Just last night I went ahead and took a lease deal for a car. I signed all the paperwork, paid my out of pocket money and doc fees etc. in full. I requested I not take delivery of the vehicle until the plates have arrived and placed onto the veihcle.

The problem is now that with all the dealerships that I have contacted in my haggling, one dealership proposes that he can give me a better deal and kept poking at the question of it I drove the home that day.

(1) Is it legal practice to back out of a lease even though everything is paid full and through, but delivery has not been taken?

(2) What would be the most amicable way of trying have the existing dealership match the price of this "competitor"

it's a lexus es350 if that makes it any easier. maybe lexus has some quirky rules?

 

You might have more luck with this in Car Talk. Maybe a mod can move it.

 

Gotta ask, why didn't you want the car without plates?

 

oops sorry it gets moved to the appropriate section

lol everyones asking me why I didnt take the car. I don't have the room for it yet until I get my mom's current car lease done with. Plus I wanted to take advantage of the Lexus promo. I haggled them down to "pay the first month's payment" in addition to reducing the cap cost down to $500

so in my eyes and wallet. it wasn't much a big deal.

 

You have signed a contract. Read it and see what the terms of a cancellation are and would there be a penalty.

The deal is done. Unless you can back out cheaply, you have no leverage to get the dealership to cut you a better deal.

 

you bought the car, pick it up and enjoy it

 

contract law ownz you!

 

Yep the deal has been done once you signed those papers.

You could turn in your moms car early that way you can drive the new lexus now

 

You sign the papers and pay the money, the car is yours. You can't back out now, as others above have said.

 

If you sent them an application and got approved, they would be able to use the approved application to hold the rate and residual. Lexus gives you 30 days to do that. I did it for a friend of mine, he doesn't need his new car until the beginning of February, I sent in the application and the dealer marked the car sold to him (Had to do this so we can also apply the rebate that's on the car), and I'll be delivering his RX350 to him at the end of January. Marking the car sold can work for or against us. It works for us if the program gets worse, but against us if Lexus enhances the program or rebate. We HAVE to use the program and rebate that we got him approved with at that point.

I THINK NJ law allows you to back out within 24 or 48 hours, but you gotta look up the law book to confirm that. If not, than i'm afraid it's too late.

You're already paying for the car, you may as well drive it

 

You are now the lessee.

 

so in this event, your friend basically called dibs on the car plus all promos and rebates, but won't actually start paying for the leased car until february?

 

This is correct. I pretty much protected him in case the program gets worse. If it stays the same, nothing changes...but if it gets better, he has to go with the program we have the deal approved at, because according to Lexus, he took delivery of the car in December because the dealer marked the car sold for the month to get the applicable rebate.

In your case with the ES350, if you took an '08, there was $1,000 dealer cash and if you currently have an ES with Lexus Financial Services, you are entitled to an additional $1,000 Loyalty rebate. If you got an '09, you lose the dealer cash but the $1,000 Loyalty incentive is still there. The program on the '09 is a little stronger than the '08 (higher residual) and as a result, even with the '08 having the extra dealer cash the program is almost the same with the '08 and '09.

 

and correct me if I'm wrong. Lexus will allow this for a 30 day period. and is this even after I sign off on and pay my obligations up front? if this is the case, any chance I can get my paperwork amended? I can save myself a whole month's payment

 

No, chances are the dealer already sent the paperwork to the bank. At that point it's too late. You can go back to them and see what they say though. If they didn't send it in to the bank you might be able to get them to retract it, but my $100 bucks says it's too late.

 

you can back out within a few days and have no problem. ny state is 3 days. not sure what nj is, probably the same

 

I'd love to know where you heard that from. I know of no such thing in NY.

 

Thank you very much for all the information. It saved me a lot of time googling general rules and cached pages. I guess the headache isn't over for me just yet with lexus. I hate new car dealings.

 

right to rescind, im not sure if it applies to auto contracts, but i know it applies to other contracts

edit: http://www.nysada.com/

 

get a free consultation from a contract lawyer, and he will tell you whats possible

 

I spent 15 minutes going through this site you post and I don't see anything of what you're talking about..

 

also:

page 25, starting at line 25, http://assembly.state.ny.us/leg/?bn=S05072&sh=t

 

That applies BEFORE taking delivery of the car. And I think it's the purchase order or bill of sale, not lease agreement. He signed all the documents and requested not to be driving the car just yet, but he already paid for it, so he's paying for a car he isn't driving yet.

 

http://www.bills.com/blog/rescind-an-auto-purchase/

 

This one applies more to the topic...
http://www.state.nj.us/lps/ca/ocp/autoguide.pdf

Page 3, 2nd paragraph...
So basically, you were given 1 day BEFORE signing to review the contract. But seeing how the contract is signed and amounts due were paid, and there's no indication of any fraud on the part of either parties, the contract is binding.