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Dealer fraud discovered....suggestions

5.3K views 44 replies 18 participants last post by  airlaird  
#1 ·
How do I summmarize this? I noticed OUR brand new 06' XC90 had the safety inspection due...after only one year. ALL new cars in Texas have a 2 year safety inspection sticker.
After I contacted the dealer they advised me the car was a DEMO.

1. The paperwork says it's a NEW CAR
2. They never told us it was a demo.
3. HERE'S THE BEST PART: The 4 year/50,000 warranty a NEW VOLVO has
does not come with our purchase. So, essentially, Our 06' Volvo bought in November 06 with 200 miles only has 2.5 years left on the warranty. The dealer said it apparently "sat on the lot" for almost a year".

My wife is beside herself I AM absolutely LIVID. Any suggestions when I go in there on Monday.
We were flat out lied to. This is obviously a deceptive sale and smacks of fraud by not telling us the car actually was a demo AND the warranty was half gone when we bought it.
Any thougts.
airlaird
 
#2 ·
i think you answered your own question. if the paperwork says NEW...it doesn't matter how long it sat on the lot. the car is NEW to YOU, and therefore the warranty starts when you take possession.
 
#3 ·
Re: (phuz)

Quote, originally posted by phuz »
i think you answered your own question. if the paperwork says NEW...it doesn't matter how long it sat on the lot. the car is NEW to YOU, and therefore the warranty starts when you take possession.

Unless the dealer titled it?

The inspection sticker makes sense because the dealer inspected it when received/put on the lot. The warranty shortfall does not make sense......unless it was titled already.
 
#4 ·
well, if the car was sold as NEW, it shouldn't be titled.
 
#5 ·
Re: Dealer fraud discovered....suggestions (airlaird)

In a future, you might consider a couple of red flags - MY06 is already at least a few month old in November of 2006.

200 miles is high for the car from the inventory.

However,

you should have a full warranty, if you are the first registered owner, and I do not think that dealer actually obligated to describe in details how do they get 200 miles on the car. It is totally your decision.

I have gotten my first new car (showroom demo) with 1000 miles on it many years ago, and was really happy having demo Stanza GXE with every possible bell and whistle for a price of basic XE (more than 5K in "free" options - 21K MSRP car for 14.750).

I hope you have had a good deal too
Image
 
#6 ·
Re: Dealer fraud discovered....suggestions (gascos80)

Quote, originally posted by gascos80 »
you should have a full warranty, if you are the first registered owner, and I do not think that dealer actually obligated to describe in details how do they get 200 miles on the car. It is totally your decision.

Quote, originally posted by phuz »
well, if the car was sold as NEW, it shouldn't be titled.

Agreed to both. Any dealers want to chime in on this one?
 
#7 ·
Re: Dealer fraud discovered....suggestions (MagoonR)

I don't consider a NEW car with 200 miles a red flag. Sure, it was probably a test driver car...no big deal. I don't know if it was titled or not. Volvo say sit was not. So again... WHY DO I not have a 4 years 50,000 MILES WARRANTY WITH MY "NEW"XC 90???????????
airlaird
 
#8 ·
that is a question for them, not us.
 
#9 ·
Re: Dealer fraud discovered....suggestions (gascos80)

Quote, originally posted by gascos80 »
In a future, you might consider a couple of red flags - MY06 is already at least a few month old in November of 2006.

Didn't you mean the MY07's would be a few months old?
 
#10 ·
Re: Dealer fraud discovered....suggestions (airlaird)

Quote, originally posted by airlaird »
How do I summmarize this? I noticed OUR brand new 06' XC90 had the safety inspection due...after only one year. ALL new cars in Texas have a 2 year safety inspection sticker.

Check the production date of your XC90. Its possible that it was an early MY06 with a 2005 production date, thus explaining the disrepancy with the safety inspection date.

Who told you that the in-service date started prior to your purchase? What paperwork do you have that attests to this? I think that the dealer or dealer rep misunderstood the first in-service date as the date that it was originally PDI'ed. One other logical explanation is that the vehicle could also have been a dealer trade, hence explaining why your dealer had a vehicle with an early production date AND 200 miles on it.

I am 99.99% sure that you still have 39 months left on your warranty........
 
#11 ·
Re: Dealer fraud discovered....suggestions (njb8199)

A car doesn't have to be titled (or PDI'ed for that matter) for the warranty to start ticking away. A retail delivery report (RDR) is all that needs to be done.

