WWYD - screwed over by car dealership for paying cash

[icyappraiser]

I was looking for a Gen 2 Chevy Volt for my wife and found the exact one she wanted. It had a specific, rare interior color and a bunch of safety options that are very rare. We came to an agreement to purchase the vehicle, in cash, as they were closing Wednesday night. They would only accept a cashier's check for the vehicle, but the banks were already closed for the day.

The salesman told me they can't "hold cars" but agreed to take a $1,000 deposit from me, had me sign some papers detailing the vehicle & agreed price and told me to "bring a cashier's check within 24 hours and we were good." I left thinking the paperwork was a contract, and his word was a verbal contract (or a good faith promise at worst).

The next day, I got the cashier's check at lunch, texted him at 1:30pm with a proof of insurance I had already put on the vehicle, and told him we would be there around 4 to pick up the car after I was done with my afternoon meetings for work. He replied saying "thanks, see you soon!" . At 3pm, he texted me that the car was sold and someone else had driven off with it.

I was furious - he took my deposit, I signed paperwork and had the cashier's check sitting next to me. I live 10 minutes from the dealership and would have driven the check over immediately if he needed me to do so. The salesman said his co-worker sold it to someone else without telling him they were even test driving it.

The dealer told me the paperwork I signed wasn't legally binding, the deposit was meaningless and put no hold on the vehicle and were generally unempathetic & unapologetic, only offering to find me a deal on another Volt (I found exactly one other one in the USA with the precise specifications of this one).

He actually had the guts to tell me this had been happening to customers paying cash since those who finance can get approved and drive off on the spot!

To me, they basically stole the car from me, although they seem to feel differently. It seems like they'd rather have someone finance, since they probably make more money than a cash deal.

I left them a honest but direct review on Facebook, Google, etc. What else would you do? Or should I just let it go?

[tawyer]

I would probably observe my angry thoughts and watch them float away.

You did say that the salesman told you they can't hold cars, so I'm puzzled as to why you gave a deposit.

[sailinlight]

Did they give you the $1,000 back? If so, then you didn't lose anything, and he specifically said they don't hold cars. No one stole anything from you and you weren't screwed over. You didn't have the money to buy something so they sold it to someone who did.

[Tester]

If you signed a sales contract I think you can do something about it - although I might be wrong?
If you signed something else, I don't know.

I think it is close to impossible to get that car though, so perhaps just look elsewhere...

One more thing (you might disagree on this): It is a car. I understand this was for your wife and perhaps she wants a specific car (my wife wants a specific car too), but it is just a car.
Especially when buying used cars, it is hard to get the perfect one.
More, if you look for the perfect one you will lose any negotiating power as you will just want to get it...
What if you find another one with the same features but in a different color?
Would that be the end of the world?

[Duke03]

I feel your pain.  It's no secret Car dealers and car salesmen lie.  My advice going forward is I would never reward bad behavior and never step foot in that place again.  Don't give a scummy place like that any money.  Right now dealers are playing all kinds of games because there is a chip shortage and it's hurting production numbers.  Hopefully things get worse in the next month and we start seeing Dealerships close down because they have zero cars to sell. 

[icyappraiser]

Not the replies I was expecting, but appreciate the candor.

@tawyer - you are correct, he said that. I offered him the deposit before he said that and he took it anyways after telling me he can't hold cars. He never told me a deposit wouldn't do any good. Then he told me to bring a check in 24 hours and we were good. I assumed he meant he can't hold cars indefinitely, which I understood. In hindsight, the issue is the conflicting information and I assumed the best. If he would have been clear with me, I would have brought the check at 9am when they opened.

@sailinlight - yes, they gave me the $1,000 back. Perhaps this was part communication issue (on their part) rather than a full stealing a car or screwing over, but I have to respectfully disagree that they hold no fault. I would never run a business in that manner if integrity were even the slightest bit important to me. I was the one who had the money to buy it (they just wouldn't take my personal check, even with proof of funds).

