UK AD contract not to flip

[d8mok]

Not myself but on another forum I use a user says he has been asked to sign a contract. Might be rubbish but worth a read.

https://www.pistonheads.com/gassing/...&d=0#seperator

[tyler1980]

Originally Posted by d8mok

Not myself but on another forum I use a user says he has been asked to sign a contract. Might be rubbish but worth a read.

https://www.pistonheads.com/gassing/...&d=0#seperator

not a contract between rolex and the buyer though, but the AD and the buyer.

My reading of that is you are not taking full ownership in that case. Its more like a lease situation than an outright sale. I like to own my things outright.

There is no way i would buy a Rolex with any conditions attached, period.

[d8mok]

Yes it appears this is a individual AD. If it's true it can't be a good thing. I doubt the contract would stand up in court anyway if I'm honest. It's easy to offer it to the AD at a first refusal but crazy price so they don't purchase.

[Zakalwe]

My views on this are rather hypocritical.

I would not have a bar of signing any contract that imposes conditions on a purchase I make costing thousands of my hard-earned.

On the other hand, people who buy brand new watches only to flip them immediately for a profit are a bit annoying to people like me who want to buy, own and enjoy nice watches that are otherwise, in the UK at least, as rare as rocking-horse shit. So anything that aims to clamp down on this practice has merit.

Arrghh the cognitive dissonance

[tyler1980]

Originally Posted by Zakalwe

My views on this are rather hypocritical.

I would not have a bar of signing any contract that imposes conditions on a purchase I make costing thousands of my hard-earned.

On the other hand, people who buy brand new watches only to flip them immediately for a profit are a bit annoying to people like me who want to buy, own and enjoy nice watches that are otherwise, in the UK at least, as rare as rocking-horse shit. So anything that aims to clamp down on this practice has merit.

Arrghh the cognitive dissonance

a better contract would be a commitment to buy from an AD for a period of 3 years and not go grey market for discounts if they get you an in demand watch. Thats the reason grey dealers also get the high demand pieces first as they are the ADs biggest customers.

If they are serious about stopping the grey market they need to go after those who are funding it, and that is all of us.

Its the same principle as stopping drug addiction in the first place rather than trying to stop the flow of drugs into the country. Its too hard to stop the supply and that isn't going to happen. Make less people addicted and the problem solves itself

It would be similar to a non compete clause in an employment contract. I have had to sign those before which do not allow me to work for a direct competitor for a period of years when leaving my job. Its a non compete clause for buying watches from any other source than that AD

Not advocating, just saying its a more practical solution to actually solving the problem

[asiparks]

Why is the onus on the end consumer to behave properly and not the AD ?

[Magwitch]

My AD, and I suspect many others, will sell a high demand watch (Daytona) to a faithful customer whom the dealer feels will not sell the watch. How the AD determines that I don't know, but he felt that way about me and rightly so. So I guess there's an "understanding" but I don't think a formal contract is appropriate.

[superdog]

oh boy.

this is a tough one.

but I would not buy a watch without the ability to do whatever I wanted with it.

[daveathall]

The contract states that I can get my warranty card and papers in 12 months. If I sell my Rolex within 3 years the dealer must get first refusal so that I can still buy Rolex sports watches in the future.

So who sets the price for the watch at that stage? The dealer gets it to make another profit?

I would tell the dealer to shove his watch. Who is he to tell me what I can and can't do with something that I have just bought, what next, does a supermarket open a can of soup and pour it into a saucepan so that it can't be sold on. Its ridiculous.

[OasisMS]

12 months retention of Warranty card. So many issues with this here, not to mentioned such a term potentially falling foul of The Consumer Rights Act 2015. However, 12 months isn't long and in the time it would take to raise action and recover the warranty card from the dealer, you'd probably be as well waiting it out.

Right of first refusal. Usually there is a pre agreed price or reference to a formula or other calculation. If not, the price will almost certainly be open market. If that's the case, is the dealer really going to buy back for more than it sold for? No, so it's not worth much. Coupled with the question of 'how on earth do you enforce such a policy'?

