Dealership Refusing to Send Me Title

We recently traded our motorhome in on a newer model. Five days after we completed the paperwork at the dealership and drove the vehicle home, the dealership called and said they "thought our trade-in vehicle was a year newer" than it was and wanted an additional $12k. We told them we would not pay them additional money. After several calls back and forth, they then lowered the amount they wanted from us to $5k. We told them there was no way we were going to pay them additional money. The contract had been signed, they had received the money from our lender for the vehicle and we considered this a closed deal. They then told us they would withhold the title also stating, "we know if we go to court you will probably win, but we can at least tie it up for 2 years or so in the legal system." We are furious and don't know what to do next. We sent them a certified letter stating that this was a closed deal, they had accepted the money for the deal, and that we demanded our title work by October 20, 2007. They have ignored us. I have filed a complaint with that state's BBB and the Attorney General's office but we don't know what step to take next. According to the contract we signed, it states we are allowed Arbitration if a dispute arises but we can't sue them in the regular court system or small-claims court (which would be the most economic). I really don't want to go that route if we don't have to because we don't have a bunch of extra money laying around to pay over $150 an hour for arbitration. I don't know how much time it would take to have an artibrator handle this so I don't know how much their fee would add up to. It never occurred to me at the time we signed the contract to question the "legal recourse" options because it was the farthest things from our minds that we would end up in a legal issue with this dealership. The vehicle has warranty so it wasn't like we were purchasing an "as is" vehicle that might have problems down the line. Any realistic advice would be most appreciated. Thanks!

Based on the contract you signed, I'd say these folks regularly conduct business in bad faith. I could see that they might have that clause in there for reasons protection from failure of some part in the motor home, but they have failed to complete the contract... the title is your evidence of ownership. They have your money... they need to complete the contract by supplying the title. I don't see how they can claim innocence in the age of your trade in since they are in the business. I think they might just have done this before.

Frankly, I think I'd pay the $75 for small claims court and see if I could get a ruling for them to produce the title. This is a contract breach and should NOT be part of the arbitration clause. You should be asking the court for the title... a very small claim.

I'm surprised the Attorney General of that state has not found reason to apply pressure. I would suggest that you go ahead and do arbitration if the small claims court does not pan out... and never sign a contract with people without checking out the contract and the reputation of the business. Since you are not from that location, I don't know how you could have avoided this. But without the title, how can you get the motor home licensed?