My wife and I just purchased a new car (09 Jetta). Our local dealer had 2 vehicles at an advertised price of $16,995. This price included a $1000 rebate.
The current loan rates for new car purchases through VW was 2.9%, however our sales rep informed us that we would essentially lose the rebate if we were to be financed by VW. I'm no stranger to this as I've bought many cars. I asked the sales rep to run numbers with the rebate using my credit union apr (4.7%) and to also run numbers using the 2.9% without the rebate. He comes back and says that it probably makes more sense to go with VW financing unless we plan to pay off the loan early. He quoted us $310 (2.9%) and $350 (4.7%). We made the decision to go with the 2.9%
We met with the finance manager and signed all the paperwork for $310 @2.9%.
About an hour later, the sales rep left a voice mail stating that the finance manager was confused on how the rebates actually worked for this particular car.
What the finance manager actually wrote up is the sales price of $16,995 plus tax, lic, fees, etc. - $1000 rebate and at 2.9%!!
Mistake 1: The advertised price was 16,995 which included the rebate. So sales price should have been $17,995
Mistake 2: Because we choose the 2.9% financing based on the numbers they gave us, we shouldn't have gotten a rebate at all.
I know the finance guy made a big mistake by essentially selling us the car for $15,995 and @ 2.9%. The question I have is, am I required to go back and resign contracts with the corrected numbers? This dealer mistake is effectively a $2000 swing. Can they back out of the deal stating that we couldn't be financed at the 2.9% even though we already signed and were approved? Our credit scores are both above 770.
I know if the situation were reversed, there is no way in hell they would change the contract...just wondering if they could pull anything. I guess morally the right thing to do would be to offer to split the differences....what are you thoughts?