Dennis Dillon said my truck's MSRP just went up by $3000 and it bumps up my order price

[dxdx]

Just got a call from Dennis Dillon in ID that my truck's MSRP just went up from 72k to 75k, they said I will have to pay the extra 3k increase.
This is crazy. And I already paid deposit $3k.
Is this normal? Anything else I can do as a customer? Don't see many options

 

[Richard320]

What does your contract say?

Our opinions are worth nothing. It's what's written on the contract that matters.

 

[Idahoktm]

Not sure if it's normal but I've read of it happening. That would be a deal breaker for me. I signed a document locking in my price at the time of the order.

 

[Eighty]

If your dealer didn’t price protect your order when putting it into the system, then the current pricing (at time of invoice by FCA) governs. Now, there’s still the possibility of negotiating the markup with them. But they will still be on the hook for an increased invoice amount.
since you put down a deposit (and I assume you are the original buyer), I don’t really understand why they didn’t price protect the order. From what I understand, it’s simply checking a box when they put it in to the system. If they did that, they can be reimbursed by FCA for the difference in pricing. But if they sell it to you above the originally agreed-upon price, then FCA will deny the claim.

 

[dxdx]

I was not aware of this price protection option at the time of purchasing. So I guess I'm either paying it or forfeiting my $3k deposit.

 

[SD Rebel]

Double check your contract, there has to be some protections there, they could jump it $10,000, do you loose a $3,000 deposit if you don't pay that some increase? That's open to big time abuse against the buyer, most contracts today are designed to protect you.

Normally I've seen if they increase the price, you can void it without losing your deposit.

I've helped a few people order cars this year, and almost all deposits were full refundable. Especially since in this market, everything sells.

 

[HSKR R/T]

I would never pay a non-refundable deposit to start with, and then, as others have mentioned, check to see if they looked in the price when you ordered.

 

[kdoublep]

Whether you pay it or walk away it's $3K if your deposit is nonrefundable and they don't budge in negotiations.

 

[dxdx]

Just checked my contract it says non-refundable. Looks like I don't have options. Is someone who ordered from Dennis Dillion this year get different contract terms than mine?

 

[Eighty]

Just checked my contract it says non-refundable. Looks like I don't have options. Is someone who ordered from Dennis Dillion this year get different contract terms than mine?

Did your contract stipulate a price? If it did, and they’re not able to hold the price, then the deal is off.

 

[Mountain Whiskey]

Maybe non refundable if they don't change the rules. Like was pointed out, what would prevent them from saying " Oh, yea, we feel like doubling your cost today. Take it or forfeit your deposit." Not likely.

By the way, what the heck were you thinking putting down a $3k deposit let alone a non refundable $3k deposit? I put down $500 and it was refundable.

 

[ben b]

Hey dxdx,

Your situation really sucks. Here is a long shot you might consider. Call RAM Incentives at 1-800-277-0757 and see if they can help.

After I ordered my truck last year, the delivery kept getting delayed. It was delayed so late that the incentives decreased by over $1000. Dealer said there wasn’t anything he could do.

RAM Incentives said that once my RAM is built, salesman can click a button called “Sold Order Protection.” This will lock in the incentive as of 2/28/2021. RAM Incentives can also do this, or they can walk the salesperson thru the process. The lady from RAM Incentives says that many salespeople don’t know about this. I ended up getting the original deal.

Incentives might be handled totally different from price changes. Still, it’s easy to make a phone call.

Best of luck. You deserve the price you agreed on at order time.

 

[SD Rebel]

Just checked my contract it says non-refundable. Looks like I don't have options. Is someone who ordered from Dennis Dillion this year get different contract terms than mine?

There is no way that's non-refundable with open terms on pricing. There has to be a clause to prevent you from literally getting ripped-off here. Worse case scenario, you expose a terrible contract for that dealership I'm sure don't want to see advertised on social media.

