Sponsored

Rivian Needs a No Re-Sale Clause Now

TexasBob

Well-Known Member
First Name
Bob
Joined
Jan 15, 2022
Threads
15
Messages
400
Reaction score
740
Location
Houston
Vehicles
Tesla Model 3
So Rivian has done the right thing and reinstated the pre-order pricing for all of us that had an order on March 1. It now needs to add a one-year no resale clause in the sales contract to prevent people grandfathered into the old pricing from taking advantage of their discount to profit from non-pre-order customers. (Rumor is that Ford is doing this with the Lightning and it is a routine clause for many fleet sales, e.g. Police department SUVs.) IMO people should not be able to take advantage of the discounted price for the purpose of undercutting higher-dollar sales Rivian would otherwise make to those who are not grandfathered.

EDIT: Okay, okay! I did not know this would generate quite so much negative energy! Let me amend my suggestion: Rivian should implement a one-year ROFR to buy-back the vehicle at the sale price if you decide to sell it. Is that more acceptable?
Sponsored

 
Last edited:

CommodoreAmiga

Well-Known Member
Joined
Dec 30, 2020
Threads
39
Messages
4,104
Reaction score
7,706
Location
INACTIVE
Vehicles
INACTIVE
I dislike scalping, but I don't think these clauses have much value. Aside from that one example of a Ford GT and a notable individual, I don't think they've effectively been used.
 

Gavinmcc

Well-Known Member
First Name
Gavin
Joined
Jan 26, 2022
Threads
34
Messages
494
Reaction score
750
Location
New Mexico
Vehicles
Rivian R1T!
Occupation
Medical
I was thinking that the outcome of this is that we will have trucks that won’t immediately have depreciation. In fact they will have “appreciation?”

which is nice. I assume Rivian will not allow preorder transfers anymore.
 

Tall_Rider

Well-Known Member
Joined
Jul 14, 2021
Threads
3
Messages
61
Reaction score
80
Location
Northeast
Vehicles
Chevy Suburban, Porsche 911
Such a clause is arguably illegal and unenforceable. What if a buyer suffers a financial mishap? You're going to make them go bankrupt because they can't sell their $100k truck? Please don't say it would be handled on a case-by-case basis. The law doesn't not look kindly upon such restraints of trade.
 

Dark-Fx

Well-Known Member
First Name
Brian
Joined
Jul 15, 2020
Threads
96
Messages
9,359
Reaction score
17,748
Location
Michigan
Vehicles
Polestar 2, R1T, R1S, Livewire One, Fisker Ocean
Occupation
Engineering
Clubs
 
So Rivian has done the right thing and reinstated the pre-order pricing for all of us that had an order on March 1. It now needs to add a one-year no resale clause in the sales contract to prevent people grandfathered into the old pricing from taking advantage of their discount to profit from non-pre-order customers. (Rumor is that Ford is doing this with the Lightning and it is a routine clause for many fleet sales, e.g. Police department SUVs.) IMO people should not be able to take advantage of the discounted price for the purpose of undercutting higher-dollar sales Rivian would otherwise make to those who are not grandfathered.
We don't have any information that they do or don't already have it.
 

Sponsored

KeithPleas

Well-Known Member
First Name
Keith
Joined
Mar 9, 2019
Threads
14
Messages
330
Reaction score
544
Location
Mercer Island
Vehicles
Lexus GX, Porsche Boxster
That would make me uncomfortable - what if my financial conditions change? I would probably be fine with Rivian buying back the truck at price paid to pass along to another reservation holder.
 

Dark-Fx

Well-Known Member
First Name
Brian
Joined
Jul 15, 2020
Threads
96
Messages
9,359
Reaction score
17,748
Location
Michigan
Vehicles
Polestar 2, R1T, R1S, Livewire One, Fisker Ocean
Occupation
Engineering
Clubs
 
Such a clause is arguably illegal and unenforceable. What if a buyer suffers a financial mishap? You're going to make them go bankrupt because they can't sell their $100k truck? Please don't say it would be handled on a case-by-case basis. The law doesn't not look kindly upon such restraints of trade.
Usually the no-resale clause just bans you from buying another vehicle from them for x period of time. If you're having a financial mishap, you shouldn't be able to afford buying a new Rivian in the next year, or you didn't really need to sell it in the first place.
 

Sgt Beavis

Well-Known Member
First Name
Rick
Joined
Sep 28, 2021
Threads
65
Messages
1,680
Reaction score
3,548
Location
Colorado
Vehicles
2022 Rivian R1T, 2021 Jeep Wrangler Rubicon
Occupation
Overpaid Computer Nerd
Clubs
 
Nah... I have zero plans to sell my truck but I don't particularly like someone telling me what I can and can't do.
 

kurtlikevonnegut

Well-Known Member
Joined
Sep 1, 2021
Threads
24
Messages
2,094
Reaction score
5,632
Location
SC/TX
Vehicles
R1T QM, Honda Odyssey
Clubs
 
What this does, unintentionally, is effectively give every preorder gap insurance on their Rivian if they finance. Instead of an immediate 20-30% appreciation, our Rivians will have an immediate 15-20% appreciation upon purchase.
 

Sponsored

Tall_Rider

Well-Known Member
Joined
Jul 14, 2021
Threads
3
Messages
61
Reaction score
80
Location
Northeast
Vehicles
Chevy Suburban, Porsche 911
Usually the no-resale clause just bans you from buying another vehicle from them for x period of time. If you're having a financial mishap, you shouldn't be able to afford buying a new Rivian in the next year, or you didn't really need to sell it in the first place.
That's not what the original post contemplated. But such a black-balling clause would also be difficult to enforce. And practically speaking, how do you police for this? Anyone proposing these clauses needs to drop it.
 
OP
OP
TexasBob

TexasBob

Well-Known Member
First Name
Bob
Joined
Jan 15, 2022
Threads
15
Messages
400
Reaction score
740
Location
Houston
Vehicles
Tesla Model 3
Such a clause is arguably illegal and unenforceable. What if a buyer suffers a financial mishap? You're going to make them go bankrupt because they can't sell their $100k truck? Please don't say it would be handled on a case-by-case basis. The law doesn't not look kindly upon such restraints of trade.
These are neither illegal nor unenforceable nor even very uncommon. They are routinely used for discounted fleet vehicles, Ford had a similar clause for the GT which it vigorously enforced, and it is putting one in for the Lightning. https://fordauthority.com/2022/01/2...ng-will-come-with-one-year-no-sale-provision/
 

Taycanfrank

Well-Known Member
First Name
Frank
Joined
Oct 30, 2021
Threads
1
Messages
465
Reaction score
1,165
Location
Seattle
Vehicles
Taycan 4S
If there was a clause it should only prevent you from selling the car ABOVE what you paid for it. No restrictions whatsoever except if you paid $80k you can't sell it for 90k.

The enforcement is such a nightmare, though.
 

bd5400

Well-Known Member
Joined
Oct 1, 2021
Threads
14
Messages
806
Reaction score
1,562
Location
Milwaukee
Vehicles
R1T, SL500
Clubs
 
The preorder agreement already has a no-resellers clause that gives Rivian the ability to unilaterally cancel any preorder they believe is being made for resale purposes.

As far as enforcement, I do think it would be difficult to force someone to keep a vehicle they cannot financially afford. I just can't see a court doing that. I would imagine any attempt at a no-resale clause would require a buyer to return the vehicle to Rivian for a pre-determined price, not force someone to actually keep it.

Regardless, the cost of enforcement, including the brand damage of Rivian suing its customers, would far outweigh any benefit for Rivian.
Sponsored

 
 




Top