GRANGER'S NO SALE PROVISION?

[Old Man]

A few years ago John Cena bought a Ford GT and was required to sign a 2 year no resale contract. He sold it a month later after using it in some videos. Ford sued him and won. They said for some vehicles they encourage dealers to do a 1 year clause to keep buyers from ordering just to do turnover for profit like some of the people doing with the Maverick by ordering 2 or 3 or 4 then selling them for markups soon after getting them. To me people that do that are no different than dealerships selling with 'market adjustment' or stealerships as they are called here.

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[TheWizziard]

A few years ago John Cena bought a Ford GT and was required to sign a 2 year no resale contract. He sold it a month later after using it in some videos. Ford sued him and won. They said for some vehicles they encourage dealers to do a 1 year clause to keep buyers from ordering just to do turnover for profit like some of the people doing with the Maverick by ordering 2 or 3 or 4 then selling them for markups soon after getting them. To me people that do that are no different than dealerships selling with 'market adjustment' or stealerships as they are called here.

"Ford sued him and won"
In this case it is the dealers requiring the contract. Not Ford

 

[commadorebob]

When I bought my Explorer this past weekend, my dealer had me sign something similar. But the only thing they asked was that I register it in my own name first.

Which means it is technically my vehicle and can do whatever I want with it. Makes me curious if flipping it without registering it actually causes headaches for the dealership as they are the last registered owner.

 

[AznMav]

I've never driven a Maverick just sat in one during the LA auto show. So when I finally get it in a couple of weeks and drive it I can't sell it if I don't like it? Or I change my mind and want a tremor instead of hybrid or Ford launches an AWD hybrid I can't sell to buy the one I want? Yeah not gonna fly. It's one thing if it was required prior to ordering another thing if required to sign to take delivery after waiting a year and a half without prior notice. They could have told buyers months ago like when people were ordering with them. It was apparent then that the markups were there but they wait until they are in the finance office.

 

[gte105u]

A few years ago John Cena bought a Ford GT and was required to sign a 2 year no resale contract. He sold it a month later after using it in some videos. Ford sued him and won. They said for some vehicles they encourage dealers to do a 1 year clause to keep buyers from ordering just to do turnover for profit like some of the people doing with the Maverick by ordering 2 or 3 or 4 then selling them for markups soon after getting them. To me people that do that are no different than dealerships selling with 'market adjustment' or stealerships as they are called here.

Technically it was settled out of court with a NDA. But I doubt it would have settled if Ford had no case.

 

[jsus]

"Ford sued him and won"
In this case it is the dealers requiring the contract. Not Ford

The biggest thing there was that the terms of that agreement and the reasoning for it were very clearly spelled out in advance as part of the ordering process. Ford GT is a low volume "halo" vehicle, so they had a rigorous selection process to see who was "lucky" enough to part with >$400k. Part of that was wanting the vehicle to be seen, used, loved, so they picked buyers they thought would help show it off. They didn't want the vehicle sitting around in someone's private collection gathering dust (literally or otherwise). They wanted it to be seen. Anyone buying one was well aware of the obligations they contractually agreed to. A certain named individual just felt he didn't have to follow through on his end of the deal. Instead, he flipped it for a profit about as soon as he could, expecting sympathy for being "unable to afford it".

 

[ValenciaOrange]

Ask him to sign a no markup contract.

 

[Lugnut]

I've never driven a Maverick just sat in one during the LA auto show. So when I finally get it in a couple of weeks and drive it I can't sell it if I don't like it? Or I change my mind and want a tremor instead of hybrid or Ford launches an AWD hybrid I can't sell to buy the one I want? Yeah not gonna fly. It's one thing if it was required prior to ordering another thing if required to sign to take delivery after waiting a year and a half without prior notice. They could have told buyers months ago like when people were ordering with them. It was apparent then that the markups were there but they wait until they are in the finance office.

My point exactly! Thank you for the great and logical reply!

 

[commadorebob]

I've never driven a Maverick just sat in one during the LA auto show. So when I finally get it in a couple of weeks and drive it I can't sell it if I don't like it? Or I change my mind and want a tremor instead of hybrid or Ford launches an AWD hybrid I can't sell to buy the one I want? Yeah not gonna fly. It's one thing if it was required prior to ordering another thing if required to sign to take delivery after waiting a year and a half without prior notice. They could have told buyers months ago like when people were ordering with them. It was apparent then that the markups were there but they wait until they are in the finance office.

My dealer made me sign one before ordering. But when I sat in the finance office for a different vehicle, I saw the actual limitations. It is literally just to stop flippers. My dealer at least wants you to put it in your name first. Then they don't care what you do.

They just don't want you coming onto their lot on Thursday morning to buy it and reselling it Thursday afternoon. Especially since they offer a 3-day, 300-mile no-excuse buyback anyway.

 

[Maverick2023]

staunch Granger defender here too. If I was them, I also wouldn't want greedy flippers attempting to take advantage of my fairness. They are a small town, friendly company, and flippers should simply avoid doing business with them.

I'm pro Granger but the No Sale restriction, if exists, is categorically BS, but I wouldn't go further than that and say they are a stealership. At least not based on my own previous experience.

 

[Onceforall]

I'm pro Granger but the No Sale restriction, if exists, is categorically BS, but I wouldn't go further than that and say they are a stealership. At least not based on my own previous experience.

I suspect no one cares a whole lot after the dollars have been exchanged between true private party ownership and a dealer. The agreement simply protects Granger (and other dealers that have the same agreement) from repercussions related to being involved in flipping vehicles.

Since Granger has developed a nationwide business model that could allow regional exploitation to pricing, it is wise (in my opinion) to limit risk in this regard. I would not put it in the BS category, but the prudence category. Valid reasons why Ford would want to deal with licensed dealers vs ad hoc sales people. At the end of the day, Granger needs to protect its relationship with Ford.

 

[pxpaulx]

Ask him to sign a no markup contract.

You mean Granger sign a no markup sheet? Everyone buying there either received $3K straight discount or 3% below invoice (which for me was about $1,800 on a fully spec'd XLT EB). Another bad take here I guess?

I mean they did have the gall to surprise me with a Ford extra $750 off that had just started the week I purchased my truck as well (I received the mailer the next week). The nerve, right in the finance office any everything.

 

[Wilkie]

I went back to the dealer the day after I bought mine to drop off the spare key the vehicle I traded in. The sales manager asked me if I was going to resell it for a profit and I told him this was all mine.

I seriously doubt they'd be willing to spend money to litigate any agreement like this, but there is no way I would sign it.

Personally I paid 5k over MSRP and the way I see it, that entitles them to nothing.

 

[Tiger Dude]

Dealers jacking up prices: Stealerships! Burn them!

Private owners doing the same thing: Freedom!

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