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Law Maven
Law Maven, Lawyer
Category: Canada Law
Satisfied Customers: 163
Experience:  Lawyer & Instructor at Algonquin Careers Academy
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I was wondering about the legality of making car buyers sign

Customer Question

Hi, I was wondering about the legality of making car buyers sign a non export agreement at the dealership when picking up a car? There is an element of profiling with regards ***** ***** they choose to enforce this non export agreement upon..the dealer gave us a hard time when I told my dad not to sign it due to the fact that I thought he was being racially and financially profiled, and we took our business elsewhere. Either way any insight on this "issue" would be greatly appreciated.
Submitted: 5 months ago.
Category: Canada Law
Expert:  Law Maven replied 5 months ago.

Hello – my name is***** am a lawyer in Ontario, and I’ll be happy to help with your question today.

The use of non export agreements is usually based on the type of car more than the person that is buying it. Essentially certain manufacturers (BMW is well known for this) know that they can sell higher end models for much more money in some countries than in others. They want to make the most profit possible off each car they sell, so they do not want buyers purchasing a car in Country "A" and then exporting it to Country "B" and selling it for a profit there. Even if the person is already planning on moving from A to B, it benefits the manufacturer if they buy the car in B where it costs more, rather than buying it in A and bringing it with them.

So the policy is set at the manufacturer's level, not the dealership level. If the dealership wants to be able to sell that manufacturer's cars, they have to agree to get buyers to sign a non export agreement before buying. If there is any difference between dealerships, it would be because they negotiate their contracts with the manufacturer separately. Some dealerships may have set up their contracts with the manufacturer before non export agreements were common, and kept that as an advantage. Other dealerships might be able to negotiate better terms for their customers based on volume of sales. Bot***** *****ne, it is something that benefits the manufacturer of the car, not the dealership.

In terms of profiling ... you are probably right that there is some level of financial profiling going on. But that profile is based on "People who can afford to buy expensive car." Not really based on anything personal to your father or your family.

I hope I have fully answered your question, but please do not hesitate to ask for more information if needed. When you are satisfied with the answer, kindly provide me a positive rating so I can receive credit for my answer.

My answer here contains only general legal information and not legal advice. No solicitor/client relationship has been created by this communication.

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