Dealership trying to back out of NET/NET pricing

[Broccoli Rob]

I don't really know where to post this, but I'm hoping for some help.

I originally ordered a 2021 F-150 in January of Last year, and it was not delivered to the dealership until August of 2021, however due to having had to be out of the country for several months starting around the same time, I had to give up the truck since I had no way to claim it. I was able to get the then new car sales manager to agree to NET/ NET pricing structure via email. According to Virginia state law, an email is considered a contract. I re-ordered a 2022 in March through the same dealer, conversing over emails, and now that the truck has shipped, the current new car sales manager first sent me a pricing sheet stating approximately 4k over MSRP. I emailed and left him a voicemail about it and when I talked with him on the phone he said they could offer me the truck at MSRP, and that there was no contract established for the net pricing of the truck.

I can't wait another year for a second vehicle ordering elsewhere. I can't waste time or money on a legal dispute. I'm going to talk to him again tomorrow, and bring up the legality of the situation, but I'm not sure what to do beyond that.

If I need to move this to another part of the forum, I will. I'm just scrambling to figure this out.

Sponsored

 

[Buyer2021]

I can't wait another year for a second vehicle ordering elsewhere. I can't waste time or money on a legal dispute. I'm going to talk to him again tomorrow, and bring up the legality of the situation, but I'm not sure what to do beyond that.

What exactly is the "NET/NET pricing structure" of which you speak? Did you have a specific agreed dollar amount for the sales price of the second vehicle order, or not?

I've no idea if you've got any legal leg to stand on, but given all of the self-imposed constraints you list in this paragraph I think you're at take-it-or-leave-it decision point.

Too late to do anything about it but it reads like you placed the second order without having a firm written agreed specific sales price for that specific vehicle (which should have been possible given Ford's dealer price protection policy). Yes, lacking an explicit written agreement that's complicated by a change in dealer management personnel.

At this point 'honey' may be more advantageous than 'vinegar' in your negotiation. I can't see any advantage in bringing up a legal angle if that's a hollow-threat because you already know you will not pursue legal recourse (IMO that's just not an effective negotiating strategy unless you can convince the other party you will follow-through and it's likely you will prevail in the legal venue).

Good Luck!

 

[GrandpaD]

I'm no lawyer but in Googling I found this... Which basically says in Virginia (I live in VA, too) an email is "an agreement to agree" but it's non-binding. Again, I'm just passing this along.

Personally, I'd sit down with the sales manager and try to work something mutually agreeable. But, even if the attached article is inaccurate and you're correct, legal fees might make an impact.

https://www.virginiabusinesslitigationlawyer.com/an-agreement-to-agree-is-not-a/

 

[Matt99]

I don’t know what net/net pricing is but you’re now ordering a truck a year or more later with multiple price increases.
You’ve backed out of a truck already and and probably arnt the ideal buyer at this time for the dealer.
I would have a sit down with the manager but you can probably see their hesitation

 

[Broccoli Rob]

I've no idea if you've got any legal leg to stand on, but given all of the self-imposed constraints you list in this paragraph I think you're at take-it-or-leave-it decision point.

Too late to do anything about it but it reads like you placed the second order without having a firm written agreed specific sales price for that specific vehicle (which should have been possible given Ford's dealer price protection policy). Yes, lacking an explicit written agreement that's complicated by a change in dealer management personnel.

At this point 'honey' may be more advantageous than 'vinegar' in your negotiation. I can't see any advantage in bringing up a legal angle if that's a hollow-threat because you already know you will not pursue legal recourse (IMO that's just not an effective negotiating strategy unless you will follow-through and can convince the other party of that likelihood along with the likelihood of prevailing in the legal venue).

Good Luck!

I'm no lawyer but in Googling I found this... Which basically says in Virginia (I live in VA, too) an email is "an agreement to agree" but it's non-binding. Again, I'm just passing this along.

Personally, I'd sit down with the sales manager and try to work something mutually agreeable. But, even if the attached article is inaccurate and you're correct, legal fees might make an impact.

https://www.virginiabusinesslitigationlawyer.com/an-agreement-to-agree-is-not-a/

What I found on the Virginia Uniform Electronic Transactions Act states that an email constitutes a contract.

https://law.lis.virginia.gov/vacodepopularnames/uniform-electronic-transactions-act/

I don't plan on threatening anything legal, I'm just trying to figure out if there's anything that anyone has experienced.

