Hosed by a dealership

[steemin]

Made an appointment with the GM of a nearby dealership (just across the state line) to go look at a new 2011 SVTPP with Elec. pkg.

Drove 2 hours to see the car today.

Inspected the car. Then they drove it out of the showroom for me to take it for a test drive. Car is awesome. Loved it!!!

Sat down to negotiate the price.
Handed him a Cashiers check for the amount I was willing to pay
"Out the door". I was very clear that this amount included sales tax,doc fees etc etc..all expenses. Sales person took the offer to the GM and he came back with a counter.. It was slightly more than I wanted to pay but I decided what the hell I love the car...

They take the car to the shop to detail it,remove the window sticke etc.
I sit down with the finance person, she pulls all the manuals out of plastic,hands me the extra key and we start signing all the paperwork.

After I had signed about 12 documents she puts the purchase order in front of me and it is approx $700 more than our agreed upon price!
I told her we have a problem..

She called the manager over and he said that "sales people are not the numbers guys and that they miscalculated the sales tax".

I told him that I was crystal clear as to my out of state sales tax rate.
I even had it in writing on a cheat sheet that I showed the salesman .Not to mention the fact that they were over more than the alleged additional sales tax amount. They were also over by the amount of doc fees and title fees.

I shared with him that I was not going to pay the extra $700. I went on to say that I was going to walk if they did not honor the agreed upon price..

The GM said that is the best he can do. He can't lose money on this car.
I very politely thanked him for his time,shook his hand and walked out the door..

I am still in shock. In all my years of buying cars/boats etc... never have I had this happen.

At this point in time I am not going to disclose the dealers name as I am hopeful that they will come to their senses and call me to honor the deal..

The search continues

Scott

 

[monsterpost]

Just remember the real screw job happens in the finance office. And dealers wonder why they are hated. Good luck.

 

[cobra777]

Wow! that doesn't make any sense. I can't believe they didn't honor the deal!

 

[4MuscleMachines]

I had a similar situation happen to me as well. As plainly as I can put it, it sucks.

 

[ShelbyJK500]

VERY similar thing happened to me, for about the same amount, and had to do with taxes as I was buying out of state. They had me bent over the barrel and knew it though. I flew out one-way to get the car. They wouldn't honor the purchase order I had been sent in .pdf format. They said the taxes weren't correct, yada yada. They were completely correct!! The GM said, "We didn't know you were driving it out of here." I said, "Uh, why did you pick me up at the airport then??" Serious morons.

I at least got the GM to split the difference with me. I seriously didn't know what I was going to do if I tried to stand my ground, stuck in LA I guess. I'll tell you the dealer, since they screwed me though...Ken Grody Ford in Los Angeles (Buena Park). I called the California Board of Equalization, they govern sales/use taxes for CA. They told me straight up the dealership overcharged me 1% in taxes over what they could collect. Contacted salesman and after two weeks finally got him to say he had a check that was going to be mailed to me as soon as accounting looked at it!! Bwaaahaha....that was 10 months ago!! I tried emailing and calling TONS of times for about a month and then gave up. There ya have it....just ONE more reason I HATE dealers.

OP...I feel your pain. Incredibly sad when they won't give in $700 dollars on a "miscalculation" by their sales person, to make a $50k+ sale!! :cuss:

 

[pwrshft99]

I was all set to trade my 99 GT for a brand new Mach 1. Sat down and worked the numbers while they inspected my car. Worked a deal I was confortable with then the salesman comes back with a "+$5000 market adjustment". Just wanted to get out of there I was soo pissed but took about half hour for them to find my keys

 

[steemin]

Well I am still waiting for the phone to ring.
Being an optimist I really thought that there was a good chance that the dealer would call today and resolve this matter..


Most of my experiences with Ford dealerships have been excellent....
My father was a 42 year Ford employee so I have bought MANY fords over the years!!

In this particular instance..
I am not sure whether they screwed up the math or they were just trying to gouge another $700 out of me....

There is no other side to this story.
I was there for 2 1/2 hours and had an agreed upon "out the door" price.
They knew I was from Indiana and I told them on multiple occasions
(I am sure that they knew anyway)that the sales tax was 7%..

Anyway you want to slice it they should have honored the deal....
As a business owner myself I cannot imagine treating a customer that way...
My companies reputation is worth more tha $700...

I will be calling the owner when he returns from vacation to express my dissatisfaction!

