From the 'they have got to be kidding' department | FerrariChat
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From the 'they have got to be kidding' department

Discussion in '612/599' started by Casino Square, Mar 18, 2007.

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  1. Casino Square

    Casino Square Formula 3
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    #1 Casino Square, Mar 18, 2007
    Purchaser in northern California calls to check on his 599 delivery. He is told by the dealer that FNA will now require you to have the dealer listed as a lien holder on the title for two years...even though you have paid cash for the car. It's bad enough that they insist you now sell the car back to them and they keep the profit, but to also keep a lien on the title is the height of arrogance. If they want to put a lien on the car, then they can pay for half of it.... Rumor has it that this will soon apply to the 430's also... What a great company.
     
  2. 410SA

    410SA F1 Veteran

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    #2 410SA, Mar 19, 2007
    A lien is a security interest in real property to secure indebtedness. If you pay for the car in full and do not owe any money on it there is no lien.
    I doubt that this tactic will work, if it is indeed factual.
     
  3. darth550

    darth550 Six Time F1 World Champ
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    #3 darth550, Mar 19, 2007
    That's the first thing I thought.....
     
  4. absent

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    #4 absent, Mar 19, 2007
    Do not take a "rumor" as a fact.
    There is no such "policy" at FNA,might be a particular dealer's "brilliant idea"
     
  5. PhilNotHill

    PhilNotHill Two Time F1 World Champ
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    #5 PhilNotHill, Mar 19, 2007
    If this is true, then the buying customer would be takinag ALL the risk and the dealer would take all the profit if any.

    I would think a good lawyer could get around this one. I can imagine leasing the car for the purchase price, they could get clear title at the end of the lease which is at the same time the lien is released.

    In real estate, there is a method of sale called Contract for Deed. The buyer makes payments, takes posession of the property, and gets the deed after all the money is paid. I would think a good lawyer could come up with something.

    Do corporations ever buy cars? Of course. A special corporation would be formed to buy the car. the car is the corps only asset. You don't sell the car you sell the corp. The car title never changes hands, just the ownership of the stock.

    This is what I thought of in the first two minutes. A good lawyer could come up with better ideas than this IMHO. With all the great minds on Fchat, I'll bet we can come up with some creative ways around this new policy if it is true. :)

    Let's say we couldn't sell the cars for two years and couldn't get around the problem. Prices would be higher in two years at the end of the restrictions IMHO because of pent up demand. so you may have to hold the car two years before you sell it. May make more money if this policy applies to everyone else too. If it were just a local dealer, I would not buy the car unless I could come up with a way around the new policy as hypothesized above.
     

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