Ford Examining GT Auction For Possible Breach of No-Sale Contract
05-16-18, 05:08 PM
#1
Racer
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Ford Examining GT Auction For Possible Breach of No-Sale Contract
Ford stipulates an owner can't sell a GT during the first two years.
how do you feel about ford telling their customers what they can and can not do with their cars that they own?
https://www.motor1.com/news/242295/f...investigation/
Last year, wrestling legend and actor John Cena found himself in some legal hot water when he bought a new Ford GT and then quickly sold it. Ford sued Cena to the tune of $500,000 for a breach of contract the automaker said stipulated Cena – or any Ford GT owner for that matter – could not sell the GT for the first two years. Cena countersued, and the case is winding its way through court. Now, the keen eyes over at Motor Authority noticed a new Ford GT heading across the Mecum auction block this week down in Indianapolis. Ford is investigating the situation.
"We are aware of this situation and looking into it, however Ford does not comment on individual customer matters. What we can say is that all Ford GT customers sign contracts, which include an agreement not to sell the car for at least two years," Ford spokesman Matt Leaver told Motor Authority.
The GT that’s heading across the auction block – serial No. 48 of 250 produced in 2017 – has just seven miles on the odometer. The car features Ingot Silver paint with black striping and the Dark Energy interior package. All Ford GTs come with a biturbocharged 3.5-liter V6 engine paired with a seven-speed dual-clutch automatic that helps deliver 647 horsepower to the rear wheels. Other touches include silver forged aluminum wheel with titanium lugs and carbon-ceramic disc brakes. Base price starts at around $450,000.
"We are aware of this situation and looking into it, however Ford does not comment on individual customer matters. What we can say is that all Ford GT customers sign contracts, which include an agreement not to sell the car for at least two years," Ford spokesman Matt Leaver told Motor Authority.
The GT that’s heading across the auction block – serial No. 48 of 250 produced in 2017 – has just seven miles on the odometer. The car features Ingot Silver paint with black striping and the Dark Energy interior package. All Ford GTs come with a biturbocharged 3.5-liter V6 engine paired with a seven-speed dual-clutch automatic that helps deliver 647 horsepower to the rear wheels. Other touches include silver forged aluminum wheel with titanium lugs and carbon-ceramic disc brakes. Base price starts at around $450,000.
https://www.motor1.com/news/242295/f...investigation/
05-16-18, 05:38 PM
#2
Lexus Fanatic
I don't think Cena is going to win his countersuit. The fact is, like it or not, if you buy a GT, you sign a contract, and are bound by it. Cena and his lawyer can't tell Ford how to run their business. If one doesn't like the terms of the contract on a GT, then there are are plenty of other options out there in that class....Ferrari, Lamborghini, Saleen, McClaren, etc....that are all waiting to sell supercars.
05-16-18, 10:26 PM
#4
Personally I think its bull**** that Ford makes you sign that contract to start with, if I had the $$$$ I wouldn't buy a new one just for that reason. John Cena is SOL IMO, he signed a legally binding contract.
I know the idea behind the can't sell it in 2 year rule is to keep people from buying them then immediately flipping them for an extra $100,000 for what they bought them for. My suggestion to Ford, Porsche, Ferrari, if you don't want this to happen to your cars, build more of them. Build enough to satisfy demand, quit playing games with limited production to drive up transaction prices. The market for 6 figure supercars has absolutely exploded in the past 10-15 years, quit playing games by intentionally not building enough and artificially inflating your prices through a tight supply.
I know the idea behind the can't sell it in 2 year rule is to keep people from buying them then immediately flipping them for an extra $100,000 for what they bought them for. My suggestion to Ford, Porsche, Ferrari, if you don't want this to happen to your cars, build more of them. Build enough to satisfy demand, quit playing games with limited production to drive up transaction prices. The market for 6 figure supercars has absolutely exploded in the past 10-15 years, quit playing games by intentionally not building enough and artificially inflating your prices through a tight supply.
05-17-18, 09:11 AM
#6
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but the argument here are, is the contract legal? cena's lawyer can always argue in court that what ford did was not legal and therefore cena doesn't have to oblige.
what if, ford gets it's way and now they take it one step further, on top of the no sale clause they now demand that owners can't even modify their cars in any way not even a windows decal and they have to have their gt serviced at a ford dealer only. would customers be ok with that kind of demand? and is that even legal?
what if, ford gets it's way and now they take it one step further, on top of the no sale clause they now demand that owners can't even modify their cars in any way not even a windows decal and they have to have their gt serviced at a ford dealer only. would customers be ok with that kind of demand? and is that even legal?
