The retailer will sell the truck at MSRP but only if the buyer signs a special contract that stops them from flipping it.
A potential Bronco Raptor owner has found himself in a peculiar situation. The Ford retailer he is doing business with has informed the buyer that to take delivery of the vehicle, he has to sign a contract that gives the dealer the first right of refusal should he choose to sell the vehicle at a later date.
First reported by Carscoops, Drew Martin posted about the experience on the Bronco6x Facebook page, asking fellow enthusiasts whether they'd ever heard of a Speciality Vehicle First Right of Refusal contract. “[Has] anyone ever seen anything like this? Went to pick up my Bronco Raptor and saw this. They gave me until Monday to decide. I don’t like the idea of them having leverage over me forever essentially,” he wrote.
So-called market adjustments have created a big problem in the USA, with dealers placing premiums atop the MSRP of various in-demand vehicles.
The Bronco Raptor is no different, and some models are selling for well over the recommended list price.
The dealer in question, Sewell Ford in Odessa, Texas, is trying to protect itself from any penalties or punishments from the manufacturer. “We are selling this unit to you at below market value,” reads the contract. “As a result, we are reserving a right of first refusal should you decide to sell or trade this vehicle. We will pay you what you paid for the vehicle, less taxes and fees.”
“If our offer to you is less than what you paid, you are free to sell or trade anywhere else of your choosing.” The Dearborn-based automaker currently produces several desirable models that have been afflicted not only by dealer markups but by opportunistic resellers, too.
The company has said it would limit or reduce vehicle inventory if dealers are caught engaging in this practice but has also put in steps to cancel customer orders if there are suspicions that the vehicle will be resold for a profit.
Within the contract, a section explains Ford's stance on the matter. “Selling vehicles to customers who purchase with the intent to resell, and make a profit on current market conditions, compromises the integrity of our distribution system, and can negatively impact the value of Ford and Lincoln franchises,” it reads.
The document also says that allocation for specialty vehicles like the Bronco Raptor and Shelby GT500 may be reduced and that Ford “reserves the right to demand reimbursement for vehicles that are improperly sold in violation of the Policy.”
Interestingly, this contract has split opinions on the Bronco6x Facebook page.
“Well, if you’re buying it for {yourself}, who cares? But if you are only buying to flip it, then you’re part of the problem. Lots of retailers that have to honor MSRP are doing similar, or at least black listing flippers after the first incident. If they are selling you a {Bronco Raptor} at MSRP, buy it and enjoy it.
While this sounds like a way for the dealer to protect themselves – and bring some normality to the bizarre US car market – not everything as is it seems, according to Martin. He updated the post, writing “Sewell just called saying they were giving me until 10 AM Monday morning and the only way I can get my Bronco Raptor is to pay 20k over [the MSRP}.
It seems that the dealer is determined to prevent these vehicles from falling into the hands of flippers. From what we understand, if Martin doesn't want to sign the contract, he has to pay a $20,000 markup.
If Martin doesn't pay the $20,000, he stands to lose the vehicle.
Another Bronco6x user wrote, “It’s unreal they can even present this to you. You do not work for Ford, nor is Ford being represented in that letter. If so, it would come directly from, well, Ford.”
It's a tricky situation to be in and, if the dealer is acting with pure intentions, we applaud them for obeying the manufacturer's wishes. Not only does that mean a desirable vehicle is being sold at the intended price, but individuals can now get enthusiast vehicles without having to fork over a premium.
As per the original report, Martin is still in discussions with the General Manager of the dealer.
However, we also commiserate with Martin, as there's a good chance he's not a flipper, and simply feels uneasy about entering a contract like this. Is this fair? Or do you think the dealer is out of line? Let us know in the comments below.
Keyword: Ford Dealer Has Genius Plan To Ensure Bronco Raptor Goes To The Right Buyer