Dealer just sent me a "ORV Surcharge Notice" for our on order 28 BKS Titanium

[Marine359]

If you signed a purchase contract AND there was “consideration” (you gave them money and they cashed your check), then you have an enforceable contract. So, if there is no language in the contract which allows either the manufacturer or the dealer to change the purchase price, you should consult an attorney. I’m not a lawyer, and I don’t give legal advice.

[DBPNW]

Originally Posted by Marine359

If you signed a purchase contract AND there was “consideration” (you gave them money and they cashed your check), then you have an enforceable contract. So, if there is no language in the contract which allows either the manufacturer or the dealer to change the purchase price, you should consult an attorney. I’m not a lawyer, and I don’t give legal advice.

Yeah, I have a purchase agreement, I also gave them a check for $2000 for a deposit, which they cashed over a month and a half ago. There is no provision on the purchase agreement for changing the price either.

All of that said, what am I going to do, get my lawyer on them for $2800? I have a personal/family lawyer on retainer, but he is going to tell me what I already know. Which is simply that the dealer can cancel the order from the factory due to the price increase and just reorder when they have another customer who is going to pay the price+$2,800. I have no leverage to force a dealer to complete the transaction with the factory, so the dealer can sell it to me. Then, I still need to get a TT and finding a new dealer will most certainly mean I pay the $2800 surcharge, so I have gained nothing and spent money having my lawyer chase his tail.

Additionally, if it is on my particular preordered TT, then what am I going to do, tell the dealer they have to eat it. The fact is that I'm already getting a decent deal, and I suspect Thompson is sending similar emails. Who knows. yeah, it sucks, but the people have voted and inflation is here to stay so we might as well get use to it.

[LSkrabut]

While I have a 22FQS Titanium on order and due in within the next few days. I haven't contacted my dealer yet about this current ORV notice of surcharges. I will probably just wait since to talk to my dealer till I am contacted that the TT is here and ready for the PPI. I know the VIN has been assigned and the dealer has cut the PO for this order (17 Sept) to ORV. Delivery should be within the next 1-2 weeks. I signed the paperwork last January with an "OTD" statement in the documentation.



I am curious if anyone seen the mentioned material surcharge implemented in June?

[Cumminsfan]

Originally Posted by BrokeDown

It may be that those two lines are the only two that are currently scheduled so the expenses for building materials have already been incurred. If building material prices come down (just like lumber did), before the next line is built, the surcharges may not apply? Just guessing here.


-B

Just like gas prices they're predicated on what the current lot of supplies cost. They still need to recoup the cost of materials that is sitting in their warehouse. Even if a new run is started they may still be using material that cost more. Until the current supply of materials is used then the trailers will cost the same.
I highly doubt very many RV manufactures will drop prices much if at all even when material costs come down.
What you will see when supply meets demand is the percentage off MSRP coming down.
Now is just a terrible time to buy.
So many reasons why material costs are high. One is that the price of containers for shipping is beyond through the roof. How much stuff in an RV is from China?
https://www.wsj.com/articles/contain...up-11625482800

[inthepines]

If there isnt a line item for price increases, I'd tell them to eat it.
Agreed upon contractual price is legally binding.
Their loss unless you agreed to it.

[Ljwt330]

Originally Posted by BobGed

Their document is confusing. In the first paragraph they say they are immediately adjusting the surcharges as an option on every invoice, and then list the amounts by option.

Then in the new part of the document they state the surcharge is effective 9/20/21 but only list two models, neither of which is your model. Based just on how this document was handled by your dealer (deleting the bottom part), I personally would be suspicious of their action.

In any case it still comes down to what I assume is a signed purchase agreement you have on your purchase in July.

Does the material surcharge show as an option subject to modification to that agreement prior to delivery of the trailer?

I agree with the above^^.

The second, unedited letter, leads to confusion and suspicion of the original dealer email. I would assume you would contact your dealer directly and ask him to explain the full text. Specifically, that the increase will begin 9/20/2021, and it doesn't appear to apply to your unit.

The letter states the surcharge was instituted in June, and you ordered your trailer in July, so there should be an indicator in the contract of such a surcharge. We don't have a copy of your contract so that cannot be determined, but you would certainly be able to find it if it was included.

Regardless, I agree with your final post about the futility of legally fighting the $2800 charge. Still, it is important to get clarification as to the meaning and force of the complete letter that you never received.

You may wish to speak to the dealer who provided you with the complete letter and get his understanding of the surcharge and when it becomes effective and on which models, then contact your dealer and ask the same questions.

[DBPNW]

Originally Posted by BrokeDown

It may be that those two lines are the only two that are currently scheduled so the expenses for building materials have already been incurred. If building material prices come down (just like lumber did), before the next line is built, the surcharges may not apply? Just guessing here.


-B

Okay, closing this out. I talked to the factory on this. first, as we all thought, it is legit. Second, it impacts all RVs going forward. They just put the current scheduled run in there to let the dealers know it impacts those already in the production run and not yet invoiced as well. I now get why our dealer omitted the information on the current run as it is confusing for sure. ORV assured me that it does impact my 28bks.

Now, on to the legality of it all. Who knows. Maybe I could get a lawyer, but what's that get me? Likely gets the dealer cancelling my order and then I have no grounds upon which to take action because I haven't been harmed.

