Urgent question about buying a car from Car Max

[Rerun]

A fellow employee here at work went to CarMax Tuesday evening looking for a car. He found a car that they wanted $14,000 for and he signed some kind of paperwork (don't know exactly what and he doesn't either)

Yesterday they were doing an employment check on him as he was buying it on credit (he has bad credit).

Yesterday he changed his mind and decided he just couldn't afford the payments so he doesn't want the car.

He hasn't taken possession of the vehicle and the only paperwork he signed was the paperwork at his initial visit.

CarMax says he can't back out of the deal. Is this true?

I have personally never dealt with a company like this so I don't know what he actually signed... I have only dealt with dealers where nothing is finalized until the second visit where you go in and sign all the final paperwork and loan agreement.

[Sliver]

Guess it depends on what he signed.

[J pold]

I would recommend doing what he should have done before pen ever went to paper. Read the freaking document.

[Rerun]

Originally Posted by Sliver

Guess it depends on what he signed.

Yeah... I don't have f'ng clue what he signed and neither does he apparently.

Does Alberta have some kind of buyers remorse law?

[geos]

He might very well have already purchased the car. I can't believe someone would sign something like that without reading the document and making sure they understand it.

[Rathji]

Originally Posted by Rerun

Yeah... I don't have f'ng clue what he signed and neither does he apparently.

Does Alberta have some kind of buyers remorse law?

From : http://forum.calgarypuck.com/showpos...81&postcount=6

(original page seems to have moved, but I assume you can Google for more info)

Originally Posted by amorak

The Fair Trading Act allows you to cancel a sale within 10 days of receiving your copy of the signed contract if:

• The purchase was for more than $25
• The purchase was made away from the seller’s normal place of business
• The purchase was intended primarily for your personal, family or household use

This is what, IMO, makes this section of the AB FTA useless in this situation. This part of the act relates to direct sellers (door to door salesman) and was enacted to stop some of their shady activities. It wouldn't apply in this case, as it was purchased at the seller's normal place of business.

It is possible, and I am just guessing, that if he signed just one thing, it is likely that it could have been what allowed the credit check to happen. Until financing goes through, which doesn't happen until he signs something, I cannot see a situation where it is possible he purchased a vehicle with just one signature.

[Nufy]

I think he can back out of the deal up to about 30 days...

(Corrected by above post.)

If he left a deposit he may or may not lose it.

[bizaro86]

Thinking back to business law in university, doesn't a contract require some sort of consideration (ie deposit) to be enforceable.

Of course, that was the only law course I took and I spent it mostly napping... (who schedules these things after lunch, I mean really)

[Tron_fdc]

The 6 Essential Elements of a valid contract:

Intention to create a legally binding agreement:

Offer
Acceptance
Consideration
Capacity
Legality
If one element is missing, there is no contract.

I just cut n pasted that from my contract law class.

[Erick Estrada]

Did he put any money down? If not they can take a hike.

[Raekwon]

Originally Posted by Tron_fdc

The 6 Essential Elements of a valid contract:

Intention to create a legally binding agreement:

Offer
Acceptance
Consideration
Capacity
Legality
If one element is missing, there is no contract.

I just cut n pasted that from my contract law class.

Just tell them you were drunk when you signed.

[Table 5]

I think we can see why you're friend has bad credit.

[Tron_fdc]

It also totally depends on what he signed. There are 8 million ways to get out of a contract, but without knowing the particulars it's hard to say what his recourse is.

The guy will likely lose his deposit (if there was one) and then he has to prove somehow the contract wasn't enforceable.

If there was no deposit, the dealership could seek damages for time, but the second they sell the car to someone else the contract he signed is no longer valid.

[puckluck2]

He signed something and he didn't know what he was signing? Here's to hoping he is forced to keep the car.

[Tron_fdc]

Originally Posted by Raekwon

Just tell them you were drunk when you signed.

Unfortunately, IIRC intoxication doesn't count. It refers more to mental capacity, or legal age of consent.

[Rerun]

Originally Posted by Rathji

From : http://forum.calgarypuck.com/showpos...81&postcount=6

(original page seems to have moved, but I assume you can Google for more info)




It is possible, and I am just guessing, that if he signed just one thing, it is likely that it could have been what allowed the credit check to happen. Until financing goes through, which doesn't happen until he signs something, I cannot see a situation where it is possible he purchased a vehicle with just one signature.

Thats what I figure but God only knows how these Used Car dealers operate. Is it possible that they gave him all the final paperwork to sign dependant upon financing approval? ... I think Car Max is doing the financing.

But it appears that the Alberta Fair Trade regs allow you still to back out of any deal up until 10 days after reciept of the contract (he has no paperwork at all... which is very odd)

Personally I think the CarMax sales person is trying to pull a fast one and trying to finalize the deal with someone who frankly isn't the sharpest pencil in the pack.

[Raekwon]

Originally Posted by Tron_fdc

Unfortunately, IIRC intoxication doesn't count. It refers more to mental capacity, or legal age of consent.

I was certain intoxication counted, ok just say they used high pressure to get you to sign and you were under duress.

[Rerun]

Originally Posted by Erick Estrada

Did he put any money down? If not they can take a hike.

Nope... he told them outright that he didn't have any money for a downpayment.

[Erick Estrada]

Originally Posted by Rerun

Nope... he told them outright that he didn't have any money for a downpayment.

Nothing to worry about then. Your friend should simply stop answering their calls. The dealer won't persue as they have nothing outside of trying to bully a customer into something they don't want to do.

On another note would you mind PM'ing me your friend's information for when I have to sell off one of my cars?

[Tron_fdc]

Originally Posted by Raekwon

I was certain intoxication counted, ok just say they used high pressure to get you to sign and you were under duress.

I can't believe I just looked it up.

For insane or drunkenness, the contracting party must recognise the other parities incapability in order for it to be enforceable. The onus is on the person claiming to be insane or drunk that the other party knew and took advantage of them. In both cases once the incapable party becomes capable they must repudiate the contract immediately. Failure to do so legitimises the contract.

As far as duress goes, if the manager was present during negotiations, you might be able to pull off that defence.