JLR first 12 months, Cannot sell new car unless to JLR?

JLR first 12 months, Cannot sell new car unless to JLR?

Author
Discussion

stinkyspanner

701 posts

76 months

Tuesday 21st December 2021
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So if you sell it privately within 12 months they 'might' not sell you another one? Ooh, well hard!

Mikebentley

6,037 posts

139 months

Tuesday 21st December 2021
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I might have an insight into this. I have ordered a new Defender and currently 12 month old ones are in spite of them having the hateful 4 cyl engine selling massively over list. I saw whilst deciding what to buy several used cars 12 months old with 7 to 12k miles that cost £49k sell for £68k within 2 days. Both dealers told me they had paid between £10/12k over what the owner had paid them 12 months earlier. They all also have 10/12 customers not willing to wait for a new build car.

The second issue is that a company something Farmers rang round dozens of dealerships and on the promise of an order of 50+ cars from each got a dozen or so cars from the dealer network. They then very swiftly shipped them to New Zealand and sold them for a huge mark up before the car was officially released there. I believe JLR warned dealers about this recurring.

I don’t believe dealers are able to pre order the Defender only genuine private customers. My car which I have specced to about £62k there is an identical car on eBay for £82k!

The dealer has told me if I don’t want it they would make me a very generous offer when it is delivered. I think this is all exasperated by the supply issues and the huge demand,

Fast Bug

11,597 posts

160 months

Tuesday 21st December 2021
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If there are any kind of support terms in place (fleet/military/NHS or any number of clubs/associations) then its fairly standard with pretty much any manufacturer.

Wills2

22,669 posts

174 months

Tuesday 21st December 2021
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They have so few new cars to sell and therefore need the used ones to supplement their revenues and want to close off the other trade bidders outside the network as defenders are fetching overs.

It's an interesting one and I guess someone might challenge it, but if it doesn't break any other overriding laws then it probably enforceable if you agree to it on signing, but unlike a Ford GT it's not going to stick out like a sore thumb in the market but wow things are getting a bit strange at the moment.




RUSSELLM

6,000 posts

246 months

Wednesday 22nd December 2021
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OP… Was the JLR product purchased under the employee discount scheme ?

I know that carries the 12 month rule. Something to do with having to pay BIK, if you start buying and flipping them.

Crumpet

3,876 posts

179 months

Wednesday 22nd December 2021
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I have a D300 110 on order as it was a condition of selling the dealer my D5 for £1000 more than WBAC were offering. I could cancel and get my £1000 deposit back but given the current selling prices it seems like a no-brainer to take delivery and flip it for a good few thousand pounds of profit.

I’ve not seen any conditions with regards to periods of ownership mentioned in the paperwork but I can’t see how they could legally enforce anything anyway.

oop north

1,592 posts

127 months

Wednesday 22nd December 2021
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All this use of the word “enforceable” seems irrelevant. They have just said they might not sell you another car in the future if you sell on in the first 12 months - if a dealer wants to refuse to sell you another car then they are entirely within their rights to do so .

I wouldn’t be at all bothered by that - and by the time of getting another car then you could just go somewhere else

When I bought a new caterham 22 years ago they had a clause forbidding me from selling in in the first 12 months. NFU discounted cars have the same restriction

ScubaBiker

26 posts

95 months

Wednesday 22nd December 2021
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I recently bought a new Jaguar and had a similar term in the contract I had to sign. Mine was from a different dealer group to the OP and I think it stopped me selling it for 3 months or 2k miles, rather than 12 months. The contract said something along the lines of if I sell it within that timeframe I would have to pay any costs that the dealer incurs due to their breach of contract with JLR. I did question the dealer about it, and he said it was to stop them selling to independent traders as JLR want to ensure that their new cars are only sold via approved dealers. He said they do have to check new car buyers to ensure they are genuine personal buyers and not traders in disguise. The new Defender had lots of interest from traders trying to get new ones, so JLR have tightened up on this area.

I sort of understand their reasoning as I had bought the car with a decent discount (albeit waited about 6 months for it) and when I collected the car I could have immediately sold it to WBAC for a £5k profit without any work - although that was mainly due to the current strong prices.

To get the car I had no option but to sign the contract. I occasionally get involved in trying to enforce these type of dealer contracts through my work (not car related) and they are generally impossible to enforce as they just restrict free trade. The only way to enforce them is to restrict or remove future incentive deals to the dealer, but typically this isn't in either parties interest so no ones tries to enforce them apart from having strong words with someone senior at the dealership. I think if a dealer was selling a lot of stock into a trader JLR would be onto it, but a one off private sale within the timeframe wouldn't be an issue.

Chubbyross

4,537 posts

84 months

Wednesday 22nd December 2021
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They’ve clearly been admiring the supply and demand nonsense from Porsche and their GT cars and want a piece of the flipping action.

AlexIT

1,482 posts

137 months

Wednesday 22nd December 2021
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stinkyspanner said:
So if you sell it privately within 12 months they 'might' not sell you another one? Ooh, well hard!
Is there anyone actually buying a second one? biggrin

  • just joking* wink

Baldchap

7,507 posts

91 months

Wednesday 22nd December 2021
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stinkyspanner said:
So if you sell it privately within 12 months they 'might' not sell you another one? Ooh, well hard!
This.

I'd not worry about it.

