Today, I went to my local Kia dealer with a view to purchasing a new 2020-model Kia Cerato. I’m after a base model with metallic paint - the latter could result in delayed delivery, which does not bother me. This will be my first purchase of a new vehicle.
There were a few items in the conversation which didn’t quite gel so I didn’t make any commitment and asked for a copy of the contract to take away with me so I could read it properly.
The peculiar element is that the Terms and Conditions include provision for price variability. Has anyone encountered that before? Specifically: *
‘Where such an increase is accompanied by an increase in the cost price to the Trader of the Purchase Vehicle, the price of the Purchase Vehicle shall be increased by the amount of the new recommended retail price minus the amount of the current recommended retail price (“the price increase”). As well as or instead of such increase in the recommended retail price there may be an increase in the amount of stamp duty or other tax payable in respect of the motor vehicle between the date of this contract and the date of the delivery of the motor vehicle (“the additional duty.”)’
So that means I agree on a purchase price with the dealer and sign a contract, and that price could change by the time the vehicle is available for collection. I told the salesman and his manager that I would not be prepared to sign a contract on that basis and would require that the clause be stricken from the contract. They responded with an assurance that they’ve never increased a price in 21 years and could write “price protected” on the contract to cover this.
Is this a usual condition for a new vehicle purchase? The term “price protected” doesn’t really cut it for me as it does not explicitly include other cost variances such as stamp duty whereas the price being cited today was a “drive-away” price. I’d rather strike the offending clause - in its entirety - from the contract.
The other curious element of the deal is that they don’t know when the car could be available. It could be “1 week, 1 month, 3 months or longer”. I have no problem waiting a couple of months as it’s not an urgent purchase. However, it’s odd that the timeline cannot be definitively established.
If it’s going to be a long wait, I may as well bide my time and wait for a “runout sale”.