Transportation Liability for Courtesy Delivery
09-15-2015, 03:59 PM
#21
There should still be a Bill of Lading that the courtesy dealer should get or some kind of paperwork. Rest assured that car coming from BG was inspected before being wrapped and loaded on any transport. Most of the time they never show it to the customer, because destination and transport fees are built into the price. The customer never asks for any shipping documents. The delalr will have some type of paperwork, that and the dealer will ultimately sign off (a release) from the transporter, whether its from BG or not. The transporter is not going to just unload the vehicle and leave.
The guy doing this transaction can easily ask for it, if they are provided.
The guy doing this transaction can easily ask for it, if they are provided.
I guess the best way to classify it is courtesy delivery is a wholesale transaction and a dealer to customer shipment is a retail transaction. The checks and balances are handled differently.
And as I said before, it's not so much I'm worried about damage, it's just I don't want to pay for something until I take ownership. I also don't want to be the one suing the carrier if there is damage and since at some point during the transport I became the owner I'm the one ultimately at risk if something catastrophic happens.
Last edited by mjw930; 09-15-2015 at 04:01 PM.
09-15-2015, 04:06 PM
#22
Yep, I've done that many times myself and in those cases you absolutely pay for the car before it leaves the selling dealers lot. The big difference is any damage done during GM to dealer shipping was handled by the dealer long before you entered the picture.
With a courtesy delivery it's delivered to your courtesy dealer as if that dealer had ordered it and no one except the truck driver or rail car attendant has seen it, no one knows the condition.
That's not even the real reason many, including me, wouldn't pay until it shows up. The real reason is cars shipped beyond 500 miles of BG can take weeks, sometimes months to show up and I for one don't want to be the owner of the car (and be paying interest on a loan) while it sits in a rail yard in Omaha waiting for the next train west.
BTW, most dealers don't actually buy the car form GM, their floor plan finance company does. Most GM dealers floor plan through Ally so it's a simple ledger transaction. Interest on floor plan begins after a certain period of time, usually 90 days from the time the invoice is delivered to the finance company so the dealer isn't out a dime until 91 days after the car is invoiced.
If I were taking courtesy delivery I would simply inspect the car once it arrives then overnight the signed paperwork and checks to the selling dealer. Then wait a couple days for them to overnight back to me the completed paperwork, certificate of origin and temporary tag. From there I make an appointment with the delivery dealer and pick up my car. If you've waited months what's another couple days? If the courtesy dealer is 90 miles away then oh well, it's 2 trips. Well worth the effort to make sure I'm getting what I paid for.
With a courtesy delivery it's delivered to your courtesy dealer as if that dealer had ordered it and no one except the truck driver or rail car attendant has seen it, no one knows the condition.
That's not even the real reason many, including me, wouldn't pay until it shows up. The real reason is cars shipped beyond 500 miles of BG can take weeks, sometimes months to show up and I for one don't want to be the owner of the car (and be paying interest on a loan) while it sits in a rail yard in Omaha waiting for the next train west.
BTW, most dealers don't actually buy the car form GM, their floor plan finance company does. Most GM dealers floor plan through Ally so it's a simple ledger transaction. Interest on floor plan begins after a certain period of time, usually 90 days from the time the invoice is delivered to the finance company so the dealer isn't out a dime until 91 days after the car is invoiced.
If I were taking courtesy delivery I would simply inspect the car once it arrives then overnight the signed paperwork and checks to the selling dealer. Then wait a couple days for them to overnight back to me the completed paperwork, certificate of origin and temporary tag. From there I make an appointment with the delivery dealer and pick up my car. If you've waited months what's another couple days? If the courtesy dealer is 90 miles away then oh well, it's 2 trips. Well worth the effort to make sure I'm getting what I paid for.
all of your points very well made and explained.
09-17-2015, 01:25 PM
#23
Racer
I did some checking with MacMulkin and they told me that they can not release the certificate of origin until the car is paid for due to insurance liabilities. I assume it would leave the car uninsured during transit.
I did a little follow up and learned that if anything comes messed up, for example if my carbon fiber hood insert is misaligned or the shifter boot doesn't have the red stitching (both problems I have seen) then these items would be replaced under my factory warranty. I was a little worried that GM would say "you accepted the car with the defect, we're not liable to replace it". Considering that won't happen I don't see any real risk in paying for the car before I inspect it. IF something is wrong I'll just schedule them to replace it when I come in for my 500 mile oil change.
