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  1. #1
    Join Date
    Mar 2014
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    4

    Default Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    My question involves a consumer law issue in the State of: Texas

    I recently found a vehicle to purchase, and had driven the vehicle, and made an offer on it over the phone. After some back and forth, we agreed upon a price (3/11/14), and agreed I would come that following Saturday (3/15/14) to take delivery.

    I went to my bank and started the loan process on 3/12/14 and got the loan approval. The bank contacted the dealer on 3/13/14 and discussed the purchase price and to get the necessary paperwork and documentation to process the loan.

    On 3/14/14 the bank contacts me and tells me they have everything in hand from the dealer except a copy of the title. I called the dealer and they assured me they would get the title to the bank later that day so I could get the truck on the 15th.

    The bank spoke with the dealer again on the 17th, and they still couldn't produce the title.

    I spoke with the salesman every couple of days checking on the status of the title, and he said they are having trouble getting it from their floor plan company, but that they are still working on it.

    I spoke with the salesman on 3/24 and 3/25 and they are still unable to provide the title but he said they were still working on it. On 3/27 I find that they have sold the vehicle.

    In my mind they have breached a valid contract. Granted, its my understanding that a verbal contract over $500 in Texas isn't valid, but, the fact that they sent a sales agreement to my bank indicates we had more than a verbal agreement.

    What are my options here? Ideally I would like to have the vehicle at the price we agreed upon. It was a hell of a deal, (several thousand below NADA value) and I think that's why they couldn't "find" the title, they knew they were selling it too low and were hoping I would give up. But I doubt that is possible.

    Thoughts?

    Thanks!
    Bob

  2. #2
    Join Date
    Sep 2011
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    OH10
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    17,019

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    It does not appear you had the required elements of a contract or any recourse.

  3. #3
    Join Date
    Mar 2014
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    4

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    That bites, so a sales agreement from the dealership presented to my bank, with the agreed purchase price doesn't give me a leg to stand on?

    Gotta love how something I would honor 100% on just a handshake, doesn't mean squat even when there is a piece of paper included when the person (or entity) is less scrupulous than how I was raised.

    Thanks for the feedback.

  4. #4
    Join Date
    Jan 2014
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    118

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    I'll take your word that Texas has adopted what is Section 2-201 of the Uniform Commercial Code requiring that to be enforceable a contract for the sale of goods for the price of $500 or more must be signed by the person against whom enforcement is sought.

    Nothing in your post indicates partial performance or any other event that would remove the force of the statute. In sum, you are out of luck.

  5. #5
    Join Date
    Jul 2007
    Location
    Florida
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    2,344

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    Did the dealership sign the contract they sent to your bank?

  6. #6
    Join Date
    Jan 2014
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    118

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    Quote Quoting anewway
    View Post
    That bites, so a sales agreement from the dealership presented to my bank, with the agreed purchase price doesn't give me a leg to stand on?

    Gotta love how something I would honor 100% on just a handshake, doesn't mean squat even when there is a piece of paper included when the person (or entity) is less scrupulous than how I was raised.

    Thanks for the feedback.
    I guess I missed the part where the dealer presented your lender with a proposed sales agreement. Sorry. That just might serve to remove the effects of the UCC.

    However, even if so, and should you sue for breach of contract, I see much trouble in your ability to prove damages. Never having owned it you will not be allowed to express an opinion as to the worth of the vehicle and little chance of having it appraised. Nor do I believe that the court would accept as criteria the difference in the price offered you and what it was sold for.

  7. #7
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    I recently found a vehicle to purchase, and had driven the vehicle, and made an offer on it over the phone. After some back and forth, we agreed upon a price (3/11/14), and agreed I would come that following Saturday (3/15/14) to take delivery.
    were you supposed to stop by and drop a deposit on it? Who, if anybody, signed the sales agreement and did the sales agreement have disclaimers such as it is not executed or enforceable until a deposit is made or some other action taken?

    How would you even prove who you talked to on the phone and how do they know it was you they talked to?


    I don't think you realistically have a snowball's chance in Hell of ever winning a suit even if you might find some general basis which to file it on.


    What are my options here? Ideally I would like to have the vehicle at the price we agreed upon. It was a hell of a deal, (several thousand below NADA value) and I think that's why they couldn't "find" the title, they knew they were selling it too low and were hoping I would give up. But I doubt that is possible.
    well, there's the problem; damages. What are they? If the vehicle is already sold, you aren't getting it....period.

    So, then you attempt to ascertain damages otherwise. Very difficult since you measure of damages, at best, would be the difference between the sales price and the price of an exact vehicle purchased elsewhere. Since they actually "sold" it to you, they can argue that is the value of the vehicle. You have to prove otherwise. NADA is not an exact value indicator. There are myriad variables that can alter that price. Additionally, it is an average price in each of the categories listed so depending on the price of your vehicle, their adjustments may have put it right where they sold it to you for so, the best attempt to establish damage is the difference between what you contracted for and what they actually sold it for.

  8. #8
    Join Date
    Sep 2005
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    Behind a Desk
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    98,846

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    Quote Quoting anewway
    View Post
    I spoke with the salesman on 3/24 and 3/25 and they are still unable to provide the title but he said they were still working on it. On 3/27 I find that they have sold the vehicle.
    When did they sell the vehicle? You found out about the sale on 3/27, but if the sale occurred on 3/12 or 3/13, that would explain why the dealership couldn't find the title.

    i would be interested to learn if the sales agreement were signed by anybody at all, or if this was pitched to the bank as a contract that would be executed only after you were approved for financing.

  9. #9
    Join Date
    Jan 2013
    Posts
    372

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    The fellow's damages are the cost of any fees associated with the loan. I'm guessing that's not worth taking to court, though.

  10. #10
    Join Date
    Jan 2006
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    38,867

    Default Re: Dealership Sold Vehicle to Somebody Else After Agreeing on a Price

    Quote Quoting DaveM
    View Post
    The fellow's damages are the cost of any fees associated with the loan. I'm guessing that's not worth taking to court, though.
    no Dave, no.

    but if there were any fees from the bank, I would be amazed. In my many years of life and many car purchases, I have never been charged a fee to apply for a loan and that is all the further the lender got in this situation.

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