Arbitration Agreement - New Car Purchase
Thread Starter
Racer
Joined: Nov 2017
Posts: 1,583
Likes: 278
From: Ohio
Arbitration Agreement - New Car Purchase
So, I made a deal today to buy a 2022 Kia Carnival EX, a nice car that's good value, especially at a discount. However, the deal collapsed in the finance office when I refused to sign an arbitration agreement that the dealer wouldn't sell without it.
Have you come across such a document when buying new?
Have you come across such a document when buying new?
Thread Starter
Racer
Joined: Nov 2017
Posts: 1,583
Likes: 278
From: Ohio
This was at a very large multi-line store (and one that does not have the best local reputation, so it wasn't totally surprising). In checking the paperwork of the last 3 new vehicles we bought, my wife signed such agreements twice, once in 2016 and then last year when we got the RX 350. Interestingly, in the latter instance in bold letters above her signature it said that it was not necessary to sign the agreement either for the purchase or the financing. The file for my 2016 Toyota Sienna contains no arbitration agreement. I don't recall whether I declined or it wasn't presented.
Lexus Champion
Joined: Nov 2013
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From: WA
I don't recall ever being asked to sign one but can't definitively say I haven't. I did just pull up my paperwork from the last two GSs I bought and neither had mention of an arbitration agreement.
Lexus Fanatic
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Lexus Champion
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From: Southeastern PA
So, I made a deal today to buy a 2022 Kia Carnival EX, a nice car that's good value, especially at a discount. However, the deal collapsed in the finance office when I refused to sign an arbitration agreement that the dealer wouldn't sell without it.
Have you come across such a document when buying new?
Have you come across such a document when buying new?
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Lexus Champion
Joined: Apr 2007
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From: Southeastern PA
It's an agreement where you waive your right to sue the other party, and instead, you are required to go to a binding arbitration proceeding. But most of the times, the arbitrator is someone with ties to the automotive (or other applicable) industry, and overwhelmingly rules in favor of the Big Corp.
Lead Lap
Joined: May 2010
Posts: 3,902
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From: San Diego, CA
Arbitration clauses are anti-consumer and unfortunately ubiquitous. Tesla, in fairness, at least gives buyers an arbitration opt out. A purchaser can reject Tesla's arbitration requirement within 30 days of signing the purchase agreement containing the arbitration clause.
Lexus Champion
Joined: Sep 2010
Posts: 2,218
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From: NA
It’s not some finance office trick. I understand the desire to sign nothing at the finance office because that’s where they try to sell you warranties for piston return springs and muffler bearings, but the arb agreement is normal and mandatory
Thread Starter
Racer
Joined: Nov 2017
Posts: 1,583
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From: Ohio
Lexus Fanatic
Joined: May 2012
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From: Maryland
The bottom line is if you won’t sign an arbitration agreement you’re not buying a car based on all the purchase agreements I’ve signed in the last 10 years.