@Tester - yep, it's just a car. I'm still fired up about it so I'm sure I sound like its life & death to me at this point. It's not the end of the world to get a different color, by any means. I'm in "hung up on the principle" mode right now.

[SunnyDays]

The issues here are failure to communicate and making assumptions, which maybe boil down to the same thing.  You assumed they would hold the car for you for some minimum time, they didn’t tell you the deposit was pointless and the salespeople didn’t communicate with each other about the car.  Lesson is to ask detailed questions that cover every possibility when something is really important to you / don’t trust someone else to have your best interests in mind.  It was a hard lesson but one you won’t forget.  So you weren’t screwed over, just a victim of human error.

[Dicey]

There is always, always another car. Just find a different dealership. You'll never win against them, so focus your efforts on starting the search over. That's the way to win. Good luck!

[anotherAlias]

Find a better dealership to work with.  The one that I've used for my past 2 cars has been super easy to deal with.  I've bought the last two cars with personal checks.  The last time I was waiting on funds to transfer from my brokerage account when I test drove the car.  Told them I'd be back in 3 days when the money cleared and was in my checking account.  They said no problem, write the check and we'll wait to deposit it until you call and give the ok. I gave them a check and took the car home that day.  I called them three days later that it was safe to deposit my check. 

[Metalcat]

That seems super weird to me, but I guess that's because where I live you don't get your car the day you buy it, it has to be registered, safetied, and you have to get insurance lined up. So here you always pay a deposit and then pay the balance when taking possession of the car.

[reeshau]

I very much relate to your predicament.  I recently flew to Ohio to pick up a Chrysler Pacifica hybrid with a rare exterior / interior combo,

Was this a Chevy dealership, or an independent dealer?  To be clear, there is nothing you can do about it now, other than starting over.  But a 24 hour hold with a deposit is a common industry practice--I flew up based on a $100 deposit I put on my credit card, and I know at least 2 other people were interested in the car:  one had applied for credit but that went nowhere, and the with the other, another salesman had the keys, but turned them back in.  I wired the money because even a cashier's check would have been out is state, and I got the car when the wire was confirmed.

If it is an OEM dealer, you could complain to the manufacturer's customer service site, and that may trickle back to their score with the manufacturer.  But that's just revenge / possibly helping others.

[ender]

The salesman was probably as annoyed as you were since their coworker basically took a guaranteed sale away from them.

Considering most car sales folks are paid by commission on sales, I would expect think through whether or not it makes any sense at all for this sales person to knowingly let someone else sell the car they already "sold."

My guess is that the salesman you worked with screwed up indicating the car was "sold" or otherwise reporting they've taken a deposit down for it.

[Morning Glory]

Huh, the dealership I went to yesterday was happy to take a personal check, and they didn't mind a cash transaction at all. I called first to ask about payment methods because it was a 2 hour drive and my credit union doesn't have a branch near them.

[norajean]

I usually just pay with a personal check. One dealership even told me they didn’t cash it for a few days in case I changed my mind and wanted to return the car they could just hand me the check back.

[reeshau]

Another point to add: at one dealership while we were shopping, they explicitly added $1,500 to cash sales, which was the incentive they lost for financing.  This was an OEM branded dealership.  They tried to make it sound routine, but I have never seen that before, and I have bought my last 4 cars for cash.

[reeshau]

The salesman was probably as annoyed as you were since their coworker basically took a guaranteed sale away from them.

I didn't read the OP as a different salesman, just a different customer.

If it was a different salesman, I totally agree with you; maybe it was a favor for a senior salesman, or the owner, or a dealer trade.

If it wasn't, then the dishonesty / caveat emptor comments apply.

In any case, it sounds like a chaotic dealership.  This is a crazy time, and cars (new and used) are scarce.  But this dealership is not following typical norms.

[Khaetra]

Right now with the chip shortage and dealers not having much stock, your best bet is if you see a car, have cash/check in hand at the dealership to purchase it immediately.

As far as using cash as leverage: https://www.reddit.com/r/askcarsales/wiki/cash_down

[ender]

The salesman was probably as annoyed as you were since their coworker basically took a guaranteed sale away from them.

