Brand new to the Forums here, we signed a 5 month Offer to Purchase Contract w/ our local dealership a couple of weeks ago. Has anyone else been through this process or heard of it. Essentially agreed to purchase a SX-P Gravity Gray or Snow White Pearl w/ Gray interior with the dealer if they're able to obtain one through their allotment within the next 5 months. So, they could get one with those specs next month or it could play out that they don't and we're back to square one again after the 5 months is up. Put down $1000 refundable deposit and was given an actual price that was listed on the contract. Salesman told us that he couldn't even place an order at the time and said this was probably our best option. With production starting to ramp back up I just want to make sure that this is still the case? While it sounds like there are many people that have been waiting as long or even longer for their actual orders I just don't want to get to December and have nothing to show for my patience. Thanks in advance for any info anyone can provide.
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Offer to Purchase Contract
- Thread author beans1369
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TellTastic
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Welcome to the forum!
This is interesting. I’ve, personally, never heard of this. Not here and not ever. I’m no expert by any stretch of the means. It seems like you put money down to reserve a vehicle that they may or may not eventually be allocated. If the contractual price was a ‘good’ price (prices vary), then sure thing. Otherwise, your preordering something that’s already in circulation, or in this case, something that that dealer doesn’t have but hopes to get- a rain check.
Did they tell you what place you were in line? What are the consequences of a broken contract, i.e, you choose to walk away now or a car comes in and you don’t want it?
Related to Kia, if it was ‘a few weeks ago’, the dealer SHOULD have been able to put in an order for your car. That said, you highlighted ramped up production - I estimate that, if they don’t screw you, you should see an allocated vehicle soon. Especially since you’re not picky on color. if you had ordered a few weeks ago, you’d probably see that vehicle within a few months as That 5 month window is seemingly looking more and more reasonable.
This is interesting. I’ve, personally, never heard of this. Not here and not ever. I’m no expert by any stretch of the means. It seems like you put money down to reserve a vehicle that they may or may not eventually be allocated. If the contractual price was a ‘good’ price (prices vary), then sure thing. Otherwise, your preordering something that’s already in circulation, or in this case, something that that dealer doesn’t have but hopes to get- a rain check.
Did they tell you what place you were in line? What are the consequences of a broken contract, i.e, you choose to walk away now or a car comes in and you don’t want it?
Related to Kia, if it was ‘a few weeks ago’, the dealer SHOULD have been able to put in an order for your car. That said, you highlighted ramped up production - I estimate that, if they don’t screw you, you should see an allocated vehicle soon. Especially since you’re not picky on color. if you had ordered a few weeks ago, you’d probably see that vehicle within a few months as That 5 month window is seemingly looking more and more reasonable.
Thanks for the info! Yes, like you said, it's almost like a raincheck. He showed us his list of allocated vehicles for the next 4 weeks and none matched what we were looking for. He also made it sound like they would also be trying to locate what we wanted but I'm pretty sceptical on that since most of what's being shipped is probably already spoken for. Not sure what place we would be in line? Could probably check on that each week or every other week just to see if we're moving up at all? Although it's only been a couple of weeks, it would be nice to get some sort of update at the end of the month just letting us know where we are in the process. In addition, we will be paying $2000 above MSRP (they bill it as a weatherproofing/Simonizing additional service) that he was very upfront and transparent about it being a way to mark the vehicle up legally. In the grand scheme of things I knew there would probably be something like that going in after reading about that kind of practice at many dealerships due to supply/demand. So the price we agreed to is a little over $52,000. While we are under contract, there was nothing in writing about any real penalties if we decided to walk away since they have plenty of other customers waiting for an opportunity to purchase. It was certainly a very different experience. Again, appreciate the info and am still wondering if any other dealers are doing anything like this? Fingers crossed that things continue to move forward and we are able to drive ours home sometime this fall.
TellTastic
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Again, no professional here, but dealers get a list of monthly allocations. If they were not allocated a vehicle of your specific trim type, there is a potential that they may be allocated one in the months to come.
It’s good to hear that they’re trying to locate one, but that makes me a little weary - If what they mean is that they’re trying to locate an allocation for you from another dealer and allowing you to call said dealer and purchase from them, then that’s some good customer service, but it wouldn’t make sense if they’ve put a contractual agreement on purchasing from them.
otherwise, from what I understand, kia dealers are not doing dealer trades for the telluride. When I bought my GMC Truck, the dealer I worked with sourced my vehicle from an out of state dealer. They traded one from their inventory to get mine. But I’ve been told that kia isn’t doing this. At least not for this model. Maybe this dealer is, but holistically , I’m not aware that they are.
