Land Rover sellers compelled to conduct ‘due diligence’ on patrons to cease them flipping vehicles for a revenue – Automotive Seller Journal

Land Rover sellers are making prospects promise to not promote their vehicles for no less than six months in an effort to cease speculators.

Land Rover sellers have instructed Automotive Seller anonymously that they’re being compelled to conduct ‘due diligence’ on potential patrons to make sure they aren’t going to flip their vehicles for a revenue.

The producer is alleged to be even handing out heavy FINES to automotive sellers that fail to conduct the required checks on patrons.


One Land Rover vendor mentioned it had heard of some unbiased sellers being on a ‘black record’ that official franchised websites weren’t allowed to promote Vary Rovers too.

The information comes as Auto Categorical, the nationwide weekly automotive journal, stories that Land Rover prospects are being requested to give up their rights to promote their vehicles outdoors the vendor community for six months.

The journal mentioned that it had been made conscious of two instances the place prospects ordered new Defenders and had been requested to signal paperwork earlier than they took supply.


‘The doc stipulates that the shopper can’t promote their automotive to anybody apart from an official Land Rover vendor throughout the first six months of possession,’ reported the journal.

One franchised Land Rover vendor Automotive Seller spoke to confirmed that this observe was true and that the producer was involved about prospects flipping their vehicles for big income.

‘Some prospects have purchased vehicles after which offered them on for large cash and the producer has not been notably comfortable about that,’ mentioned the vendor, who wished to stay nameless.

‘We have now to conduct due diligence on all patrons and if we don’t we face giant fines. 

‘Some prospects have been going spherical numerous totally different sellers and putting a number of orders and I do know the producer has cancelled these. 

‘Some unbiased sellers are even on a black record and we are able to’t promote to them.’

Land Rover ready occasions for brand new vehicles may be so long as two years and that has pushed the worth of used fashions far larger than new vehicles. 

The agency has struggled with a provide of semi conductor and a bulging order e-book for its widespread new fashions.

‘Many patrons are comfortable to leap the queue and pay a premium to get a automotive now,’ added the Land Rover vendor.

‘The producer does appear comfortable to promote us used fashions itself for inflated costs although…’

Used automotive pricing consultants CAP HPI mentioned based on its information, Defenders are presently commanding premiums £10k over record or 114 per cent of their value new.

Vary Rover petrol fashions are going for 108 per cent of their value new – a premium additionally of round £10k.

In Might, unbiased luxurious automotive vendor Tom Hartley instructed Automotive Seller Journal that new Vary Rover fashions had been commanding £30k premiums.

He says that premium has now dropped – however they’ll nonetheless be offered over record worth.

He instructed Automotive Seller: ‘That is absurd, ludicrous and downright ridiculous.

‘How can a automotive producer inform a buyer what they’ll or can’t do with their very own automotive? It’s their civil proper to have the ability to do what they need with it.

‘I do know of no proof of any buyer ever being sued by a automotive producer – written settlement or not – for promoting their automotive on.

‘Vary Rover premiums have come all the way down to about £10k over record now, and these items are a second in time, however I feel it’s stunning automotive producers act the way in which they do telling prospects what they’ll do with their very own property.’

Hartley mentioned he had been banned from shopping for Land Rover fashions at most important sellers for ‘40 years’ however that hasn’t stopped him getting maintain of recent fashions.

‘I went to a Land Rover vendor this yr to purchase a brand new Vary Rover for my spouse and the salesperson instructed me he couldn’t promote me a automotive,’ mentioned Hartley.

‘And this was a automotive for me to not resell. My spouse really drives a brand new Vary Rover now which I purchased elsewhere.’

Hartley mentioned he thought it was ‘horrible’ that automotive producers make prospects signal these types of agreements.

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‘I’ve been ready for this story to come back out for years as a result of I’m livid that manufacturers may also make prospects purchase undesirable fashions in the event that they wish to get into fascinating ones,’ he added.

‘The way in which some automotive producers – particularly the luxurious ones – deal with their prospects is stunning and it shouldn’t be allowed.’

A spokesperson for Land Rover UK mentioned: ‘Along with our retailer companions we work to ship a luxurious expertise for our purchasers.

‘To ship this expertise calls for an exemplary degree of buyer care and a focus from our retail groups and we take this kind of suggestions very significantly.

‘As you’ll anticipate in our enterprise, our retail companions work arduous to make sure all prospects are handled pretty and with actually, we due to this fact ask them to train due diligence to make certain they’re transacting with patrons who intend to make use of the automotive and never with resellers.

‘It isn’t on our instruction or steerage that any agreements are made with prospects referring to the onward sale of their automobile, nor do we promote it.’

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