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Breach of contract ?

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roybantell

Junior Member
What is the name of your state? Wisconsin

My wife and I purchased a Honda certified used vehicle. "Every Honda Certified Used Car comes with a 7-year/100,000-mile limited powertrain warranty and a 12-month/12,000-mile limited non-powertrain warranty. Plus, the certification process includes and exhaustive 150-point inspection."

Among many of the items we believe were not "exhaustively inspected" was an inoperable radio, nearest scheduled maintenance on a transmission which ultimately failed and there was no certified warranty booklet in the glovebox. All of these are required under the provisions of the certifcation program.

The sales manager, service manager and ulitmately the general manager were uncooperative when we sought a full refund (including tax and title fees) citing a breach of contract. This, despite the fact that all three agreed that the certification process was clearly not completed. (And here is the kicker, I have a digitally recording of each of them admitting that their service staff failed to correct the items listed above.)

The general manager said he would not refund the money but would find a replacement vehicle if we gave him a week. We said we would give him two weeks if the vehicle was of equal or great quality and value. He agreed. The two weeks has elapsed and he has not provided a replacement vehicle. (We also have a digital recording of this oral agreement).

We had an attorney write a letter demanding our money back. The General Manager called me to demand that we return the loaner vehicle that we provided. He said if we did not return it by the end of the day, he would report it stolen and have me arrested for auto theft. It was not possible to return the vehicle that day as we have two children under the age of two whom needed transport, but the vehicle was returned a day later without incident. The minivan we originally purchased remain on the lot of the dealership. Under advisement from the attorney, we should not drive the vehicle off of the lot.

What is our best course of action? I believe we have a sure win case if we proceed with the legal route. Wisconsin is a one-party consent state, so the digital recording ARE admissable. The GM has offered a return of our 18k but will not refund the $1,072 in taxes, application fees, etc. Do we take the 18 and go after the rest in small claims? We need a vehicle to transport our childern and can readily afford another one. Do we stick to our guns and go all the way on this knowing that we will win in the end. Do I try to go it alone or retain an attorney? If I retain counsel, then can I recoup his/her fees? We were wronged and have been unbelievably burdened by this lemon of a vehicle which they claim to have fixed now. My preference is to spend my free time with my kids rather than this dealership, but the GM and SM were so condescending, rude and manipulative, that I may go the distance on principle alone.

Thought?

Thanks in advance,
Roy
 


teflon_jones

Senior Member
I'd take the 18K and make sure that nothing you sign says that you can't pursue reclaiming the taxes, fees, etc. Then file in small claims.
 

roybantell

Junior Member
Thanks TJ. Just curious, is there precedent for not returning taxes, title fees etc?

It just seems that if I buy a DVD player and decide to return it, I am reimbursed for the taxes. Why should it be different in the used car industry?
 
roybantell said:
Thanks TJ. Just curious, is there precedent for not returning taxes, title fees etc?

It just seems that if I buy a DVD player and decide to return it, I am reimbursed for the taxes. Why should it be different in the used car industry?
I was wondering too :confused:
 

teflon_jones

Senior Member
The reason why your taxes, fees, etc won't be reimbursed is that you're not really returning the vehicle like you would another consumer item. The dealership is basically purchasing it back from you for the 18K so they're on the hook for paying all of the taxes, fees etc because the sale of the vehicle already took place. Vehicles fall into a totally different category than electronics, sporting goods, etc that you can just return with a receipt.
 

roybantell

Junior Member
Go it alone?

TJ....you are right on the money. Thank you.

My wife and I met with a very reputable attorney about our situation with the used car dealer and I have an update for anyone whom is interested. To refresh, the dealer sold us a certified used minivan that was nothing short of a lemon. After our 4th trip to the service dept in less than 2 months, we determined (and the service manager admitted) that the vehicle was not properly inspected and therefore not compliant pursuant to the terms of the certification contract. We also have a hidden digital recording of the general manager agreeing that there were some holes in his end of the contract. In WI, the didgital recording IS admissible if this were to go to trial and it is very damning.

We attempted to return the vehicle citing breach of contract and wanted our full $19 k plus. The dealer agreed to refund the 18k purchase price, but not the taxes, title fees etc.

Our attorney suggested that we have three very strong cases to pursue...breech of contract, false advertising and misrepresentation. Unfortunately, the only suit we can file that will aloow us to recoup the attorney fees, is the false advertising claim. Apparently, along with a false advertising claim, the dealer has an opportunity to demonstrate that they tried, in good faith, to cure the defects. This particlar dealer DID, in fact, attmept to remedy the situation, but it was like pulling teeth.

SOOOO, here is my question. Our attorney, like TJ, suggested we take the 18k and run. We may, but before we do, how inadvisable is it to pusue this case on my own? I am not an attorney, but have access to many through my employer. Our own attorney even said we have a rock solid case, but that her fees would cost more than the monetary amount we are seeking, hence, not worth the gamble. If I go it alone, there are no legal fees other than the miscellaneous court costs. We can not go after them in small claims for the additional $1,072 because they will make us sign a release for the $18k.

How dangerous is it to go it alone. At worst, we will still get the $18k...

TJ? Others?
 

roybantell

Junior Member
"Go It Alone" discouraged?

I really want to "go it alone" on this one. I can't help but believe that once the dealership's attorney is made aware of or hears the tapes himself, he will advise his client to forfeit the $1,072 and go away quietly.

Is there something I am missing. I know I have to be careful since I am not particularly well-versed in trial law, but I don't think it will ever get that far...I think that I merely need to file the suit and that will be as far as it goes.

Are there any pre-trial tricks that the defense attorney can play that I am not aware of?

Thanks in advance,
Roy
 

pammness

Member
take a look

https://forum.freeadvice.com/showthread.php?t=255834
View my situation that I posted, also gonna just copy and paste my own follow up to you here, this was my end attempt and my results here in Virginia. Hope it helps.....
I decided I was not happy with the answer of TO BAD. So I choose to make a small phone call to the BBB (better business bureau) in my area to find out how they rated the dealership. It all checked out, But I also found out I could request a dispute mediation with them but I had to follow a few things before I could do so. I first had to contact the pesron the BBB had on file as the contact person for the dealership. I also had to let this person know even if leaving a message that I had spoke to the BBB and as of the date of this call to his office he had 5 business days to reply to me or I would be conatacting the BBB and requesting a dispute mediation. Once I stated this to him, he was more then happy to hear about all of the troubles and check there records and get back to me concerning this issue. He also apologized that no one from the company had suggested I speak with him first and he was also going to look into that as well...... WELL, Low and behold He called me the very next morning (as it was late in the day when I spoke with him) and apologized again. He was going to put me through to his Service Department Manager and have the issues repaired on my car at NO COST to me and would be more then happy to give me a loaner vehicle while this is being done (as they also informed me they would no longer due so as it is not policy and is posted).
I am not saying this will work with all dealerships.... But I know it did with mine.
I think my plus was that the contract HAD been signed prior to the service department checking the car out, but it goes to show that as is sales does not always apply. You'd be surprised at the businesses they don't want the BBB brought in, even if there chances are that they will prevail in the end.
 
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