Sponsored

Dealer penalty?

Rick Astley

Raptor
Well-Known Member
Joined
Jul 24, 2020
Threads
70
Messages
5,019
Reaction score
18,563
Location
Up Doug's ass
Vehicle(s)
d
Your Bronco Model
Raptor

ramblinwreck

Wildtrak
Well-Known Member
Joined
Sep 25, 2020
Threads
16
Messages
864
Reaction score
1,983
Location
Georgia
Vehicle(s)
`22 Wildtrak, '21 Wrangler Rubicon 4xe
Your Bronco Model
Wildtrak
Biggest way to protect yourself from them underpricing your trade in is to go to Carmax or a similar dealership who will give you a quote on your trade in. It'll be low, but not obscene. I've done that with every vehicle as a backstop to protect myself when negotiating with a dealership on trade-in. Never had to use it.

I will caution you though, that in some states, you can't count your trade in as a tax deduction against the new vehicle purchase unless it is part of the same transaction as your vehicle purchase.
This is my main concern, how to deal with the trade. It seems like they will have to between a rock and a hard place on the trade, and if I sell it to Carmax I will have to take a massive tax penalty.
 

Sponsored

timhood

Badlands
Well-Known Member
First Name
Tim
Joined
Jul 28, 2020
Threads
16
Messages
2,377
Reaction score
4,581
Location
Utah
Vehicle(s)
Several
Your Bronco Model
Badlands
I've long been wondering what the penalty was for selling an order to someone else.

I've heard it's severe but no idea what it is.

I doubt many would take an order from Alice and sell it to Bob directly. But what's to stop a dealer doing a price gouge at delivery via ADM or some other made up fees? Or intentionally massively under pricing trade in? And price Alice out of completing the transaction? Dealer could just sheepishly be like "Alice didn't want it" and now it's their 's to sell?

For a while, a bronco sold on a dealer floor would be able to command a huge premium I'd assume. You'd have a furious would be customer, but a happy new bronco owner plus a fat stack for the dealer.

Edit: what recourse would Alice have? Could flame the dealer in reviews obviously but that is the equivalent of doing nothing

Anyone have specifics on what ford is threatening so this doesn't happen?
I have experience with this situation. When you purchase or attempt to purchase a vehicle that is on order, the dealer will have you sign a purchase contract.

When you go to the dealer to make an order for your Bronco, you will sign a purchase contract. The key is, you need to make sure that the dealer also signs the contract and that you receive at least one copy of that signed contract before you leave. If you leave without a copy of a counter-signed contract, you have no contract and you can be screwed over without any legal recourse. When the dealer signs the contract, it becomes legally binding, and if the dealer receives the vehicle, they must sell it to you at the agreed-upon price. This assumes all of the normal caveats for you being able to actually purchase the vehicle (appropriate financing or cash), trade-in ramifications (best not to trade in a vehicle in this situation).

Now, if something happens to the vehicle that makes it unsellable, that contract has an escape clause for the dealer. Let's hope that doesn't happen to anyone as that might be a long, tedious process to get to the right people at Ford to get you back in line in the reservation process.
 

timhood

Badlands
Well-Known Member
First Name
Tim
Joined
Jul 28, 2020
Threads
16
Messages
2,377
Reaction score
4,581
Location
Utah
Vehicle(s)
Several
Your Bronco Model
Badlands
This is my main concern, how to deal with the trade. It seems like they will have to between a rock and a hard place on the trade, and if I sell it to Carmax I will have to take a massive tax penalty.
Can you not sell it privately?
 

Rick Astley

Raptor
Well-Known Member
Joined
Jul 24, 2020
Threads
70
Messages
5,019
Reaction score
18,563
Location
Up Doug's ass
Vehicle(s)
d
Your Bronco Model
Raptor
I have experience with this situation. When you purchase or attempt to purchase a vehicle that is on order, the dealer will have you sign a purchase contract.

When you go to the dealer to make an order for your Bronco, you will sign a purchase contract. The key is, you need to make sure that the dealer also signs the contract and that you receive at least one copy of that signed contract before you leave. If you leave without a copy of a counter-signed contract, you have no contract and you can be screwed over without any legal recourse. When the dealer signs the contract, it becomes legally binding, and if the dealer receives the vehicle, they must sell it to you at the agreed-upon price. This assumes all of the normal caveats for you being able to actually purchase the vehicle (appropriate financing or cash), trade-in ramifications (best not to trade in a vehicle in this situation).

Now, if something happens to the vehicle that makes it unsellable, that contract has an escape clause for the dealer. Let's hope that doesn't happen to anyone as that might be a long, tedious process to get to the right people at Ford to get you back in line in the reservation process.
In your state.

