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Old 03-06-2003, 08:42 AM   #1
STi INGER
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Default STi Purchase Agreement

I wrote this little agreement for me so that I don't get screwed by the dealership.

I thought I might share it with the rest of you.

http://home.earthlink.net/~blade89/d...20contract.htm

If you want to download the file, right click this link and "Save Target As..." (NOTE: This was written in Word 2000)

http://home.earthlink.net/~blade89/d...20contract.doc
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Old 03-06-2003, 02:19 PM   #2
Joraq
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Thumbs up Thanks

Your purchase agreement was clear and well written.. I have modified it for my own use and plan to present it today. Hopefully I can get my STi under MSRP.. We'll see.
Thanks,
Joraq
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Old 03-07-2003, 12:36 AM   #3
STi INGER
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Do you think that this is a good contract or not. If there happen to be any lawyers in mix..let me know how I did. (having no legal experience)
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Old 03-07-2003, 08:24 AM   #4
robmarch
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you said the dealership can cancel the contract at any time. What's to stop them from ordering your car, getting it in, calling you to cancel your contract, and selling it to some other person for a markup?
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Old 03-07-2003, 08:27 AM   #5
Turboy
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For what it's worth, there's nothing wrong with the agreement as drafted. However, it's unlikely that any dealership will sign it. All of their forms/contracts are typically reviewed/approved by their own legal department (or retained attorneys). With the possible exception of very small owner/operator dealerships, I can't imagine that a manager/salesman has the authority to enter into an agreement penned by a customer.
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Old 03-07-2003, 08:42 AM   #6
ScoobyWrex
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If you want this to be anywhere near legal I believe you have to have a notary public or a lawyer stamp the agreement when both you and the dealer(s) sign for it.
I may be wrong but this step will be of great use to you if you ever have to go to court for any reason.



Also, MSRP is Manufacturers, not Manufactures.

Good luck getting them to sign this, they'll be a pain in the ass with it, especially with a notary public stamping it.

Mark
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Old 03-07-2003, 08:49 AM   #7
STi INGER
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oops, thanks for the typo notice. When spell check didn't catch it (due to the fact that it is a real word, just in the wrong context) I didn't give it a second thought
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Old 03-07-2003, 09:01 AM   #8
STi INGER
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Quote:
Originally posted by robmarch
you said the dealership can cancel the contract at any time. What's to stop them from ordering your car, getting it in, calling you to cancel your contract, and selling it to some other person for a markup?
Nothing...It is a contigancy to protect me (and my deposit) if I decide that I don't want it, can't afford it, the dealer doesn't get as many as they thought or goes out of business (like one did). If they wish to conduct good custome service, they will not cancel. It is kind of a good faith agreement. I'll agree to buy one, if they agree to order one. There is nothing to stop either party from going back on the deal, but this is pretty much a letter of intent.


BTW... If any of you use this contract (go right ahead, I give permission to do so),or one similar, let me know how it when and what they said. ie what modifications did you have to do, or how hard was it to get them to do it.

I might have a hard time with the dealers in Portland due to the fact that the Mitsu dealers are selling the EVO's for MSRP + $10000 (and selling rather fast too). I think I will have to go to the Central Oregon dealer. I might have a connection there (I have to use my people network better) and they are the only one for 100 mile radius, so they might get a few more that I think.
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Old 03-07-2003, 10:25 AM   #9
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There are some big problems with the agreement. It basically will allow the dealer to back out at any time. So, if the car comes out, and somebody walks in to the dealership and offers more than you did, you just lost your place in line. It is possible to draft an agreement that allows you to back out but keeps the dealer locked in.

Two common misundertandings are that a binding agreement must (a) be in writing or (b) be in some formal agreement. With limited exceptions (e.g. selling an interest in land, answering for the debts of another), an oral agreement IS enforceable. If a dealer tells you, "I will sell the car to you for MSRP if you put a refundable $500 deposit," he has just granted you an option to purchase, and his getting to hold your $500 will be the consideration you can use to enforce that oral agreement. An option gives you an "option to buy" from the dealer. In other words, you can get out for free, but the dealer can't. I've seen several discussions on this board of dealers who have called customers back and "cancelled" their option. That is complete BS, and many of those customers likely have an enforceable right against the dealer. Of course, if you want to enforce the agreement, you have to sue him, and then it is his word versus yours.

For that reason, it is definitely helpful to follow up your oral agreement with a written letter outlining what you have agreed to. This is often called a "Letter Agreement. "That letter constitutes a written contract, even if the dealer does not know it. There is no need to have a notary or lawyer sign it. If you have a written agreement (including a letter), you may be able to sue, or threaten to sue, a reneging dealer on you own (ie without a lawyer), or if you hire a lawyer, it will make his life much easier (and thus cheaper for you), and in states with good consumer fraud statutes, the lawyer may take the case for free because attorney's fees are paid for by the losing party. Perhaps most importantly, by putting the dealers feet to fire early on (i.e. getting him to agree in writing), you will figure out whether your dealer is full of BS or not. If not, you probably will never have to sue him or threaten to sue him.

Also, I strongly encourage you to read the "purchase agreement" that you sign and your dealer submits to SOA. Mine was NOT an option agreement- it was a purchase agreement -i.e. it says I WILL buy the car for MSRP. There are ways to get around this, but be very careful; Most will contain an "integration clause," which basically tells the judge to totally ignore any words you say were spoken or written before you signed the agreement (including your letter agreement) and look at the four corners of the purchase order to figure out what the agreement was- i.e. that you just agreed to buy the car for MSRP, even if MSRP ends up being $50K.

