MSRP price change after ordering

[Hristo]

I have a situation I would like to get some input on as the Gladiator is the first vehicle I have factory ordered and am unfamiliar with the process. I'll try to provide a concise timeline to avoid confusion. All prices are Canadian. Most of our conversation was done via text, so I have a record of it.

September 5: I go into the dealership and and order a Gladiator. We come to an agreement on an "out the door price" with a trade in. It is on paper and signed. I pay a deposit. They advise that because it is later in the year, mine may end up being a '22 model. If any rebates from Jeep change when it arrives, I will be entitled to them.

October 4: Advised that the build code is BX

October 17: I have D status and a VIN. Mine will be a '22 model.

October 27: I am at D1 status and am provided an estimated delivery date.

October 28: after reading on this forum I see that some options I did not want may now be standard on the trim I ordered (Mojave). I ask my salesman for confirmation.

November 8: I don't hear from the salesman for over a week and text again with the same questions. He responds, apologizing that he missed the message and has been away for a week.

November 9: He sends a new priced order confirmation sheet, different from the one that was provided to me when we ordered. The MSRP has gone up $1305 on the Mojave trim and the LED option has raised by $300.

I tell him that I assume the out the door price we negotiated still stands. He says that I ordered the vehicle based on MSRP. The price increase is from factory and they have no control over that. They sold the vehicle based on the options I picked and those options have gone up in price. My cost will go up $1605 plus taxes.

I advise him that I'll have to think about it. He responds that his manager will look at the numbers when the vehicle lands and take care of me. I thank him for his time.

Wouldn't the dealer be bound to the "out the door" price they agreed to and signed? Or am I on the hook for any changes made to the price by Jeep? The way the salesman made it sound, the deal I'm making is with Jeep, but the dealership is the one selling it to me and I made the agreement with them.

I apologize if the answer is obvious, but I've never had this happen while purchasing a vehicle.

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[TwelveGaugeSage]

It's normal for the prices to go up after ordering, but that shouldn't matter at all in your case. If you have a signed out the door price agreement, they should stand by that.

I am in no way familiar with Canadian laws, but I would think they are in breach of contract if they fail to honor it. Maybe try contacting Consumer Protection BC.

As usual, the dealership wants all the perks of being a useless middleman with none of the responsibilities.

 

[joeym7]

Well, I posted about this happening when folks were putting in last few '21 orders whan some dealers (like mine) said it was too late and others said they can still get it...So unfortunatly, not surprised.

Some dealers are have no scrupples, they figure take your money, they can always upsell you to a 2022 later if they need to.

I don't know what the laws are in regards to this, and I doubt it would be worth your time of $$$'s to hire a lawyer. So you have 2 chices I think:

1) Get a 2022 at the higher price.

2) Or just ask for your deposite back and call it a day...I hope you used a credit card for the deposite, if so you are well within the limits to raise a dispute with your credit card company.

Yea, you signed a contract with specific price terms (but is was contingient on 2021 availability), STILL, if they can't honer it (and they don't want to absorb the "loss" (ie, less profit of a '22) they should give you your deposite back.

(I am assuming here your build sheet and other contact info shows 2021).

-Joe

 

[Hootbro]

It can cut both ways. At least in the USA, most vehicle purchase orders are not air tight legal documents. Just as a buyer could back out for whatever reason and get a refund of deposit (generally) , a dealer can pass on his increased wholesale costs after the fact between order and actual manufacture of the vehicle.

I think most consumers in such situations just see the dealership being the bigger financial entity and "should" absorb these costs. Better ones do absorb this cost but I do not think it is an unethical thing if they decide they cannot absorb the increase and push that back onto the ordering buyer.

If me, that might not exactly be a hill I would die on and probably would try to negotiate a "split the difference" with the dealership before making a final decision to just back out and go elsewhere.

 

[Hristo]

Well, I posted about this happening when folks were putting in last few '21 orders whan some dealers (like mine) said it was too late and others said they can still get it...So unfortunatly, not surprised.

Some dealers are have no scrupples, they figure take your money, they can always upsell you to a 2022 later if they need to.

I don't know what the laws are in regards to this, and I doubt it would be worth your time of $$$'s to hire a lawyer. So you have 2 chices I think:

1) Get a 2022 at the higher price.

2) Or just ask for your deposite back and call it a day...I hope you used a credit card for the deposite, if so you are well within the limits to raise a dispute with your credit card company.

Yea, you signed a contract with specific price terms (but is was contingient on 2021 availability), STILL, if they can't honer it (and they don't want to absorb the "loss" (ie, less profit of a '22) they should give you your deposite back.

