Car Dealership Shenanigans

[BeWealthy]

My recently FIREd DGF found it impossible to buy a new or used car at a local dealership. We went to lot and requested a specific vehicle that's apparently rare because of the desired color. The salesman located two new 2020's out of state and we negotiated a price. As we were on the way to the dealership to buy a car they called and told us they were BOTH sold. We walked across the lot and talked to their used car manager. He found a 2019 vehicle that met our specs at another dealership. Great! We put a $500 deposit on it on Tues. night to reserve the vehicle. After returning to the lot Wed. afternoon and spending over an hour with the salesman confirming features, warranty and whatnot, the manager came out and told us that the car was already sold and offered to refund the $500 deposit. He had never done anything with the deposit to reserve the vehicle.


So, why did the dealer refuse to take our money? Is it because we were paying cash? After spending some quality time with google, we found another copy of this 'rare' vehicle out of state with less mileage, and same warranty. We contacted the remote dealer and he appears very willing to sell us the car at significantly less than the local dealer.


Why would the local dealer not have found this particular car, marked the price up, and taken our cash? I don't know if they really didn't have access to the vehicles or hoped to bait and switch us to a more expensive vehicle that required financing.



Is financing the only way they make money these days?

 

[gerntz]

Yes, loans & leases & service are the money makers. We, cash payers, are pariahs - which tells u what u should do.

 

[Exchme]

My daughter worked briefly as a receptionist for a car dealer a number of years ago. She said the staff were just horrible humans. They all had criminal records and one instructed the receptionist to never tell his wife where he was as he would sneak out to fool around with other women.

The out of state people figure that you are a sale they won't otherwise get, so they are helpful. The locals want you in the showroom to sell you something more profitable.

 

[cbo111]

I would imagine most folks over the age of 50 have nightmare car purchase stories. A few years back I refused to pay $400 for the "special undercoating" that was apparently sprayed on the vehicle I was purchasing. Of course this charge didn't appear until the final paperwork was pushed in front of me for signature. I ended up walking out and I actually had the sales manager chasing after me holding on to my car door handle, pleading to please come back in.
I've had a few bad buying experiences, and always vowed to never return to that dealer for any reason. They could probably be more profitable if they treated customers properly.

 

[BeWealthy]

Thanks. This is the first time that either of us have bought a car in almost 20 years and dealers certainly have a negative reputation as far as we're concerned. But, I thought they would jump on any profit opportunity. After all, the salesman spent about 5 hours with us over two days. Not to mention the many times he had to interrupt his manager for permission to haggle. LOL. I suspect he is salaried. Why would they string us along for hours before letting us walk away? I think we were the only customers on the lot. I guess they were bored!


They were also offering 0% financing on the 2020 models, which we would have taken advantage of. I'll borrow money at no interest every time!

 

[Scrapr]

Thanks. This is the first time that either of us have bought a car in almost 20 years and dealers certainly have a negative reputation as far as we're concerned. But, I thought they would jump on any profit opportunity. After all, the salesman spent about 5 hours with us over two days. Not to mention the many times he had to interrupt his manager for permission to haggle. LOL. I suspect he is salaried. Why would they string us along for hours before letting us walk away?

Pretty sure salesman are commission. Management doesn't care if they waste the salesman's time. The high pressure sales model is starting to fade out. But there are dinosaurs out there. If you can do all the negotiating from your home computer you really even up the scales. Get all the details in writing before you step on the lot.

My wife bought a Rav4 from a "One Price" dealer. She did all the negotiation. My only input was I wanted to be in & out in under an hour. Told the salesman up front. The salesman was trying his best but it still took an hour & a half to get out.

 

[Bamaman]

It's a shame that so many car dealerships have such bad reputations. For the most part, new car dealerships are upstanding businesses. They have to run a good operation, and reputation is very important to them. Screw every person that comes thru the door and they won't remain in business very long. And if they get out of line, the state department of motor vehicles will be all over them.

But of course you may run into a slam and jam sales operation which are often the case with the big national chain stores. They are quick to fire employees if they don't meet lofty sales and profit goals, and they work their people too hard. (I try to do business with independent dealerships.)

Back to #1 above. Maybe the car you put the deposit on did actually get sold, and personnel might not have had time to tell each other. Dealer salesmen are people too, and some are better at locating vehicles than others.

I am glad you found the vehicle you were looking for, and found it at a lower price. You came out ahead then.

 

[RobbieB]

If you want a spec car you do this stuff. I did it. Oh yeah, we can get what you want, (primo, sun roof, up a grand pearl paint) but then it's gone.

If you want some stuff off the lot, buy that. If you want spec, order it up.

But don't expect a lot of discounts.

 

[latexman]

Yes, loans & leases & service are the money makers.

and extended warranties!

 

[HI Bill]

For the most part, new car dealerships are upstanding businesses. They have to run a good operation, and reputation is very important to them. Screw every person that comes thru the door and they won't remain in business very long. And if they get out of line, the state department of motor vehicles will be all over them.

