Koons Get Sued for backing out of a deal!

RaceDeck · 08-10-05, 03:31 PM

I came across this story about Koons Ford and A customer who claims that Koons went back on a deal? Two sides to every story so here it is:

<<<<<
Retired FBI agent sues dealer over Ford GT40
By DAVID E. LEIVA, Staff Writer
A retired FBI agent is suing an Annapolis-area car dealer over the new Ford GT40, claiming the dealer backed out of an agreement he made three years ago to sell him the retro muscle car.

Richard Harrison of Chester paid Koons Ford of Annapolis a $5,000 deposit in April 2002 and began waiting for the release of the Ford GT40, a $200,000 sports car owned by fewer than 200 people across the country. But according to the lawsuit he filed in county Circuit Court, when Mr. Harrison went to the dealer on Riva Road to pick it up last month, the price on the fully loaded, V-8, 550 horsepower machine jumped up - before the general manager decided not to sell it to him at all.

"I think a lot of it is the principle. Most of the time it wouldn't make sense to proceed legally," Mr. Harrison said.

Koons' attorney, Frank Daily, declined to comment, and General Manager Pat Shuey and officials with the parent company in Virginia didn't return phone calls.

It's a fight over a car, modeled on a 1960s icon, that has auto world in head over heals.

James R. Healey, reviewing the car for USA Today, called the wide-tired, low-slung rocket "a drop-dead delight to see and drive."

A test drive by Automobile magazine last fall showed the GT hitting 60 mph from a standstill in a mere 3.8 seconds - besting any of the thoroughbred Italian sports cars. Ford says the top speed is better than 200 mph.

Prices vary widely. EBay, the online auction center, lists one Ford GT starting at $170,000. The rights to the first production Ford GT was sold at auction in 2003, for delivery in August 2004. Television host Jay Leno bought the second a week later.

According to court documents, the fight over this particular Ford GT started June 29 when Mr. Harrison arrived with his attorney, Samuel Brown of Annapolis, at the Koons dealership, intent on picking up the car for $139,995, the manufacturer's suggested retail price, plus the destination charges, taxes and installed options.

He had placed that $5,000 deposit in April 2002. But in June, Mr. Shuey informed him that the price had gone up 40 percent, to $197,000, the lawsuit said.

"The defendant contracted to sell the GT to the plaintiff for the then unspecified MSRP in 2002, and now seeks to rescind the contract so it may sell the GT for a higher price because now the supply of this particular vehicle is greatly surpassed by the demand," the lawsuit said.>>>>

Mr. Shuey, according to the lawsuit, said he could get the higher price by selling the car at auction. Before long, the argument got heated.

"I'm not selling this car for MSRP. I will sell this car for a lot higher price, and I don't care what your contract says," the lawsuit quotes Mr. Shuey as saying.

On July 1, a county judge issued a temporary injunction preventing Koons from selling the car to anyone else. Another hearing is set for Tuesday.

Now Mr. Harrison, who works as a security consultant in Annapolis, must wait some more, just as he's been doing since he first fell in love with the original GT as a college student at Bucknell University.

And while he waits, he's trying to keep the dispute in perspective.

"This is a car. There's a lot more important things in the world ...," he said. "Remember, we're talking about a car. That's what I told them."

- No Jumps-

Pete. · 08-11-05, 01:39 AM

Like you say, there are always two sides,but on face value
I hope the guy gets his car at MSRP.

Ron Earp · 08-11-05, 11:32 AM

I hope he does too. Dealer fleecing is getting old, essentially a middle man and we know what needs to happen to them!

Mitch D · 08-11-05, 12:02 PM

This should be a no brainer. The customer that paid the deposit needs to produce a contract that states what the selling price is to be (e.g. "MSRP", "MSRP plus $x", or similar).

My guess is that the customer doesn't have any kind of documentation. If he did, then the dealer wouldn't have a leg to stand on. If it was a verbal contract, it would still be valid but it would be tough to prove since the dealer would likely claim he never made the offer.

You can't say this is dealer fleecing (even though we all probably agree that it is) - the customer should have had obtained a contract when he paid the deposit.

Mitch D

Quickdraw · 08-12-05, 09:42 PM

[ QUOTE ]
This should be a no brainer. The customer that paid the deposit needs to produce a contract that states what the selling price is to be (e.g. "MSRP", "MSRP plus $x", or similar).

