That’s my whole question behind their operation.
They are taking “deposits” on a truck that they don’t even have DOT and EPA approval to even import yet, and the clock is ticking on their exemption on their demo truck.
Basically at this point, even though they may have put some of their own money in initially, they are potentially making the depositees take all the financial risk.
Looking at their 1 page reservation agreement, their so-called terms and conditons dont do very much to offer any protection or assurances to somebody wanting to make a deposit.
Here are a couple things that I would want answered in writing as far as terms of a deposit......
- Based on their "reservation agreement", the money is not held in any type of escrow. So how are the depositees funds protected if LCA declares bankruptcy and shuts the doors?
- How long does LC America get to keep the money and not deliver before he is considered in breach of contract?
- Since no escrow, how do depositees get their money back if this drags on indefinitely, or the truck gets crushed and Papp and Co. go under?
The devil is in the fine print, NAWMSAYN
Also, if DOT and EPA approve them for import, what’s to stop me (or another company) from just piggybacking on the DOT/EPA approval and importing my own truck through an RI for potentially less money than LCA?
Can they in some way claim exclusive rights to importing the trucks since they did the paperwork?