I don’t know what net/net pricing is but you’re now ordering a truck a year or more later with multiple price increases.
You’ve backed out of a truck already and and probably arnt the ideal buyer at this time for the dealer.
I would have a sit down with the manager but you can probably see their hesitation

NET/NET pricing is dealer invoice minus dealer holdback, which in the case of Ford is invoice - %3 MSRP

I specifically discussed it with the manager at the dealership, and they specifically said in the email that they would honor the same pricing structure on any future ordered F-150

 

[Buyer2021]

I'm just trying to figure out if there's anything that anyone has experienced.

Details are the devil in this sort of thing, I suspect you'll not find anyone with exactly comparable facts to guide you.

Personally, I'd sit down with the sales manager and try to work something mutually agreeable.

^This^

Again, wishing you Good Luck!

 

[Aron]

I do recall a few months back that Dexter at Koons Ford in Woodbridge VA had said that they were no longer able to offer a pricing structure similar to what you’re calling “net/net” because of a change in Ford pricing policy (but they were honoring all of the previous commitments made). Perhaps that same change in Ford policy is why your dealer can’t offer the same deal that he was willing to do in the past?

 

[Broccoli Rob]

I do recall a few months back that Dexter at Koons Ford in Woodbridge VA had said that they were no longer able to offer a pricing structure similar to what you’re calling “net/net” because of a change in Ford pricing policy (but they were honoring all of the previous commitments made). Perhaps that same change in Ford policy is why your dealer can’t offer the same deal that he was willing to do in the past?

That's interesting. Somehow Granger is still able to offer it. I'll have to look into that

 

[diambo4life]

Not gonna happen especially since you didn't buy the first truck. If I was the Dealer, I would do the same thing. Getting it at MSRP at time of order is still good than trying to get a 2023..which would be more expensive...and probably be missing features.

 

[Buyer2021]

NET/NET pricing is dealer invoice minus dealer holdback, which in the case of Ford is invoice - %3 MSRP

That's interesting. Somehow Granger is still able to offer it. I'll have to look into that

You seem to describe your "NET/NET" Sales Price as being 3% of MSRP off of Invoice price.

That's very different, and a much greater discount, than the great deal Granger has long offered which is 3% of Invoice price off of Invoice price (IOW, Granger Sales Price = 97% of Invoice Price = 3% discount on Invoice price = 3% off Invoice price = 3% under Invoice price). There's no 'mixing' of MSRP and Invoice in that calculation.

I'm a happy Granger customer and have compared my discount to other happy Granger customers - the discount is always calculated as I describe above and IMO that's clear in Granger's advertising which never mentions MSRP at all: "3% Under invoice on a 2023 F-150 Order @ Granger Ford"

 

[thevofl]

I'm just going to throw this out there because a similar situation is happening to me. How are you going to finance it? What's your rate?

I ask because my dealer wants to charge me with the post inflation increases and I keep fighting for what we agreed to and signed for last year in 10/2021. My dealer just threw out their 0% financing on 72 months. The best I can find these days is 2.9%. The difference in interest rates is significant. Maybe your dealership will find this to be a fair out to the situation.

 

[Zengineer]

You said you are unwilling (and I would say wise) to not engage in a lawsuit, why keep talking about the law. An email may be a contract but it is a poorly written, incomplete, maybe unenforceable, weak one.

You backed out of the 2021. Why would they bend over backwards to take a new order seriously?

 

[RossRR]

If you are not happy with the MSRP deal, which is going to be substantially higher than your original 3% below invoice considering all the price increases, just contact Granger and stop worrying about it. You'll be able to add in a Ford Extended Service Plan and still be thousands ahead even including the airline ticket needed to go and get it.

 

[Aron]

I can also recommend Koons in Woodbridge (since you said that you’re in VA). I don’t think that their current deals are quite as good as Granger (you’d have to contact Dexter), but it would save you the cost, time, and hassle of having to go to Iowa to pick up a truck.

I think that they’re still offering below-MSRP prices, but I don’t know the details. What I can say is that I’ve never had a good an experience buying a vehicle as I did at Koons in Woodbridge. They still to their word. (Note that there are other VA Koons dealers, and I can’t speak to their integrity.)

 

[Chili]

Most orders are at a discount and inventory is increasing. Maybe something on the lot fits your needs? What state are you in?

Sponsored