[RichM]

That's just over the top. I know SS watches don't come easy in the U.K., but I'd take my business elsewhere. Sounds like extortion.

[AK797]

Originally Posted by Rich Mickol

That's just over the top. I know SS watches don't come easy in the U.K., but I'd take my business elsewhere. Sounds like extortion.

I said this whole situation was like a mafia-style protection racket a few weeks ago, didn't realise Rolex and ADs were tracking my comments and implementing it as strategy now. I want royalties/piece of the action for every D500 sold

[Ruud Van Driver]

I will not buy an item from any establishment that tells me what I can and can't do with MY product that I just bought with MY money.

They will NOT keep my original documents however, they may have a copy.

If they pay for the product out of THEIR money, then I will accommodate their wishes as best as I am able.

Otherwise, I take my business elsewhere.

[RichM]

Originally Posted by AK797

I said this whole situation was like a mafia-style protection racket a few weeks ago, didn't realise Rolex and ADs were tracking my comments and implementing it as strategy now. I want royalties/piece of the action for every D500 sold

[Magwitch]

My AD likes to retain the original warranty paper/card, providing a copy to the buyer. I have run across this at many AD's, not just Rolex ones. I just found out that after several years (I forgot what he said, but it was over 5) they trash those originals. I am in the process of recovering all of mine that they have. Fortunately none were discarded. From now on they can keep a copy if they desire but I get the original.

[GB-man]

You don't punish your customers.

I've said it before but a preferred solution would be to reward those who are keeping rather than punish those who are flipping.

[SpeedyTuomas]

I don't think the manufacturer or AD has any right to control what the customer does with his watch unless it is a lease...which it is not.

[tyler1980]

Originally Posted by SpeedyTuomas

I don't think the manufacturer or AD has any right to control what the customer does with his watch unless it is a lease...which it is not.

its pretty close to a lease with that contract

That is of course if its real and not BS.

[Danex]

I think that Rolex set themselves up for this mess when they set the retail price of the Daytona to be below the actual market price (what people are willing to pay based on low supply and high demand). The could either produce more watches or raise the price.

Many AD's are also jewelers that sell other high-markup jewelry products and they love this current situation. The AD can offer the popular SS Daytona as an inticement to increase jewelry sales to high roller customers.

It is rare when a regular Joe gets to buy one from an AD at retail price and the AD doesn't like it when it gets flipped because the profit looks to them like money out of their pocket.

[d8mok]

Why has the thread been moved to this sub forum? It's Rolex based discussion.

[rr-nyc]

When I bought my X5, the dealer had me sign an agreement not to export vehicle for 12 months or pay $15k in liquidated damages. They said that they are not authorized to sell vehicles for export and BMW USA is pressuring dealers not to sell to customers who's intent is to purchase a car in the US for foreign buyers, mainly China.

[beshannon]

Curious.

I did not read the whole thread. Did they post the actual contract? Language in it?

I am curious if it would hold up in a court.

[Wesley Crusher]

As far as I'm concerened, the AD can take the contract and shove it where the sun don't shine.

I'd take my business elsewhere.

[Dr.Brian]

That wouldn't fly with me.
This AD is a wacko as they're only penalizing their customers. Where do all the grey market unworn Rolexes come from? From some AD. The grey marketeers are their best customers. They move the product for a discount and get it all off the books. In return they get some of the hard to find models as well. Are their best customers regular flippers and get marketeers? I doubt it. The majority of their customers are probably one or two watch upper middle class folks. They're trying to fix the problem the wrong way.
I'd just keep walking. If I really wanted it, it's worth the wait or the premium. Then I'd take it back there and ask them to check the link screws for me.

[Muzz]

I would be tempted to set up a grey dealer right beside them and destroy them. Seems like they think they are a little more important than they actually are.

[Etschell]

I'd sell it and tell them i was going to even if I signed that. Call their bluff.