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Got a rollback car

Discussion in 'Gen 3 Prius Main Forum' started by aprakash, Jan 3, 2012.

  1. aprakash

    aprakash New Member

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    Hi
    I just bought a new Prius III with navigation 2 weeks back. The car had 59 miles on odo when we got it. I later got a call from the dealer that they want to do the paper work again. On drilling they told me that the car had been sold to someone else and then that person returned the car within a day. So the car is still technically a new car - but the car got registered with DMV for earlier owner and thus I am the second owner of the car.
    I haven't signed the new paperwork.
    I just wanted to know how does this impact my car ownership. Should I return the car.
    Thanks
    Anand
     
  2. 32kcolors

    32kcolors Senior Member

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    Sounds like bait and switch.
     
  3. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

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    Depends......
    Technically, you bought a used car.
    LEGALLY…..you bought a used car.
    In reality, you bought a new car that has an interesting ownership pedigree, but only has (had) 59 miles on the clock.

    Look up a G3-three in KBB and you'll see what a "used" G3 with 59 miles on the odo is worth.
    Clearly, not what a never-been-titled G3-three is worth, huh?

    I'm thinking that you and the dealer might be able to reach an agreement. I'm also thinking that the papers that you signed earlier (for a new car) are now null and void.

    Start from scratch and renegotiate.
    It "might" be an honest mistake...depending on the size of the dealership, but I'm thinking that they're in a position where they'll either have to admit dishonesty or moronic behavior.
    Good Luck!

    Do let us know how it shakes out. :D
     
  4. TonyPSchaefer

    TonyPSchaefer Your Friendly Moderator
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    There are stories of dealerships selling cars to each other and claiming the hybrid tax rebate themselves. This would make the purchaser the second owner and therefore in able to claim the rebate.
     
  5. bisco

    bisco cookie crumbler

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    oy. :welcome:
     
  6. aprakash

    aprakash New Member

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    I am able to get the rebate in this case. For Toyota its a new car. But I am just worried about potential problems with the car. Also what is the probability that the car was driven a lot more and the dealership turned back the odometer. Is there any way to know the length of ownership of the previous owner.
    Thanks for the responses everyone.
     
  7. ursle

    ursle Gas miser

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    I like the idea of finding the value of a used '11Prius 3 model4 with 59 miles on Kelley's and paying that much to the moronic salesperson.
    Take a lawyer with you, you can bet they'll have one in the room.
     
  8. stevemcelroy

    stevemcelroy Active Member

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    The car is technically a used car. The dealership messed up - I would imagine it was honest or they never would have told you - what would be the point? But the car that you bought is worth less than a new one. They would likey be most ammenible to giving you a credit for future service.

    I'd probably say something like "I bought a new car from you, and that is what I'd like unless you want to make me an offer to keep the used car". I'd be polite but hammer the words new, used and I'm sure that it was an honest mistake that you will make right.
     
  9. 2k1Toaster

    2k1Toaster Brand New Prius Batteries

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    You are not eligible for the federal rebate because you are not the first owner of the vehicle. You bought a used vehicle in the eyes of the law. Used vehicles do not get the federal rebate, only the first owner does.

    I don't see how having one previous owner for less than 59 miles will have any impact on future problems unless they track raced it all afternoon before they turned it back in. Highly unlikely.

    You can't "turn back" a digital odometer. They would have had to replace the entire combination meter which is extremely costly, and not worth the expense when Prii with 100k+ miles on them are selling.

    You can get the date of registration from the DMV. From that you will know when the car was registered to the person. The dealership should have had it re-registered to them or auction registered. If it is still registered in owner #1's name, then legally the dealership cannot sell it because they do not own it.

    Also something to consider, if you are financing this car it makes a difference between used and new. Legal definitions, which means yours is used. Usually the interest rate is higher on used car loans versus new car loans.

    It doesn't matter if that dealership considers it new (I would consider it in new condition), but legally it is not new.

    If you haven't signed anything, then take it back and walk away unless you know exactly what you are getting into: No federal rebate, potentially higher interest rate, multiple owner history which decreased sale value down the line, etc...
     
  10. stevemcelroy

    stevemcelroy Active Member

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    Selling what they believed to be a new car with 59 miles on it when it was already registered is likely a mistake. Rolling back an odometer is fraud and illegal and a very big deal.

    If in doubt run a carfax on the VIN - that will show when the car was first registered and the mileage then.

    Are there any rebates still on the Prius - the federal ones are long gone. If there are state ones read the paperwork , I'd bet it would be limited to the original owner (not you) but be sure before talking to the dealer.

     
  11. aprakash

    aprakash New Member

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    Actually I just noticed in the new contract - It says that the car is USED.
    I am thinking of talking to a lawyer.
     
  12. 2k1Toaster

    2k1Toaster Brand New Prius Batteries

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    If you bring a lawyer into it, you are just making it expensive for no reason. Is there any reason why you are personally attached to this Prius?

    Yes:
    Then my previous post is true. A lawyer will tell you the same thing

    No:
    Don't sign anything and say goodbye to that dealer.

    You are in CA according to your stats. That is the land of the Prii. Just go to a different dealer and get a different new car. They aren't ultra-rare. :)
     
  13. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

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    If you can't negotiate......

    litigate.

