Americas Dealer requiring 36 month First right of refusal to resell

[Zach4X4Foothills]

I have been sent a document from the Ineos dealer who is requiring a signed agreement that I cannot sell the Grenadier for 36 months without offering the truck to them first.


Anyone else being subjected to this?

 

[Chadd7]

ROFR for a car? First I’ve heard of that haha! Crafty lawyers.

 

[Bruce]

I didn't have anything like this but am curious. Do they have the ability to set the resale price or can you have them turn down your "fair asking price" and then be free to deal as you choose.

 

[BroncoBilly]

yup. that's exactly what the sales rep told me as well. they want to retain the right to match any offer if you resell in the first three years.

 

[Bruce]

yup. that's exactly what the sales rep told me as well. they want to retain the right to match any offer if you resell in the first three years.

They better include tax savings you'd lose by not trading in when they do the math. Could be a substantial difference.

 

[[ Adam ]]

absurd

 

[Krabby]

I have been sent a document from the Ineos dealer who is requiring a signed agreement that I cannot sell the Grenadier for 36 months without offering the truck to them first.


Anyone else being subjected to this?

Is IA aware of this?

 

[lagartoboy]

yup. that's exactly what the sales rep told me as well. they want to retain the right to match any offer if you resell in the first three years.

Must be a Canada thing. I’d push back hard.

 

[Chadd7]

Canada doesn't seem to have a clue about basic human rights. But hey, crappy free healthcare.

 

[Solmanic]

Must be a Canada thing. I’d push back hard.

Ha, Canada - push back and I'm sure they'll apologise.

 

[DenisM]

Is your Grenadier purchase contract between you and the dealer or between you and Ineos Automotive Canada? If it's the latter then it's "try-on".
I'd be surprised if it's even legal irrespective....
Call their bluff!

 

[TRAILMASTER]

Appears to be a thing in Canada and USA (typically reserved for limited 911's, etc.).
If you later opt to sell, either:
- have a friend or "hungry" used car dealer provide you a favourable yet retractable written offer (negotiate cash incentive if dealer matches).
- list via BAT auction site with a reserve (notify dealer so they can track/bid), placing burden back on them

 

[MidnightCamper]

A Pre-Nup for a Pavement Princess. I really hope you triumph over the dealer on this. Yes, they want to prevent vehicle "flippers" but this is amateurish. I'd be tempted to walk away from the sale but that would only punish you and they wouldn't care. They probably can sell your vehicle ten times over.

 

[holdmybeer]

I agree ... this is obviously catching loyal and committed pre-sale customers off guard. Not a good start to the relationship IMO.

The Vancouver dealer (Weissach Ineos) has been great to deal with so far, otherwise. The management's heritage is Porsche other sports/luxury brands but the new staff for the Ineos side (e.g. Mark and Darren and others) are genuine 4x4 people and knowledgeable and enthusiastic about the Grenadier.

So it's disappointing to see a Right Of First Refusal side-contract coming out of left field.

For starters, we're pre-sale customers with terms and expectations set by Ineos Automotive without restrictive ownership or sale terms ever mentioned until now. A year or two down the road, it seems uncivilized to prevent me from selling something I'm paying cash for, as I see fit to a friend or colleage or family at a price I think is fair without multi-day delays. This kind of thing would sour a private listing and deter otherwise serious buyers. e.g. two years from now, if I list my Grenadier for $X and a buyer shows up with cash, which I obviously think is fair, should I tell them before they bring the cash that I might not be allowed to accept their full-price payment until I run it past my the dealer and wait a couple of days for them to respond? Ridiculous. C'mon.

As someone else here pointed out, it's also notable that there is no consideration being offered to sign this additional, last-minute contract. It feels greedy to ask this of clearly committed customers who have supported this project with patience and a deposit. Since September 2021, in my case.

If Ineos Automotive is listening, this is not a good look for you in Canada. Correct me if I'm wrong but US pre-sale customers are not being subjected to this nonsense.

Well, there's my rant. Have a good weekend.

 

[DenisM]

To get some advice you need to establish the legal basis of the sale.
In most countries including Australia for example, Ineos have established a "transparent" pricing model based on a "franchise" system where the contract of sale is between you the purchaser and Ineos Automotive.
I am led to understand that Tesla sales operate a similar business model.
What I'm sensing is that in Nth America.. both USA and Canada, the dealer buys the vehicle from Ineos for on-sale... as is normal practice for most makes the world over.
The added caveat for first right of refusal just might be strictly legal in that jurisdiction ...I.e. these are our sale "T's and C's " etc

You might ask them to provide, in writing, the legal justification for such a letter given that there was no hint of this when you paid your deposit .....
(it sends a "message" that you might be preparing for legal action...whether are or not...)
I'd also contact Ineos HQ Nth America direct...and copy the IA Customer Relations person on your email to the dealer ...

 

[Jiman01]

To add a little context from my LR dealer that verbally told me 6 months for my ND X, which was very hard to get at the time, the worst the LR could do to you was blacklist you from their dealership for any future sales. The “rule” came about because the same buyers were flipping them for $50-$75K USD over sticker after driving them off the lot and into a transport truck to destinations unknown.

Without seeing the OPs contract, it’s hard to say what ramifications that dealer may stipulate, but in all likelihood they probably can’t do a whole lot to the buyer For non-compliance after the fact.

3yrs sounds ridiculous and I’d think if IG HQ found out, that dealer may risk losing their status.

 

[BroncoBilly]

If their dealer status was revoked that would leave Ineos Canada with exactly 1, yes 1, dealership. 2 dealerships in Canada is already ridiculous.

 

[holdmybeer]

Yeah, to be clear, I'm not questioning the *legality* of this practice. Like plenty of other selfish tactics, I'm sure this is legal because I'm free to walk away and not buy the truck. I believe in a free market. And I believe in sharing information information about surprising practices also, so that's why I'm here.

I plan to be a longtime Grenadier adventurer so I expect I can work through this somehow because the dealer has otherwise excellent vibes and communication going on so I'll probably enjoy giving them ongoing service and accessory revenue, LOL.

On principle this feels like a missed opportunity for reciprocal trust in patient pre-sale reservation holders. There's no benefit to me to sign this. And there's no obvious benefit to the market if I sign this, because anyone looking for a quick flip into grey market profit can just buy a no-strings-attached truck in the US which seems to have inventory right now without ROFR strings. This isn't some limited edition supercar.

Question: Is Vancouver the only place in the Ineos world where this practice is happening for pre-sale reservation holders?

 

[Zach4X4Foothills]

They are also going to register a " Security Interest "

 

[Chadd7]

They are also going to register a " Security Interest "

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Oh Canada