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Discussion Starter · #1 ·
I placed an order for an 2021 m340i xdrive with Princeton BMW using a third party broker. Leasing terms were set, and agreed upon and order was submitted on 4/29. GM of Princeton BMW calls me and due to “Market conditions” they no longer work with 3rd party brokers and my terms need to be adjusted. I was getting approximately 9.5% off before incentives, now it’s cut down to 6%. This again is for my custom build agreed upon back in April which is now ready for transport. Pretty shady, only response from them was “due to market conditions” and “this is direct from Holman management”.
 

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Discussion Starter · #3 ·
That sucks. Call other dealers.
Wish it was that easy… low inventory, only MSRP, not looking at paying over $750/month on a 3 series. Dealers look at their inventory nowadays like gold due to “market conditions”
 

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Call BMW NA and file a formal complaint against them.
This might not resolve your particular situation but at least sends the dealer a message and may deter them.
 

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02/2012 X5 35d M57Y CPO 105K miles NOKIAN WR G3 20K miles
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The real Golden Rule.
 

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Discussion Starter · #7 ·
Call BMW NA and file a formal complaint against them.
This might not resolve your particular situation but at least sends the dealer a message and may deter them.
Already did, but as I already guessed, because it’s independently owned, there’s not much they can do, besides note the complaint. Already filed complaint with BBB and NJAG for deceiving business tactics.
 

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hard to believe that they can do this if you have a signed agreement that’s firm
I don't believe there is a Bill of Sale until full payment/finance terms are agreed. At most, buyer made a deposit and there was a Letter of Intent. The dealer is legally within it's right to modify the terms. If buyer does not agree, they can just give back the deposit buyer made. In this particular case, they feel the car that buyer/OP created has much more value in this market and so they are trying to shore up a loss they believe is coming to them by selling the car at a 9.5% discount.

With that being said, buyer/OP is well within his right to voice his complaint and the dealer should expect it. I would personally include Google, Yelp, Facebook, etc. in the list of forums to air your grievance. Mental note to self: Stay away from Princeton BMW.

OP: Hope you find a better deal elsewhere for a M340.
 

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Buy a Mercedes or a Lexus. Send a copy of the window sticker to BMW NA, telling them why you didn't buy a BMW. Repeat every three to ten years.
 

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It sounded like "terms were set and agreed". At what point is a deal, a final deal in the US?
In the US, a Bill of Sale needs to be signed. Traditionally, a Bill of Sale was only executed on the day of delivery.

A Bill of Sale requires specific information - ODO mileage on delivery, VIN, etc. - that is not available when creating/building a vehicle.

Further, no Bill of Sale, no financing.
 

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In the US, a Bill of Sale needs to be signed. Traditionally, a Bill of Sale was only executed on the day of delivery.

A Bill of Sale requires specific information - ODO mileage on delivery, VIN, etc. - that is not available when creating/building a vehicle.

Further, no Bill of Sale, no financing.
Are you saying that there's no commitment to financial terms before day of delivery? That would be frightening.... both parties would be at risk if that is the case.
 

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Discussion Starter · #13 ·
Correct this is where dealer integrity comes to play. Yes customers can back out, but it still usable inventory for a dealer. If the dealer backs out in my case I’m SOL without a car, credits already been hit, and have to repeat the car buying process.
 

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Are you saying that there's no commitment to financial terms before day of delivery? That would be frightening.... both parties would be at risk if that is the case.
It is impossible to commit to set financial terms for anything several months in advance. Especially if a third-party financial institution (loan from bank) is involved. Interest rates and lease factors change.

This is where a Letter of Intent comes in. A seller can intend to sell a vehicle at this particular price and the buyer can intend to purchase a vehicle at this particular price. That is why a deposit is made. Should things change, whoever is at a grievance in the end keeps the deposit.

In OP's case, because the dealer changed the terms, he is entitled to get his deposit back.

The way this can protect a buyer is by this example:
Let's say you design/build a M550i with a dealer and it takes 13 months to build. But in that time you end up having oopsie twins and your wife completely opposed to spending money on a sedan when you need a minivan. Would you want to be on the hook for $100K on a car you can't use or forfeit $500? Committing to $100K months in advance is far more risky.
 