    (late EDIT: Personally.....I'd just walk away, sans G3!)

    Good Luck!
    Like I said before, let us know how it all shakes out.
     
  14. car compulsive

    car compulsive Active Member

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    Let me preface this by saying that I am not a lawyer nor do I play one on TV. You should consult your lawyer. But, you believed, and your paperwork stated, that you bought a new car. The car turned out to be used, which necessitates some type of correction. The range of solutions I see:

    - You sign the new paperwork changing your past transaction into a used car purchase. I think you're entitled to some form of compensation if you do this. Options include free extended warranty, free accessories, cash back, or dealer credit for a future purchase.

    - You return the car and demand a full refund. If you no longer trust the dealership, you may want to pursue this.

    - You return the car and demand an equivalent new car replacement, as that is what your sales contract states.

    Unfortunately, the value of a lightly used Prii is probably no longer greater than a new one to the dealer.
     
  15. stevemcelroy

    stevemcelroy Active Member

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    Of course it does - that is why they need you to re-do the paperwork. You had heard people say that a car looses some big % of value when you drive it off the lot - that does not mean that it looses the value when you drive it 50 feet, but rather when the car stops being new, and that happens after someone registers it for the first time. The second person to register the car is getting a used car in the eyes of the DMV even if the first person never drove it or even stepped foot in it.

    The fact that you did not realize that this makes the car used leads me to think that you might be a bit overwhelmed and confused. If so take your time and do not let yourself be rushed into a decision by the dealer. You also need to do your homework and read all of the documents and also find out about the laws in your area - in this regard google is your friend.

    By all means talk to a lawyer if you feel that you need to but realize that it will cost you money to do so. Right now you have 3 options as far as I can tell - return the car and get a full refund, keep it and receive some sort of compensation, or ask for a replacement. If you think that a lawyer will get you a better deal than you can by yourself including their pay go for it, but I do not see that as likely. Also realize that if you bring a lawyer with you the dealer will no longer deal with you (they will have their lawyer talk to your lawyer) and it will become an adversarial process. Do it if you need it, but realize that it is not without consequences.

    I'd go so far as to recommend that you not even bring up a lawyer with the dealer unless you are 100% committed to going that route - it really muddies up the water in these cases.

    The only time that a lawyer car could get you enough to make it worthwhile is if you had a case of fraud against the dealer. Given that the dealer contacted you and also the fact that they can reasonably claim that they believed the car to be new because of the mileage I do not think that you would have a case unless there is other info. Keep in mind - the car looked new, smelled new and even had new miles - the only thing that is different in this case is the car has a used title, something that would be noticed while dealing with the paperwork.

     
  16. JimN

    JimN Let the games begin!

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    Are you related to Steve Winters? Did the dealer guarantee your satisfaction? Register the VIN at http://www.toyotaownersonline.com/index.html to see the car's history.

    Without further evidence I believe a mistake was made somewhere. You don't need to make a second mistake.

    The dealer is holding a title or a certificate of origin. They can't have both. Ask to see it or get a copy.

    If the car was previously titled then legally it is a used car. Since the dealer sold you a new car they are willing to unwind the deal. DO IT.

    If you want THIS car then pay a fair used car price for it. DON'T PAY A NEW CAR PRICE.

    Is there a physical reason to walk away from this car? No. You have the same warranty & the same "free" 2 year scheduled maintenance.

    Here's my theory: Someone buys the car. Within a very short period of time they decide they aren't happy. Maybe they wanted a different color or package or a different car. Dealer takes the car back, gets them into whatever makes them happy & charges them a couple thousand dollars.

    The car goes back on the lot. Someone in the office isn't paying much attention to what they are doing & puts it back into New Inventory. Clerical errors happen.
     
  17. TonyPSchaefer

    TonyPSchaefer Your Friendly Moderator
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    I deleted any references because I didn't want to sound as though I was intentionally bashing any particular manufacturer or their dealers. But yeah.

    And no. Not that I've heard.
     
  18. aprakash

    aprakash New Member

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    The dealer is offering to take the car back, which is what I am leaning towards. However I will lose the rebate that I was getting otherwise, because the rebate offers end tonight.
    I like the car, I am getting toyota 1000 rebate and an interest rate of 3.9% - but the current situation is problematic.
     
  19. stevemcelroy

    stevemcelroy Active Member

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    Finally here is something that can form the basis of a negotiation with the dealer. What are the terms of the rebate that you will no longer be able to get?

    The fact that you are no longer eligible is no fault of yours and completely the fault of the dealer. They even took 2 weeks to figure things out after you bought the car and had they contacted you sooner you could have gotten things fixed and still qualified.

    If you either keep the car or have them swap it for a "new" one their mistake making you miss out on the rebate is something that they really need to make right to you. Obviously if you just return the car and get your money back then it is a non-issue.

     
  20. Sabby

    Sabby Active Member

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    Two points

    Do you like this car? After your two weeks of use this car is worth much less than when you picked it up. The dealer if they take it back is likely to lose 2K

    If you like the car try and keep it but make clear to the dealer you want the rebate, finance rate plus 1.5k. Be willing to settle at 1k. If you can't get 1k walk away.