On Oahu, I had one car dealer (maintenance department) charge to adjust self-adjusting tappets. The same dealer charged me to change all of my belts. A short while later, the car lost its power steering, and I had to replace the power steering belt. Then, a short while later, another belt shredded. Looked like they used belt dressing to make my old 60,000 mile belts look like new. Oh, and the serpentine belt: They left a bold loose under the cover, and the one belt they actually replaced was damaged by the loose bolt.

On Maui, when I bought an Xterra, they added a cathode corrosion protection charge just before I signed the sales slip. If it wasn't for the fact that my transmission had just failed, I would have walked out.

At another dealer on Oahu, I told them that my AC was broken, and that sometimes it worked great; I thought it was either the thermostat or thermal expansion valve. I told them that if they did a repair that didn't fix the problem, I wasn't paying for the repair. They added coolant (which they said was low), and that didn't solve the problem. I went back and got my $ back. That Xterra was without a working AC for most of its life (7+ years).

Yes, dealers don't generally like cash sales. I've walked out on more than one bad salesperson, and can't ever recall having a great experience, except once, when my wife bought her Toyota RAV4.

 

[Koolau]

One of the reasons I drive 'em 'til they drop is I hate going to dealers. Used dealers, oddly enough, I don't mind so much. I start with the assumption that they have no warrantee and they could care less if they sell me a pile of junk. It's all on me. SO, I check 'em out and then don't feel bad if I get a lemon (at a great price!).

What I've noticed is that even buying used at a new dealer they "insist" on sitting down with their finance guy. I recall a guy "showing" me that I was money ahead to finance at 9%. The big lie was that "Hey, you still have all your money that you would have given us." I didn't even try to reason with him. I just got up and walked out. I said "Sell me the car or don't sell me the car. I'm done talking to you." YMMV

 

[JoeWras]

I would imagine most folks over the age of 50 have nightmare car purchase stories. A few years back I refused to pay $400 for the "special undercoating" that was apparently sprayed on the vehicle I was purchasing. Of course this charge didn't appear until the final paperwork was pushed in front of me for signature. I ended up walking out and I actually had the sales manager chasing after me holding on to my car door handle, pleading to please come back in.
I've had a few bad buying experiences, and always vowed to never return to that dealer for any reason. They could probably be more profitable if they treated customers properly.

Sounds like my favorite scene from the movie Fargo, except you didn't cave. There is so much truth in this clip.

 

[scrabbler1]

Back in December of 1991, I went out car shopping. Armed with some data about dealer cost and having read the book, "How to Buy Your New Car for a Rock-Bottom Price," by Dr. Leslie Sachs, I entered a local Mazda dealership. After taking a test drive and negotiating with the salesman, we agreed on a price (he had to speak with his manager a few times). He goes back to his manager before returning and saying, "The manager made a mistake, he wants another $700 for the car!"


After spending several hours at the dealership, I now knew they were just jerking me around. I yelled at the salesman, packed up my papers, and walked out, despite the salesman begging me to stay. There was no way I could deal further with these people.


A week or so later, I visited another Mazda dealership. The salesman there told me right away they had none of my desired cars in stock. I happened to mention to him how another (unnamed) Mazda dealership wasted my time. He said, "Oh, that must be [dealership name] Mazda." I said, "How did you know?" He said, "We hear stories about them all the time. We complain about them all the time because customer end up going out any buying Prizms or other non-Mazdas."


I didn't know it at the time, but I would end up buying a Prizm a few weeks later, from a dealership whose salesman and sales manager didn't jerk me around the way the first Mazda dealership did.

 

[Car-Guy]

I've probably bought and sold more cars than many (maybe most) on this board.... Buying and selling with other hobbyist is much easier (IMO) than with a dealer... They all want the most they can get for their cars (me too) but buying/selling/trading with-in the hobby is almost fun.

I don't like dealing with stealerships but I have learned a few tricks over the years that work for me...

What seems to be working best for me these days on new cars is dealing on line.... No high pressure, time to think, good documentation (via emails), easy to "walk away", etc, etc. Even negotiating a trade-in on-line works for me... A few email attached pictures, VIN number and nonbinding descriptions can just about close a deal on line... My last two new cars I bought on-line just like that... I never saw the new car in person and the dealer never saw my trade, in person until after the final price was agreed on. All VIA emails and maybe a phone call...YMMV

 

[BeWealthy]

Live and learn. The need for a new car was sudden and a shock to the system. Ack! We panicked and went to the local dealer. So far, the online experience with an out-of-state dealer has been pretty smooth (knock on wood). We're waiting for some paperwork to arrive any day to complete the transaction.

 

[jazz4cash]

I just don’t have the overwhelming negative feelings toward new or used car dealers and salespeople. I know the product pretty well, have above average BS detector, not easily put off by crazy comments. I think the salespeople enjoy bantering with me. I just let ‘em blather for a bit and focus on the things that I’m interested in. They can’t answer my questions anyway. I do have one terrible experience with a dealership that sold a car right out from under me. It was a used car that met my specs exactly down to the color. I had a signed sales contract and offered to give a down payment to hold the car since I was rushing out of town on business. They declined the down payment. They sold the car the day before I had scheduled to take delivery. It was a gift for my teenage daughters. I had tried to buy a new car from the same dealer years before and walked out after an hour waiting to “meet the sales manager”. I went to their competitor a few miles away and they traded one of the cars for the one we wanted at the lousy dealer.

