Asked to pay 1,400 more after 3 months of purchase.

[Hyo]

Hi fellow Aurionian,

I need some advice on my frustrating situation. Since I’ve been in Australia less than three years and English is not my first language, I’ll try to make it simple to understand and explain. =)

1. End of October last year, I bought an Aurion Touring SE through a Toyota employee purchase scheme.

2. I bought it through one of my friends who’s working at Toyota.

3. The car is under his name (mandatory for 11 months), but I paid for the car and drive it.

4. At the time of purchase, my friend’s discount rate was 17%. (the rate goes up as working year increases)

5. I knew that if the car is limited or special edition discount rate less 4%.

6. I emailed a dealer asking about the discount rate. Here is the email content.

Dear M,

Thank you for your email.

If I buy an Aurion Touring through Toyota employee vehicle purchase scheme, would the discount rate be less than normal discount scheme?

I've seen this notice: The discount on Limited or Special Edition vehicles is as above less 4%

Currently discount rate for me is 17%. Can I still buy an Aurion Touring with this discounted rate?

I appreciate for your help.

With warm regards,

Hyo

7. Got a reply like this.

Good Afternoon,

I investigated your queries about the 17% discount on the Touring model. This is correct. Your price would be 29041.70 (pay TMCA) You would also have to pay stamp duty and registration (approx $1380)

When could we get together to finalize something?

BR,

A M

8. Since I’ve got confirmed 17% discount rate, I purchased a car right away.

9. I enjoyed driving until yesterday.

10. Got an email from a dealer.

Good morning,

I trust the Aurion is going well.

I have been contacted by our administration department regarding a discrepancy in the in the cost of your Aurion.

I’m sure we can work it out, would you be able to come and see me in the next few days?

Many thanks,

S H

11. Went to see a dealer this afternoon.

12. He explained me like this. The price of the car was miscalculated. I need to pay 1,400 more. He mentioned nothing about 4% differences in discount rate.

13. I asked him whether that’s because of differences in 4% discount rate.

14. He said yes, and admitted that he made a mistake. However, to get to this point (mistake!) I need to show him the email correspondents.

15. I explained him that if I have known the fact that I would get 13% discount rather than 17%, I would have chosen other level of the car (pay some more and go for sportivo) or even another model (maybe camry, I like Aurion much better though).

16. I asked him what option do I have in this situation.

17. He answered, pay 1,400 or legal steps. Please note that the dealer was not impolite or something like that. He admitted he made a mistake.

18. I told him that I’ll think about it and came back home.

19. In this case what should I do?

20. I have a contract (with 17% discount rate) signed by both party. One thing curious is under additional condition in the contract there is ‘EVP pricing’ written. Not sure what it means.

21. Under Toyota employee purchase scheme, dealer works like a middle man. Purchaser pays car price to the Toyota and ORC to the dealer. If Toyota receives money, they issue release of the car and purchaser can get the car. However I paid all together to the dealer and they paid car price to the Toyota for me. One thing bothering me is how come Toyota issued a release when they've got lesser amount of money?

To conclude, I think I've got few options.

First, pay 1,400 and walk away. Which I wouldn’t like to do.

Second, take legal steps. I’m not sure how much it would cost me or whether I can win. Also I don’t know the systems in Australia (probably quite different with my home, Korea).

Third, try to find some point of compensation and pay the money.

I appreciate your valued opinions.

Thanks a lot.

Hyo

Edited February 8, 2008 by Hyo

[wishbone]

well i aint no expert...bt in skool we were taught if u enter into a legal contract and its signed....u cannot break the contract unless the other party is willing too as well..as long as they have signed the contract saying u needed to pay for the car for tht amount (less the $1400)...then i dont see y u should...mate u shouldnt need to pay tht extra 1400...i would opt to go the legal way.....bts its ur own choice....personally for me i would hate the fact some1 is trying to scam more money out of me when i already purchased something and given a final payment....good luck mate

[Hyo]

Thanks wishbone,

I think, for me, this forum is the only route for the information related to cars.

[remis]

if the contract is signed and is all written up right, as it would have to be if they let you drive away with the car they should have nothin on ya. and if they want more money just let them bring the legal action. dont waste your own money.

[GtiRboy]

The guys above me are probably right.. But maybe you should consult a lawyer first? just call a few law firms and see what they can tell you over the phone. I they tell you what the guys above have said then go tell toyota to get stuffed!

[J e r e M y]

yeah we learnt this in law contract..once u sign the paper..the contract has to go with what was 1st agreed..he cannot just started putting in more terms or changing it after you have signed it..it is not enforceable..

consult a lawyer and i think u should be able to stay with that contract..

they made the mistake..not u..they should double check the paper work n stuff like that..

[riftime]

Normally I would say that because the contract is signed by both parties with 17% discount it's locked in and no longer negotiable after completion of sale. After all, you've paid the money and they've given you a car which "locked in the deal".

Two items of concern are:

1. The EVP clause/note. It probably stands for "Employee Vehicle Pricing" discount or the like. This might give them reason to argue for the extra $.

2. You mentioned that you bought the car through your friend. So is the contract between the dealer and your friend rather than the dealer and yourself ? Does all this complicate your friend's employment or relations with Toyota ?

If it ends in court, and reason prevails, the dealer will wear the mistake. The contract inconsistency would be insignificant given that both parties at one point were satisfied with the contract and completed the transaction. One party can't later change their mind about their satisfaction and expect readjustment.

