Z-plan falling through; where do I stand?
Here is my situation.
I purchased a 2012 Focus SE w/ Sport 203A on Saturday during the Labor day weekend sale. I put $5K down, got $2K in manufacturer's rebates, with a base price of $17,962.81. I was told I needed to install their KARR alarm system for $695 because my insurance would be lower and the standard alarm sucked. On my contract, it was $595 with an additional $195 for theft protection. I was sold a 6 year, 60K service plan for $1360, but I did not get the extended warranty.
Total out the door was $19788.10, not including my $5K down payment, or ~$18,500 without a service plan.
Here is my quandary. I told the salesman that my Grandfather worked for Ford for decades, and my Uncle had told me I could get the Ford Z plan through my Grandmother, who is in a nursing home. The salesman and the finance officer stayed late to finish the sale with me, and I was told they had written it up with the Z-plan included, and that it saved me around $1500 or so. I was told my Grandma would know what to do to get the Z-plan PIN for me, that it was simple, and she'd just need her last four of her social security number or whatever. When the Ford operators came back to work on Tuesday, they requested my deceased Grandfather's FULL social security number, the date he started working for Ford (which would have been in the 1960's,) and some other stuff my Grandma didn't know anymore.
Needless to say, I can't get a PIN for the Z-plan now. I've kept the dealership aware of what's going on, and my salesman has said to keep him posted, but worst case scenario is that he can't give me the Z-plan and my payment would go up ~$40/month.
That is unacceptable to me, my purchase was contingent on getting the price that I paid, and I would not have gone for such an expensive car otherwise. I would have used my military discount on a more basic SE or S instead, but my uncle and the salesman gave me confidence that getting the Z-plan PIN would be far more simple that it actually is. As my contract is written up, it states that any changes must be in writing and both the dealership and I must sign it. As I see it, I either keep the deal I currently have or I do not want the car. Do I stand to lose any part of my down payment if they cancel the contract and request return of the car?
The sale won't get approved by ford at that price without the documentation and pin code. Ergo if the dealer tried to push it through they would then have to take the loss/ pay the difference, if they didn't renegotiate the contract with you.
Technically you would owe the difference if you were to keep the car however.
If you can't prove your Z Plan then the dealership isn't going get their money from Ford.
Also word of advice:
Also I pretty much that Alarm is a gimmick.
I priced up a 2012 hatchbak Focus Sport Package 203A package with Automatic, your price should be $20,313. Now you purchased an extended service plan for $1,360 and an additional alarm for $695. That brings your price to $22,368.
Now I see that you live in CA TTL=10% so your OTD cost should be $24,604.
Which is $183 LESS then what your at now with "Z-Plan". I'd tell the dealer $24,604 OTD with the Alarm plus the extended service plan if you want those. They should be happy with that deal.
O yes and I'm assuming the following
6 Speed Automatic
A-Z plan rules:
"Eligibility: Purchasers are not required to provide proof of eligibility at time of sale beyond providing their PIN and last 4 digits of Social Security Number. However, the company reserves the right to perform audits of AZ-Plan sales and may require employees or retirees to provide proof of relationship documentation."
From the a/z/x/d plan agreement form:
"CUSTOMER AGREEMENT AND VERIFICATION OF DELIVERY
By signing this form, the customer acknowledges receipt of the vehicle designated above and indicates that the customer has read or has had the
opportunity to read, the Plan rules and agrees that he/she will not violate any Plan provision or solicit any money, price discount, or any item of value in excess of $50 (dealership cost), from anyone in connection with the purchase or lease of a vehicle under the Plan.
This form does not impact the completion of the financing documents that may be used in the course of the sale transaction. Specifically, the form
should not be used to determine the cash price in a retail installation contract or the agreed upon value of the vehicle in a lease. The financing
documents must be completed in compliance with all applicable laws.
Penalties for violation of Plan provisions may include one or more of the following: termination of Plan privileges, disciplinary action up to and including termination (Ford employee) and/or requirement that the customer or employee reimburse the Company for the amount of any Dealer commission paid by the Company.