The dealer I used to work at, RDR'd demos (some do not). Other dealers RDR'd new vehicles in order to take advantage of a special incentive. i.e. there was an extra 2k cash incentive given to close out January sales strong, they would RDR a bunch of unsold units so they would have a 2k price advantage over us the next month. There has also been a few occasions when VolvoCars effectively told the dealers to RDR the rest of the past model year's left in stock to close the books.

The key is that the warranty starts running at the date of the RDR. Good dealers will disclose anything like this. If you were not notified that the car was a "demonstrator" or had a warranty that had already been activated, the dealer should compensate you.

A fair compensation would be to provide you with a $0 deductible Volvo Extended Service Contract. This will as close to mimic your factory warranty as possible and also provide you with OnCall. If I were in your position, I would be asking for them to pay not just for a warranty term that effectively covers you for the same amount of time the factory warranty would, but rather, for the longest warranty term possible to make up for their deceit (or perhaps it was just an honest oversight on their part - sometimes even good dealers make mistakes).
 
#12 ·
Re: Dealer fraud discovered....suggestions (dugums)

Quote, originally posted by dugums »
A retail delivery report (RDR) is all that needs to be done.

That too, I forgot about that as well.

I agree with your compensation terms and I think that they are more than fair.

Keep in mind that sales reps are not always told which units are RDR'd so...... Kind of a sticky situation and I hope it works out for the best for both parties.
 
#13 ·
Re: Dealer fraud discovered....suggestions (njb8199)

MY07 could be 3 month old today. Production usually starts in April (week 20) if I am not mistaken. So MY06 in November of 2006 will be somewhat from 6 to 18 month old. Hence my comment - at least a few month old.

Another comment - 200 miles is a lot. A car from inventory should have just a few miles accumulated on loading/unloading/transfers.
Typical test drive in LA is ~10 miles. Quite a few people have tried that one...
It is not a big deal - as I said I had one with a 1000 miles, but it was heavily discounted, and I want to say that I have had a full warranty, but it was too long ago, I do not remember.
 
#14 ·
Re: Dealer fraud discovered....suggestions (gascos80)

Read my explanation about a potential cause for the higher than average mileage. I said it COULD have been a dealer trade.......
 
#16 ·
Re: Dealer fraud discovered....suggestions (airlaird)

I would be mad as hell.

You bought a new car in good faith.

all this stuff about 200 miles on the car being too much, 06 car being too late for buying at that time of the year is hogwash. You were buying a new car from a volvo dealer, not some guy on a sidestreet or private buy.

You went to the dealer, negotiated for a new car, was told the same and now discover
1- its not new but a demo
2- the warranty is not complete
3- was titled who knows when ( I don't understand RDR but apparently that is relevant)

Even if you obtained an excellent deal, this is unethical.

I would ask for a new XC90 at their expense. Write/call volvo if they are not willing to play ball. Negotiate down from that, personally I would not settle for anything less but you may.

I hope you have paperwork that shows you bought a new car
 
#17 ·
Re: Dealer fraud discovered....suggestions (obiwan)

Quote, originally posted by obiwan »

You bought a new car in good faith.

all this stuff about 200 miles on the car being too much, 06 car being too late for buying at that time of the year is hogwash. You were buying a new car from a volvo dealer, not some guy on a sidestreet or private buy.

You went to the dealer, negotiated for a new car, was told the same and now discover
1- its not new but a demo
2- the warranty is not complete
3- was titled who knows when ( I don't understand RDR but apparently that is relevant)

Even if you obtained an excellent deal, this is unethical.

I would ask for a new XC90 at their expense. Write/call volvo if they are not willing to play ball. Negotiate down from that, personally I would not settle for anything less but you may.

I hope you have paperwork that shows you bought a new car

What constitutes a DEMO? If Joe Blow walks in and wants to test drive any vehicle on the lot, is it then a DEMO?
What if the dealer has 6 cars on the lot that have been test driven numerous times by a potential buyer, but no sale?
It would seem to me the issue isn't whether the car is a demo or not, but that the owner should have a full warranty on that vehicle, as it was presented as new. New means full warranty.

Years ago we purchased a Mercury Sable new (1996) that had 210 miles on it. It came with a full warranty.
 
#18 ·
Re: Dealer fraud discovered....suggestions (airlaird)

Quote, originally posted by airlaird »
How do I summmarize this? I noticed OUR brand new 06' XC90 had the safety inspection due...after only one year. ALL new cars in Texas have a 2 year safety inspection sticker.
After I contacted the dealer they advised me the car was a DEMO.

