Buyer Nightmare. Just found out bad news!

I bought my Clarity on Jan 1 from Unicars Honda in Indio, CA. I wanted the $7500 Federal rebate to apply to my 2018 taxes. The transaction went smoothly....so I thought. When I went into the finance office to sign the papers the finance guy told me there would be TWO CONTRACTS - one for Dec 31, 2017 and one for Jan 1, 2018. He said "Don't worry. The 2017 contract is for us to pad our end of year sales quota." He had me sign both and kept saying, "Don't worry. This is all legit. We do it all the time. You will get your contract as though it was purchased Jan 1, 2018." So I did get my contract which was dated 1/01/2018. I finally got my DMV registration in the mail and it stated that I bought the car Dec 2017. WTF? I asked my accountant if I can apply this towards my $7500 fed rebate 2018 taxes. NOPE! It has to be applied to my 2017 taxes. OH NO! I already have tons of deductions for 2017. That was why I specifically purchased it Jan 1, 2018. I went to the dealership and they said they made a mistake and sent in the wrong info to the DMV and there's no way they can change it. (My guess is it would probably reveal that they padded their sales quota illegally.) My accountant said if he inputs the VIN number for the $7500 credit, it will show the car was sold 2017. WTF? I basically lost the $7500. I talked to the manager and he said there was nothing they can do and I should just apply it towards 2017! OMG! So now, I am suing them in small claims court. Thankfully, I have my original contract that show I purchased 1/01/2018 and the DMV reg that show 2017. All the other paperwork they gave me showed I purchased 2017! I am so afraid of the lies this dealership is gonna tell the court so they don't have to cough up $7500. If there are any lawyers out there I could sure use some advice. Thanks everyone. I am so stressed out. I will never buy another car as long as I live.

 

Thank you so much for posting this. It makes me feel somewhat better. I never heard of backdating. I think the dealer may know that if this goes to court it will reveal that the dealer "backdated" the contract to boost their end of month sales quota which is illegal. Hopefully, the dealership lawyer will advise them to just pay the $7500. I did speak to an attorney friend who is not that familiar with the situation because he deals with other types of law but he said since it involves less than $10,000 to go to small claims court. If they are facing the possibility of having to pay my lawyer fees as well as $7500 it could amount to well over $10,000. The problem with small claims court, if I sue and lose, I cannot sue again. Thanks again. Appreciate it.

 

I own a small business and with my yearly deductions my tax liability is usually very low, as little as $150 owed in taxes. However, for 2018 I don't foresee any large business deductions. That's why I wanted to apply the $7500 credit towards this year's taxes.

 

I will not claim the deduction for 2017. I already have plenty of business deductions to put me at almost zero tax liability. It would be like throwing the $7500 out the door.

 

I sought the advice of 2 attorneys. Both said I'm basically screwed because the $7500 is a tax credit and not a rebate. WTF? I just had my 2017 taxes done and with all my business deductions I am at zero liability. (I purchased a huge amount of tech equipment last year) I asked my accountant to estimate what I would owe next year without any business deductions. He said I would owe apprx $7,000. I sorta suspected this already when I thought about purchasing the vehicle. That was my main reason for buying the car Jan 1st. I will not have any huge business deductions this year. I am still going to pursue my small claims against the dealership. I will attempt to show the judge my taxes for this year and estimated taxes without business deductions for next year. It seems as though these cars dealers can get away with just about anything. It was also very difficult to find an "AUTO FRAUD" attorney, maybe because they know car dealers really cover their asses. So now, I know I will have to come up with about $7000 next year. The purchase of the Clarity from UNICARS Honda was a huge mistake. Looking back, all the paperwork was in order and everyone was so nice. But it was the slimey backdated contract that killed me. BUYER BEWARE!

 

Yes. I did call them The number is no longer in service. But a big thanks anyway. Appreciate it. Oh and I do have the original and signed slip that says I took possession of the car on Jan 1st. I doubt it will do any good.

 

Thanks. What is weird, some of my paperwork is dated 12/31/2017 and some dated 01/01/2018. Thankfully the original contract and date I took possession is dated 1/1/2018. But both attorneys saw all my paperwork and said it doesn't matter. The $7500 is not real money. It's a credit. If it were a rebate, that would be in my favor. GO FIGURE!

 

Actually, TWO different attorneys that specialize in auto fraud told me the same thing. There is a difference between a federal tax credit and a rebate. That is the issue. They keep telling me a "credit" is not real money. Well....it sure is when it comes out of my bank account!! My accountant thinks I have a good case but wasn't sure. Last thing I want to do is get the IRS involved. They're as bad as car dealers.