Dealership Failure

[micsride]

On Jan 2 2014 an arrangement was made between the Oakridge Ford in London Ontario and myself to purchase a 2014 Ford Explorer Limited. I was offered a trade in value on my 2011 Honda Pilot of $23,000. Feb 5, 2014 I went in signed the contract and was told to expect delivery sometime between Feb 12 and 18th. On Feb 13th I was involved in an accident causing $5700 worth of damage to the Honda Pilot. Being concerned this would delay me on delivering the vehicle for trade in I notified Oakridge Ford of the accident, but my insurance was covering the damage and as per the conditions of the contract the vehicle would delivered to the them in the same condition as the deal was made. In fact the Pilot was repaired to better condition than when the deal was made as a dent that existed at the time the trade was negotiated, was repaired as well. As far as the contract I signed this met the conditions of the trade in clause on the vehicle. Upon informing Oakridge Ford of the value of the repairs they proceed to tell that they had a buyer who no longer wanted my Pilot for $23,000 and they could no longer do the deal for $23,000 trade in value because the car would now have a Carfax Report on it. I explained that I was fulfilling the conditions of contract and if they weren't going to, I considered them in breach of the contract.
I’ve filed a complaint with the BBB in London and collected my deposit back. So after waiting almost 10 weeks for a new Explorer I’m looking for a new dealership as I refuse to re-negotiate with Oakridge Ford for another Ford Explorer. Maybe I wait for the 2015 Explorer at this point it isn’t the price but the failure of this dealership to adhere to a contract they created. As I’ve said to them had they sold the Honda Pilot for more the $23,000 I would not expect it to be added to my trade-in value, we established a price based on the physical condition of the vehicle I’ve met those condition, they should have to.

 

[anonymous]

You're crazy... the car has less value now that its been in an accident. No way I'd pay you the agreed upon price prior to the accident.

 

[tinner]

Under some state laws diminished value can be claimed, in other words what the vehicle was worth a minute before the accident and what its worth after the accident.

The difference before and after the accident is the diminished value. Most states have the diminished value law.

Good luck in Canada, see if diminished value exists, I'm sure it does.

The St. Louis anonymous guy is right, its worth less after being hit.

 

[63MM]

You're crazy... the car has less value now that its been in an accident. No way I'd pay you the agreed upon price prior to the accident.

+1!!!

micsride, I'm surprised you can't see the see illogical side to your argument here.

 

[anonymous]

This is the problem with today's society. He's badmouthing a dealership when any normal person would realize he's in the wrong. If I were that dealership I would gladly refund your money and be lucky to be rid of you.

 

[micsride]

Let me first state I do understand if a vehicle goes from accident free to being repaired after a collision some value is lost. I may have glazed over this piece of information but the vehicle had a dint in the front fender as stated in my original post I would put a value to repair that at $1000. So the vehicle would not have had a "clean carfax report" unless the dealer had repaired it and not report that repair under the VIN. With the current sales value of $27,000 on autotrader in my area I felt $3000 less for dealer prep, repairs, commission and safety cost was a fair trade in price. The fact they no longer had to make that repair to the front fender should have offset the higher $ value on the carfax in my opinion. So a clean carfax report should not have been an issue.

 

[VandyCWG]

Let me first state I do understand if a vehicle goes from accident free to being repaired after a collision some value is lost. I may have glazed over this piece of information but the vehicle had a dint in the front fender as stated in my original post I would put a value to repair that at $1000. So the vehicle would not have had a "clean carfax report" unless the dealer had repaired it and not report that repair under the VIN. With the current sales value of $27,000 on autotrader in my area I felt $3000 less for dealer prep, repairs, commission and safety cost was a fair trade in price. The fact they no longer had to make that repair to the front fender should have offset the higher $ value on the carfax in my opinion. So a clean carfax report should not have been an issue.

I understand that them not repairing a dent should have come into the conversation, but a dent from anything (shopping cart, ding from another car, etc) is way different than a vehicle crash the required about 6000.00 to repair.

A crash will and does lower the value of a vehicle, even if it was 'repaired to better than before.'

Sorry you lost your trade-in and new explorer, but the dealership did nothing wrong. They have to make money to stay in business.

 

[blwnsmoke]

As someone else posted, you should have looked into "diminished value" which is the value the vehicle takes a hit on after being in an accident. It is the attempt to make you "whole" after the accident. Once in that accident, you are looking at many thousands of dollars less if it is reported/found out. Although there are some excellent body shops out there, many fear (which i'm sure you know) that it is not 100% fixed, issues may arise in the future etc. I would assume they would have been looking at at least $5,000 less for a trade in once involved in that kind of accident.

If you can get a trade in appraisal now from that dealership, the difference is what you should be going after the insurance company for as diminished value to make you whole.