Here in WA a verbal contract is binding (assuming you have an independent third party to verify), and emails between you and the dealership are sufficient enough to be binding in the spirit of the agreement.
 

ramblinwreck

Wildtrak
Well-Known Member
Joined
Sep 25, 2020
Threads
16
Messages
864
Reaction score
1,983
Location
Georgia
Vehicle(s)
`22 Wildtrak, '21 Wrangler Rubicon 4xe
Your Bronco Model
Wildtrak
Can you not sell it privately?
I can, but thats a pain in the ass I am hoping to avoid. Note that i would have to sell it for $3k more than the dealer offer just to break even on it. Anyhow, dealing with a trade once the Bronco arrives is my largest concern by far. The dealer can either pay a fair market wholesale value and we move on, or try and lowball the crap out of me to see if I give in to avoid the hassle or balk and deal with selling it privately.

EIther way, the real leverage you have to prevent this is being able to walk away from the deal, go to another dealer and buy the same car. That won't be possible here, they know they have you by the balls when the Bronco shows up. You can always walk, but now you set around waiting for 1-2 years dealing with it to ultimately walk away empty handed.....
 

mdonathan56

Badlands
Well-Known Member
First Name
Michael
Joined
Jul 27, 2020
Threads
38
Messages
1,226
Reaction score
2,661
Location
Florida
Vehicle(s)
2022 Bronco Bad,2016 Q5 TDI, 2009 Honda Element EX
Your Bronco Model
Badlands
Clubs
 
I can, but thats a pain in the ass I am hoping to avoid. Note that i would have to sell it for $3k more than the dealer offer just to break even on it. Anyhow, dealing with a trade once the Bronco arrives is my largest concern by far. The dealer can either pay a fair market wholesale value and we move on, or try and lowball the crap out of me to see if I give in to avoid the hassle or balk and deal with selling it privately.

EIther way, the real leverage you have to prevent this is being able to walk away from the deal, go to another dealer and buy the same car. That won't be possible here, they know they have you by the balls when the Bronco shows up. You can always walk, but now you set around waiting for 1-2 years dealing with it to ultimately walk away empty handed.....
CARVANA
 

Sponsored

Brew3x

Wildtrak
Well-Known Member
First Name
Rob
Joined
Dec 1, 2020
Threads
4
Messages
98
Reaction score
137
Location
MA
Vehicle(s)
03 tacoma
Your Bronco Model
Wildtrak
Clubs
 
You’ll be signing a purchase and sale agreement which is legally binding at least that’s what I did when I preordered a motorcycle.
 
OP
OP
chownd

chownd

Outer Banks
Well-Known Member
First Name
J
Joined
Oct 25, 2020
Threads
12
Messages
499
Reaction score
1,418
Location
Boston
Vehicle(s)
2022 OBX
Your Bronco Model
Outer Banks
I have experience with this situation. When you purchase or attempt to purchase a vehicle that is on order, the dealer will have you sign a purchase contract.

When you go to the dealer to make an order for your Bronco, you will sign a purchase contract. The key is, you need to make sure that the dealer also signs the contract and that you receive at least one copy of that signed contract before you leave. If you leave without a copy of a counter-signed contract, you have no contract and you can be screwed over without any legal recourse. When the dealer signs the contract, it becomes legally binding, and if the dealer receives the vehicle, they must sell it to you at the agreed-upon price. This assumes all of the normal caveats for you being able to actually purchase the vehicle (appropriate financing or cash), trade-in ramifications (best not to trade in a vehicle in this situation).

Now, if something happens to the vehicle that makes it unsellable, that contract has an escape clause for the dealer. Let's hope that doesn't happen to anyone as that might be a long, tedious process to get to the right people at Ford to get you back in line in the reservation process.
So anyone who has done a purchase contract, is that all in, out the door, you own the thing price?

Trying to be cognizant if that includes the "vehicle" but not later could be fabricated fees. Appreciate all the discussion here

And those of you who have to deal with tax, yikes, feel for you
 

timhood

Badlands
Well-Known Member
First Name
Tim
Joined
Jul 28, 2020
Threads
16
Messages
2,377
Reaction score
4,581
Location
Utah
Vehicle(s)
Several
Your Bronco Model
Badlands
So anyone who has done a purchase contract, is that all in, out the door, you own the thing price?

Trying to be cognizant if that includes the "vehicle" but not later could be fabricated fees. Appreciate all the discussion here

And those of you who have to deal with tax, yikes, feel for you
Yes, it includes all of the dealer fees they plan to charge, taxes, registration and other government fees, etc. The bottom-line number is what you could take to a credit union and say, "I need a loan for this much."

Now, you still could buy additional items when you go to pick it up. So, even though you went through the round of "No, thank you" answers to True Coat, extended warranty, etc., I wouldn't be surprised if the dealer takes another stab at it come delivery time.
 

timhood

Badlands
Well-Known Member
First Name
Tim
Joined
Jul 28, 2020
Threads
16
Messages
2,377
Reaction score
4,581
Location
Utah
Vehicle(s)
Several
Your Bronco Model
Badlands
I can, but thats a pain in the ass I am hoping to avoid. Note that i would have to sell it for $3k more than the dealer offer just to break even on it.
I'm not sure I understand the math here, but I'm assuming it involves a high sales tax rate and/or a high-value trade-in.
Sponsored

 
 


Top