This would make a great hit piece on that dealership for news sites like Jalopnik and Truth about Cars. They love going after dealerships for predator practices, assuming that there isn't a stipulation that allows you to back out if the agreed upon price changes.

Honestly this is an insane contract if true. As mentioned, most dealerships do $500 deposits that are refundable.

 

[dxdx]

OP here. First, I would like to say Thank you to everyone who read this post and thank you for spending the time reading and replying and offering advise. Much appreciated.

I live in Seattle area WA, if you know the area, most dealerships here don't care to offer competitive quote at all, so I shopped around for a little while and checked 4-5 dealerships, turned out Dennis Dillon has the best offer and others didn't come close. I also checked their Google reviews etc. and it looks good to me overall, so I worked with a salesperson, signed the contract and paid $3k deposit. More about the content later. Looking back, If I used this forum to do more research first I could have avoided today's situation with DD altogether.

It was early November when I signed contract and paid the deposit, got my VIN number on Nov 8 2021. Today Feb 12 2022 Dennis Dillon called me saying the truck should be shipped from FCA soon, they were also informing me that my purchase price is bumped up for how much FCA is bumping the MSRP since I signed: $3k. I asked what are my options and was told there's little I can do about the price increase. Now I haven't received anything yet from DD regarding the price increase other than today's call, but I'm as frustrated as you can imagine.

This is the second time i'm buying a vehicle (excited to be a RAM 1550 owner), apparently I don't have much experience on that front but the MSRP change bumping up the purchase price practice is new to me. Shame on me for not reading word by word what the contract says and ask more questions before I signed into it.

Now, I bet many people on this forum who are much more experienced than me on dealing with dealership, so I would like to share the contract and deposit form and and would like to know: From your point of view, is the terms common and fair? If you don't think it's fair, what would be your way to dispute it against a dealership?

If the admin thinks it's inappropriate to share the actual contract, please let me know and I can take it offline.

Thanks again for everyone's time.

 

[KonaLaury]

I ordered my Rebel in December 2020 and when it arrived in March the Dealer told me that the MSRP had gone up by $3 or 4,000 (I forget). I told them no way and they made a big deal about absorbing it but in the end did just that.

 

[mtnbikej]

Guaranteed Price $67,066........

Except when it's not.

Kinda conflicting terms there.

I also don't like that they tell you that you cannot put more than 20% down payment......WTF???

 

[PaulieWalnutz]

I read guaranteed pricing of $67,066.. the dealer might want you to back out of the contract so they can sell it at a higher markup

 

[n8zcc]

If I was in your shoes, I would do some research on this against Idaho laws. Like others have stated, your negotiated price should be the price. I ordered in November and by the time my truck came in mid-January the MSRP went up $2,085. I paid the price negotiated in November. I also didn't have to put down a deposit, but this is Michigan and I'm sure laws are different. A deposit in Michigan is fully refundable, by law. Check Idaho laws, maybe contact the AG's office.

 

[cevans6318]

That contract looks to be shady in nature. says your guaranteed price is $67066.00 plus your fees yet statement underneath says they are not responsible for any increase in price and if the price does increase, will be passed to you. That makes no sense at all. How can you have a guaranteed price, yet it can increase at any time? I see You made your down payment by credit card, I would file a claim with your credit card company on that amount, show them the contract and dispute it. If you win, walk away from the deal. Tell them to take the contract and shove it. Sounds like some shady wording from the finance dept. I think they also put a clause for a nonrefundable deposit in there because they know they were gonna try and increase the price and you would have to accept it because they said nonrefundable. They do this to make more commission.

 

[Kicker]

I would call your states AG office and tell them the story and find out 1. what the laws are in your state and 2. can they help you out. I had a life insurance co want all kinds of medical info. after I had already been paying them for 2 years. When I took the policy they said no med. question. So I called the AG's office and told them what was happening.
My states AG called them up and set them straight.
Always helps to ask the final say.