So this is how they will enforce flipping vehicles-$1.00 Lien

[DuckRyder]

If you think there isn't a strong trade in canadian vehicles exported to the US just google ALM in Atlanta and run some car fax reports on their stuff...

Funny how the original story leaves out the part about him being on a list and already having quickly resold / exported 2 to the US (assuming it's true).

You can put me in the group that thinks this was all well explained to him and he's trying to news channel his way out of it...

 

[Wolf359]

thanks Wolf.. I get it now.. still a sleazy move and people wonder why there's so much talk of the dealership model going away!

It's just contract negotiations. That's the condition of the sale, if you don't like it, don't sign the contract. Not as sleazy as charging over MSRP so that there's no point flipping it because you can't sell it for more.

People like to talk, but the laws say that auto manufacturers have to use dealers and dealers have contracts with the manufacturer. The people are just 3rd party people that have no say in the contract between the dealer and manufacturer. They'd probably have to change the laws to get around it, but it was the dealers that lobbied to get those laws passed. I like how they say they will also get rid of real estate brokers too. I don't see that happening either.

 

[Job]

I think it’s great. I hope all the dealers add it to their contracts. Now if the car makers would do the same to the dealers it would be perfect. You have to stock the vehicle for one year or sell for msrp. Problem is the 8000 added markup can be for something, even nonsense things. That’s what a neighbor told me last week was the price of a new Honda, 8000 over msrp. It gives you more coatings and treatments than a beauty shop.

 

[Blinker]

I think it’s great. I hope all the dealers add it to their contracts. Now if the car makers would do the same to the dealers it would be perfect. You have to stock the vehicle for one year or sell for msrp. Problem is the 8000 added markup can be for something, even nonsense things. That’s what a neigbor told me last week was the price of a new Honda, 8000 over msrp. It gives you more coatings and treatments than a beauty shop.

Puts a whole new meaning to the term, “lipstick on a pig”.

 

[Wolf359]

I think it’s great. I hope all the dealers add it to their contracts. Now if the car makers would do the same to the dealers it would be perfect. You have to stock the vehicle for one year or sell for msrp. Problem is the 8000 added markup can be for something, even nonsense things. That’s what a neigbor told me last week was the price of a new Honda, 8000 over msrp. It gives you more coatings and treatments than a beauty shop.

They can't do it to their dealers. That's why it's called MSRP. It's the suggested retail price, not mandated. Forcing them all to sell at the same price gets them in trouble with other laws. Probably Sherman anti-trust.

 

[Job]

They can't do it to their dealers. That's why it's called MSRP. It's the suggested retail price, not mandated. Forcing them all to sell at the same price gets them in trouble with other laws. Probably Sherman anti-trust.

Also it is the traditional sales model, and the dealers job is to sell the cars, especially to people who can’t afford them and just sign the contract without knowing what’s in it. Those are the tastiest customers. They need each other the maker and the dealer. Maybe they are made for each other too.

 

[Silver]

Maybe they are made for each other too.

Bingo.

 

[clinebarger]

It’s nothing to do with rights. It’s in the contract by the dealer, you don’t have to sign it. Lots of things are in contracts with an auto sale. The Ford article says it is recommending dealers do this, not requiring. I hope they do put it in. Let more people who need a car get a car. Without the requirement, car flippers will be the first in line.

Very few NEED a new vehicle....Most WANT a new vehicle. I also doubt the vehicles being flipped are of the "basic transportation appliance" type??

 

[CKN]

Very few NEED a new vehicle....Most WANT a new vehicle. I also doubt the vehicles being flipped are of the "basic transportation appliance" type??

Statistics show most new vehicles are heavy with options. Even econo cars have power windows and air conditioning. Therefore most used cars will be the same. BTW-sales of basic transportation appliances are very low - or have been discontinued. Current average used are prices are approaching $40,000.00. These are not strippers.

 

[blupupher]

It's simple, you can have multiple liens on a property. The dealer would be in 2nd lien position so if the bank took the car back, their 2nd lien position would be wiped out. Your whole scenario basically doesn't make any sense because it assumes that there can only be one lien. All they have to do is write it up in the paperwork, sale price is $1 more than you paid and it's recorded as a second lien. You have to satisfy all the liens on a property before they issue a new title.

So what if you paid cash for the vehicle? You would not get a clear title even then?

I understand it is a contract, but not something I agree with, and not something I would sign, even if I was not planning on selling in less than a year.

I am also in the camp that it is not of the dealers business what I do with my property once I buy it, but that is the world we are living in now, we don't own anything.

