Signing the OTP.

Mars

Mars

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What are the implications on signing a OTP on a car?

I have arranged a test drive on a Mazda 5 for tomorrow and the rep wants me to sign an OTP to make sure someone else does not buy it before I do. He says its just to say I'm interested in the car and so that they wont sell it.

However the document starts off with "We the undersigned hereby agree to purchase the following subject to the "Conditions of Sale", set out on both pages of this order" (there is only one page).

So I'm a little nervous. Should I sign it?
 
They don't carry much weight, but they do help sales people to 'hold' on to a given car. If you share the concern that the car might be sold from under your nose sign it, after adding a note that your purchase will be subject to a satisfactory test-drive on the OTP before you send it back. Keep a copy.
 
I think its subject to you getting finance approval so I think it is binding but not if you can't get finance.

Just make sure that the OTP has all the extras he offered you and it must be the exact price that he said.

It does mean that you are going to buy the car though.
 
Signing means you are going to buy the vehicle and as stated on the offer to purchase (OTP), you cannot cancel the deal once you have signed. The only way to get out of an OTP is if you cannot get finance for the car. Rather pay a deposit, they cannot refuse the deposit and must keep the car because you paid the deposit. If you do go ahead with the deal, the deposit will be used towards the deposit you put down on the car.

My wife has been working in the motor industry for some years and my father in law has been selling mercs for the last ten years and that is how they have been doing things since I met my wife a number of years a go.
 
An OTP is not binding, and as enigma says, he is possibly nervous about losing the car to another sales person.

Personally, I don't ask anyone to sign an OTP until they have actually decided to buy the car.
 
Ok I signed it. I added "Subject to Test Drive, Finance and suitable trade-in" on the bottom.

:erm: still a little nervous.
 
MielieSpoor said:
Signing means you are going to buy the vehicle and as stated on the offer to purchase (OTP), you cannot cancel the deal once you have signed. The only way to get out of an OTP is if you cannot get finance for the car. Rather pay a deposit, they cannot refuse the deposit and must keep the car because you paid the deposit. If you do go ahead with the deal, the deposit will be used towards the deposit you put down on the car.

My wife has been working in the motor industry for some years and my father in law has been selling mercs for the last ten years and that is how they have been doing things since I met my wife a number of years a go.
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I'd never hand over money before committing to buy.
 
I signed an offer to purchase and paid a R25000 deposit a few months ago for a car and it was sold to someone else. Two dealers selling the same car and I told them I was taking it. Got my cash back after a week.
 
Nissan - Hatfield in Pretoria. It was for a 350z they'd put up on autotrader. Worst experience ever because I had sold my previous car privately in order to pay the deposit after I had assured them that I was purchased the 350z. So it was possible that I would've been carless. Managed to find what I wanted in the following week somewhere else so everything worked out for the best in the end.
 
so we decided to buy the car. Now the rep sends me the finance papers without the car details filled in. :erm:
He says he will fill them in later..
I said no. Fill them in before I sign the form. Am I being a dick?
 
Madman88 said:
so we decided to buy the car. Now the rep sends me the finance papers without the car details filled in. :erm:
He says he will fill them in later..
I said no. Fill them in before I sign the form. Am I being a dick?
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A little... but it's quite understandable. The figures are thus far only used to process your finance application. Until you put pen to paper on a bank contract - not a finance application - you can't be held to anything. ;)
 
Until they bring out the banged up one from the back ... and say, but this is what you signed for :p

I have learnt the hardway - rather get it done properly, make sure the details are correct, and to your requirements, then sign.
 
Ok.. good point. I'll fill in the documents and send them to him.

I've just had such a bad experience with car dealers of late...
 
Madman88 said:
Ok.. good point. I'll fill in the documents and send them to him.

I've just had such a bad experience with car dealers of late...
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What I will suggest is get full disclosure from the chap regarding what they are planning to charge for registration, valets and whatnot. What one should pay is debatable, but I have worked with a number of people who would sneak a couple of grand in once you've already agreed on a price.

I've seen deliveries turn into rather sour affairs very rapidly because these costs (well, 'costs'... in some instances) were not disclosed beforehand.
 
Madman88 said:
so we decided to buy the car. Now the rep sends me the finance papers without the car details filled in. :erm:
He says he will fill them in later..
I said no. Fill them in before I sign the form. Am I being a dick?
Click to expand...

No you are not being a d i c k. An OTP should be exactly what your final invoice will look like, and the salesman should know that.
 
i often see this thing stating OTP are not binding?

How are they not given they are a ontract between two parties? what am i missing here?
 
milomak said:
i often see this thing stating OTP are not binding?

How are they not given they are a ontract between two parties? what am i missing here?
Click to expand...

In theory, you are signing an Offer to Purchase which should be legally and ethically binding.

However, purchasing a car seems to cause major panic in many people's heads, as well as make them change their minds 15 times before coming to a final decision, and over the years, the whole OTP question has been blurred as countless OTP's have been torn up when the buyer finds /has a better offer. As such, it is simply an act of faith between buyer and seller, that you do intend to buy a car, and the dealer will not hold you to it, but the salesman may loathe you for the rest of your life for cancelling the damned thing! :p
 
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