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AAA/Toyota Dealer clash over dealers refusal of Price Guarantee

Discussion in 'Dealers & Pricing' started by mark54321, Mar 19, 2011.

  1. mark54321

    mark54321 Junior Member

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    This may take a little time to read but I though you may be interested to hear about the events that unfolded between myself, AAA and a Toyota dealer last Friday.

    Some here may be aware that AAA has a contractual arrangement with certain auto dealers to sell cars at a pre-arranged price quoted over the internet.

    The customer inputs the desired car...features...and AAA prints out the names of local dealers and what price has been guaranteed by them for the car. Within minutes you begin receiving calls and e-mails from the dealers.

    I placed a search for the 2011 Prius lll no additional options and got 3 dealers within a 20 mi radius willing to sell the car for a specific price. Doc fees, License and tax are not included in the price. My prices were all within a hunderd dollars or so of list price. One was several hundred below.

    I initallly spoke with two of the three dealerships, both of whom said they had cars on hand. Then the crisis in Japan occurred. Both dealers then said the supply has dried up and that they no longer had available Prius lll's. I suspected they just didn't want to sell at AAA's guaranteed price. When I called them back and spoke with other salespeople and not indicating I had a AAA quote, there were cars available.

    I decided to play things a different way with the third dealer. I first called the dealership, confirmed the car I wanted was avalable not mentioning AAA and placed a deposit on it over the phone. Salesman said it was going for $25,000. AAA's price was $23,660, $100 above invoice.

    I called AAA and spoke with the program director:

    Me: Are you sure the dealer has to give me the car for $23,660?
    AAA: Absloutely. They are contractually bound to do so.

    Me: What if they refuse?
    AAA: Call us on the spot.

    Me: What will you do if they refuse?
    AAA: Force them to meet the price and then throw them out of the
    referral program.
    Me: Are you SURE?
    AAA: 100%



    I go into the dealership, meet the salsesman (who I will call Bob), who was nice and seemed like a veteran of the car business. I said I wanted the blue 2011 Prius lll. He showed me the car then wrote up the invoice with the car priced at $25,000.

    I showed him the AAA price guarantee. Without hesitating he said he would not honor it. It didn't pertain to 2011 cars. I showed him the quote was for a 2011 Prius. He didn't care.

    I called AAA:

    Me: The dealership is refusing to honor the price
    AAA: Let me speak to the salesman.

    AAA: Advised the salesman his dealership was under contract to
    abide.
    Bob: We're not abiding by this. Don't you know how in demand these cars are now with what is going on in Japan? We're not letting this car go for this price. If the price of gas keeps going up as well these cars will be selling thousands of dollars over invoice.

    AAA: We don't care. Your dealership has agreed with us to sell the car at the quoted price.
    Bob: Not a 2011.
    AAA: Yes, a 2011.
    Bob: I'm not doing it. When did you arrange this price?
    AAA: Decembrer 30th,2010...... for 2011.
    Bob: No, that price was for the 2010's. We had no 2011 models then. That price guarantee was for 2010's and we have none in stock any more.

    AAA: Go speak with your sales manager. They know about the plan.

    Bob went to speak with the sales manager...came back and called AAA.

    Bob: The sales manager said no.
    AAA: We'll call you back, we're calling the sales manager directly.

    15 min later....AAA calls back.....spoke to Bob....Bob says fine......then says AAA wants to speak to me.

    AAA: This has never happened before. It seems that just recently due to the events in Japan, Toyota is taking the Prius off the guaranteed price plan. If it were just this one dealer we would force them to honor the agreement, but in this special circumstance the market has changed so significantly for the Prius becasue supplies have dried up that we are honoring all the Toyota dealerships requests to remove the Prius from the plan. We're very sorry.

    Me: Are you serious? Do you realize what you just had me do here?
    If you want to change the plan, fine....I hadn't gone into effect
    when you guaranteed me this price.
    AAA: We're really sorry.

    Bob to me: There were no last minute changes. There was simply no updated agreement made with AAA for the 2011 cars. We are not discounting the price, especially now. They are in great demand. Do you want to purchase the car for $25k ($27k w/ tax fees)?

    Me: I'll think about it. ....I later called and said no.

    So that's it. Actually, I had previously negotiated with one of the other dealerships to sell a 2010 Prius lll, including tax, doc fees and lic....for 25k with a $1,000 rebate for cash....totalling $24k. The dealership told me they had to find the color I wanted ( I was having a hard time finding Silver/dk gray interior)...would call me to advise if they could locate/swap for it. If not...I'd have to choose what they had. As soon as the Japan earthquake happened they said all the other dealers who do business with them refused to give up their Priusus....no exchange...and they just sold out of their few existing Priuses.

