Dealer sold car for more than original MSRP

[Terriglo]

What is the name of your state (only U.S. law)? Maine

My elderly parents, who are on a fixed income, decided to trade in their 2003 Nissan Xterra for a car with better gas mileage. The dealer sold them a 2007 Dodge Caliber, basic model (no frills, standard shift) for $16,000, with a trade in of $6500 for the Xterra. Within a few days of the sale, we found out that the Kelly Blue Book value for the 2007 Caliber ranges from $9000 to $11000. We also found out that its original MSRP was $13850, approx $2150 less than it was sold to my parents for at 2 years old!
My father called the dealer, who told him they raised the purchase price of the Caliber because they took the Xterra in trade for twice what it was worth (Blue book trade in value shows $5800). He also said all of the Kelly Blue Book figures we got are wrong (we got them from another dealer who had no idea why we were asking, and online). He said this type of sale is standard practice and perfectly legal. He won't re-negotiate. So...my parents were sold a car for $2000 more than it sold for new, even though they traded in a car for $6500 as part of the deal! My parents trusted what the dealer told them at the time of the sale, and they were taken advantage of. Was this deal legal? What is our recourse?

 

[TheGeekess]

Sure the deal was legal. Since when is it against the law in the US for capitalism to work?

Manufacturers Suggested Retail Price is exactly that: a suggested price. Dealer is welcome to charge whatever he thinks he can get for said item.

Tell your parents to enjoy their new car.

 

[justalayman]

on top of that, MSRP had nothing to do with this deal as it wasn't a new car.


Your parents simply did not negotiate well. There is a reason car salesmen are one of the least trusted groups in the country.

 

[cyjeff]

By the way, the time to look up the value of a car is BEFORE you buy it.

 

[Terriglo]

Thanks, everyone. I wasn't sure about the price being higher than when it was new, but this was what I suspected. It's an unfortunate case of older people being taken advantage of by a fast talker from out of state - it looks like this dealership is trying to liquidate inventory (it has shut down it's website). The manager asked what my father would like them to do. Dad said he wanted the Xterra back and to cancel the sale, but the dealer has already sold the trade in. So...any advice on what else my Dad might ask for that would be a reasonable request?

 

[justalayman]

since they asked for a rescission that is not possible and they asked for partial refund and were rebuffed, I suspect there is nothing that would satisfy both parties in this so, if it were me, I would take my parents out to dinner and help them forget about the deal for a little while.


they might try making a complaint to the attorney generals office of their state but unless there was something we are not seeing in the deal, that would most likely be dismissed as a buyer who did not prepare themselves when entering a contract. The AG cannot save a person from themselves, just others.

 

[Some Random Guy]

Is this "dealer" an independent dealership or part of a chain (like AutoZone) or tied to a Manufacturer (like Ford, Nissan, etc)? Even though you don't seem to have any legal reason to cancel the sale, complaints to their parent company or manufacturer about abusing the elderly might cause them to renegotiate things.

 

[CraigFL]

Sure the deal was legal. Since when is it against the law in the US for capitalism to work?

Manufacturers Suggested Retail Price is exactly that: a suggested price. Dealer is welcome to charge whatever he thinks he can get for said item....

This is very true. Some vehicles that are in high demand, or optioned very well can sell for much more than MSRP when they were new....