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Dealer deceptive sales practices

Discussion in 'Dealers & Pricing' started by subjective, Mar 20, 2012.

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  1. subjective

    subjective Member

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    Location:
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    Your Vehicle Year:
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    I have observed the following Toyota dealer sales practices which are very disturbing to me: The dealer advertises 20% on any 2011 Prius in stock. The buyer computes what their cost would be at this great discount which attracts them to the dealer. In these times the buyer can get a very low finance interest at their bank or perhaps because the buyer has the funds in the bank earning very low interest, might want to pay cash. Then the dealer tells the buyer after they want to buy the car (YOU MUST FINANCE THROUGH THE DISTRIBUTOR FINANCE) or else pay a $2000. fee. This dealer/distributor relationship finance interest rate is much higher than at the buyers bank, so they never really can actually get the 20% off. In addition the dealer has preinstalled overpriced accessories or service packages which are unwanted, a high dealer service fee etc. Another one is where the dealer publishes a discount coupon which the buyer must present immediately upon entering the dealership. This amount on the coupon is simply subtracted from the buyers trade in which the buyer never really gets the discount.
  2. qbee42

    qbee42 My other car is a boat

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    Dealers are not part of Toyota, but are independent companies. Some are much better than others.

    Tom
  3. The Electric Me

    The Electric Me Go Speed Go!

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    You're making me feel so much worse about that free cup of coffee I got from the dealership...

    Yes...I'm afraid deceptive practices exist throughout the automotive dealership universe. Not just limited to Toyota.

    On the flip side? I think the internet and the incredible wealth of resources now allows the consumer to be as informed as EVER about the vehicle they are pursuing.

    15 years ago? Not only were dealerships often deceptive, but they also were about the only place you could go for information.

    Today? For any consumer there is little excuse not to at least have a good idea of what they want, and how much they should pay, before they even step on a dealership lot.
  4. Tech_Guy

    Tech_Guy Class Clown

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    So knowing that information, why would you want to buy anything from that dealer???

    Walk away. There are plenty of reputable dealers around...

    Keith
  5. Judgeless

    Judgeless Senior Member

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    Rule 1 – All dealers are scumbags. If their lips are moving they are lying.
    Rule 2 – Refer to rule 1.
    Reedja42 and k9frog like this.
  6. revhigh

    revhigh MPG Enthusiast

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    Let the buyer beware .....

    Just say ..... SEE YA ....

    REV
  7. Tech_Guy

    Tech_Guy Class Clown

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    I disagree. Automobile dealers are like many other businesses. You never get the deal you deserve, you get the deal you negotiate.

    Keith
  8. SageBrush

    SageBrush Senior Member

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    The must-finance-through-us tactic is trivial to overcome. Just pay off the loan early, or refinance it through another company.

    If the dealer is hoping to recoup the 20% discount on the trade-in, the obvious answer is: do not give the dealer the trade-in.

    Dealer garbage added to the car is a problem, but COME ON: did you *really* think you were going to get 20% off a barebones car you specified down to the last bolt ? LOL. Be happy if you end up with a 10% discount. Ask for an OTD quote you can guarantee with a deposit before you drive down to the lot, and save yourself wasted time.
  9. k.s.c

    k.s.c Junior Member

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    The dealer here in Naples, FL marks up the Prius due to demand. In fact when you go on their website and look for a Prius and find the perfect one in stock you see the true MSRP like on the Toyota website. Then you get to the dealership and you discover it is $4,000 higher due to what they say is demand. "When someone comes onto the lot and sees a Prius, they buy it on the spot". So basically you have to negotiate just to get it to MSRP then negotiate even more to get a deal. The dealership in Ft Myers prices at MSRP and even a weak negotiator who gets $100 off the price there, got a better deal than going to Germain Toyota. Whether Ft Myers is an honest dealer isn't something I can attest to because I only spoke with the two dealership but walking into a dealership and seeing the prices marked up just because gas went up and they feel they "deserve" the extra money is a little bit unreal.
  10. jscott16

    jscott16 Junior Member

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    When I bought my Prius a week ago, Toyota was offering 2.9% interest.
    We sat down with the finance guy and he said that he found a better rate for
    us at a local bank. 1.9%. There are dealers who will treat you right.
  11. Edward74

    Edward74 New Member

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    [​IMG]For any consumer there is little excuse not to at least have a good idea of what they want, and how much they should pay, before they even step on a dealership lot.
  12. RRainman

    RRainman New Member

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    I got mine a week and a half ago. It is a 2011 III. I got it for $4000 off the sticker and got Toyota financing for 60 months at 0.9%. I even negotiated free GAP and chip/ glass protection with 7 yr/120000 mile warranty.