I mean, technically, they'd struggle to give me one if I had to actually use it regularly, but that's by the by. laugh

hyphen

26,262 posts

89 months

Wednesday 22nd December 2021
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knitware said:
How is this reasonable?
I think its quite reasonable as long as JLR are buying back at market value.

As all they are threatening you with is not to sell to you again, as opposed to threatening anything else, not a bad thing if they are doing it to stop flippers/traders buying up in demand models.

123DWA

1,269 posts

102 months

Wednesday 22nd December 2021
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GroundEffect said:
Name and shame on Twitter and I'm sure it'll help get rid of this crap.
I'm sure JLR will st themselves when they see someone with 132 followers start @'ing them

Mikebentley

6,037 posts

139 months

Wednesday 22nd December 2021
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A couple of the ones I know of is where the dealer reached out to owners and said if you reorder a new one today we will give you £8 to 10k more than you paid. Effectively better than free motoring.

Hugo Stiglitz

37,010 posts

210 months

Wednesday 22nd December 2021
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knitware said:
I had some docs sent to me today, has any one seen this stipulated before?

'Brand new Land Rover vehicles are only sold by the Jaguar Land Rover retailer network. Land Rover classifies a new car as a vehicle under 12 months old from point of registration.
As part of the agreement to purchase a brand -new Land Rover it is a condition that you will not resell or export the vehicle to anyone other than an official Land Rover retailer for a period of no less than 12
months. Failure to comply with this request could result in Marshall Jaguar Land Rover refusing future vehicle sales to you'.

How is this reasonable? Has anyone signed thus and sold outside of JLR?
Does JLR HQ know about this?

J4CKO

41,286 posts

199 months

Wednesday 22nd December 2021
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Mikebentley said:
I might have an insight into this. I have ordered a new Defender and currently 12 month old ones are in spite of them having the hateful 4 cyl engine selling massively over list. I saw whilst deciding what to buy several used cars 12 months old with 7 to 12k miles that cost £49k sell for £68k within 2 days. Both dealers told me they had paid between £10/12k over what the owner had paid them 12 months earlier. They all also have 10/12 customers not willing to wait for a new build car.
Wow, some folk must really have a lot of money spare to drop 50 plus grand in the first place, never mind what its realistically 20 grand what it would be normally worth at that age/mileage ?

I consider myself to not be exactly skint, but what do folk do that are happy to do that ?

I know people have different situations but I would really struggle to justify that unless I had a lottery win, I do like these but it would kill me to pay the price of a nice M3 over list for a 4 cylinder SUV, and they are bloody everywhere now but I think they will stay expensive for a while yet, then I would imagine for those that paid over list they may end up with a shock if they keep it two or three years.



hyphen

26,262 posts

89 months

Wednesday 22nd December 2021
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J4CKO said:
Wow, some folk must really have a lot of money spare to drop 50 plus grand in the first place, never mind what its realistically 20 grand what it would be normally worth at that age/mileage ?

I consider myself to not be exactly skint, but what do folk do that are happy to do that ?

I know people have different situations but I would really struggle to justify that unless I had a lottery win, I do like these but it would kill me to pay the price of a nice M3 over list for a 4 cylinder SUV, and they are bloody everywhere now but I think they will stay expensive for a while yet, then I would imagine for those that paid over list they may end up with a shock if they keep it two or three years.
You need to realise how the other half live.

https://www.dailymail.co.uk/news/article-10334447/...

J4CKO

41,286 posts

199 months

Wednesday 22nd December 2021
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hyphen said:
J4CKO said:
Wow, some folk must really have a lot of money spare to drop 50 plus grand in the first place, never mind what its realistically 20 grand what it would be normally worth at that age/mileage ?

I consider myself to not be exactly skint, but what do folk do that are happy to do that ?

I know people have different situations but I would really struggle to justify that unless I had a lottery win, I do like these but it would kill me to pay the price of a nice M3 over list for a 4 cylinder SUV, and they are bloody everywhere now but I think they will stay expensive for a while yet, then I would imagine for those that paid over list they may end up with a shock if they keep it two or three years.
You need to realise how the other half live.

https://www.dailymail.co.uk/news/article-10334447/...
Hmm, not sure all Defender buyers are the global super rich, and they probably don't buy Defenders, if they do its probably not a 4 cyl.

Same as not all Evoque owners are Billionaires, not all Discovery owners are landed Gentry and not all Sport owners are Drug kingpins.


PurpleTurtle

6,940 posts

143 months

Wednesday 22nd December 2021
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Only time I have encountered this is when I contracted directly for a manufacturer, they gave me 'supplier discount', I had to agree to not resell within 11 months.

I was happy with this, one phone call sold it back into their retailer network at a small profit to me, I didn't have to deal with test pilots on a moderately high value car.

However this JLR dealer is flying a kite here. They can't legally enforce this, but would just blacklist you from future ordering within their dealer group.

knitware

Original Poster:

1,473 posts

192 months

Wednesday 22nd December 2021
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RUSSELLM said:
OP… Was the JLR product purchased under the employee discount scheme ?

I know that carries the 12 month rule. Something to do with having to pay BIK, if you start buying and flipping them.
Hi, no discount at all, I'm just a walk in, well, I placed a deposit online.

That form annoyed me, if I own something, anything, I can do as I wish with it, sell, keep, give it away to whomever.

It annoyed me further as if you look on LR approved used they have Defenders on huge markups.