you have to return the car. At that time, I believe you and the dealer could explore purchase financing or provide you own financing to purchase.

FICO 8 Scores: EQ 726 | EX 698 | TU 699
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