FROR Agreement

That is completely normal and most people have to sign one. (There are exceptions, like if you have a tremendous buying history with the dealer)

 

Seems heavy handed to me. It should have been disclosed when you signed whatever documentation was required when you ordered the car. Are they threatening to cancel your contract if you don’t sign? Does the FROR mention anything about setting a price or does it simply require you offer it to them without any requirement to sell it to them? Dealers being what they are these days, there may be additional obligations that you’re signing up for.

 

Agree that this is typical. Mine says MSRP or fair mkt, whichever is lower. I was unsurprised by mine because of reading about it here. But I have no intention of flipping the car, so no issue for me.

 

Totally normal practice, part of the ferrari game, I mean process...

 

It just gives them the first right to purchase it from you for fair market value. If you get an offer on the car for $xxxx amount, they get the chance to match it. If your offer is above MSRP they have to match it or pass. Not really a big deal.

Very normal for any brand TBH

They can't sue you if they pass on buying it for Fair Market Value, aka any bonafide offer in writing you have in that first year. Although they may hold it against you in the future...

 

I believe the FROR document is MSRP or FMV, whichever is LOWER. So if the offer is above FMV, you must sell it to the dealer at MSRP.

 

My agreement for my F8 was for 2 years. It's mainly to prevent flipping. I have been told it's mostly an unenforceable gentleman's agreement, but if you break it, you won't be able to get a new Ferrari ever again

 

That is correct. They do NOT have to buy at whatever offer you get. They get to buy back at MSRP.

 

The other day I test drove a Purosangue and I asked the salesman about when the first owner could sell it. He told me the dealer has right of refusal for 18 months.

 

Has anybody ever tested the enforceability?

 

Unless you kept delivery miles on it, won't an F8 depreciate in two years to much less than MSRP or whatever price you paid anyway?

2 years seems like a long time for a FROR

 

I seem to have gotten the longest FROR. It's my first Ferrari and I didn't really consider resale when I ordered it. The fact it became worth more than MSRP was a surprise to me. Honestly not sure what happens with its value in the coming years. Will the last non electrified V8 mid engined Ferrari have some collectors value? I guess we'll see. Either way I'm not too concerned. I love the car

 

Correct- they aren’t ‘required’ to pay anything
More than MSRP- but they often and usually do when it comes down to it


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Well, since 2-3 year old F8’s with 5-10k miles on them are still 20-70k over MSRP, I guess not


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The real enforcement is that breaking the agreement puts one on the Ferrari black list forever. The ability to ever order a new Ferrari in the future will be denied. The dealer that sold the car originally will also be in trouble because they should have known that the buyer was (a) going to flip the car, (b) not abide by the agreement.

 

Not that I'm in that circle, but wouldn't someone just use a shell buyer?

 

Well, that "shell buyer" would have to be a customer in good standing - and then would also have to "stand in" for any dealer work...

That's a lot of hassle!

Kevin

 

One more example of Ferrari treating their customers like crap, and their customers saying "Thank you sir, may I have another?"!

 

Forget black list. Breach of contract is the issue and enforceable. I’d have a hard time signing such a document. Of course they’ll pay their estimation of market not to exceed msrp, but what about the downside? If the car value halves with a recession is Ferrari going to offer you similar protections? Of course not. What a load of BS…