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It sounded like "terms were set and agreed". At what point is a deal, a final deal in the US?
The deal is final when you've signed the bill of sale and the car has been legally titled in your name as a result.

I know this as I had a similar situation when I purchased my 530e at a NJ Dealership similar to OP (BMW of Princeton is in Princeton, NJ). The dealership wanted to back out due to how aggressively I got my price down in negotiations. When it showed up from transport my sales person was no longer employed there and it took a few days of back and forth arguing between me and the sales manager to convince them to honor their price and sell me the car. I researched my options, including calling NJ Attorney's General office and others, and I was told the same thing consistently; "the dealership isn't obligated to sell you the car, but they'll have to return your deposit". In the end, I'm convinced I was able to prevail due to my 530e build being far more expensive than is typical for the area so they probably figured they could back out and have it on the lot for a long time or give in and wash their hands of it. Thankfully they gave in. I had negotiated my car down so far it was pretty insane of a deal at the time honestly.

The market is a mess right now so it makes ordering with any kind of discount risky I am sure. I would recommend OP to keep pressure on them to honor their agreed terms and hopefully he prevails.
 

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I see how it protects both parties in the situation when there's a long delivery time.... but to have the dealer say "oops, we need to change the price" doesn't seem right. If a dealer pulled this with me, (where he knows he's got me over a barrel), I'd be reluctant to ever deal with him again. They certainly wouldn't get my ongoing service.
 

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I see how it protects both parties in the situation when there's a long delivery time.... but to have the dealer say "oops, we need to change the price" doesn't seem right. If a dealer pulled this with me, (where he knows he's got me over a barrel), I'd be reluctant to ever deal with him again. They certainly wouldn't get my ongoing service.
I agree, but the market is so lopsided right now due to industry wide shortages they have more of an upper hand than they usually would. In the Philly area where BMW of Princeton is there are over 20 BMW dealerships in a 100 mile radius. The competition is fierce. For all we know, they may consider OP far enough away to go "they won't be coming here again anyway". For me the dealership I purchased from was 70 miles away and I have 8 within 30 miles of my house...
 

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I agree, but the market is so lopsided right now due to industry wide shortages they have more of an upper hand than they usually would. In the Philly area where BMW of Princeton is there are over 20 BMW dealerships in a 100 mile radius. The competition is fierce. For all we know, they may consider OP far enough away to go "they won't be coming here again anyway". For me the dealership I purchased from was 70 miles away and I have 8 within 30 miles of my house...
ya, I get it. They may not expect to get his ongoing service. In my mind, a commitment is a commitment. It made business sense to both parties when the deal was made, so you have to stick to it. It's short-sighted from the dealer's perspective. If I heard that my local dealer did this to people I wouldn't trust him.
 

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ya, I get it. They may not expect to get his ongoing service. In my mind, a commitment is a commitment. It made business sense to both parties when the deal was made, so you have to stick to it. It's short-sighted from the dealer's perspective. If I heard that my local dealer did this to people I wouldn't trust him.
I agree 100%.

Was only adding additional context. I was pretty frustrated having been in a similar situation.
 
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I’m confused on the premise - BMWFS provides a full lock-in (and actually you swap to the the best terms offered during the entire order period) and the OP seems to indicate they might have done that?

The reason car deposits are refundable to the consumer is due to statutes, there’s no statutes that prevent binding the dealer and it’s possible that in small claims court they’ll find there was a contract formed

It is impossible to commit to set financial terms for anything several months in advance. Especially if a third-party financial institution (loan from bank) is involved. Interest rates and lease factors change.

This is where a Letter of Intent comes in. A seller can intend to sell a vehicle at this particular price and the buyer can intend to purchase a vehicle at this particular price. That is why a deposit is made. Should things change, whoever is at a grievance in the end keeps the deposit.

In OP's case, because the dealer changed the terms, he is entitled to get his deposit back.

The way this can protect a buyer is by this example:
Let's say you design/build a M550i with a dealer and it takes 13 months to build. But in that time you end up having oopsie twins and your wife completely opposed to spending money on a sedan when you need a minivan. Would you want to be on the hook for $100K on a car you can't use or forfeit $500? Committing to $100K months in advance is far more risky.
 
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