Unprecedented new dealer agreements for 2009 model year

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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!

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