Should cash purchase include conditional delivery?

[carshopper]

I am buying car (new sedan) with cash in full. Price is very good. Large dealership, certified for major brands.
Asked to review draft of full paperwork before signing.

• In agreement OTD price is on the line "total to finance"
• Nothing to the effect "paid in full"
• Agreement refs "conditional delivery agreement", which says I am entering "finance agreement" (not in paperwork, at least yet) and "purchase is not finalized", "transaction is conditional on final approval"

Why is this in cash deal? They say "standard language", refused to alter. I walked out.
Am I overreacting?

 

[Richie K]

My dealership's Bills of Sale have "Cash on Delivery" right above "Amount Financed", which is on the bottom line. For us, it doesn't matter if you financed or paid cash, that's how our paperwork prints and we can't change it. That could be the same as where you went to make a purchase. If you paid cash and didn't give any credit information for financing, I don't think there's any worry.
Of course, that's just how it works here, and I can't speak for other dealers.

RK

 

[carshopper]

Thanks for sharing Richie.

On "Retail purchase agreement" it's:

Total due: XX,000.00
Down payment: N/A
Amount to be financed: XX,000.00

Then there is a separate document referred from main agreement, which says:
"You have entered in retail purchase agreement and finance contract to obtain balance due, but finance contract has not been finalized. This transaction is conditioned upon final financing approval by third party".
And then there are clauses about returning car if not approved, compensating for return charges, etc.

The way it reads on paper:

1. Contract is signed.
2. I go to cash window, expecting to pay.
3. I am told I dont owe anything.
4. Transaction is in limbo of me accepting yet unknown financing or getting out of transaction with compensating various, very generally specified expenses to dealership.

From research, cash sale should have clause of "paid in full in cash" and no "conditional delivery" in it. It should read as I owe to hand in a check, and dealership owes to hand key upon that.

 

[Richie K]

Thanks for sharing Richie.

On "Retail purchase agreement" it's:

Total due: XX,000.00
Down payment: N/A
Amount to be financed: XX,000.00

Then there is a separate document referred from main agreement, which says:
"You have entered in retail purchase agreement and finance contract to obtain balance due, but finance contract has not been finalized. This transaction is conditioned upon final financing approval by third party".
And then there are clauses about returning car if not approved, compensating for return charges, etc.

The way it reads on paper:

1. Contract is signed.
2. I go to cash window, expecting to pay.
3. I am told I dont owe anything.
4. Transaction is in limbo of me accepting yet unknown financing or getting out of transaction with compensating various, very generally specified expenses to dealership.

From research, cash sale should have clause of "paid in full in cash" and no "conditional delivery" in it. It should read as I owe to hand in a check, and dealership owes to hand key upon that.

I'm not sure about all that. Did you give credit info to them? SS#, income, etc.

 

[carshopper]

There was initially a vague paper that was asking for SSN and looked like credit application. I didnt sign that and asked for draft paperwork in full before signing anything. Nothing has been signed yet.

My current concern is that main document, purchase agreement is referencing conditional delivery document, which itself is non-committal on delivering the car before pending financial contract approval, but:
- there is no financing contract in draft package; and
- there should not be any financing contract, given verbal plan is to have car paid in full in cash.

 

[Richie K]

There was initially a vague paper that was asking for SSN and looked like credit application. I didnt sign that and asked for draft paperwork in full before signing anything. Nothing has been signed yet.

My current concern is that main document, purchase agreement is referencing conditional delivery document, which itself is non-committal on delivering the car before pending financial contract approval, but:
- there is no financing contract in draft package; and
- there should not be any financing contract, given verbal plan is to have car paid in full in cash.

I'm not sure I really have a good answer for you since I can't see the paperwork, and maybe not even then. I know some dealerships do some shady things, but I can't imagine them financing a vehicle without your knowledge.
If you filled out the credit app, then maybe so. I just can't say for sure.

That said, if you every have questions about your deal and can't get the answers you need, or don't feel right about it, maybe don't do business there. A customer should never walk away confused about paperwork or feeling like they were scammed.

Keep me posted on the outcome. I am curious.

 

[jscole86]

I am buying car (new sedan) with cash in full. Price is very good. Large dealership, certified for major brands.
Asked to review draft of full paperwork before signing.

• In agreement OTD price is on the line "total to finance"
• Nothing to the effect "paid in full"
• Agreement refs "conditional delivery agreement", which says I am entering "finance agreement" (not in paperwork, at least yet) and "purchase is not finalized", "transaction is conditional on final approval"

Why is this in cash deal? They say "standard language", refused to alter. I walked out.
Am I overreacting?

Yes, you are overreacting. Go buy the car you want. Get a receipt for the cash you paid. It's that simple.

 

[carshopper]

Yes, you are overreacting. Go buy the car you want. Get a receipt for the cash you paid. It's that simple.

I'd love to, but will I get a chance to pay and get the receipt? The way it is on paper, I could very well get "you dont owe us cash, wait for terms of financing".