05-17-18, 11:12 AM
#7
Lexus Fanatic
but the argument here are, is the contract legal? cena's lawyer can always argue in court that what ford did was not legal and therefore cena doesn't have to oblige.
what if, ford gets it's way and now they take it one step further, on top of the no sale clause they now demand that owners can't even modify their cars in any way not even a windows decal and they have to have their gt serviced at a ford dealer only. would customers be ok with that kind of demand? and is that even legal?
what if, ford gets it's way and now they take it one step further, on top of the no sale clause they now demand that owners can't even modify their cars in any way not even a windows decal and they have to have their gt serviced at a ford dealer only. would customers be ok with that kind of demand? and is that even legal?
Last edited by mmarshall; 05-17-18 at 11:15 AM.
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05-17-18, 12:40 PM
#8
Lexus Fanatic
Ford is a lame company for doing this. I don't know why anyone would want to sign this contract with any car company.
Last edited by Toys4RJill; 05-17-18 at 12:55 PM.
05-17-18, 01:03 PM
#9
Because they want that car. In this case a Ford GT mid-engine supercar that has a rich heritage. Ferrari is notorious for making everyone play by their rules. Few comparison tests ever come to fruition. Ferrari believes it can control every aspect of the media — it has actively intervened several times when journalists have asked to borrow owners' cars.
https://jalopnik.com/5760248/how-ferrari-spins
05-17-18, 07:39 PM
#12
I can see Ford trying to enforce the terms of the contract that all GT buyers sign. It is unclear what the car sold for versus what the original price was.... Not sure where the $500K in "breach of contract" figure came from or what that is based on..... (lawyers do cost a lot). I think he will lose in court but hopefully the amount Ford is attempting to collect will be vacated; void the sale and move on.....
How the other upcoming auction is viewed is not clear from the information above. To be consistent, Ford would have to stop that sale until the 2 year period is up. If allowed to go through, they have no basis for other owners selling their cars before the terms are met.
How the other upcoming auction is viewed is not clear from the information above. To be consistent, Ford would have to stop that sale until the 2 year period is up. If allowed to go through, they have no basis for other owners selling their cars before the terms are met.
06-19-18, 08:57 PM
#13
John Cena and Ford settle their differences over GT flip out of court
John Cena, wrestler and actor, has settled his GT business with Ford, outside of court. The carmaker sued Cena last year for violating the terms of his GT purchase contract, as Ford intended the $450,000 supercars not to be immediately resold by the cars' carefully selected first owners. There was an application process for the first 500 GTs built, and those who were approved to buy one were contractually disallowed from selling the cars for 24 months.
Cena, however, held onto the car for a very short time, receiving it in late September 2017 and selling it in October — and then getting sued by Ford in November, Ford sued him, seeking damages of $75,000. Ford also wanted to buy the car back for the original price, with any profits Cena made added on top of it. Cena initially claimed he wasn't aware of not being allowed to sell the car.
When we reported on the matter back in February, Cena had asked for the judge to throw the case out. Now, the matter has been settled for an undisclosed amount, and Cena's legal representatives say Ford will donate that amount to charity. And Cena issued a contrite statement: "I love the Ford GT and apologize to Ford, and encourage others who own the car to respect the contract. [...] I am pleased we could resolve this matter outside of court, and that a worthy charity will benefit from one of the most iconic cars in the world."
Cena, however, held onto the car for a very short time, receiving it in late September 2017 and selling it in October — and then getting sued by Ford in November, Ford sued him, seeking damages of $75,000. Ford also wanted to buy the car back for the original price, with any profits Cena made added on top of it. Cena initially claimed he wasn't aware of not being allowed to sell the car.
When we reported on the matter back in February, Cena had asked for the judge to throw the case out. Now, the matter has been settled for an undisclosed amount, and Cena's legal representatives say Ford will donate that amount to charity. And Cena issued a contrite statement: "I love the Ford GT and apologize to Ford, and encourage others who own the car to respect the contract. [...] I am pleased we could resolve this matter outside of court, and that a worthy charity will benefit from one of the most iconic cars in the world."
06-20-18, 05:58 AM
#14
Lexus Fanatic
What that article basically says, in a nutshell, is that Cena, on the contract, got caught with his pants down, and managed to pull them back up halfway LOL.
06-20-18, 11:15 PM
#15
I'd love to see the legal bill Ford had to foot to enforce this contract with Jon Cena. If I were an auto executive, the lawyer fees to enforce this contract would be reason enough to not have said contract. **** lawyers, they are scum of the earth(until you need one lol).