In a first for me, the dealer asked me to sign an "Agreement not to Export and Security Agreement". I haven't bought a LR in ~30 years, but is this new or just a sign of the times? Basically it says that they get 18% of the sales price if I export it within 18 mos and that if I sell the vehicle within 18 mos they have first right of refusal. I intend to hold it a while, but if something happens - I'll take the first buyer at my price anyway. But it seemed pretty odd throwing that in there. Is this just my local Dealer making up their own thing or is this sanctioned at a larger level?

 

I have never seen that before... It does say that you could reject a repurchase offer and it's all done. Offer them to repurchase it immediately and reject it... 😁

 

Wow. I can't answer your question but my guess is that this is taking place at the local level. I can see JLR trying to protect their brand but don't quite fathom them pouring money into a sinking market (in the unlikely event that happens with the new Defender) to do so. On the other hand, the dealership has a vested interest in trying to capture the resale market and this seems like a ploy to ensure that no money is left on the table if they have anything to say about it. Plus, there aren't enough fancy words in there which makes me suspect of JLR's involvement. Either way, I'd make sure they were aware that I found that clause objectionable and would ask for it to be removed.

 

In effect you're asking them to remove their name from the title and without issuance of a new title with a different party ownership they would likely not comply. There are probably more than a few crafty ways around this situation, which makes me think this is typical car dealership mentality at work, but kudos to them for having the ***** to try it.

 

I had to sign that exact thing also (Houston). Sales couldn’t really explain the motive behind it. Although, in truth, they couldn’t explain many things. 😬

 

If is an outright purchase, cash, the dealership, can only place their name on the title, as long as you sign and agree.
Here is a way around it if you are concerned: finance it through a bank or credit union - it will be titled 100% as a bank title for the loan time, then turn around next week and buy it in cash / pay off the loan from the bank.
No bank in the world would play such a silly game to let the dealership be on the title.
Also - think of this scenario: your car is totaled - for whatever reason. Dealer on the title. Guess what? they are entitled to insurance compensation too - legally.
This is very fishy, and any lawyer worth its weight in salt, would make this go away.

 

This agreement would NOT affect the customer should the car be totaled. The insurance company will pay 100% to the insurer. The agreement is really there to protect the car manufacturer from arbitrage by the dealership or reseller. Example situation being where the dealership sells the car at a marked-up price knowing that the car is in high demand (whether in same State or anywhere else in US or abroad). Other vehicle manufacturers and other industries do this as well. JLR were taken to court over this issue a few years ago but the case was dismissed in Federal Court. The buyer can of course refuse to sign this agreement, but then the seller (or JLR) always has the right to not do business with you.

 

@Mechano2020 - My thoughts EXACTLY

 

I was thinking along the same lines as @TheMoke about the options. In my mind, if someone really wanted the Defender (aka, me) - go ahead and sign. It's not limiting options if you plan to hold it and likely won't impact. However, if someone was on the fence, awareness of this may tip them away. Thus I'm posting this everywhere. I may even add it to the Dealer's Yelp page.

 

@TheMoke - I have purchased mine and it did not stated anything of the sort. Personally, I would not touch that with a 10 ft. pole. It is a very slippery slope. I promise you if you get this through a bank finance, that would and will not be there. Now, if ones wants that car badly, yeah .... they will sign. And if the dealer want to mark up the car 100%, they can legally do so.... is ultimately the buyer's decision if they want it or not at that price. Why would any one sue the dealer for marking up the price ? Anyways, I am not a lawyer, but this stinks to high heaven.