    I had no issues. They even had 5 other 2011 s on the lot to choose from.

    Do your homework and it goes smooth. Even flying to Atlanta to buy one is cheaper than paying a premium.
  13. Brett.

    Brett. Junior Member

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    I have never seen a new vehicle advertised for 20% off, ever not even flood damaged.

    Second, I got 0% interest and my credit is sub-par after a very unfortunate series of events.

    My secret? I told the salesman I'm not buying the car unless I get 0% interest and that's that.

    Go work your magic, your mobility is your best weapon at battle with a dealership. The moment you stand up and walk out is the moment they will surprise you.
  14. sdtundra

    sdtundra Active Member

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    When I bought my Prius it was advertised on the dealer website for $21 something and Toyota had the $500 off OR 0% for 36 1.9% for 48 or 2.9% for 60 month financing and you had to pick if you wanted the $500 off or the loan. Seeing as I was already approved for 2.99 from my credit union, i took the $500 off the sale price. They tried to give me $9000 for my trade but in the end got them to $11,500 and the car for $22k out the door, granted they tried to sneak in the 10% sales tax for the dealers zip code vs. the 7.75 where I live which I caught them on in the financing department.

    They financed me at 22% which is hilarious given my credit and the fact I have an account with TFS.

    Went to my CU the next day with the contract and refinanced right there for 2.99 for 60. They did have special of 1.5% for 24 months that I should've jumped on but 2.99 is well enough since I always pay more anyways.
  15. ChipL

    ChipL Active Member

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    Koons Toyota plays games with their 25% extra over KBB "fair" value for trades. "Fair" is my emphasis. I valued my '03 Baja as such and was looking for $7000 to make a deal a month ago on their left over 2011's. They only offered $5100-5500 that night. I walked that night

    It was only as I was at Carmax in Laurel MD signing the deal that Koons offered $7000 that I would have taken the night before. After I got $9000 from Carmax! And I got a 2012 for just about $1000 over a 2011!

    And no time wasting as I waited for a trade value and such. Koons doesn't care because they don't have to....
  16. Judgeless

    Judgeless Senior Member

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    I disagree. Look at this post.



    When a dealer offers their own GAP insurance it is a unregulated and a scam. Who goes into a dealer looking for special insurance on chips in their glass? Another scam a dealer tries to sell people along with Teflon coating for the interior/exterior and many other add-ons. The glass coverage is free with most insurance policies.

    The worse are all the sum bag dealers that sell extended warranties on the most reliable cars in the world ‘Toyota’. The sell using FUD. Dealer: ‘There are a lot of high tech device in this car. If one brakes it could cost you $3,000. The extended warranty is only $2,000. That is a savings.’ All lies. First most of the Hybrid system is not covered by the extended warranty. Second if you go back in the forums over time it is very hard to find one person that took advantage of an extended warranty.

    Never ever ever trust what a dealer tells you. Your best interest in never at heart. The only goal is up selling for higher profits for the dealer.
  17. Kmack

    Kmack New Member

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    I think most dealers must go through the same "Training". Even here in Northern Ontario the first question the sales people ask is "Where do you work?" That always makes the hair on the back of my neck stand up. I ended up driving an hour to another dealer in the next town to save over $3000 on a much better looking used Prius (a few years back I did the same on a Corolla).
  18. ny_rob

    ny_rob Senior Member

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    Dealers are not all the same-
    I walked out of the first dealership I went into cause of shady math- I would never do business with them.
    The place I ended up using was completely different- no hidden fees, and once they ran my credit- they got me 1.9% from PNC Bank rather then using the more expensive Toyota Financing.

    Your feet are your best defense against unethical dealerships...
  19. stevemcelroy

    stevemcelroy Active Member

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    Wow - that makes it like shooting fish in a barrel as long as the financing has no penalty for early payment. Just agree to the dealer financing and then pay it off the next day.

    Honestly, no one should fall for an ad like this except the gullible or slow - if an ad is too good to believe it is.



  20. Gary Otto

    Gary Otto Member

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    Phillips Toyota in Leesburg Florida came up on Sams Club pricing as invoice amount. I even talked to them on the phone and email to come down (over an hours drive) when I got there...after a long wait....he presented me with MSRP and wouldn't budge...saying sales were so good they didn't need to discount. I told him where to stick his MSRP before I walked out.
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