If you’re comfortable with paying that ADM, good on you. 2k is cheaper than some dealer markups, but if I’m going to ‘wait’ for a vehicle with no guarantee of it coming in AND they want to contractually tell me about a markup ahead of time, I’d walk. But that’s just me. assuming this is an apples to apples scenario, you could potentially find an unspoken for allocation from a high-volume dealer with a 2k markup faster than your local one
Since there are no ‘penalties’ within this document, it seems like this paper fairs better in your interest as to me it seems like they are promising you The first vehicle that comes in that meets your specs. That being said, it also semi-guarantees that they will make a sale.
Either way, it doesn’t look like there’s any harm in this, especially if the deposit is refundable, but If it were me, I would look at this as a non-binding agreement and keep my eyes open for other options.
It’s good to hear that they’re trying to locate one, but that makes me a little weary - If what they mean is that they’re trying to locate an allocation for you from another dealer and allowing you to call said dealer and purchase from them, then that’s some good customer service, but it wouldn’t make sense if they’ve put a contractual agreement on purchasing from them.
otherwise, from what I understand, kia dealers are not doing dealer trades for the telluride. When I bought my GMC Truck, the dealer I worked with sourced my vehicle from an out of state dealer. They traded one from their inventory to get mine. But I’ve been told that kia isn’t doing this. At least not for this model. Maybe this dealer is, but holistically , I’m not aware that they are.
If you’re comfortable with paying that ADM, good on you. 2k is cheaper than some dealer markups, but if I’m going to ‘wait’ for a vehicle with no guarantee of it coming in AND they want to contractually tell me about a markup ahead of time, I’d walk. But that’s just me. assuming this is an apples to apples scenario, you could potentially find an unspoken for allocation from a high-volume dealer with a 2k markup faster than your local one
Since there are no ‘penalties’ within this document, it seems like this paper fairs better in your interest as to me it seems like they are promising you The first vehicle that comes in that meets your specs. That being said, it also semi-guarantees that they will make a sale.
Either way, it doesn’t look like there’s any harm in this, especially if the deposit is refundable, but If it were me, I would look at this as a non-binding agreement and keep my eyes open for other options.
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You've been provided with good advice from @disweds12 .
That's not a contract, but an attempt to keep you from shopping other dealerships. It sounds very one-sided. But, there's no harm in having it as long as you can get your deposit back when you want it.
Read the thread below, and start hunting. Since you're open to paying a markup, you should be able to secure something from a higher volume dealership.
Three Different Ways to Acquire a Telluride
Since joining this forum I've learned so much but it took me a while to browse through all the threads to collect the info I needed to order a Telly. Some stuff I wish I knew before I ordered and so I wanted to make a step-by-step list of how to acquire a Telly for the new folks. I hope this...
tellurideforum.org
I would contact @Mweiland a Inver Grove Kia in Minnesota and see if they can order for you in one of their upcoming KFOS allocations (I do think you'll have a hard time finding that trim you specified on an unsold allocation). Shipping is less than $2k for sure.
Try Friendly Kia in FL (markup is about $2500 effectively (add-ons and high dealer fee) - but they are high volume.
You can also read thread on "Latest Info on Ordering through KFOS" for more color on the allocations.
Good luck.
Just want to say THANK YOU both for incredible information you've provided me with here! So glad that I found the forum and people like you who are willing to provide the help that I was looking for. These are some FABULOUS resources that you've shown me and I think that looking these things over is giving me new insight about how all of this is supposed to look and will definitely help guide me moving forward. Can't thank you guys enough for taking the time to help. Looking forward to sharing more of this ongoing process until the day we receive the keys to our new Telluride!
Frankie Knuckles
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Welcome to the forum!!!
My Car is a 2001
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One thing to be aware of that may slow down the fulfillment of your contract is Kia is phasing out Snow White Pearl (SWP) for Glacial White Pearl (GWP). That transition is supposed to begin this month and SWP is presumably running low. It appears GWPs will be hitting lots as soon as October, which would confirm SWP is just about done
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Thanks for the info. I was not aware of that change coming. I really would prefer the white, but I also like the way the Gravity Gray looks w/ the black rims. Definitely prefer the lighter gray interior color over black though.