I don't mean to paint with a broad brush, but 2 out of 4 of the dealers I dealt with were crooks. Both of my local dealers absolutely agreed to give me an option to purchase at MSRP on the phone (I specifically summarized our agreement at the end of the conversation and the dealer said, "yup, thats what we agreed"), but when I went down to ink the deal, literally 24 hours after we came to an agreement, they totally backed out, told me that this was going to be a "hot car" and, that as of that morning, SOA was not letting them sell for less than $5K over MSRP, etc. Beware.

The bottom line is that no dealer should have any trouble putting his agreement with you in writing, if he intends to honor it. It is how business is done. If your dealer won't put it in writing, he probably doesn't intend to honor his agreement. Two dealers I dealt with were more than happy to put everything in writing.

All of the above simply describes what happended in my situation, and should not be interpreted as anything other than just an exlanation of some of the issues which might confront you too. In other words, it is not legal advice that applies to every situation or to your situation. If you really want to be sure you don't get screwed, pay a lawyer licensed in your jurisdiction a hundred dollars to review your agreement with your dealer.

Good Luck!

Last edited by banghado; 03-07-2003 at 11:26 AM.
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Old 03-07-2003, 10:44 AM   #10
STi INGER
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Quite informative. Thanks, I have rewriten the cancel part.

I can host docs (obviously) email me at

blade89@earthlink.net

Last edited by STi INGER; 03-07-2003 at 10:50 AM.
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Old 03-07-2003, 11:35 AM   #11
robmarch
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Quote:
Originally posted by banghado
SOA was not letting them sell for less than $5K over MSRP, etc. Beware.
this is the definition of dealerships lying to customers to steal their money. why would SOA tell a dealership to price the car over MSRP?
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Old 03-07-2003, 12:43 PM   #12
STi INGER
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Here is the contract that Banghado used for his STi. It is really done well.

To taylor it to your own needs just copy and paste it in your fav. word processing program

It is pretty long and in depth so I will only post the link.

http://home.earthlink.net/~blade89/d... Contract2.htm

Thanks again Banghado
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Old 03-07-2003, 04:31 PM   #13
banghado
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Quote:
With the possible exception of very small owner/operator dealerships, I can't imagine that a manager/salesman has the authority to enter into an agreement penned by a customer.
One more point. There are several different ways that a salesman (an agent) can bind his dealer (the agent's principal). One of them is called "actual authority"- this deals with whether the dealer actually told the agent "you can negotiate and ink deals for this dealership."

Another is called "apparent authority." If you walk into Microsoft and sign a deal with Bill Gates to buy a floppy disk from Microsoft, and then he tries to back out by saying his Board of Directors never gave him the authority to sell you the floppy disk, he loses. Thats because it would be reasonable for you to believe that he has the authority to sell you the floppy disk, and you relied on that.

Obviously, whether your assumption is reasonable becomes an issue of fact. I think a salesperson has the apparent authority to ink a deal, and I would guess almost everybody would assume a salesmanager does. If they do, whether they have the "actual authority" is irrelavant.

Again, if you really want the car, the best way to handle it is to pay a lawyer $100 to review your agreement.
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Old 03-07-2003, 05:21 PM   #14
'04 STi
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[quote]Originally posted by banghado

<Snip> A whole bunch of legal stuff...<Snip>

Ahhh.. agency law.

Pretty good banghado. I couldn't see anything wrong with it, tho I'm not a lawyer but a CPA.

You an attorney?


Bill
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Old 03-10-2003, 08:13 AM   #15
banghado
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Yup. I've been lurking on this board for almost a year. I am totally mechanically illiterate, so I really haven't had a whole lot to offer all the folks here who are in the know. This seemed like an opportunity to contribute a little bit back..... My sense is that these issues will come to a head once dealers actually start getting cars from SOA and calls from people who live in places like NYC and who all of a sudden "want one" and are willing to pay a few thousand bucks more that I and all the other people who think they are getting in at MSRP are. Let's hope I'm wrong.
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Old 03-18-2003, 09:35 PM   #16
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A bit confused... what goes in this blank here??

number of STi wanted?? 1?

Quote:
This deposit will also guarantee me ____ choice of the all the vehicles mentioned above delivered to this dealership.
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Old 03-18-2003, 09:50 PM   #17
STi INGER
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This deposit will also guarantee me (1st, 2nd...whatever place in line you are) choice of the all the vehicles mentioned above delivered to this dealership.
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Old 03-19-2003, 03:24 AM   #18
JT-KGY
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Quote:
Originally posted by STi INGER
This deposit will also guarantee me (1st, 2nd...whatever place in line you are) choice of the all the vehicles mentioned above delivered to this dealership.
Thanks...

Btw, I dont think banghado's contract will work... all dealers told
me that SOA will not do sold orders with STi...
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Old 03-19-2003, 06:30 PM   #19
04-STI
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banghado - nice work on the letter. Did your VA dealer accept it?
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Old 03-19-2003, 06:35 PM   #20
banghado
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Yup. Sales Manager signed it.
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Old 03-19-2003, 06:58 PM   #21
04-STI
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I'll give it a try. I currently have a signed purchase order for a Silver 2004 STi w/gunmental wheels "to be sold at MSRP, No additional mark-up. Third order on dealership list."

Your letter will push the test. Better to find out now than later.

Thanks
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Old 03-19-2003, 07:04 PM   #22
banghado
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I've ordered the exact same thing. Who did you order from?
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Old 03-20-2003, 07:51 PM   #23
04-STI
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Herb Gordon in Silver Spring, MD. I think we had this conversation in a PM.
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