1. By signing below, the Dealer agrees to: a) assume Fordís obligation for delivery of the vehicle, b) collect from the purchaser the amount specified
in the Plan, c) comply with the terms and conditions of the Plan, and d) complete this form and provide it, along with a copy of the factory invoice
to the Purchaser under any Plan and provide a completed lease agreement supplement for all leases.
2. Ford agrees to pay the Dealer the commission in effect under the applicable Plan. If a Participant does not accept delivery of the vehicle within five
(5) working days of notification by the Dealer that the vehicle is available for delivery to the Participant, unless otherwise agreed to between Dealer
and Participant, the Dealer is relieved of all obligations to Participant. The vehicle then becomes the responsibility of the Dealer and no commission
will be paid.
3. By signing this agreement, the Dealer acknowledges receipt of copies of the Plan and agrees: a) to comply with the terms and conditions contained
in the Plan and b) that violation of any Plan provision by the Dealer or anyone acting on behalf of the Dealer may result in Dealer or any employee
of the Dealer being: (I) declared ineligible to participate further in the Plans, and (II) charged back any commission paid by Ford on transactions in
which violations occurred or a $200 assessment depending on rule violation, see C&I Audit Matrix for complete details.
4. By signing this agreement, the Dealer confirms the amount of the Total Extra Charge Items and that these items have been fully explained to the
So it sounds like you'll either have to pay them back the extra money, or return the car. Since your license plates and paperwork were already submitted + the loan documents it would be difficult to just walk away.
Nope, it's a manual sedan. It was $21,788 out the door with tax, title & license, including the $790 alarm and $1360 service plan. So, $19,638 for the car, minus the extra tax on the alarm and service plan. $19,423 for just the car, out the door, then? I put down $5,000 with the $2,000 rebate, so that would leave me with $12,423 left to finance for just the car alone. I'm financing $14,788 as is.
I had my price fixed on the S, but I ended up with an SE by the end of the day and went with the best price I could find locally. USAA's car buying service recommended a $16,595 price for the car before TT&L, after rebates and military discount, no Z Plan.
What are my options, then? I don't want to pay more, and I can get a better deal through my credit union anyways. I do not want to keep the car if it means I am paying almost $300 a month for this car.
Kill the service portion of the contract. Saving $1,300 or so and it is NOT WORTH THAT MUCH.
First all it will cover is a few oil changes, and even fewer air filters.
All the rest is a waste of money.
Cut that out .
The alarm system is total gravy too. Cut that off also. Your insuranc is NOT going to be any lower. Just because the salesman says so? Ask the agent. I bet they tell you NOT!
No where near $800. that is just some rip off of the dealer.
That is $2,100 right there.
Then it will lower your cost some.
Geez, I knew I should have gone with my gut and common sense IRT the alarm and service plan.
Here's what I'm wondering now: can I get them to annull the current contract so that we can negotiate a new contract? If so, if they are asking too much for the car, can I still walk away? I have kept the car immaculate and I've put about 250 miles on it. I want to keep the car, and I don't want to screw the dealership, but I also don't want to be paying more than I should be and I don't appreciate pressure salesmanship.
Thanks again everyone, you guys are a light in the tunnel.
The Maintenance contract might be worthless, but an extended service contract or warranty might not be, but its usually available cheaper online.
Even if they weren't supposed to sell me the car without a PIN, I'm stuck paying the new price without the Z plan, which is already inflated? Surely that can't be legal.
Depends on if you drove the car home or not, if you did and registered it that creates an entire legal issue. Although you could play hard ball with them (Legal costs is alot)
I once had this experience with an individual. During 2008 the banking crisis went up and Chrysler financial went down. I had just done a delivery on a Chrysler product and my company said they had to find a new finance source and the customer was going have to accept a higher payment.
At this point I sided with the customer, cause we shouldn't do that. I then backed away and let my mgr handle it. In the end the customer said "I'm keeping the car, and I'm going to make my agreed upon payments and I will not pay higher and if you don't accept that we can go to court"
Well at the end of the day the costs to us was about $1,200...A court case can quickly be more then that. Also there is a chance we'd lose the case (as there always is) so we decided to just keep him at the same price/payment etc and take the hit.
IMHO the dealer should take the hit on this one.
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