Second Delivery Programs – A Useful Tool for Dealers or Manufacturers’ Quiet Encroachment

By: Denise Branch

Manufacturers are using the increased technology on new vehicle models as the rationale for creating second delivery programs. While some of these programs allow an OEM rep to train dealership employees to conduct second deliveries with customers, Infiniti recently introduced a program in which an OEM representative takes over the customer interaction and is solely responsible for the second delivery.

Explaining that the technology on the new QX80 is particularly complicated, Infiniti launched the MyInfiniti Expert Program.  Rather than train dealership personnel on proper delivery and tech explanation techniques, Infiniti has asked dealers to enter into an agreement allowing an OEM rep to take over contact with the Infiniti customer upon purchase of a 2025 QX80.  This process excludes dealership personnel from follow up interaction with their own customers, and even allows the OEM representative to go on unmonitored post purchase “test drives” with the customer.  Customer satisfaction surveys are presented at the conclusion of the second delivery process, thereby holding dealers responsible for OEM employees’ interaction with its customers.

The agreement has no termination date and is self modifying; meaning that while the program now is solely for the QX80, Infiniti has reserved the right to extend the program to all Infiniti models. Such modification could result in a manufacturer rep conducting second delivery on all new Infinitis sold.  

Absent from the agreement also are termination grounds.  When asked under what grounds a dealer may terminate its participation in the program, representatives responded that it was presumed when a dealer was no longer satisfied with the program that it could withdraw.  However, no termination at will language is found in the agreement.  Absent specific language in the agreement, the dealer has little remedy to end it.

It is important to remember that Manufacturer programming is often not required, and can be subject to challenge.  Before entering into any new Manufacturer terms or agreements, it is important to discuss the implications of the agreement with your dealer lawyer.