Woodalls Open Roads Forum: Unhappy with deal. Want to cancel Purchase Agreement.
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 > Unhappy with deal. Want to cancel Purchase Agreement.

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stoutz429

Pennsylvania

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Posted: 07/18/13 04:57pm Link  |  Quote  |  Print  |  Notify Moderator

We have been negotiating the purchase of a used class A motorhome over the last few days. The negotiation has progressed to the point where we have signed a Purchase Agreement and placed a down payment on the unit.

Even though the RV is 12 years old, we told the dealer up front we would have to finance part of the purchase price. We placed a deposit to hold the vehicle while the dealer reviewed our offer.

As it worked out, our offer was accepted. The sales rep then used our deposit as down payment money. He told us that used RVs usually finance at around 6%. We used this rate when crunching the numbers to see if the deal would work for us.

When the dealer's finance person shopped for financing, she was only able to get it at a 14.95% rate. This totally blows our number crunching out of the water, as we were expecting a much lower rate (and yes, we know most lenders won't even consider financing an RV this old).

The bottom line is, we have signed a Purchase Agreement, made a down payment, and applied for financing through the dealer. However, now we are very unhappy with the deal because of the large difference in the finance rate.

My question is, can the deal be canceled even though we signed a Purchase Agreement prior to learning about the poor financing rate, and if so, would the deposit/down payment money be lost?

wandering1

Texas

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Posted: 07/18/13 05:05pm Link  |  Quote  |  Print  |  Notify Moderator

What does the agreement say?


HR


pugslyyy

North Carolina

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Posted: 07/18/13 05:06pm Link  |  Quote  |  Print  |  Notify Moderator

IANAL

I don't think PA has any kind of a 'cooling off period'. However, if the dealer said they were going to get you 6% and came up with 15% then the deal doesn't seem to match the representations that they made to you and you could cancel on that basis and get your deposit back.

Have you talked with the dealer about this? What did they say? Will the dealer have a counter-argument (for instance, was the 15% rate due to less-than-perfect credit on your part?)





midnightsadie

ohio

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Posted: 07/18/13 05:06pm Link  |  Quote  |  Print  |  Notify Moderator

I,D go talk to them, no one person can answer this. remind them they told you 6%. don,t argue be nice .

2oldman

Sprague Lake

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Posted: 07/18/13 05:25pm Link  |  Quote  |  Print  |  Notify Moderator

stoutz429 wrote:

would the deposit/down payment money be lost?
Probably. Once money trades hands it's darn difficult to get it back. Sorry.

Ranger Smith

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Posted: 07/18/13 05:26pm Link  |  Quote  |  Print  |  Notify Moderator

I would just tell them you re-crunched the numbers at 15% which by the way is more than doubled what you originally told us and we feel we can't afford it at that rate so we would like our deposit back.


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Jayco-noslide

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Posted: 07/18/13 05:28pm Link  |  Quote  |  Print  |  Notify Moderator

I'm guessing that financial institutions might be reluctant to finance very much of the purchase for and RV that old. The depreciation is so steep and maybe unpredictable you could easily have an upside down loan, especially if something happens like huge fuel price increases.


Jayco-noslide

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Posted: 07/18/13 05:33pm Link  |  Quote  |  Print  |  Notify Moderator

You are governed by two things:
1. Pennsylvania state law, and
2. the document you signed (assuming it is legal).

You did not indicate how much money the dealer is holding, but you would be very wise to ask your questions to a lawyer who handles consumer law in Pennsylvania. I doubt anyone on this forum can give you appropriate advice.

WyoTraveler

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Posted: 07/18/13 05:34pm Link  |  Quote  |  Print  |  Notify Moderator

You can get lots of opinions but I suspect you should be talking to an attorney.


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USAFBILL

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Posted: 07/18/13 05:44pm Link  |  Quote  |  Print  |  Notify Moderator

Hind sight...but the agreement should of had a clause that the agreement was based upon financing at 6%....works well on real estate transactions.
Good Luck

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