(I am assuming here your build sheet and other contact info shows 2021).

-Joe

I did use a credit card for the deposit. The original price order confirmation sheet was for a '21. The one I was sent on October 17 was for a '22.

 

[Hristo]

It can cut both ways. At least in the USA, most vehicle purchase orders are not air tight legal documents. Just as a buyer could back out for whatever reason and get a refund (generally) , a dealer can pass on his increased wholesale costs after the fact between order and actual manufacture of the vehicle.

I think most consumers in such situations just see the dealership being the bigger financial entity and "should" absorb these costs. Better ones do absorb this cost but I do not think it is an unethical thing if they decide they cannot absorb the increase and push that back onto the ordering buyer.

If me, that might not exactly be a hill I would die on and probably would try to negotiate a "split the difference" with the dealership before making a final decision to just back out and go elsewhere.

I thought a signed agreement with a deposit secured a price, but that's why I asked. Further negotiation on the difference may be the route to go, as you suggest.

 

[Hristo]

It's normal for the prices to go up after ordering, but that shouldn't matter at all in your case. If you have a signed out the door price agreement, they should stand by that.

I am in no way familiar with Canadian laws, but I would think they are in breach of contract if they fail to honor it. Maybe try contacting Consumer Protection BC.

As usual, the dealership wants all the perks of being a useless middleman with none of the responsibilities.

I'll definitely be checking out that site for options. I did find it funny that the salesman was making it sound like my agreement was with Jeep. If that is the case, what's the point of the dealership?

 

[Hootbro]

I thought a signed agreement with a deposit secured a price, but that's why I asked. Further negotiation on the difference may be the route to go, as you suggest.

What does the terms of your actual agreement say? Many times here, it is just some numbers on a sheet of paper with a price quote and a hand drawn line with the dealership telling you to just sign on the line. It is more a psychological thing than a legal binding document.

 

[Hristo]

What does the terms of your actual agreement say? Many times here, it is just some numbers on a sheet of paper with a price quote and a hand drawn line with the dealership telling you to just sign on the line. It is more a psychological thing than a legal binding document.

The agreement lists the selling price, trade in value (which they have received), the difference owing, taxes, fees and final amount owing. There are customer and dealer approval signatures. The numbers are hand written on a company form. There are no terms that indicate anything binding that I can see. Perhaps this may make it less legally binding, I'm not sure.

 

[Pescatoral Pursuit]

I ordered in August.
There were 2 price increases by the time my Jeep was delivered.
There was no dispute and I paid the original agreed upon price.
Having said that, if you ordered 21 but they delivered a 22 you should expect to pay more for a newer model year and you're not really losing because the value will always be higher.

 

[Hristo]

I ordered in August.
There were 2 price increases by the time my Jeep was delivered.
There was no dispute and I paid the original agreed upon price.
Having said that, if you ordered 21 but they delivered a 22 you should expect to pay more for a newer model year and you're not really losing because the value will always be higher.

Interesting point regarding the higher value. There are also added features (ones I didn't want mind you) which may increase its value later too.

 

[Hootbro]

The agreement lists the selling price, trade in value (which they have received), the difference owing, taxes, fees and final amount owing. There are customer and dealer approval signatures. The numbers are hand written on a company form. There are no terms that indicate anything binding that I can see. Perhaps this may make it less legally binding, I'm not sure.

Not a lawyer but that does not sound like a spot contract that locks in anything to a price at a certain date. Especially for something that is not on hand or made yet.

Wish you the best in hopefully something agreeable is worked between you and your dealer.

 

[Pescatoral Pursuit]

Interesting point regarding the higher value. There are also added features (ones I didn't want mind you) which may increase its value later too.

I feel ya. I'm disenchanted with my 2k sounds system/ touchscreen "upgrade."
I would straight up sell the truck and order another without it (and without a few other things) but it's now standard :/

 

[crankset]

Thanks for posting this, I'm in a similar situation. I ordered my Gladiator on Sept 9th. The truck is currently on it's way to the dealership, I'm expecting it to arrive any day. I recently pulled down the window sticker from cryptostickers and noticed that the base price, paint, and destination charges are higher than when I placed the order (plus the slush mats were deleted). I've been wondering how this will work out when I go to the dealership for delivery.

I'm emotionally invested at this point, so I don't think I will have much wiggle room to negotiate. Hoping the dealership will be helpful.

 

[bleda2002]

I'd agree they should honor it if it was just a price increase, but want them or not you are getting more options. It's not really fair to expect them to eat the cost of extra equipment when it wasn't a mistake on their part, perhaps see if you can split the difference in some way to make it up.

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