Texas Mercedes Owner Faces $20,000 Penalty After Selling Vehicle Within a Year

TEXAS — A Texas man says his Mercedes-Benz dealership is threatening legal action after he sold his Mercedes G 63 SUV less than a year after purchase — a move that could now cost him $20,000 in penalties, according to a demand letter from the dealership’s attorney.

The buyer, who shared his experience online, said he purchased the luxury vehicle earlier this year after a long and difficult transaction process. Once his financing was approved through a credit union, he claims the dealership suddenly tried to cancel the deal without explanation.

“They finally agreed to sell it to me only if I signed a form that said I wouldn’t sell it within the first year of ownership — or they’d charge me a $20K penalty,” the customer wrote. “I felt forced to sign it.”

Legal Battle Over One-Year Ownership Rule

The buyer said he recently decided to sell the vehicle and was then contacted by the dealership’s legal team, who issued a demand letter requiring him to pay the $20,000 penalty outlined in the agreement.

He insists the sale was not for profit. “I’m actually losing a few grand on it,” he added, saying he believes the dealership’s conditions are unfair and possibly unenforceable under Texas consumer law.

Dealership wants to pursue legal action because I sold vehicle I purchased within a year.
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Legal experts note that while dealership resale restrictions are becoming more common on luxury and limited-production vehicles, their enforceability varies by state.

“These contracts often exist to prevent ‘flipping’ — when buyers resell in-demand models for profit,” said a Dallas-based automotive attorney. “However, if the customer can prove they were coerced into signing, or that the contract was unconscionable, they may have grounds to fight it.”

Growing Trend Among High-End Automakers

Luxury automakers like Mercedes-Benz, Ferrari, and Porsche have been tightening control over vehicle resales to protect brand exclusivity and prevent markups in the secondary market.
Some dealerships have added buy-back clauses or waiting periods for new buyers — especially on vehicles like the Mercedes G-Class, where demand far exceeds supply.

Consumer advocates, however, argue that such agreements may overstep legal boundaries.

“If the customer didn’t have the option to refuse without losing the car they were promised, that’s not a fair transaction,” said a representative from the Texas Consumer Rights Coalition.

Looking for Legal Help

The Texas buyer says he is now searching for an attorney to help him fight the dealership’s claim. He maintains that he acted in good faith and did not intend to breach the contract maliciously.

“I’m just trying to get out of the vehicle, not make money off it,” he said. “But now they’re threatening me with a $20K penalty.”

As of now, it remains unclear whether the dealership plans to file formal legal action or if the dispute will be settled privately.

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