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Old 09-18-2021, 01:53 PM   #1
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Dealer just sent me a "ORV Surcharge Notice" for our on order 28 BKS Titanium

Anyone else get this. We ordered a TimberRidge 28BKS Titanium with all the bells and whistles back in July. Now the dealer just sent me a revised invoice with a $2,800 increase in agreed upon price along with a letter (supposedly) from ORV stating an increase in materials cost (see attached).

Can anyone confirm the validity of this letter?

thank you,
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File Type: pdf 9ac60c23-2151-4750-bf73-d35a521d2f3b.pdf (490.7 KB, 13 views)
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Old 09-18-2021, 02:07 PM   #2
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Was this allowed to do included in your original contract?
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Old 09-18-2021, 02:15 PM   #3
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Does the material surcharge show as an option subject to modification on your contract?
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Old 09-18-2021, 02:19 PM   #4
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Was this allowed to do included in your original contract?

John.

thanks for the reply, but that's not really my question. I am wondering if anyone can confirm this letter is legit.

I don't know whether they can or not, but i assume they can. This is an on order unit and I've put down a $2000 deposit. I am in WA state.

I did get a good price on this (below MSRP), but still, $2800 seems like a pretty high surcharge.
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Old 09-18-2021, 02:30 PM   #5
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Does the material surcharge show as an option subject to modification on your contract?

Let's try this again. First, I appreciate the responses, but that's not my question.

I'll restate it:

"Can anyone confirm the validity of this letter?"

Before I address the legality of it, it would make sense to answer the question of whether it is legit and whether it applies to my order.

Once I get that info, then we can move on to whether or not the dealer has the legal right to adjust my order.
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Old 09-18-2021, 02:58 PM   #6
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Not sure if they can do it, because of your sales agreement. but I just seen where a person bought a 2021 Ram 3500, and in the deal was a statement of "Market Valve Increase $20,000."
So I would guess it to be legit letter, prices for these things are going up. Knowing prices are going up, I can't see one of these companies eating the price increase and not recovering the increase cost someway.
But I would think it all comes down to the sales agreement between you and the dealer.
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Old 09-18-2021, 03:19 PM   #7
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Not sure if they can do it, because of your sales agreement. but I just seen where a person bought a 2021 Ram 3500, and in the deal was a statement of "Market Valve Increase $20,000."
So I would guess it to be legit letter, prices for these things are going up. Knowing prices are going up, I can't see one of these companies eating the price increase and not recovering the increase cost someway.
But I would think it all comes down to the sales agreement between you and the dealer.
I guess I can just call Shannon at ORV and ask.

As far as the Ram example, Additional Dealer Markups (ADM) are common and must be disclosed on the sticker as an ADM. This is different, we have a purchase agreement and (the dealer claims) his price was increased and he is passing on said increase to me.

I'll get to the bottom of this and post the results incase this happens to anyone else. Withholding the name of the dealer as I don't want to impugn their integrity without knowing full details. Perhaps this is all legit.
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Old 09-18-2021, 03:36 PM   #8
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I guess I can just call Shannon at ORV and ask.

As far as the Ram example, Additional Dealer Markups (ADM) are common and must be disclosed on the sticker as an ADM. This is different, we have a purchase agreement and (the dealer claims) his price was increased and he is passing on said increase to me.

I'll get to the bottom of this and post the results incase this happens to anyone else. Withholding the name of the dealer as I don't want to impugn their integrity without knowing full details. Perhaps this is all legit.
That would be first place to start instead of an Internet Forum

Go Directly to the Source ...have ORV confirm and send you written specifics.

Then you can post Here the verified info
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Old 09-18-2021, 07:08 PM   #9
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John.

I am wondering if anyone can confirm this letter is legit.
My dealer warned me of an increase and even put it on our agreement. He did not specify the amount but wrote that there would be one. This afternoon, another dealer told me that he got a letter. I'm pretty sure the letter is legit.

I went to the Salt Lake City RV show on Thursday. ORV was not there but what was there was heavily discounted. One of the more honest salesmen (a past dealership owner), told me that the stuff that was on the floor is the picked-over stuff that no one wanted. He said the show is basically a dumping ground.

-B
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Old 09-19-2021, 09:35 AM   #10
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Update: the letter is legit. I called another dealer I had worked with before and he sent me the letter. Interestingly, my dealer did not send me the whole letter, but only partial. I am going to contact ORV on Monday. Here is what another dealer sent me.

odd that they would go to the trouble of chopping off the lower half of this memo.
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Old 09-19-2021, 10:40 AM   #11
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Sounds like a sign of the times. If it were me I'd want some kind of breakdown of what the increase was for. Probably lots of little things but none the less I'd still want to know.
Theoretically they could use the 'Surcharge' term for simply raising the price.
Kinda like when you see 'Options' with a number next to it but no detailed options list to correlate with it.
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Old 09-19-2021, 12:46 PM   #12
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Update: the letter is legit. I called another dealer I had worked with before and he sent me the letter. Interestingly, my dealer did not send me the whole letter, but only partial. I am going to contact ORV on Monday. Here is what another dealer sent me.

odd that they would go to the trouble of chopping off the lower half of this memo.
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?
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Old 09-19-2021, 12:58 PM   #13
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I thought that was odd after seeing the letter posted in the orv owner’s fb group. At the bottom it stated which models and which production runs. Guessing many dealers will take this as an opportunity to rake in more money
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Old 09-19-2021, 04:44 PM   #14
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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.
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.


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