Can an auto dealership rescind a rebate after documentation has been signed by both parties?

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Can an auto dealership rescind a rebate after documentation has been signed by both parties?

Last week, I purchased a new car from a dealer via financing. At signing, I was informed that I was eligible for a $500 “Family First” rebate which is included in the overall credit deduction from the total price of the automobile. I received a message from the dealer yesterday informing me that, because I no longer reside at my father’s residence, the manufacturer will not approve this rebate and I must pay the dealer an additional $500. This is the dealer’s error. I provided my present address at signing. I have driven the car for one week.

Asked on November 11, 2011 under General Practice, Delaware

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you purchased a vehicle and you believed that you qualified for the $500 rebate and have signed documentation by the dealer and yourself showing that you are entitled to this rebate, you should be entitled to it in that had you not received the rebate, you might not have purchased the vehicle that you did.

If the error in giving you the rebate was an error by the dealer and you did not realize that there was an error until after you had purchased the vehicle and driven it off the lot, then the error is something the dealer needs to absorb not you. The error was an unilateral error on the dealership's part.


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