Export Prevention

[n4ronin]

Anyone have a dealer make you sign an agreement that says you will not sell the car within the first two years of purchase and if you do the Porsche dealer has the first right of refusal to buy the car and if you are not happy can see if you can get a better offer? Seems a little shady to me. Not sure if they is a Porsche thing or specific to the dealer. Agreement also states you will not export the car for two years.

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[atebit]

No. How can they even think they can do that if it’s a sale & not a lease? It’s your car!

 

[mokre]

Yeah I had this on mine as well. When I asked about it I was told it was basically intended to protect the price of the car in other markets and prevent people from buying it "cheaply" here and then reselling it in another market for less than that market's retail.

I have no idea how true this actually is.

No. How can they even think they can do that if it’s a sale & not a lease? It’s your car!

Unless you buy it outright and have the title in-hand, technically it isn't yours (ie finance or lease.) I do agree though I don't see how they could enforce this if you owned the car outright and have the title to it.

 

[atebit]

Sure, but in that case it’s the bank that has the ownership interest, not the dealer, right?

 

[n4ronin]

I’m doing a business lease but I wouldn’t sign this. I was caught off guard by this.

 

[mokre]

Sure, but in that case it’s the bank that has the ownership interest, not the dealer, right?

Yep. I doubt you can export a car with an outstanding lien on it either.

 

[n4ronin]

No. How can they even think they can do that if it’s a sale & not a lease? It’s your car!

Verbiage doesn’t even distinguish between lease vs finance vs cash purchase. It just says purchase.

 

[KensingtonPark]

Believe it or not, in many countries (including the US) you cannot sell a car that you have owned for a very short time to a person in another country. A number of reasons for this, but the dealer is protecting itself from being accused of being part of the issues raised if you do it.

 

[Genau]

See reader comments below this Jalopnik post.
https://jalopnik.com/is-it-legal-for-a-dealer-to-refuse-business-because-i-l-1847281399

 

[atebit]

@n4ronin do you remember what was the “penalty” was for violating this agreement? Not selling you the car unless you sign is one thing, a party with no remaining ownership interest trying to tell another party with (likely significant) current ownership interest what to do with said property may not be enforceable.

Now, actually trying to export the car might lead to a different outcome, but just selling/trading it elsewhere seems unlikely.

Note Bene: my JD is from Encyclopedia Dramatica, so YMMV.?‍

 

[n4ronin]

@n4ronin do you remember what was the “penalty” was for violating this agreement? Not selling you the car unless you sign is one thing, a party with no remaining ownership interest trying to tell another party with (likely significant) current ownership interest what to do with said property may not be enforceable.

Now, actually trying to export the car might lead to a different outcome, but just selling/trading it elsewhere seems unlikely.

Note Bene: my JD is from Encyclopedia Dramatica, so YMMV.?‍

1. The vehicle will remain in the United States and not be exported
2. There is no planned sale to a third party at this time. The vehicle will be used for personal or legitimate business purposes by the Purchaser for at least the next two (2) years. If circumstances change and the purchaser needs to sell the vehicle at any time during the next two years, purchaser must notify Porsche (Dealership) in writing. The purchaser agrees to offer the vehicle to Porsche (Dealership) first to repurchase.

Rest of the paragraph basically states Porsche dealer has first right of refusal. You can shop the car around and see if you can get a better deal. You have to send the better deal in writing back to the dealer via certified mail and they have 10 days to review and match or refuse

3. Funds are from Purchaser and not 3rd party
4. No fees or payments are being made by 3rd party to Purchaser related to vehicle or to any employee of Porsche (Dealership), either directly or indirectly.

Dealership is relying on these representations and would not sell the vehicle to the Purchaser otherwise.

Failure to be truthful is considered Fraud and may result in criminal charges against purchaser. More verbiage around money laundering

If Dealership is notified vehicle was exported with the next two years, Dealership will contact law enforcement and have the Purchaser prosecuted to the fullest extent of the law.

Dealership will seek to recover damages through civil litigation, including small claims court. Damages will include but not limited to, chargebacks to Porsche North America. The chargeback amounts are usually 1,500 to 3,000.00 per vehicle, but may be more.


So that is the jist of what they were asking me to sign as part of the purchase agreement. A Porsche dealership tailored agreement.

I have bought several cars and I have never seen any document like this by any dealership to sign.

 

[rich_r]

I have heard of similar documents (from Land Rover dealers) that basically just make you sign that you wont export the car to another country. No legal threats or real teeth to them though. The verbiage you posted is very aggressive with the whole bit about not selling the car to anyone w/ 2 years, etc. That is kind of nuts. From what I undersand, some car manufacturers will fine the selling dealer if the VIN shows up in another country like China within a certain amount of time....so maybe thats what the dealer is trying to protect themselves from.

 

[PDACPA]

Time to buy from another dealer that does not have that requirement and I would let the current dealer know you are walking due to that agreement. They might change their mind.

 

[n4ronin]

Time to buy from another dealer that does not have that requirement and I would let the current dealer know you are walking due to that agreement. They might change their mind.

Supposedly it's a hard requirement by them. They don't seem to be budging. It sux now. Will have to find another dealer and try to get a deal in place now.

 

[DGT]

Supposedly it's a hard requirement by them. They don't seem to be budging. It sux now. Will have to find another dealer and try to get a deal in place now.

Sounds insane to me and is certainly not a "Porsche" thing. If you're walking, please share the name of the dealership. Again, assuming you're walking, I'd also send a letter to PCNA and ask them if this is commonly done across their dealership network.

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