    Absolute bull...but that's when I went to Bob 's dealership after confirming they had the 2011.

    My decision: The difference between 24k and 27k was more than I could afford now. I'm not saying 27k including tax is a bad price...but $24k is right at the end range of my budget. The 2011 w/ tax from AAA would have pushed $25k which would be a strain for me but I probably would have done it. $27k was just too much as we have so many other expenses with the current renovation of our house. I'm going to take a chance that gas prices will stabilize and Prius flow will begin again as Japan recovers....and try to negotiate a 2011 after the first of the year...just before the 2012's come out. I may get a better price and hopefully the rebate. I realize that is an uncertainty. I could have downgraded to the Prius ll but that would have saved only 1k.

    I don't know if I'm doing the right thing. I think many of you will say I should have downgraded to the Prius ll and planned an aftermarket install of blue tooth and sterio upgrade. Can't install blue tooth on the steering wheel though. It's still in the back of my mind but I really want the lll.

    I hope once all the hysteria dies down Toyota will return the Pruis to their guaranteed price plan unless gas prices continue to climb. We went through this a few years ago and things eventually calmed down.

    You guys (any gals?) are great. ...thanks for your advice and knowledge.

    Mark C
     
    1 person likes this.
  2. Octane

    Octane Proud Member of 100 MPG Club

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    I'm impressed with you fighting the good fight. It just shows what type of disreputable scum car dealerships are and what gutless maggots AAA are. Is there a clause in their contract that allows the dealership to unilaterally break it? Piece of crap, arrogant dealership. It's in large part what's wrong with this country.
     
    2 people like this.
  3. green4u

    green4u New Member

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    Hey Mark,

    Good for you, you're doing everything in your power the right way. Take your time with this, you are the buyer. You know your budget better than anyone else so stick to your gut. IMO, there will always be plenty of new Priuses available. They're cars, not Tickle Me Elmos. Plus we're still in a recession. Dealerships claiming shortages is only so they can squeeze every dollar out of every customer. They didn't trick you and are better off for it.

    Your story was somewhat similar to my purchase two years ago. I tried using the AAA discount program to buy a Prius. They only offered me a discount of $500 at the time. I was insulted, that was chump change. So I tried going through Costco's discount program. The dealership didn't even honor Costco's discount, also of $500. Since the dealership also didn't budge with their price, I literally hopped the fence and went to their Certified Pre Owned dealership and got myself a nice deal on a Gen II.
     
  4. J5A

    J5A Active Member

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    I wonder if USAA pricing will be/is affected, too. :eek:

    That really stinks, Mark. :mad: I'm sorry this happened to you.
    I hope you'll get your Prius eventually; you'll love it.
     
  5. silica

    silica Junior Member

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    Six weeks ago, I could have gotten a Prius III for $1000 under invoice using the USAA plan. By the time I bought it last week, I was lucky to get it for invoice. I suspect the situation with buying plans will be fluid for the immediate future, if not for months.
     
  6. bisco

    bisco cookie crumbler

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    sorry to hear aaa didn't back you up. as a member, i find it very disallusioning.
     
  7. DianneWhitmire

    DianneWhitmire High PRIUStess

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    Many dealerships have excluded the Prius from their buying programs such as Costco and AAA. It can be done at any given time. From that moment forward, a dealer won't have to honor anything from the past. It just is what it is.

    As a both consumer and sales professional, I KNOW it's frustrating. ON my end, folks who I emailed information and pricing to as long ago as 3-4 weeks ago are coming out of the woodwork to get my deals NOW. And, I have to say "no, sorry. That won't work anymore. Pricing quoted is for 72 hours."
     
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  8. bretaz

    bretaz Member

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    Knowing what I know about the current market conditions, I would not expect any dealership to offer any discount on the Prius, regardless of any AAA, Costco, USAA, etc. agreement. You might find a few hundred off somewhere, but nothing like invoice. I'm pretty sure you are not surprised that you didn't get it for that price. A few months ago, everyone was using the prices from USAA, Costco and AAA as "starting points". Nobody was complaining then when people were beating up the dealerships for every last $100 bucks they could get out of them. My point is that it works both ways.

    For anyone who wants a Prius anytime soon, now is the time to buy. I foresee prices being MSRP for the near future. Only difference is that right now you have a better chance of getting the car you want, in the color you want, with the options you want. Shortly, people will be buying whatever they can get their hands on, regardless of package or color. Dealers will be selling them before they are even on the ground, just like the good ol days. Plus, any incentives that Toyota has out there today will most likely not be as good in the future.
     
