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

UPDATED: Nov 11, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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