I did a little follow up and learned that if anything comes messed up, for example if my carbon fiber hood insert is misaligned or the shifter boot doesn't have the red stitching (both problems I have seen) then these items would be replaced under my factory warranty. I was a little worried that GM would say "you accepted the car with the defect, we're not liable to replace it". Considering that won't happen I don't see any real risk in paying for the car before I inspect it. IF something is wrong I'll just schedule them to replace it when I come in for my 500 mile oil change.
Last edited by efarley; 09-17-2015 at 01:29 PM.
09-17-2015, 02:43 PM
#24
I did some checking with MacMulkin and they told me that they can not release the certificate of origin until the car is paid for due to insurance liabilities. I assume it would leave the car uninsured during transit.
I did a little follow up and learned that if anything comes messed up, for example if my carbon fiber hood insert is misaligned or the shifter boot doesn't have the red stitching (both problems I have seen) then these items would be replaced under my factory warranty. I was a little worried that GM would say "you accepted the car with the defect, we're not liable to replace it". Considering that won't happen I don't see any real risk in paying for the car before I inspect it. IF something is wrong I'll just schedule them to replace it when I come in for my 500 mile oil change.
I did a little follow up and learned that if anything comes messed up, for example if my carbon fiber hood insert is misaligned or the shifter boot doesn't have the red stitching (both problems I have seen) then these items would be replaced under my factory warranty. I was a little worried that GM would say "you accepted the car with the defect, we're not liable to replace it". Considering that won't happen I don't see any real risk in paying for the car before I inspect it. IF something is wrong I'll just schedule them to replace it when I come in for my 500 mile oil change.
Where it could get strange is if the car is damaged beyond repair during transport and you have already transferred ownership by converting the MSO to a state registration and have a bank who's a lien holder on the property. Your bank is going to want full payment of all monies disbursed before they release the title and you of your payment obligation but if the agreement between the carrier and GM only reimburses them for GM's wholesale value of the car who is going to cough up the taxes, dealer fees and difference between GM's insured cost and what you paid for the car?
Leave the car in GM / selling dealer's ownership and under MSO until it's delivered, unharmed, to the courtesy dealer before you finalize the sale, it's the only way to fully insulate yourself from liability.
09-17-2015, 08:34 PM
#25
Le Mans Master
Thread Starter
So happy you checked with MacMulkin. Just happy they didn't say you MUST pay within xx days after the car is built.
In my case, I'm fine with them not releasing the certificate of origin until the car is paid for as long as I don't have to pay for the car BEFORE I inspect it. If that means I can't drive the car off the lot for 2 to 3 days until the paperwork completes after I pay I'm OK with that.
09-17-2015, 08:39 PM
#26
Le Mans Master
Thread Starter
"Only The Paranoid Survive" - Andy Grove, Founder Of Intel Corporation.
09-18-2015, 12:07 AM
#27
Drifting
09-18-2015, 12:26 AM
#28
Le Mans Master
Thread Starter
owner now becomes inserted into the process since it is now their car, LEGALLY.
09-21-2015, 08:43 PM
#30
Le Mans Master
Thread Starter
As I stated previously I do not want to pay cash for the car or take possession before I get an opportunity to inspect it.
Can a dealer "demand" payment before the car arrives at the courtesy delivery lot? If they do how should I respond?
Can a dealer "demand" payment before the car arrives at the courtesy delivery lot? If they do how should I respond?
09-21-2015, 08:47 PM
#31
Racer
Give MacMulkin a call, they're going to be your best source of information on this. As far as others have said you don't have to pay until you see the car, so it'll be interesting if MacMulkin is saying otherwise. Let me know what they tell you.
09-21-2015, 10:18 PM
#33
Racer
09-23-2015, 08:59 AM
#34
Melting Slicks
As already said, you don't have to pay prior to inspection but you won't be driving the car home the day of inspection. Macmulkin wasn't particularly high pressure about immediate payment. I personally felt there was risk leaving the car on the courtesy dealer lot so I paid for my car as soon as the paperwork was ready. Turns out the courtesy dealer was actually pretty cool about everything and prolly no real risk of joy rides. Maybe a few people would sit in it but that's somewhat harmless.
09-23-2015, 12:12 PM
#35
Racer
As already said, you don't have to pay prior to inspection but you won't be driving the car home the day of inspection. Macmulkin wasn't particularly high pressure about immediate payment. I personally felt there was risk leaving the car on the courtesy dealer lot so I paid for my car as soon as the paperwork was ready. Turns out the courtesy dealer was actually pretty cool about everything and prolly no real risk of joy rides. Maybe a few people would sit in it but that's somewhat harmless.