Scott

 

[PipeHitter]

Common practice really. In the days of disclosed invoice pricing and internet sales, lots of boat/car/bike dealers have come to realize the finance mgr/business mgr as a huge profit center. These guys specialize in figuring ways to increase the 'back-end' margins by either jacking your interest over the buy rate, gap insurance, extended/extra warranties, or document fees. No surprise, but the entire reason they are there is to get more money out of you. If not, they would have the salesperson finish the paperwork just like they used to do back in the day.

I don't buy from dealers anymore period. But if I needed to (like buying new), I would secure my own financing to avoid them jacking the rate and tacking fees. Or if paying cash,,, and I've done this, tell them on the phone I was bringing a cashier's check for X amount and if it was any more they lost a sale.

To OP, you did the right thing by walking. There will always be another car to buy.

 

[SVTlove]

similar story when I bought my wife an 09 Subaru WRX. the dealer I went to didn't have the color and model I wanted, but they found one about 300 miles away and agreed to have it shipped to their dealership for no charge (verbal agreement). After waiting two weeks for them to set up the shipping I finally was able to sit down and purchase the vehicle. Then during the final paperwork they said I would have to pay $500 for the "shipping." they didn't show me an invoice for it, and they basically backed me into a corner. I saw the the sales manager turn into a snake, and made me feel uncomfortable. I was scheduled to go out of town for work very soon, and I wanted to get my wife in the car so she would have reliable transportation. I reluctantly paid it to get the car. When I picked up the car later that day it had 430 miles on it. They tried telling me it wasn't driven to the dealership that it was put on a truck, but couldn't prove it... I didn't feel like trying to undo the deal... We just got in our new car and left...

the dealer was Lee Imports in fort walton beach, florida

 

[SVTlove]

I was all set to trade my 99 GT for a brand new Mach 1. Sat down and worked the numbers while they inspected my car. Worked a deal I was confortable with then the salesman comes back with a "+$5000 market adjustment". Just wanted to get out of there I was soo pissed but took about half hour for them to find my keys

Did i read this correctly? they tried to get you to pay an extra 5K after you both agreed on a price? if thats true, its unbelievable... If I were in your shoes, I would have swore it was an early April Fools joke being played on me...

 

[steemin]

update.
Salesman called yesterday afternoon.
He said that he "felt really bad".:sleeping:
I told him that I was still in shock as to how I was treated..

He said he will see what he can do..
I told him not to bother with contacting me unless it was to tell me they were honoring the deal we originally mutually agreed on...

Scott

 

[SVT F15O]

similar story when I bought my wife an 09 Subaru WRX. the dealer I went to didn't have the color and model I wanted, but they found one about 300 miles away and agreed to have it shipped to their dealership for no charge (verbal agreement). After waiting two weeks for them to set up the shipping I finally was able to sit down and purchase the vehicle. Then during the final paperwork they said I would have to pay $500 for the "shipping." they didn't show me an invoice for it, and they basically backed me into a corner. I saw the the sales manager turn into a snake, and made me feel uncomfortable. I was scheduled to go out of town for work very soon, and I wanted to get my wife in the car so she would have reliable transportation. I reluctantly paid it to get the car. When I picked up the car later that day it had 430 miles on it. They tried telling me it wasn't driven to the dealership that it was put on a truck, but couldn't prove it... I didn't feel like trying to undo the deal... We just got in our new car and left...

the dealer was Lee Imports in fort walton beach, florida

People like you are the reason they keep doing these things. Same with the guy above that agreed to "split the difference."

If you can't handle walking out of a dealership empty handed you shouldn't be walking in there in the first place.

 

[SVTlove]

People like you are the reason they keep doing these things. Same with the guy above that agreed to "split the difference."

If you can't handle walking out of a dealership empty handed you shouldn't be walking in there in the first place.

go pee up a rope...

My wife needed that car before I went out of town for work for 6 weeks...

you must be a perfect individual who has never overpaid for anything in your whole life....

 

[SVTlove]

update.
Salesman called yesterday afternoon.
He said that he "felt really bad".:sleeping:
I told him that I was still in shock as to how I was treated..

He said he will see what he can do..
I told him not to bother with contacting me unless it was to tell me they were honoring the deal we originally mutually agreed on...

Scott

sounds like they are trying... hopefully they do the right thing...

If I were you I would call him back and say, "after thinking about it I want the original deal, plus an extra $200 off for the gas money I've spent driving up there and back..."

then tell him they have 48 hours to make a decision or the deal is off and you are buying something from a private seller you found local to you...