I didn't read the OP as a different salesman, just a different customer.

If it was a different salesman, I totally agree with you; maybe it was a favor for a senior salesman, or the owner, or a dealer trade.

If it wasn't, then the dishonesty / caveat emptor comments apply.

In any case, it sounds like a chaotic dealership.  This is a crazy time, and cars (new and used) are scarce.  But this dealership is not following typical norms.

The salesman said his co-worker sold it to someone else without telling him they were even test driving it.

:)

[Zamboni]

Lol, I feel your pain!

At some dealerships, salespeople do that to each other all of the time as far as I can tell. As long as the key is available to test drive, anyone can sell it out from under anyone else right up until a customer pays in full or signs all of the loan paperwork and drives it away. I had one saleslady tell me she was going to take the key and lock it in her desk, lol, since we were bringing money the next day . . . but the manager was on to her tricks and quashed it, and then it got sold the next morning to someone else. She was mad. It appeared to me that her dealership had no rules of honor and was basically a snake pit. This happens pretty regularly.

As others have said, though, you can find another one just like it or maybe even better. I have to tell you I had a family member who was very hot under the collar when the same thing you describe happened to us. But airfares are so cheap right now that we ended up flying to NYC to buy pretty much the identical vehicle with lower mileage for less money a few days later (even after you consider the first class airfare and a nice room at the Hilton.) As a bonus, we got some really good pizza while we were up there. After what happened, we just decided to finance it so we would not worry about the banking issues, and then I paid it off in full as soon as I got the first monthly bill. All in the financing cost me another $150. Then we had a fun time listening to tunes and driving it home together. Still cheaper than the first one we looked at locally.

Just let it go . . . another car she wants will come along.

[Greystache]

Whenever I have a bad experience with a business, I always make sure to let the world know about it. I write an accurate review on every site I can think of (Yelp, Facebook, etc.). I don't know if it causes the offending business any real pain, but it makes me feel better.

[rmorris50]

What about buying from Carvana or something similar? If you’re paying cash and know what you want I’d avoid a dealership at all cost. I’ve never walked off a dealership lot feeling good, the whole process is just slimey.


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[simonsez]

Whenever I have a bad experience with a business, I always make sure to let the world know about it. I write an accurate review on every site I can think of (Yelp, Facebook, etc.). I don't know if it causes the offending business any real pain, but it makes me feel better.

This tends to be human nature and thus, severely bias platforms of this type to the negative.  If you're fair in your critique, I as a researcher/shopper appreciate that more so than an angry person leaving a 1 star review because they didn't pay attention to something or had unreasonable expectations.  You can normally dismiss 75% of low reviews as "customer error".  The other 25% (and the good ones with explanations as well) of the bad reviews are the ones that have value.

That sucks, OP.  I feel like the salesperson you spoke to could easily have put a note into a database or mentioned something at a morning meeting if they were that worried about "holding it" for you or even give you a phone call in the morning to drop the check off ASAP.  I wouldn't give that dealership any future business.

[Morning Glory]

What about buying from Carvana or something similar? If you’re paying cash and know what you want I’d avoid a dealership at all cost. I’ve never walked off a dealership lot feeling good, the whole process is just slimey.


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The one I went to was good. I showed up with a list of which cars I wanted to look at then test drove a couple. They didn't try to upsell me or push extras at all. Prices listed were the actual price of the car, no monthly payment bullshit. The only thing that wasn't listed was sales tax and licensing. They asked if I needed financing and I said no. They offered a warranty and I said no. I wrote a check and drove the car home. It was cheaper than Carvana and I could drive a couple types of vehicles before choosing one.

The experience was actually miserable, but not because of the dealership. My kids were bored and hungry because it took a long time to get there, look at the cars, make sure car seats fit, etc. It took a while for the licensing paperwork to print. The transaction mostly consisted of me and the guy apologizing to each other over and over. One of the highlights was my six year old saying the f-bomb really loud in front of everyone to try and get a reaction out of me, right when I was cleaning up pee because my 3 year old's pull up leaked. Luckily the chair was plastic.

