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Z-plan falling through; where do I stand?

13K views 22 replies 5 participants last post by  spittle8 
#1 ·
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?

Thanks!
 
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#2 ·
If your purchase was contingent upon the Z-plan pricing it would be important to verify that you had access to the pin first before signing a contract on this basis. I don't even think they are allowed to write up any plan deal without actually having the plan pin code. If you have a contract at this price without having provided a pin then I'm not sure what they can do about it however.

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.
 
#3 ·
If you can't prove your Z Plan then the dealership isn't going get their money from Ford.

Also word of advice:

Total out the door was $19788.10, not including my $5K down payment
Your out the door cost is $24,788

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
Hatchback
6 Speed Automatic
203A Package
Sport Package
 
#4 ·
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.

"DEALER AGREEMENT

1. By signing below, the Dealer agrees to: a) assume Ford’s 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
customer. "

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.
 
#5 ·
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.
 
#6 ·
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.
 
#7 ·
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.
 
#8 ·
Technically there isn't a cooling off period in California is there? If there is not then you may be stuck with the car no matter what, but I'm not really sure.

The Maintenance contract might be worthless, but an extended service contract or warranty might not be, but its usually available cheaper online.
 
#14 ·
If the vehicle was put in your posession by the dealer, with the knowlege that you were misguided by the dealership on the 4 digits of the social security, and then pumped up the price with worthless add ons, I would tell them a deal is a deal. They are feduciary, and as such cannot transact a contract and deliver the car to you. I don't know for sure if they have a case that would play out well for them in court. They wont be losing money if they keep the deal as you accepted. Service contracts and alarm systems are HIGHLY profitable! Sull up and be willing to go to court. You can represent yourself in small claims.
 
#10 ·
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.
 
#12 ·
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)
They said they already put 250 miles on the car, so that means they took it home and probably also started to register it through the dealer when they went to buy it. That seems to indicate to me that the car can no longer be sold as new should they try and return it.

http://www.dmv.ca.gov/pubs/vctop/d05/vc11709_2.htm

"Notice to Public: Contract Cancellation Option

11709.2. Every dealer shall conspicuously display a notice, not less than eight inches high and 10 inches wide, in each sales office and sales cubicle of a dealer's established place of business where written terms of specific sale or lease transactions are discussed with prospective purchasers or lessees, and in each room of a dealer's established place of business where sale and lease contracts are regularly executed, which states the following:

“THERE IS NO COOLING-OFF PERIOD UNLESS YOU OBTAIN A CONTRACT CANCELLATION OPTION

California law does not provide for a "cooling-off" or other cancellation period for vehicle lease or purchase contracts. Therefore, you cannot later cancel such a contract simply because you change your mind, decide the vehicle costs too much, or wish you had acquired a different vehicle. After you sign a motor vehicle purchase or lease contract, it may only be canceled with the agreement of the seller or lessor or for legal cause, such as fraud."

However, California law does require a seller to offer a 2-day contract cancellation option on used vehicles with a purchase price of less than $40,000, subject to certain statutory conditions. This contract cancellation option requirement does not apply to the sale of a recreational vehicle, a motorcycle, or an off-highway motor vehicle subject to identification under California law. See the vehicle contract cancellation option agreement for details.”"

The only loophole the op appears to have is if they can get the dealer to agree to change the contract, but chances are it won't be in their favor. The legal cause is the fact that they ended up having lied about qualifying for Z plan since they couldn't get a pin in the end and therefore the Z-plan price no longer applies, and they may at the least be liable for paying back Ford for the dealer commission, if not the remainder of the price difference outside of the rebate and other discounts qualified for.
 
#11 ·
That's a shame, I almost asked to leave the car with the dealer until the PIN came through, but they made it sound so simple and routine. I'll talk to legal counsel tomorrow before I talk to the dealer. I want to keep the car and I don't want to screw the dealer, but I don't want to pay more than what I'd get with another dealer, and if possible I'd like to shed the service plan and alarm.

Thanks again.
 
#13 ·
I did not lie about qualifying for the Z Plan, my grandfather worked for Ford for over 30 years and died on the job. I definitely qualify, but there is no way my grandma is going to remember his full SSN and the day he started working for Ford after he's been dead for almost thirty years.
 
#16 ·
I don't mean to argue, and I don't doubt that your grandfather worked for Ford, but if you and the dealer signed paperwork that turned out to be false because you didn't have the z-plan pin before going to the dealership then the fault lies with both parties. You for not actually ensuring that you had proof of eligibility and the dealer for being in such a rush to sign the paperwork and close another deal where they essentially sold the car at a decent profit + padded the bottom line with extra cost options.

I made sure that when I asked my living grandfather who had retired from Ford many years ago for the pin that I had all my ducks in a row, my drivers license, address, and everything all matched perfectly and I had my pin before I even set foot on a dealer forecourt with the intent to buy/ order a car, with a specific car /configuration in mind.

I did however go in first to check and see if I really liked the color I was thinking of since they did have a similar one in stock. However it was not equipped properly and was too old (it was a Job 1 car from 11-11 or 12-11, where as I wanted a Job 2 car with the full compliment of upgrades, plus it would be fresher.) There were none within a 100 mi radius as far as I could tell that were exactly what I wanted, so I ordered one.

You might be stuck with the car at the price agreed to, and the dealer might have to eat the commission, or you'll have to pay it back, I'm not really sure how that will work.
 
#21 ·
I ended up paying $500 more for the car, but I removed the service plan from the contract so I walked away with $500 less on the loan. I could have saved a few hundred if I'd hunted for the right price at a number of dealers I think, but it's not a major deal, and I everyone walks away happy. Glad that it ended pleasantly without the salesman getting screwed, he was a class act the whole way.
 
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