1. The paperwork says it's a NEW CAR
2. They never told us it was a demo.
3. HERE'S THE BEST PART: The 4 year/50,000 warranty a NEW VOLVO has
does not come with our purchase. So, essentially, Our 06' Volvo bought in November 06 with 200 miles only has 2.5 years left on the warranty. The dealer said it apparently "sat on the lot" for almost a year".

My wife is beside herself I AM absolutely LIVID. Any suggestions when I go in there on Monday.
We were flat out lied to. This is obviously a deceptive sale and smacks of fraud by not telling us the car actually was a demo AND the warranty was half gone when we bought it.
Any thougts.
airlaird

Vox audita perit, littera scripta manet (the spoken word perishes, the written word remains).

Were this me, I'd first check my signed agreements, including fine print. If I felt I was on firm ground, I'd present my case (in writing) to the manager of the dealership (I'd send them a xerox of all my paperwork made and would not leave anything original with them...).

I'd decide on what I'd request as a fair settlement. I think some proposals in this thread have merit. I'd include this in the communication to the Manager. I'd send the document Fed-Ex so you have proof of receipt.

Then I'd wait to get a phone call from them. If I was unhappy after their response, then I'd forward a copy of all correspondence to Volvo NA in Irvine. After that if I was still unhappy, I'd get a lawyer.

Several years ago our house burned down with loss of all possessions, including baby photos etc. Since then my wife, kids and I realize that there are few things important in life such as health and a decent relationship. It is normal to feel bent out of shape and cheated when something like this happens. The dealership may not be deliberately trying to shaft you, but it may in fact be a genuine mistake or simple misunderstanding. I'd encourage you to take a deep breath, relax and approach things logically and calmly. I'm sure it will all work out just fine.

Good luck.
 
#19 ·
Re: Dealer fraud discovered....suggestions (airlaird)

Airlaird:

If I were you I would calmly talk to your Attorney General in Texas and see what they think, you do not have to start the formal complaint process, they usually will help you before you start it and can give you some tips on your rights as a consumer. This is good to know before you start the conversation with the dealer.

I would definately do that before you talk to the dealer.

When you do talk to the dealer, do it calmly, like Obiwan indicated, shouting will not get you anywhere except an escort to the door.
 
#21 ·
Re: Dealer fraud discovered....suggestions (airlaird)

Quote, originally posted by airlaird »
That is my plan...to insist on an extended warranty for their deceit. What is Volvo's extended warranty, 100,000 miles??
airlaird
The VIP extended warranty doesn't cover everything the 4/50 factory warranty does. I'd ask them to buy it back and apply it to a real new car. Volvo will never extend your true factory warranty because they can't. To be fair, 200 miles on the odo should have raised some alarms...that's not enough miles to be a true demo, by the way. the dealer's girlfriend was probably driving it until her C70 came in.
 
#22 ·
Re: (phuz)

Quote, originally posted by phuz »
i think you answered your own question. if the paperwork says NEW...it doesn't matter how long it sat on the lot. the car is NEW to YOU, and therefore the warranty starts when you take possession.

If the car was flagged in the system as a Demo,then the warranty starts on the demo date.
 
#23 ·
Re: Dealer fraud discovered....suggestions (MagoonR)

Quote, originally posted by MagoonR »


Agreed to both. Any dealers want to chime in on this one?

If the car was s demo,that should have been disclosed from the beginning.

Chances are,the customer recieved an extra discount because the car was a demo. However,that doesn't excuse not disclosing it.
 
#24 ·
Re: Dealer fraud discovered....suggestions (mjbr24)

Quote, originally posted by mjbr24 »

The VIP extended warranty doesn't cover everything the 4/50 factory warranty does. I'd ask them to buy it back and apply it to a real new car. Volvo will never extend your true factory warranty because they can't. To be fair, 200 miles on the odo should have raised some alarms...that's not enough miles to be a true demo, by the way. the dealer's girlfriend was probably driving it until her C70 came in.

Actually, the only thing the VIP doesn't cover is paint,trim and upholstery.
 
#25 ·
Re: (MagoonR)

Quote, originally posted by MagoonR »


Unless the dealer titled it?

The inspection sticker makes sense because the dealer inspected it when received/put on the lot. The warranty shortfall does not make sense......unless it was titled already.

Exactly!!
 
#26 ·
Re: (r_driver04)

Again, for clarification, the car does not have to be titled for the warranty to start.

A dealer could report a car to Volvo for any number of reasons that would start the warranty.

Demo, saving incentives, etc....