[mistymoney]

Not the replies I was expecting, but appreciate the candor.

@tawyer - you are correct, he said that. I offered him the deposit before he said that and he took it anyways after telling me he can't hold cars. He never told me a deposit wouldn't do any good. Then he told me to bring a check in 24 hours and we were good. I assumed he meant he can't hold cars indefinitely, which I understood. In hindsight, the issue is the conflicting information and I assumed the best. If he would have been clear with me, I would have brought the check at 9am when they opened.

@sailinlight - yes, they gave me the $1,000 back. Perhaps this was part communication issue (on their part) rather than a full stealing a car or screwing over, but I have to respectfully disagree that they hold no fault. I would never run a business in that manner if integrity were even the slightest bit important to me. I was the one who had the money to buy it (they just wouldn't take my personal check, even with proof of funds).

@Tester - yep, it's just a car. I'm still fired up about it so I'm sure I sound like its life & death to me at this point. It's not the end of the world to get a different color, by any means. I'm in "hung up on the principle" mode right now.

he used your price to get a better one, while being assured of your 1k if he didn't. sounds like a used car saleman to me.

[Morning Glory]

What about buying from Carvana or something similar? If you’re paying cash and know what you want I’d avoid a dealership at all cost. I’ve never walked off a dealership lot feeling good, the whole process is just slimey.


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I looked into Carvana (big/tall one not to far from me)and most of the other used car dealerships (Carmaxx etc)and they actually seemed quite a bit higher priced then the new car dealer's used cars and had much higher mileage. I don't want to use any car dealer but private party availability seems very limited now.  Probably would help if I knew what I wanted.

It's strange but I couldn't find anything like what I wanted from a private party in my area. Should have replaced the car last year I guess.

[TMB]

Another point to add: at one dealership while we were shopping, they explicitly added $1,500 to cash sales, which was the incentive they lost for financing.  This was an OEM branded dealership.  They tried to make it sound routine, but I have never seen that before, and I have bought my last 4 cars for cash.

FYI this is likely a violation of the Truth in Lending Act if they just increased the base price by $1500.  Also some states make it illegal to sell over advertised price.

[Morning Glory]

What about buying from Carvana or something similar? If you’re paying cash and know what you want I’d avoid a dealership at all cost. I’ve never walked off a dealership lot feeling good, the whole process is just slimey.


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I looked into Carvana (big/tall one not to far from me)and most of the other used car dealerships (Carmaxx etc)and they actually seemed quite a bit higher priced then the new car dealer's used cars and had much higher mileage. I don't want to use any car dealer but private party availability seems very limited now.  Probably would help if I knew what I wanted.

It's strange but I couldn't find anything like what I wanted from a private party in my area. Should have replaced the car last year I guess.

I know! I can't find what I want (which is still very open) and since I haven't bought a car from any kind of dealer (used or new car dealer) or even unknown private party ever, I feel really confused by all the "stuff" that crops up. The PP vehicles seem expensive and very high mileage as do the vehicles from used car dealerships. Plus none seem to have license plates or come from out of state so, dispite carfax info, who knows where they've been or how they've been cared for. I always figured buying a used car at New car dealer would be the worst thing but as of now that seems to be the better option. IDK. Guess I should start a car buying thread elsewhere instead of hijacking this thread.

The one I went to was a used car dealer that fixes and flips cars with body damage. The one I got has a salvage title but it was much cheaper than I could get with the same mileage otherwise.

The one we replaced was a police car in it's previous life.  We got it from a dealer that had a bunch of those.
We had it for 10 years and finally replaced it because the ac no longer holds a charge and my husband can't figure out how to fix it. There's no point in taking it to a shop because the car has 215k miles and is rusty and leaks oil and the KBB value is negative. If the ac worked I would have limped it along until this craziness passes.

[reeshau]

Maybe things will settle down next month.

