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Unprecedented new dealer agreements for 2009 model year

Attention all dealers! It has finally happened. The industry’s leading manufacturers have just announced they will provide all dealers with unprecedented new dealer agreements for the 2009 model year. 

What’s more, the new agreements will include many of the key provisions dealers have been attempting to legislate in many states, thereby ending the need to seek a myriad of different laws around the country. Here are the biggest changes you can expect to see in your agreement:

1. Term: The industry standard for dealer agreements shall be for a 3-year term.

2. Territory: All dealers will be granted an exclusive territory with a minimum radius of 30 miles in which no other dealer for the same brand shall be located.

3. Orders: Manufacturers cannot require a dealer to accept any unordered new products, equipment or parts. Dealers may refuse delivery of any items not ordered.

4. Cancellation: Manufacturers may only terminate or fail to renew a dealer upon showing due cause. Any termination or non-renewal must be in writing and received by the dealer at least 180 days prior to termination. Dealer shall also have the opportunity, within the 180 days, to cure any default and avoid termination.

5. Warranty: Manufacturer shall pay to dealer 100% of their ordinary and customary labor rates for all warranty work authorized in advance by the manufacturer.

6. Parts: Manufacturer shall pay to dealer the MSRP for all parts used by dealer in the performance of authorized warranty service.

7. Source: Manufacturer shall act as the single source of contact for dealer for all component part warranties, except engines.

8. Payments: Manufacturer shall pay dealer for all authorized warranty claims within 20 days of receipt of invoice from dealer.

9. Repurchase: Upon manufacturer’s termination of a dealer, manufacturer shall repurchase all new, unused, undamaged current model year and any new prior year’s model inventory in possession of the dealer, with payment on the date of termination.

10. Transfer/Survivorship: Manufacturer may not unreasonably withhold consent to the sale of a dealer’s interest in a dealership, and will automatically grant the surviving spouse and/or heirs the right to assume control of the dealership.

Yes, “it’s a new day,” to steal a phrase. These exciting new dealer agreements will be available to all dealers this summer at your regular dealer meetings.

APRIL FOOL . . . but, sadly, it shouldn’t be!


12 comments on “Unprecedented new dealer agreements for 2009 model year

  1. ken kaplan

    I guess april fools jokes are supposed to be malicious so I guess you got me. I’ve got 150k worth of inventory boats with no mfg. support and 100% c.s.i. This is no laughing matter.

  2. Concerned

    Your best presentation to date Norm; if only it wasn’t April 1. It is my hope, and I am sure the hope of many in our industry, that the builders take note and step up to the plate. There are many dealers who fell by the wayside that might still be here today if a dealer agreement such as you have shown here would have been in force. Shame on all builders for their unwillingness to comply.

  3. Been there before

    Used to have a real job working for a small manufacturer of yachts close to the Miami airport and your ‘Dealer Agreements’ article caught my eye. You were definitely reeling me in until item #5 regarding warrantee labor rates– then I knew it was a spoof.
    The dealers will get screwed by the mfg’ers until the end of time.

  4. Pete Loftin

    WHAT FOOLS WE MORTALS BE!!!! Keep this up, Norm, and I am going to transfer you to my file “Believe nuttin’ you see and half of what you hearh”!

  5. Larry Gahr

    Norm, I’ve been arround for over 35 years in this bussiness, there is not one manufacture that will ever give out a dealer agreement like that. I have tried to convince manufactures to sell us a franchise for years, that would have some value. A dealer agreement is not worth the paper it was written on. Unless you live or do bussiness in a State that has laws against manufactures doing what they have for years! We all know what that is! As we are now in a some kind of ressission, wait till you see how the manufactures treat the dealers that can’t buy any more product. here we go again.

  6. neal jensen

    all dealers should have every paper from boat builders check with there lawyer.boat builter will never give the dealer what they should get.yes there are some and i give them credit.most will tell you what you want than use the back door to get you.check with your lawyer before you sign any thing and i do mean everything.

  7. bruce rutherford

    norm: u definitly got me I thought maybe after all the years of trying to get this into the ohio legislation that manufacturers saw the light. The sad truth is, that if they would address this issue as you have fooled us, their business and ours would flouish. but thanks for the chuckle anyway

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