Finance Offer - offered then withdrawn as 'mistake'

[AR101]

I've had a finance offer from a franchise dealer for a new car. They offered me a 'regulated' quotation for the car on headed paper and have then said there was a problem with the price and increased it by a significant amount of money. Are we able to hold dealers to quotes that they now claim were a mistake?

[PSB1]

Presumably you’ve already beaten them up on price by getting quotes from Carwow, Broadspeed, Drive the Deal etc?

If it’s not a stellar price, just haggle hard elsewhere as it’s not worth dealing with them if they can’t stand behind their commitments. Should be easy as it’s a buyers market.

Also, have you ensured the finance is competitive and not being used to mask any discount?

[AR101]

Thanks for the quick reply. It was through an online haggle website that it arose which is what’s annoyed me more. I feel like they’ve sucked you in with a decent price and then just try and go back on it. They provided two quotes for two different terms with the correct vehicle details listed and then said it was for a different car!

[PSB1]

My favourite cliched quote on this is, “If they’re not crying, I’m not buying.” What’s the car?

[mikeiow]

I doubt there is anything to stop that - if a shop has any item mis-priced, then they are quite at liberty to refuse to sell it, & bump the price up: that original thing was an "invitation to treat", not a promise to deal on those terms......

That said, if it feels like a sly business practice....then the world of twitter gives you the ability to call them out quite publicly ;-)

[Bussolini]

mikeiow said:

I doubt there is anything to stop that - if a shop has any item mis-priced, then they are quite at liberty to refuse to sell it, & bump the price up: that original thing was an "invitation to treat", not a promise to deal on those terms......

That said, if it feels like a sly business practice....then the world of twitter gives you the ability to call them out quite publicly ;-)

How do you know it was an invitation to treat? It sounds like an offer to me, though no doubt it will have some small print buried somewhere (which, remember, has to be fair under the UTCCR or it will be void).

[Mandat]

Bussolini said:

How do you know it was an invitation to treat? It sounds like an offer to me, though no doubt it will have some small print buried somewhere (which, remember, has to be fair under the UTCCR or it will be void).

I believe that the legal process is thus:

1. Dealer provides quotation (i.e. invitation to treat.)

2. Customer is happy with quotation and wants to place an order (i.e. customer makes offer to dealer)

3. Dealer accepts or rejects the offer (i.e contract is formed when dealer accepts customer's offer)

IANAL but I did study contract law many years ago.

[anonymous-user]

What the terms on the offer?

[Bussolini]

anonymous said:

[redacted]

An offer can be made by a buyer or a seller. The buyer or the seller can then reject the offer. A mere quotation is not likely to amount to an offer capable of acceptance, but it could, depending on its form. There needs to be an intention to create legal relations.

[Simpo Two]

There has to be a get-out. Otherwise a seller could accidentally price something at £100 (typo) when they meant £1,000 and be forced to sell it for £100. Clearly that's silly.

[Bussolini]

anonymous said:

[redacted]

I am a qualified lawyer, albeit not one that advises regularly on disputes over whether or not a contract was accepted or not. There are plenty of online sources explaining the ins and outs of offer and acceptance.

[Bussolini]

Simpo Two said:

There has to be a get-out. Otherwise a seller could accidentally price something at £100 (typo) when they meant £1,000 and be forced to sell it for £100. Clearly that's silly.

There has to be consensus in idem ie a meeting of minds. In your example, there is not. If an offer is made with the intention of forming legal relations and it is accepted, then a contract is formed and the vendor cannot change his mind because it got more expensive for him to meet his contractual obligations.

As I said, I am sure there will be small print explaining that a quotation is not an offer and depending on its form it may well not be. But it could be.