Can a dealer act on reselling clause in contract?
Can a dealer act on reselling clause in contract?
Author
Discussion

thaiffer

Original Poster:

5 posts

52 months

Tuesday 26th April 2022
quotequote all
Just wonder if anyone has any experience of dealer acting on reselling clause on a new car order contract?

Canon_Fodder

1,775 posts

91 months

Tuesday 26th April 2022
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Tesla?

Jamescrs

6,282 posts

93 months

Wednesday 27th April 2022
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If Tesla I wouldn't put anything past them to be honest.

p4cks

7,468 posts

227 months

Wednesday 27th April 2022
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Would you want to get involved in a legal battle with that fking nutter?

Ouroboros

2,371 posts

67 months

Wednesday 27th April 2022
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Contract law for consumers is pretty clear, can't be terms in a consumer contract that unfairly treat a consumer.

"The Consumer Rights Act 2015 states that a "notice is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations to the detriment of the consumer".

SWoll

22,626 posts

286 months

Wednesday 27th April 2022
quotequote all
p4cks said:
Would you want to get involved in a legal battle with that fking nutter?
Not if you expect to win. smile

Dimebars

1,064 posts

122 months

Wednesday 27th April 2022
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What is the specific clause? And who is the manufacturer/dealer?

JLR dealers are fond of legal threats against re-selling their products within a certain timeframe without giving them first dibs on it

thaiffer

Original Poster:

5 posts

52 months

Wednesday 27th April 2022
quotequote all
Its an Audi.
Term is
"You confirm and agree that you do not intend to and will not resell the Goods anywhere
in the world for commercial gain within 6 months of delivery."

I am in the position where I have paid for the car, however not taken delivery.

Olivergt

2,240 posts

109 months

Wednesday 27th April 2022
quotequote all
thaiffer said:
Its an Audi.
Term is
"You confirm and agree that you do not intend to and will not resell the Goods anywhere
in the world for commercial gain within 6 months of delivery."

I am in the position where I have paid for the car, however not taken delivery.
I'm not an expert, but I think the part I highlighted is the critical part, if it's a private sale for profit, then you should be ok, but if it your business to try and source hard to get cars and sell them on at a profit, then you would fall foul of that clause.

Having said that, I'm no legal expert and am not sure if they could enforce it in law. But they could blacklist you and refuse to sell you anymore cars, so there could be consequences even without that clause.

barryrs

5,018 posts

251 months

Wednesday 27th April 2022
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Ford in the US sued over GT flipping so I guess it can be enforced if the terms were transparent.

Ouroboros

2,371 posts

67 months

Wednesday 27th April 2022
quotequote all
Again, Iwould say as a consumer if it wasn't explicitly pointed out to before buying, hidden away in the contract, then it is unenforceable.

I would fall back on the Consumer Rights Act 2015.

The Act also provides that unfair terms in consumer contracts and consumer notices aren't binding on the consumer, ''It causes a significant imbalance in the rights and obligations of the parties to the detriment of the consumer.''

Though if a term in a consumer contract is unfair, it's invalid and can't be enforced against the consumer. You could only have this determined by the courts.

bad company

21,913 posts

294 months

Wednesday 27th April 2022
quotequote all
barryrs said:
Ford in the US sued over GT flipping so I guess it can be enforced if the terms were transparent.
The laws here are very different from the USA.

Canon_Fodder

1,775 posts

91 months

Wednesday 27th April 2022
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OP can we just confirm you are buying the car as a private individual?

Canon_Fodder

1,775 posts

91 months

Wednesday 27th April 2022
quotequote all
Having done some digging, Ford have tried a few things in the USA but there's no chance that Audi would try to act in the UK against a private buyer.

https://www.motorauthority.com/news/1117936_ford-m...

If you do flip the car and Audi finds out, you may get crossed of their Christmas card list, but nothing more.

thaiffer

Original Poster:

5 posts

52 months

Wednesday 27th April 2022
quotequote all
Yes I am a private individual buying a car and I have never been involved in the motor trade.

Canon_Fodder

1,775 posts

91 months

Wednesday 27th April 2022
quotequote all
thaiffer said:
Its an Audi.
Term is
"You confirm and agree that you do not intend to and will not resell the Goods anywhere
in the world for commercial gain within 6 months of delivery."

I am in the position where I have paid for the car, however not taken delivery.
OP there must be more to the clause than that.... There must be an "or you owe us £££" or something like that? A sanction or penalty of some sort if you do flip it?

bad company

21,913 posts

294 months

Wednesday 27th April 2022
quotequote all
thaiffer said:
Yes I am a private individual buying a car and I have never been involved in the motor trade.
One of those clauses big companies like to try knowing full well that they’re unenforceable. Rather like unreasonable non completion clauses in employment contracts. I really wouldn’t worry about it.

thaiffer

Original Poster:

5 posts

52 months

Wednesday 27th April 2022
quotequote all
The problem I've got is they have taken full payment but I haven't taken collection of the car and they now are trying to cancel the order and refund.

I will upload additional text later relating to the clause.

One would imagine the ultimate goal for them is to end up with a car they are able to profit on! 😂

Driver101

14,451 posts

149 months

Wednesday 27th April 2022
quotequote all
thaiffer said:
The problem I've got is they have taken full payment but I haven't taken collection of the car and they now are trying to cancel the order and refund.

I will upload additional text later relating to the clause.

One would imagine the ultimate goal for them is to end up with a car they are able to profit on! ??
If they knew the car was in demand and they could sell it for more than list price, hence why they inserted the terms, why would they have sold it you for the proper price?

Isn't the only reason they are looking to cancel the sale is they are aware you're trying to break the agreement and make a profit?

Edited by Driver101 on Wednesday 27th April 18:21

bad company

21,913 posts

294 months

Wednesday 27th April 2022
quotequote all
thaiffer said:
The problem I've got is they have taken full payment but I haven't taken collection of the car and they now are trying to cancel the order and refund.

I will upload additional text later relating to the clause.

One would imagine the ultimate goal for them is to end up with a car they are able to profit on! ??
Why not just take delivery?