Territory

[Longhorn]

Based on my dealings, the territory issue is only for new vehicles.

I've seen in other similar businesses with such territory stipulations, the "mothership" can enforce things through new product allocation. They can make it very ******* dealers that don't play by their rules. This keeps their dealers in line.

When we talked to an out of territory dealer, they said they are required to service a very high percentage of what they sell, so when they sell to someone hours away that may never bring their truck in for service to the selling dealership, that lowers their percentage and this is a "black mark" on the dealership with the home office.

 

[Surfrider77]

Yea, territory doesn't apply to used vehicles.

 

[Davidinseattle]

I would call and talk to the GM at the store 3 hours away as the salesperson might not know that they can't pump out. JLR will punish the dealer so the salesman may think they can, but my guess is that once the GM of the store 3 hours away finds out, they'll nix the deal.

I know several people have given reasons why, but here is the real reason. JLR dealerships are few and far between usually just 4 or 5 in a state. So, if JLR allowed pump ins and pump outs, you'd have dealers (especially multipoint and multi franchise) selling more competitively, this reducing gross on for the dealers and then attracting people from way outside their market area to save a few thousand dollars.

When this happens to a dealer in point A, whose potential customers are all driving to point B (even though point B is 250 miles away) to buy a car for $2000 cheaper, the point A becomes non viable financially and JLR loses a service point. If there is no place to service your vehicle that is relatively close, then nobody is going to buy one. Certainly, buyers in point A who went to point B to buy their JLR vehicle would not buy one if they had to drive 250 miles for service because point A went out of business.

That is why JLR puts such strict limits on vehicle sales outside their market. I tried to by a certified LR4 from a dealer in MN. Since it was under 12 months old, the GM told me JLR would not let him sell it to me.

I bought a 6 month old LR4 in Cali with 7000 miles on it from a VW dealer instead.

 

[JotaDe]

There is a workaround to the territory process.

Here's my experience from this thread.

"I found an out of territory city (in Sacramento, I'm in San Jose) that was willing to let me order from them. The dealership is willing to provide the order to me because I have family in the same city in which I could "register" the car at time of purchase to their address."

You can change this registration address at a later date.

I also had a concern about my local dealer giving me a cold shoulder based on this. I've since taken my LR4 into the local dealer about 5-6 times (not for anything major) and they treat me just fine. They may treat me better if I'd bought it from them (I'll never know). They offer a lot car instead of a rental, and they ran my first "free oil change" with no questions asked. I still see the same salesman around who was quite upset when I asked for my deposit back as I found an out of area dealer willing to sell to me, he's either forgotten me or pretends that I don't exist

 

[roverman]

I always wonder how this isn't illegal, some sort of antitrust violation? I could see having a territory if everybody sells for the same price, but to not 'allow' you to get it somewhere cheaper is just nuts. Imagine if gas stations operated that way...It's $5.00 in your town and you have to get it there because they won't sell gas to you in the next town over, where it's $2.00.

 

[Hayseed_LR4]

I spoke withe the GSM and he explained the rule and that they can sell out of territory but may choose not to do it. He said also since the maintenance is a separate business than the sales part at most dealerships, they will not even notice or care where it was purchased. They will still service and care for it just the same.

 

[JotaDe]

That's good to know. The dealer who sold me my car basically said all they need is a physical address in their area to fulfill the order.

It could be a friend, family, possibly even a business... any place that you can set as your address and can receive some early mail (like tags and plates) until you change the address yourself. Sounds to me like there are lots of ways to find an address somewhere that you could use temporarily.

The dealer also mentioned that selling out of area costs them up to $5k of the kickback they get from JLR for selling in area. Take that with a grain of salt.

 

[Lgibson]

Our general manager, a real straight shooter who has since left his company, said when/if selling out of territory they forfeited an allocation. This was a problem on relatively hard-to-get LR4's.

 

[Hayseed_LR4]

I think it is based on quotas and percentages of what is sold in territory to outside. They will losse if the ration is over a small limit.

 

[jim6090]

So this thread makes no sense to me. I live in Raleigh NC. 2 Hours away in Winston Salem is another dealer. I am talking Volvo. The dealership in Winston Salem has saturated their market with Volvos. The Raleigh dealer does not have a great reputation for offering good deals or offering good service.

The dealer in Winston Salem has delivered us two different new cars to our home. They provide a mobile tech to do regular maintenance at our home.(Volvo provides 5 years of maintenance) If the Volvo needs additional service they send a flat bed or a driver. They leave me a new Volvo and take mine in for repairs. That is true customer service. I am sure if the local dealership found out they would not be happy. We have great cars and great service from a place 2 hours away. And yes we have a 2012 LR4. Buy from they guy that really wants your business.