My guess is that the customer doesn't have any kind of documentation. If he did, then the dealer wouldn't have a leg to stand on. If it was a verbal contract, it would still be valid but it would be tough to prove since the dealer would likely claim he never made the offer.

You can't say this is dealer fleecing (even though we all probably agree that it is) - the customer should have had obtained a contract when he paid the deposit.

Mitch D

[/ QUOTE ]

Sounds like he did have a contract... who would give someone $5,000 with nothing in writing specifing what it was for?

Quotes from the article:
"The defendant contracted to sell the GT to the plaintiff for the then unspecified MSRP in 2002, and now seeks to rescind the contract~~~~" >>

and
"I'm not selling this car for MSRP. I will sell this car for a lot higher price, and I don't care what your contract says," the lawsuit quotes Mr. Shuey as saying.

Jonathan · 08-13-05, 12:53 AM

I live in Northern Va and Koons is a large American car dealer around here. I myself had a bad experience with them. But I must thank them for turning me off to the Z06 I was about to purchase from them, and got a Viper GTS instead.

Mitch D · 08-14-05, 08:26 PM

Hey, Quickdraw, do you believe everything you read in the newspaper?!? If you're assuming the article from the "staff writer" has all the facts spot on, then the lawsuit shouldn't get very far. All I can say is, here in LA, I can't believe much of anything in the LA Times - about the only facts they get right are the sports scores - and frankly, if I had money on the game, I'd check a second source to verify!!

As for the deposit again, it depends on the specifics of any accompanying document. When I bought my porsche new, all it took was a $1000 fully-refundable deposit to 'get on the build schedule'. The documentation was fairly lose and that was for a 100K purchase. I'll bet any deposits with ford dealers well before the first car was built were also very vague not doing much more than buying you a place on a list.

Mitch D

PS - what's your name? Even a first name makes things a little friendlier here on the forum.

**J What?** · 08-16-05, 06:48 PM

In most states a dealer's "Contract" is only a contract to BUY not to sell. If you read one closely you will see that a dealer can get out of the transaction quite easily. If you want to get the deal you expect, you have to write in what you want and make sure it superceeds any other language. Do not be afraid to scratch out the parts of their contract you don't like. Also, make sure to use the words "guarantees delivery" and you MAY get what you want. As you would expect, most dealers don't like doing it.
Bill

Ron Earp · 08-16-05, 07:27 PM

Regardless, it is bad business and just plain wrong. If you agree to sell something, verbal or however, it doesn't matter, then you need to honor your word. The dealer, like most of them, figured out they could make more money on the car than expected and decided to break the deal, clean and simple.

Tim Kay · 08-16-05, 10:40 PM

[ QUOTE ]
....figured out they could make more money on the car than expected and decided to break the deal....

[/ QUOTE ]

or will thay, after spemding the money to answer even a frivolous law suit and the fast dwindling premium over MSRP, they may not [img]/ubbthreads/images/graemlins/grin.gif[/img] I haven't heard lately, but I don't think anyone is breaking down the Ford doors to buy the GT [img]/ubbthreads/images/graemlins/shocked.gif[/img]

Quickdraw · 08-21-05, 08:39 PM

>>>Hey, Quickdraw, do you believe everything you read in the newspaper?!?<<<

Give me some examples of newspapers incorrectly ascribing a direct quote please.....

The article said: "I'm not selling this car for MSRP. I will sell this car for a lot higher price, and I don't care what your contract says," the lawsuit quotes Mr. Shuey as saying.

So you are saying Mr. Shuey has an air-tight lawsuit against the paper for mis-quoting him, right? Or at least against the plaintiff for lying, right? And you are saying I should believe what you believe because the LA times makes mistakes?

jimbo · 09-27-05, 10:42 PM

Well, I live in Annapolis and can tell you that the Koons Auto Group, which is huge, is one of the 800lb gorillas in this area- I think they feel they can pretty much do what they please. Probably about like most new-car dealers, which is to say no more ethical than they are absolutely forced to be. There may be exceptions, but Koons et al ain't one of them.
Now having said that, I think the customer may be acting just a little cute. You can bet that he knew of all the buzz on these cars, and I'm guessing he didn't say anything to the dealer about verifying the price before he showed up to pick it up. Like he was just laying low, hoping he could just walk in with list price and leave with the car. Right. And...who the hell takes their attorney with them to pick up a new car? He must not have a girlfriend, is all I can think.
So he and the dealer may be made for each other. That's good, because it sounds like they're going to get to know each other real well.