Dealer price increase clause

Cincinnati Kid · 01-31-2019, 08:51 PM

New here, forgive me if this topic doesn't fit or it's been talked to death already. We just bought a new factory ordered Jayco 5th wheel today. I quickly read the fine print at the office and it looked ok. Then reread it at home, and it has a clause that says if the factory price goes up while it's being built, that the dealer can pass the increase on to us.

That's crazy, and I have already contacted them, awaiting reply.
This is our first camper of any kind, so I never even imagined that anyone would change the price of something after a price was negotiated and agreed upon.

Has anyone experienced this and had their price increased after the deal was done?

bstannard · 01-31-2019, 09:14 PM

If the dealer tries to raise the price tell him to keep it! They all have enough inventory and won't want another unit that they have to pay for.

Cincinnati Kid · 01-31-2019, 09:22 PM

thanks- unfortunately it also says if I cancel they can keep my deposit.

KillerIsMe · 02-01-2019, 05:39 AM

We're in the process of buying a fifth right now. The dealer we're buying from will honor the price but another place we went said what you said - if there's a price increase we have to absorb it. He's a mom and pop - they both are come to think of it - and he said it's the tariffs, which are set to go up again March 1. Have to expect some pain with this...um...situation.

harryjr · 02-01-2019, 07:33 AM

To my knowledge, that started on new car contracts back in the 60's. When you still have leverage (before you sign) you can cross out that clause, initial it, have an officer of the dealership (not the sales rep) initial it and you should be on pretty firm ground if there is a dispute. Note: I am not an attorney, don't play one on TV, and didn't stay at a Holiday Inn last night.

Grumpy · 02-01-2019, 08:27 AM

Quote:

Originally Posted by harryjr

To my knowledge, that started on new car contracts back in the 60's.

X-2, but not sure when. That is also there since they can make upgrades during a given production year that weren't part of the base price.

Atlee · 02-01-2019, 08:49 AM

Seems like you just need to negotiate an out the door price.

While it's very unlikely I will ever buy another trailer, and especially a new trailer that's being ordered, if I did, the OP's post has raised my conscientiousness concerning a potential increase in price while it's being built.

I would insist on a clause being added to the sales contract protecting me from any such increase.

KillerIsMe · 02-01-2019, 09:16 AM

Quote:

Originally Posted by Atlee

Seems like you just need to negotiate an out the door price.

While it's very unlikely I will ever buy another trailer, and especially a new trailer that's being ordered, if I did, the OP's post has raised my conscientiousness concerning a potential increase in price while it's being built.

I would insist on a clause being added to the sales contract protecting me from any such increase.

I'm in the process of baiting my dealer into just such an arrangement. I figure I can be the aggressor and maybe cause a hard feeling or two, or I can ask him the "what if" question and have him come up with the answer I want. That way he feels like the nice guy, I get the price protection, and we all go home happy. Of course if I have to put down the hammer I will, but that's a last resort. Just the way I do things.

Cincinnati Kid · 02-01-2019, 09:26 AM

Quote:

Originally Posted by KillerIsMe

I'm in the process of baiting my dealer into just such an arrangement. I figure I can be the aggressor and maybe cause a hard feeling or two, or I can ask him the "what if" question and have him come up with the answer I want. That way he feels like the nice guy, I get the price protection, and we all go home happy. Of course if I have to put down the hammer I will, but that's a last resort. Just the way I do things.

You make a good point. That's how I like to operate as well. I just missed this one in the fine print. I'll be more careful next time. I think it's going to be ok in our case- It all has to do with the character of the dealership and salesperson, and so far, so good.

KillerIsMe · 02-01-2019, 09:33 AM

Quote:

Originally Posted by Cincinnati Kid

You make a good point. That's how I like to operate as well. I just missed this one in the fine print. I'll be more careful next time. I think it's going to be ok in our case- It all has to do with the character of the dealership and salesperson, and so far, so good.

My wife says it's manipulation but it's just my belief that if I get what I want and it's good for everyone involved it makes us all feel like we did the right thing.