 

[dishdude]

I went by a Ford dealer and they had one new F-150 with a market adjustment. I very nicely explained to the sales woman that if I were to pay a market adjustment it would be for a Toyota Tundra-something I am sure will last until there was an equilibrium on the resale where I could get out of it if I chose to.

BTW-she quoted 24 months is when they feel they will actually have some inventory on their lots.

Above MSRP is the same as scalping-IMHO.

I had the same thing happen at the local Hyundai dealer. Why would I pay a market adjustment on something that the motor will likely grenade on in a year or two?

 

[hank2]

Anecdotally, I have been told that both the local Hyundai and the Kia dealership are currently at 14% over sticker on the low end of the lineup.

 

[Wolf359]

So what if you paid cash for the vehicle? You would not get a clear title even then?

I understand it is a contract, but not something I agree with, and not something I would sign, even if I was not planning on selling in less than a year.

I am also in the camp that it is not of the dealers business what I do with my property once I buy it, but that is the world we are living in now, we don't own anything.

What of it? It's like any contract. In real estate, it would be a deed restriction. Don't like the restrictions? Then don't buy.

It shouldn't be the business of what you do after it's bought, but if that's the condition of the sale, then you either agree to it to allow the sale to go through or you don't and you walk away. The intent of the dealer is to make sure that you don't make a huge profit right away that the dealer could have been making instead. Don't really have a problem with that.

A lot of this thread is people who want to have their cake and eat it too. Essentially, why should you have the right to make a huge profit at the dealer or manufacturers expense?

 

[Jarlaxle]

Apparently he has to wait a year to pay off the outstanding ($1) amount.

Serious question: is that legal?

 

[Jarlaxle]

They can't do it to their dealers. That's why it's called MSRP. It's the suggested retail price, not mandated. Forcing them all to sell at the same price gets them in trouble with other laws. Probably Sherman anti-trust.

Decades past time to repeal that. Car dealers are a relic from 1970 and serve no useful purpose anymore. (If they ever did.)

 

[Jarlaxle]

Statistics show most new vehicles are heavy with options. Even econo cars have power windows and air conditioning. Therefore most used cars will be the same. BTW-sales of basic transportation appliances are very low - or have been discontinued. Current average used are prices are approaching $40,000.00. These are not strippers.

Those aren't options. My shop loaner Mirage had, exactly, one option: CVT. It had A/C, power windows and locks, Bluetooth stereo, and backup camera.

 

[researcher]

you know what I think we've forgotten in this thread? This was a dealer in canada, not the US. Show me a US Dealer that tried this.. Different laws up there than here in the states. Lots of odd things going on in Canada, recently.. to put it mildly.

 

[el Nuke]

“As a reminder, the 2021 GMC Yukon introduces an all-new fifth generation for the nameplate, offering three engine options, including the atmospheric 5.3L V8 L84gasoline engine, atmospheric 6.2L V8 L87 gasoline engine, and 3.0L I6 LM2 turbodiesel Duramax.”

Atmospheric?

 

[researcher]

“As a reminder, the 2021 GMC Yukon introduces an all-new fifth generation for the nameplate, offering three engine options, including the atmospheric 5.3L V8 L84gasoline engine, atmospheric 6.2L V8 L87 gasoline engine, and 3.0L I6 LM2 turbodiesel Duramax.”

Atmospheric?

That's those Canadians for ya.. USA Translation : Naturally Aspirated.. there fixed it for you..

So I finally read the original article, turns out that the guy who got the $1 Lien and the conditions that it not be re-sold within one year, he is on a known "Flipper List" with GM that he has sold vehicles into the US from Canada. Guess GM doesn't like people doing that. here I was getting upset and duh, should've read the original article. The Canadian people have been getting a raw deal for a long time with vehicles. For instance, they've been paying way, way more than just a currency conversion. so again.. different country, different rules..

 

[JHZR2]

It's just contract negotiations. That's the condition of the sale, if you don't like it, don't sign the contract. Not as sleazy as charging over MSRP so that there's no point flipping it because you can't sell it for more.

People like to talk, but the laws say that auto manufacturers have to use dealers and dealers have contracts with the manufacturer. The people are just 3rd party people that have no say in the contract between the dealer and manufacturer. They'd probably have to change the laws to get around it, but it was the dealers that lobbied to get those laws passed. I like how they say they will also get rid of real estate brokers too. I don't see that happening either.

Just contract negotiations. But of course it can be that if you don’t agree, they won’t sell. Thus it forces the perspective buyer to not be able to buy unless they agree.

For an unpopular model with lots of stock, these things may not come up. For a popular model, take it or leave it. That’s the problem. What’s the recorse? What’s the plan b? Good luck finding a dealer somewhat close willing to buy it.

Of course most all of this is moot if someone is a serious buyer that wants to keep the vehicle.