 

[00machgt]

Its common knowledge that a dealer can and most often will inflate the rate up to but not exceeding 2.5% (currently 29 out of 50 states set a cap). The only protection you have from this is to secure your own financing, get an agreement in writing, or just simply be prepared to walk out. Ive walked out on plenty of car deals before including one on a 2011 GT because he wouldnt give me a Premium for the price of the deluxe he was overcharging me for. Securing your own finanacing is the BEST playing card you have. I used to work for a Ford dealership and I can say ive seen people walk out of the door with cars much below invoice because they had a check in hand. This is much harder with cars like the GT500's because they dont retail for much more than what they cost, as is the situation with sports cars in general. Some may feel thats untrue but ive seen what is cost to build these cars and the dealerships dont keep the lights on from selling these cars. The real cash cows are the largest and smallest vehicles on the lot.Securing your own financing keeps you grounded because if you explain that this is your comfort zone and you WILL NOT step out of it, that means you are a definate buyer if the price meets your approval. Getting an agreement in writing should have the GM signature and make sure you keep track of who you talk to. They pull the quick swutch alot and never agree to hand them your keys because that shows you are always ready to walk out. Never be afraid to walk out. You dont owe them shit and never feel like thats your only choice. Theres always another dealership that can do it better, faster, with half the hassle.

 

[VegasShelby]

Well I am still waiting for the phone to ring.
Being an optimist I really thought that there was a good chance that the dealer would call today and resolve this matter..


Most of my experiences with Ford dealerships have been excellent....
My father was a 42 year Ford employee so I have bought MANY fords over the years!!

In this particular instance..
I am not sure whether they screwed up the math or they were just trying to gouge another $700 out of me....

There is no other side to this story.
I was there for 2 1/2 hours and had an agreed upon "out the door" price.
They knew I was from Indiana and I told them on multiple occasions
(I am sure that they knew anyway)that the sales tax was 7%..

Anyway you want to slice it they should have honored the deal....
As a business owner myself I cannot imagine treating a customer that way...
My companies reputation is worth more tha $700...

I will be calling the owner when he returns from vacation to express my dissatisfaction!

Scott

Just curious about your dad being a Ford employee. Do you have access to one of his plans??? I believe A plan is for retirees.


I believe the A plan is right at or slightly below invoice and the dealer can NOT ad any extra fees.

 

[steemin]

Just curious about your dad being a Ford employee. Do you have access to one of his plans??? I believe A plan is for retirees.


I believe the A plan is right at or slightly below invoice and the dealer can NOT ad any extra fees.

Z plan for retirees.
A plan is for current employees.
Same pricing with both plans.
Slighty less than dealer invoice..
No negotiating on price...unless you have a trade in...
Yes I can get my dads z plan pricing but it is not available on the Shelby..

In regards to comments in other posts about "financing".

I had a cashiers check made out to the dealership with me made out in the amount of my intended initial offer.
I also had some cash with me to add to the cashiers check if the initial offer was declined. Which was the case. I accepted their counter offer and the dealer took the cashiers check.

When the deal fell apart I asked for and they returned my cashiers check....:cuss:

Scott

 

[ShelbyJK500]

go pee up a rope...

My wife needed that car before I went out of town for work for 6 weeks...

you must be a perfect individual who has never overpaid for anything in your whole life....

LOL

People like you are the reason they keep doing these things. Same with the guy above that agreed to "split the difference."

If you can't handle walking out of a dealership empty handed you shouldn't be walking in there in the first place.

Seriously, you can go pound sand. I'm the "guy above that agreed to split the difference." I know in your Utopian world you get the absolute last penny out of every deal, including a jar of pickles. I'm sure you've walked away from many-a grocery store when you couldn't eek that last nickel out of a jar of peanut butter!! Seriously though, (and this is RHETORICAL FOR YOU...but here for the rest of the readers)...after flying ROUND TRIP to L.A., where I do not know a soul, and have had the dealership pick me up (car-less)...I guess you would have suggested I walk away then too. I guess it didn't matter that I had a printed out purchase order in hand, all of my financing already done, and a deposit down on the car?? Getting a GT500 off the showroom for invoice ($47k at the time) wasn't good enough in your book to "split the difference"?!? It was a few hundred dollars compared to THOUSANDS I saved and had shopped for months to find. I wasn't really that pissed about the amount of money as much as the principle of screwing a customer who flew in to buy a car from their business OVER a few hundred bucks. I guess in your perfect perspective I should have walked out, hailed a cab ($50) to the nearest airport and plopped down $1k+ for a seat on the next flight back, possibly to spend more $ on an overnight stay at a airport hotel...just to SHOW THEM!! Seriously...:bash:

 

[COBRA MAN OF UT]

So what is the price u offered before your taxes are u making them lose money on the car?