Also, people on here will tell you that in many cases the dealer is more important than the deal. I think that's true.

Rustic Eagle · 02-01-2019, 09:53 AM

Quote:

Originally Posted by Cincinnati Kid

snip......and it has a clause that says if the factory price goes up while it's being built, that the dealer can pass the increase on to us......snip

I question one-sided "open" terms like this and tend to challenge them...., especially when RV delivery timeframes are all over the map.

Is the "factory increase" based on MSRP, dealer invoice, or the "actual" dealer cost from manufacture?

RV dealerships frequently receive manufacture cost incentives prior too and throughout a model year, and I'm sure they don't pass them on "after-the-fact".

Bob

SloPoke · 02-01-2019, 10:22 AM

This is one of the various reasons I do not buy "New - special order". I will buy one that is new, sitting on the lot, but never ever order one that I have to wait for it to be built with certain specifications.

SloPoke · 02-01-2019, 10:30 AM

Quote:

Originally Posted by Rustic Eagle

I question one-sided "open" terms like this and tend to challenge them...., especially when RV delivery timeframes are all over the map.

Is the "factory increase" based on MSRP, dealer invoice, or the "actual" dealer cost from manufacture?

RV dealerships frequently receive manufacture cost incentives prior too and throughout a model year, and I'm sure they don't pass them on "after-the-fact".

Bob

Factory increase can be for anything and everything they can dream up.
Here are some that come to mind...

Snowstorm production delay - expedited costs Surcharge
Government Shut-down overrun costs
SnowPlow / Snow Removal surcharge
Extreme Cold Weather Fuel Surcharge

My point is that they can make anything up - and you are stuck with it. I would never put myself in that situation again.

KillerIsMe · 02-01-2019, 01:22 PM

Must be some unscrupulous dealers out there.

**Crabman** · 02-01-2019, 01:34 PM

It's in the fine print, but I wonder how many times it actually occurs? I cannot recall any irate posters in the past saying their agreed to price was changed, but there may be some. Now there have been posts where decor or furniture was changed in production and mama was not happy lol. I would not sweat this just yet, it's not a problem until it becomes a problem.

vegasguy · 02-01-2019, 01:36 PM

I wouldn't get to worked up about it. I bet a lawyer put that in there when they paid them to write up a contract. If it was common for the price to increase there would be many many people on here complaining they got ripped off. Say even if the price did change and goes up. I bet it wouldn't be more than a tank of fuel costs.

KillerIsMe · 02-01-2019, 01:46 PM

You have to think - the parts for your new trailer are already sitting in the Jayco factory, bought and paid for, so why would they suddenly jack up the cost? it's not like you order your trailer and Jayco sends some guy out to buy all the parts. I would think maybe freight could vary because of the fluctuation in fuel costs but that can't be a whole lot.

mia389 · 02-01-2019, 02:16 PM

This happened to me!

I purchased 2018 WH from factory. Few months later I was told my unit will be a 2019 and comes with some extra stuff. Price difference was $400. Dealer paid it.

I don't remember what the extra stuff was. I know one item was upgraded bathroom fan. Some 50th anniversary stuff

**Crabman** · 02-01-2019, 02:25 PM

Quote:

Originally Posted by mia389

This happened to me!

I purchased 2018 WH from factory. Few months later I was told my unit will be a 2019 and comes with some extra stuff. Price difference was $400. Dealer paid it.

I don't remember what the extra stuff was. I know one item was upgraded bathroom fan. Some 50th anniversary stuff

Yes during the model year change, which of course occurs in a few months the prices can increase. It can even happen mid model year. But in most cases as indicated the dealer will still honor the agreed to price. Dealers usually know which model year you will be getting, but if the order is right around the switchover it could go either way. Decor and color choices can occur with the new model year, and Some floor plans are even discontinued.

Siamese · 02-01-2019, 05:46 PM

Yet another reason i don't like dealers.

Okay, so it's in the contract, but if the dealer had anything resembling a soul, wouldn't they point that out to you?

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