Additionally, the dealer gave me a pretty good deal. Better than Thompson by a decent amount. On top of it, the dealer just contacted me and added a 3rd solar panel at cost, and threw in the 4 6V batteries at no cost. The dealer is showing there commitment to making me feel good about the deal and have been very open and honest about the whole thing.

Given the good deal I got on the rig, I can't ask them to eat the $2800. If I was paying MSRP, then hell yes. but I am not even close and I am better than two other ORV dealers quoted me for the same rig. With the goodies thrown in and at dealer cost for the 3rd panel, I am not even but more closer to the dealer effectively splitting the $2800 surcharge with me. I really can't ask for more than that, and am pretty happy with the way this dealer handled the situation for me.

[JohnRR]

All that really matters here is that your satisfied with the outcome.

[TonyMac]

Originally Posted by inthepines

If there isnt a line item for price increases, I'd tell them to eat it.
Agreed upon contractual price is legally binding.
Their loss unless you agreed to it.

Yep^^ Offer and acceptance equals a contract. If it's in writing, all the better. If there was no clause for price increases, then there can be no price increases. They are offering you a new contract; the same thing for thousands more. If you accept their offer, you have a new contract, and have set a precedence for them to violate it. I'd not accept it. Spend that money on a lawyer before you give it to them.

[Ljwt330]

Originally Posted by DBPNW

Okay, closing this out. I talked to the factory on this. first, as we all thought, it is legit. Second, it impacts all RVs going forward. They just put the current scheduled run in there to let the dealers know it impacts those already in the production run and not yet invoiced as well. I now get why our dealer omitted the information on the current run as it is confusing for sure. ORV assured me that it does impact my 28bks.

Now, on to the legality of it all. Who knows. Maybe I could get a lawyer, but what's that get me? Likely gets the dealer cancelling my order and then I have no grounds upon which to take action because I haven't been harmed.

Additionally, the dealer gave me a pretty good deal. Better than Thompson by a decent amount. On top of it, the dealer just contacted me and added a 3rd solar panel at cost, and threw in the 4 6V batteries at no cost. The dealer is showing there commitment to making me feel good about the deal and have been very open and honest about the whole thing.

Given the good deal I got on the rig, I can't ask them to eat the $2800. If I was paying MSRP, then hell yes. but I am not even close and I am better than two other ORV dealers quoted me for the same rig. With the goodies thrown in and at dealer cost for the 3rd panel, I am not even but more closer to the dealer effectively splitting the $2800 surcharge with me. I really can't ask for more than that, and am pretty happy with the way this dealer handled the situation for me.

I think your response says all we need to know. You understand the changed situation, got clarification from the manufacturer, and several considerations from the dealer.



Your last sentences puts it all together, "(I) am pretty happy with the way this dealer handled the situation for me."



Can't ask for much more than that.

[Hurricane-TX]

Another example of what is wrong with the industry. The manufacturer is raising it's prices because of market forces. I get that, but a signed deal/order should be at the former price. New deals/orders at the new price. I would walk away.

[DBPNW]

Originally Posted by RetiredbutWorking

I would walk away.

And do what exactly? go buy a something built in Indiana that has the word "lite" at the end of the name?

I'm not really sure what you would expect a person to do. We lost our 28bh (different brand) while on vacation this summer. It was totaled by a Semi driver who was driving too fast and rear-ended us.

So, it's not like I have one. If I go someplace else, then I pay more than I am paying now and there is no guarantee I get one.

Additionally, the dealer is not at fault and neither is the manufacturer. We all know that prices have gone crazy and anything coming via boat to the US is through the roof. We bought a side table 8 months ago for $200. I went back to the store the other day to get another one and it was $300 dollars. I was like WTF? They told me shipping from overseas is crazy expensive right now.

So, the choice is simple, you either want something and pay for it, or you don't. I did not pay the extra $100 for the table as I didn't think it was worth it. As for the ORV, I am still getting a better deal than most and it is worth it to me.

Additionally, the dealer could find another buyer for this rig without much trouble, but they still made concessions to keep me happy. That tells me that they are going to be there for me if/when my rig needs warranty work. Sometimes it's not all about the money or the deal.

[Trickam]

You make valid points and I don't see any of this getting better for piles of reasons. Inflation isn't going to make anything cheaper.....buying now is better then waiting IMHO

[Dave Pelletier]

Originally Posted by DBPNW

And do what exactly? go buy a something built in Indiana that has the word "lite" at the end of the name?

I'm not really sure what you would expect a person to do. We lost our 28bh (different brand) while on vacation this summer. It was totaled by a Semi driver who was driving too fast and rear-ended us.

So, it's not like I have one. If I go someplace else, then I pay more than I am paying now and there is no guarantee I get one.

Additionally, the dealer is not at fault and neither is the manufacturer. We all know that prices have gone crazy and anything coming via boat to the US is through the roof. We bought a side table 8 months ago for $200. I went back to the store the other day to get another one and it was $300 dollars. I was like WTF? They told me shipping from overseas is crazy expensive right now.

So, the choice is simple, you either want something and pay for it, or you don't. I did not pay the extra $100 for the table as I didn't think it was worth it. As for the ORV, I am still getting a better deal than most and it is worth it to me.

Additionally, the dealer could find another buyer for this rig without much trouble, but they still made concessions to keep me happy. That tells me that they are going to be there for me if/when my rig needs warranty work. Sometimes it's not all about the money or the deal.

Excellent post. Enjoy the new trailer.

Dave