The CEO of Taiwan Semiconductor said that they will begin to make up the backlog beginning in June, but it will take 7 or 8 months after that to resume normal deliveries.  I would not expect new car production, and therefore used car prices, to return to normal before then.  (Along with prices and/or Availability for many other things with chips in them)

Also until then, you have unusual competition from car rental companies, which are buying used cars in bulk, rather than supplying them, because they have no other way to ramp up for summer vacation demand.

[Morning Glory]

Maybe things will settle down next month.

The CEO of Taiwan Semiconductor said that they will begin to make up the backlog beginning in June, but it will take 7 or 8 months after that to resume normal deliveries.  I would not expect new car production, and therefore used car prices, to return to normal before then.  (Along with prices and/or Availability for many other things with chips in them)

Also until then, you have unusual competition from car rental companies, which are buying used cars in bulk, rather than supplying them, because they have no other way to ramp up for summer vacation demand.

Ugh. Maybe this means car top is in ;-). I just heard ride share companies are having huge price increases too along with rental cars and new and used cars. Guess Ill be riding my bike awhile longer.  Hope the OP can find his wife a car now but maybe that ship has sailed if he's looking for a very particular car. He may have missed that opportunity and should be even angrier at the car sales person.

I have a crown Victoria with no air conditioner if anyone is interested :P

[sonofsven]

Maybe things will settle down next month.

The CEO of Taiwan Semiconductor said that they will begin to make up the backlog beginning in June, but it will take 7 or 8 months after that to resume normal deliveries.  I would not expect new car production, and therefore used car prices, to return to normal before then.  (Along with prices and/or Availability for many other things with chips in them)

Also until then, you have unusual competition from car rental companies, which are buying used cars in bulk, rather than supplying them, because they have no other way to ramp up for summer vacation demand.

Ugh. Maybe this means car top is in ;-). I just heard ride share companies are having huge price increases too along with rental cars and new and used cars. Guess Ill be riding my bike awhile longer.  Hope the OP can find his wife a car now but maybe that ship has sailed if he's looking for a very particular car. He may have missed that opportunity and should be even angrier at the car sales person.

I have a crown Victoria with no air conditioner if anyone is interested :P

How much will you pay me to take it?

(I'm kidding!)

[Metalcat]

Maybe things will settle down next month.

The CEO of Taiwan Semiconductor said that they will begin to make up the backlog beginning in June, but it will take 7 or 8 months after that to resume normal deliveries.  I would not expect new car production, and therefore used car prices, to return to normal before then.  (Along with prices and/or Availability for many other things with chips in them)

Also until then, you have unusual competition from car rental companies, which are buying used cars in bulk, rather than supplying them, because they have no other way to ramp up for summer vacation demand.

Ugh. Maybe this means car top is in ;-). I just heard ride share companies are having huge price increases too along with rental cars and new and used cars. Guess Ill be riding my bike awhile longer.  Hope the OP can find his wife a car now but maybe that ship has sailed if he's looking for a very particular car. He may have missed that opportunity and should be even angrier at the car sales person.

I have a crown Victoria with no air conditioner if anyone is interested :P

Sorry, can't handle that level of sexy.

[Morning Glory]

Maybe things will settle down next month.

The CEO of Taiwan Semiconductor said that they will begin to make up the backlog beginning in June, but it will take 7 or 8 months after that to resume normal deliveries.  I would not expect new car production, and therefore used car prices, to return to normal before then.  (Along with prices and/or Availability for many other things with chips in them)

Also until then, you have unusual competition from car rental companies, which are buying used cars in bulk, rather than supplying them, because they have no other way to ramp up for summer vacation demand.

Ugh. Maybe this means car top is in ;-). I just heard ride share companies are having huge price increases too along with rental cars and new and used cars. Guess Ill be riding my bike awhile longer.  Hope the OP can find his wife a car now but maybe that ship has sailed if he's looking for a very particular car. He may have missed that opportunity and should be even angrier at the car sales person.

I have a crown Victoria with no air conditioner if anyone is interested :P

Sorry, can't handle that level of sexy.

Oh, come on, the back seat is huge. And it still has the spot light!