 

[Marc]

This link will save you thousands of dollars:

http://www.carbuyingtips.com/

The guy that did this site was a former car salesman. He worked in many dealerships. After he came out with this information, he had threats on his life.

Here is my story. Keep in mind, I read everything on the link above and knew what was coming, and by damn if some things didn't go just like clockwork. Also this happened a little over 5 years ago:

If you didn't know, Hawaii's basic mark-up on a new car is probably around $5K. I have seen $7K on certain cars. Hell, the first Shelby there went for almost $80K and $100K for the first new Vette that hit the island...if I remember right.

I called on a 2004 Mystic Cobra. The dealer said it had 10K miles (if I remember right), minor tune, exhaust. He said they wanted $35K for the car. Now...this is a car that is two years old. I figured I could get the price down, so I agreed to meet him. I drive 30 minutes and when I get there and the price of the car is $35,999.00. I told the salesman that he had a problem in math at the car is $36K. He said, no...no...no...$35K (and he referred to the car as $35K through the whole negotiation phase). I knew I had a moron right then. I looked the car over, started it...and said I wanted to test drive it. The dealer said, no, we can't let you test drive this vehicle as it is a "special vehicle" (DEALER TRICK). He said, lets make a deal on it and then I can let you drive the car. I said, why in the hell would I make a deal on a car that I can't even drive? He said, let me talk to the manager. The manager said he could drive the car with me in it. I didn't like it, but agreed to it. This moron could NOT drive a freaking stick! He pulled over and finally let me drive it. Car drove well. So we get into the showroom to make a deal. Here is where I give up some tips.

He asked for my driver's license (DEALER TRICK). I said why do you need my driver's license? I already drove the car. Well...standard procedure. I said, NO you don't need it. (They use your driver's license to run a credit check on you without your permission which by the way is against the law unless you consent). I said, I know what you want...here is my credit report (which he denied). I had a 829 credit rating at the time. This is very good...hell, anything over 700 is pretty damn good. This also entitles you to a lower APR--less credit risk (Something else the Dealer don't tell you).

He then breaks out the "4 Square" to figure out the monthly payments. DO NOT LET THEM DO THIS TO YOU. You ALWAYS deal on the price of the car, not your payments. If not, sometimes you pay more than you actually want to as the payments are lower, but you pay over a longer period of time. I told him that he hadn't sold me the car yet. Lets work on the price. Besides, who said I was going to finance through you anyways? I might have a loan elsewhere (which by the way, is the best thing to have...but, don't let them know this for sure as they will initially take a loss on the agreed upon price figuring they can make it up on the big end of the loan). We went back and forth on the price. I told him he has 30 minutes to sell me the car. Dealers like to keep you in the showroom 1/2 a day if they can to get you frustrated/worn out and then you finally give in. Also, bring in a girlfriend (for men) or wife. The dealer now knows he has to sell the car to your wife as well and some men's jewels are carried in the women's purse--dealers know this. When the dealer walks away, do not discuss what you really want to pay for the car out loud. They leave nearby telephones on intercom or even other salesmen at tables around you and are listening in on your conversation. The wife and I prearranged a made up story that she wanted the BMW down the street and we talked very openly about this so all could hear. The dealer came back and finally denied our final offer. I said, well its been 30 minutes...thanks for your time. I got him down to $34K, but not worth it to me. That doesn't include taxes, dealer prep fees (which you don't have to pay. Also, when negotiating a price, make sure you get the price OUT THE DOOR. If not, you are paying literally thousands of dollars in taxes as well.

This is the same dealership that I got in a argument with about the same car. He swore up and down that this was the rarest color ever put out and it was a special edition. I told him that Satin Silver in 2003 was the rarest EVER put out and Competition Orange in 2004 was the second rarest every and rarest in 2004. Even quoted him the numbers. Then he started getting snotty and said, Who would drive a orange car anyways"? I laughed and left him there looking like a idiot in front of his buddies and potential customers. Remember, not all Salesmen are dicks and neither should you be. Treat them as you expected to be treated. They do have to make a living. They need to make some money as any other person, but they do not need to make thousands on you. This is money you could spend on your children or modifications to the car if that is your deal.

These are not NEAR all the tips on the site. You really need to read the stuff there. Hell, you can even buy a car online and have dealers offer you the cheapest price and compete against other dealers. This is like the LendingTree.com principle on buying houses and getting loans. Actually, this is a really good way to purchase a car. Just make sure they deliver the car to the lot and you test drive it before you sign any paperwork.

Now I am rambling...go check the site out for yourself. Lastly, read some of the Nasty letters and threats this guy has gotten from other dealerships for releasing some of their tricks and scams.