  9. firepa63

    firepa63 Former Prius Owner

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    It's a case of supply and demand. With the events in Japan and high gas prices, I expect the Prius to be selling above sticker price in many areas.
     
  10. Octane

    Octane Proud Member of 100 MPG Club

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    I knew the apologists would creep out of the woodwork. If a contract exists and does not allow this to happen, then the dealer is a piece of disreputable crap for not honoring his written commitment.

    It's just part of the lawless America that we've become. "Screw my written commitment, I'm going to do what I want, regardless."
     
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  11. krelborne

    krelborne New Member

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    I would assume that a sudden unexpected disruption in supply (e.g. tsunami) would essentially void any contractual agreements to sell the vehicle.
     
  12. wick1ert

    wick1ert Senior Member

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    Mark -

    Is it possible to check dealers in PA or DE? I'm not sure how far from here you are, but the dealership I used seemed pretty good. I paid around 25k for the package 3 w/ nav. Granted, they had just hit dealerships, and they weren't willing to budge on price. I managed to get the winter floor mats out of them for free (big deal, I know). They weren't trying to sell them above invoice or anything like that. Even said they never did in 2008 when they were selling before they got them. They wouldn't even take a deposit for one on the way, but would "claim" it for you on their shipment. I'm sure if they couldn't reach you after a day or two, that would fall off, but I didn't get into detail about that.
     
  13. billinmd

    billinmd Member

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    If you're willing to do PA or DE, also check MD. Carmax in MD is selling new Prii at a pre-determined, non-negotiable price. They have 2 2011 Threes... One for $23,758 and the other for $24,978. Unfortunately, neither appear to be silver.
     
  14. bac

    bac Active Member

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    So what I hear you saying is that you are okay with Toyota NOT honor its contract becasue (drum roll please) the market changed?

    I wonder if that works the other way around?

    "Hey Toyota, I just got laid off so I'm not going to be able to honor our contract. Here's $3,000.00 less than we agreed on, and thanks!"

    It's dishonest, it's disgusting and it's a terrible business practice relative to long-term customer retention. In fact, that experience would be enough for me to never consider buying another Toyota ... and I LOVE Toyotas.

    Shame on Toyota.

    -Brad
     
    3 people like this.
  15. Octane

    Octane Proud Member of 100 MPG Club

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    Why would you assume that? Do you have any knowledge the contract allows for that?
     
  16. bretaz

    bretaz Member

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    How do you know what the "contract" or "agreement" said? You don't, because it wasn't with you and frankly is none of your business. The arrangement was between AAA and the dealership. And at this point, AAA obviously is not going to pursue this matter any further, either because they choose not to under the given circumstances or there is no legal merit to do so.
     
  17. bac

    bac Active Member

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    Of course you are correct, but you are missing my point. I'm sure both AAA + Toyota are technically covered from a legal perspective. That was written into the fine print on day #1.

    My point is that it's a terrible business practice that will, and should drive customers away.

    -Brad
     
  18. Octane

    Octane Proud Member of 100 MPG Club

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    AAA, an insurance company need to be held accountable for not holding the dealerships's feet to the fire by canceling their agreement. What if I joined AAA just for the negotiated Prius rate?

    This website is a great place to highlight bad behavior of companies such as AAA and the dirtbag dealership:

    http://www.ripoffreport.com or
    http://www.badbusinessbureau.com

    I'd tell my story there with names and numbers so that the buying public can be aware that this dealership doesn't have the time of day to abide by his own written contract when it is not in his financial interest to do so because he'd lose an opportunity to gouge his customers due to a tragedy.

    Opportunistic scum with no sense of honor, i.e. car dealership.
     
  19. SageBrush

    SageBrush Senior Member

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    Unforeseeable circumstances, acts of god --- pretty standard contract text.

    In any case, the AAA is not going to tear up their contracts with every dealer so give up the fight. If this was me I would try to hold off buying the car for a couple of months until supply returns to normal.
     
  20. Octane

    Octane Proud Member of 100 MPG Club

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    It's a three way matter. The AAA member is ALSO involved and he is the SOLE purpose for the agreement in the first place.

    Of course it is my business. It's anybody's business who'd use AAA buyer's program. What kind of a blind fool are you to make such a statement?

    You are just an apologist shill who has no sense of honor, either. I'd be willing to bet that you'd have no compunction about walking away from a mortgage on a house that was underwater too. Am I correct?

    Lastly, you have no evidence that the contract allows the dealership to unilaterally and without notice exclude certain cars.

    I'd post the complaint here:

    http://www.badbusinessbureau.com