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Dealer Tips

What Am I Agreeing To?


What are you agreeing to?

Customers frequently ask this question when it’s time to finalize paperwork, and you do your best to explain everything clearly. However, contracts and agreements often present a unique challenge: we think we understand them, but the language can be ambiguous or misleading. This raises an important question—do I really know what I’m agreeing to?

This question becomes especially critical for any contracts you sign as a dealer. Whether you’re entering an agreement with a lender, an advertising partner, or a vendor, it’s essential to fully understand the terms before committing.

Consider this real-world example: a dealer in California sold a high-end vehicle to a buyer who required financing. Once the bank approved the loan, the dealer delivered the vehicle and submitted the paperwork. Months later, the lender still hadn’t received a payment. Upon investigation, it turned out the deal involved identity theft and fraud. The customer had vanished, and the bank demanded repayment.

At that point, the dealer learned a harsh truth: according to their agreement, they were liable for the loan balance in the event of fraud. You might assume insurance would cover such a situation—but not necessarily. Many policies exclude identity theft. Had the dealer understood this clause from the outset, they might have taken extra precautions to protect themselves.

Similarly, dealers have shared numerous cautionary tales about advertising partners—particularly regarding domain name registration. Ideally, the dealership should register its own domain name. Yet, when an ad partner offers to handle it as a courtesy, some dealers accept without hesitation. Trouble arises when the dealership decides to switch providers. Suddenly, the ad partner refuses to release the domain name, effectively holding it hostage.

This creates a costly dilemma: the domain is printed on everything from license plate frames to business cards and digital ads. Changing it disrupts operations and requires significant time and expense. Worse, if the agreement includes a clause granting the ad partner ownership of the domain when they register it, legal options are limited.

To avoid this, consider migrating the domain to a third party before ending the agreement. At Auto Ad Manager, we firmly believe the dealer owns the domain—regardless of who registers it—and we promptly transfer it upon request.

The takeaway? Always read contracts carefully and know exactly what you’re agreeing to. A few extra minutes of diligence now can save you major headaches down the road.