When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
In my case I did sign an agreement not to export. It basically explains that JLR takes action against dealers that sold new vehicles that were exported from the US, so as a buyer I acknowledge that I do not intend to export it and commit not to do so or sell it to someone who would do so within twelve months of taking delivery and that if that agreement is breached then I will pay them $50k. That's it, nothing about first right of repurchase or anything like that. There is also a JLR document that voids the Passport to Service if the vehicle is exported outside of the US, Puerto Rico, Guam or Canada.
The "Not Export" clause makes total sense. There are different licensing, fees, regulations, tech, software export laws - it's a nightmare. As a "legit" customer (not a commercial operation on the side), this makes sense to me. The "First Right of Refusal" and we are putting it on the title until it expires was something I would have LOVED to have known before the deal. I could have ordered the truck from any dealer. Again, I plan on keeping it for a while, but I still think it suggested a deceptive practice and as a result warrants awareness.
The "Not Export" clause makes total sense. There are different licensing, fees, regulations, tech, software export laws - it's a nightmare. As a "legit" customer (not a commercial operation on the side), this makes sense to me. The "First Right of Refusal" and we are putting it on the title until it expires was something I would have LOVED to have known before the deal. I could have ordered the truck from any dealer. Again, I plan on keeping it for a while, but I still think it suggested a deceptive practice and as a result warrants awareness.
It is indeed weird, and personally I have never seen anything like it. To your point it is something that should come up earlier in the process not when you are ready to sign, which sounds like the kind of practices that have given car dealers the bad reputation they have…
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.
Huge, Marlin-sized, rotten for 10 days in a hot car fishy !!
NO WAY would I ever pay for a vehicle, a boat, a trailer or any piece of equipment and let the dealer put himself on the title. My money paid to you, my vehicle.
But, then again, I am just a small town buyer at a small town JLR dealer -- thankfully.
Is the dealer going to pay half your personal property tax?
Austin, Tx. Someone else posted that the same thing happened in Houston, Tx. The two dealers aren't in the same "network" or "dealership group". I thought the Export part was a TX thing, but it has been confirmed outside TX and I now believe may be JLR driven. The "First Right of Exclusion" may be more local driven, but I don't know how many local dealers have/are adding this language. But this is all based upon what I've been reading in this and other forums/threads.
Regardless the Pro-Tip here is to ask the Sales Person before ordering/falling in love/buying one if they do this practice and exert your right to choice BEFORE you are pretty committed to the deal.
Thank you for info. I do not think is a TX thing, I got mine in TX too - did not had this clause on. But then again, who knows .... things change super fast these days.
Mechano, I was only disagreeing with your comment about insurance write-off. On your point about dealer markup the sale price--agree there also. However, if JLR found out, the dealer would probably be in breech of their franchise agreement and so JLR would probably have the right to terminate contract with them or restrict their supply of cars.
I have only leased new and purchased used cars from JLR in the past and so I have not come across this kind of export agreement before when purchasing a car! My guess is that this agreement probably only comes into play in certain regions of the country or with specific dealerships--and perhaps with buyers that have no history with JLR. Just a guess. My Defender is due for delivery in the next few weeks, so I will be looking out for it when the time comes. If they ask me to sign, I will refuse and see how far I get with it. But I honestly think it's a storm in a tea cup, unless you're in the business of exporting cars to China--in which case you are probably already blacklisted.
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?
Which dealer did this? I was told by JLR Minneapolis that they had somebody buying vehicles from them and selling them to people in China and making $50k for each vehicle. In my opinion, who cares? If you bought a Chevy and sold it to someone in China, would Chevy care? It just seems a little paranoid from the dealer's perspective. It also conflicts with what the sales guy told me about my $5k deposit. He said some people change their mind of find a Defender at another dealership and want their $5k back. The dealership keeps the $5k and the customer loses out. He said if I change my mind, don't lose the $5k, just sell the vehicle because it will be worth more than I paid. But, if this new "agreement" is in place, would I really make more on it than I paid for it? Seems to be a contradiction.
06-17-2021, 12:58 PM