I suspect that the agent/dealer has been told by his management to fix the mistake and make up the missing $'s... or else...

If for some reason your conscience is keeping you up at night because you didn't pay what you were supposed to, try negotiating with them, say meet them half way and pay only $700 ? However, don't offer that as the first offer. Offer only $200 or the like initially. Do not pay any amount though until you get in writing that that's the final amount. Otherwise, they'll be chasing you for the $1,200 balance!

The other alternative, is to agree to retract/break the contract and return the car for a full refund. Given that the car is now used and depreciated (in their eyes) a lot more than the $1,400 they're quibbling over, I doubt that they will entertain that option... :) However, I'd try to push this line as much as possible and say that if they want to break the contract, everything needs to go back to the way it was before signing the contract (they have their car, you have ALL your money). This means reimbursing you for the stamp duty, registration, etc... :) Those alone will cost them more... Perhaps the registration will be pro-rate given that you DID drive for 3 months on the Australian roads.

Good luck with whichever way you go and seek professional advise! Perhaps even a call to the ACCC might help you. www.accc.gov.au

Edited February 8, 2008 by riftime

[elmoticus]

My first concern would be for your friend who helped you out buying under the employment scheme. I he has done anything dishonest or illegal by helping you ( even unknowingly ) then you may be compromising his position and putting yourself in a position where the dealer may be able to ask you for even more money up to the normal retail price. If it's all above boards then I think your email records should be proof enough to make the contract stand.Good luck.

[wishbone]

hyo mate... i think the first thing u should do...is go thru ur contract with a fine tooth comb....make sure u read the terms on conditions too ( the small prints as well)..basically wat im sayin is read the contract inside out...jst make sure theres nothing there saying that they have the right to ask for further payment....if i was u i wouldnt waste ur money going to a lawyer coz after all its only 1400...u may end up paying more for court and lawyer fees...if the contract states that this is ur final payment and its signed by both parties ( you and the dealer) u should def. be in the clear....if they take u to court for it....u should win bt i would also claim compensation for it too.... good luck dude!!!

[theDefiant1]

Contact the office of the automotive ombudsman and just ask

[Hyo]

Thank you all for the replies.

As some of you mentioned one of my major concern is my friend. Since this is the problem with the dealership, I think his position in Toyota wouldn't be compromised because of this. But still I need to have further discussion about it with him. As he and I know all the purchase went through proper measures.

Yes, I'll read the fine letters in the contract again and might post some questions to make it crystal clear.

Thank you again and will let you know the progress.

[AcoustiK]

Agree with all above,

See a lawyer, take your friend with you, because contract is with him and the lawyer needs to scope out this employment agreement.

With the 1,400 is that payable to TMCA? if so then your friend will be in the crossfire of this definately,

As above go through the terms and conditions with the sale contract.

Good luck

[saintly]

(agrees with everyone that has posted)

car contracts are legally binding documents.

If there's nothing in the contract that states that TMCA can demand more money from you, then take the legal action as you have done nothing wrong. PARTICULARLY when the dealer has admitted fault. The dealer probably don't want to wear the 1400, so he has asked you for it.

If they want your money, they can go through the court system.

[Glen]

Hello,

The dealer is trying to con you for his mistake/stuff up.

I purchased a Aurion through the Toyota scheme 6 months ago. Toyota would NOT release the vehicle UNLESS they have received the correct funds in full. Toyota pay the dealership approx $500 fee to process the new car. This fee is for delivery, safety inspection, detailing, arranging rego & stamp duty.

There is a listed price for each model that is payable to TMCA.

You are required to pay Toyota this amount and the remaining funds, such as rego and stamp duty. The dealer is required to arrange the Rego and Stamp duty to be paid.

Cheers.......Glen

[dannywss]

erm... if u go to court, wont the contract fail? as YOUR friend who work in toyota is the REAL buyer, not U? Isnt that actually you are doing something like illegal? Like getting the benefit which you shouldnt be able to, IF you are not working for toyota?

If AUD1400 is the TOTAL amount you have to pay to solve this problem, i think your lawyer will just ask u to pay. Coz you will end up paying that amount to him too in the end. Meaning, no matter what, you will spend AUD1400.. Either te toyota or your lawyer.. Not sure if i am right...

[One-pager]

hey there, not sure if you have gone to court or not by now.

The contract is between your friend and the dealer.

The contract is legally binding and the terms are fixed.

The car may not be transferred until a minimum of 12 months has passed since purchase (must stay under his name, however you can still drive it).

EVP stands for Employee Vehicle Purchase.

SAP will only approve the vehicle order once the order has been invoiced, meaning the price has been accepted.

The dealer is trying to jib you, don't pay anything.

[Hyo]

Hi All,

Thank you for your advices and concern.

I'll let you know the progress of the case. (actually there isn't much progress)

After 7 days of posting this thread, which was 15 Feb, We (my friend who is the official owner of the car and me) firmly notified the dealer that we're not going to pay for the extra but we'll stick to the original contract. Since then we haven't heard anything from the dealer. I assume the dealer might have managed the problem within their dealership. Even if they go after a regal process, we've decided to stick to the original contract and play along with it. If that (regal process) happens, I'll let you guys know.

Thanks.

Edited May 18, 2008 by Hyo

[Firez3r0]

I guess they have sorted it out on their own but I suppose someone will get some brushup to account for the mistake. LOL.