The funniest encounter I had was an impulse purchase that put me in front of the finance guy. I was paying cash (e.g. 100% financing from the credit union). He suggested I pay a higher rate for his loan because “most people save their credit union loans for emergencies”.

 

[BeWealthy]

He suggested I pay a higher rate for his loan because “most people save their credit union loans for emergencies”.

That's hilarious!

 

[Car-Guy]

Regarding financing....


I've heard people say to get the best deal you need to finance the car.... Maybe the dealers are getting kickbacks, I don't know, but I've felt pretty good about the cash deals I've been making.... If a dealer won't talk "cash" with me, which hasn't happened in years, I'm out the door... I know there are pros and cons to financing "anything" but to me paying for it upfront and being done with it has value too... Again, YMMV, just like your opinions!

 

[BeWealthy]

Is the 0% financing offered on new cars real? Is it impossible to qualify for or part of some kind of a bait-n-switch tactic?

 

[JoeWras]

Is the 0% financing offered on new cars real? Is it impossible to qualify for or part of some kind of a bait-n-switch tactic?

They are real. You have to have very good credit. Offers are usually focused only on specific models and inventory.

They want to move product. They also want you to be starry-eyed and pay attention to the monthly payment only, hence charge you a higher price.

Don't screw up the payments, or you may pay dearly.

 

[Sunset]

.... After all, the salesman spent about 5 hours with us over two days. Not to mention the many times he had to interrupt his manager for permission to haggle. LOL. I suspect he is salaried. ....

I briefly did sales and the salesman talking to the Manager to plead the customer's case/need for a lower price is all BS.
We knew how much commission we were getting and could play with that. It's just theater.

 

[skipro33]

I used to hate to play the negotiation game with car dealers starting in the 70's though around Y2K. Then I bought my first Subaru. What a difference! I did my research, knew what I wanted to pay and went to the dealer. After test driving and settling on a 2001 Forester, we sat down. The salesman wrote down some numbers on a piece of paper; MSRP, Dealer Cost, Dealer Invoice and my price he was offering. The price he was offering me was 1,000's less than I was hoping for. I asked for a few minutes to discuss with my wife and we walked around the lot. Mostly for show but also so she knew what the deal was. She told me to ask for a couple extras; a couple floor liners in the back, a trailer hitch. I did and the salesman said he would add a $500 gift certificate for the parts department, anything I wanted, including oil changes. That paid for both if I installed the hitch. Done deal!
Since then, every 4 to 5 years I trade in my car and get a new one. Every time I do my homework and every time he beats the price I figure I would need to move forward with a deal. My most recent car is a 2020 Subaru Ascent Premium purchased for $32,000. Traded in a 2015 Subaru Forester for $14,000 towards this car, financed $18,000 at 0% for 4 years, payments $375. This particular Subaru dealership partners with a local ski resort. 2 free season passes with every new car. These are worth around $800 each and I buy one for myself every season. DW doesn't ski so I gifted one to my son as a Christmas gift.
It is my one Blow-That-Dough we treat ourselves to. The grand kids love it, worked great last winter for travel to ski resorts. Fits in the garage too!

Some dealerships have figured out that it's repeat business and customer service that keeps them in business for decades. This is a family run business.

 

[Alvin Tostig]

I have a good one. About 25 years ago I walk into a Nissan dealer, looking to buy an Altima. The salesman takes my information and said let me go get the keys and go for a test drive. He never did come back.

As I'm waiting at his desk, instead a youngish girl (age 20-25), holding the keys, comes over and said let's go for the test drive. (I was about late 30's at the time).

The girl was complete eye candy - absolutely stunning. Now we are going for a test drive and all she is doing is non-stop complimenting me about how great I look behind the wheel etc. etc. She apparently was the front desk "meet and greet" person and was set up to charm and distract the male customers.

I never did buy the car.

 

[ExFlyBoy5]

I was absolutely amazed at the last dealership I did business with a few weeks ago. If you recall, I had a 2018 F-150 that was pretty much sitting in the garage not being touched. My DW had sold her Highlander for a decent price to Carvana, so on a whim I got a price from Carvana on my truck. Long story short, they paid me more than I paid for it two years earlier...how cool, right?

Anyway, it wasn't too long after that we had an issue that illustrated that while have one car is doable, having a spare could come in handy...and decided to find a "beater." After digging around and doing some research, I found an 8 year old Accord that was in pretty good shape with only one owner. It was offered for sale through a Chevrolet dealer that doesn't do the haggling thing. We set up everything via email and I went the next day to test drive/deliver the car. I walked in, the salesman gave me the keys and I took it out for a spin. About an hour later, I went back in and wrote a check. The paperwork was pretty much already done, so I was out the door about 15 minutes after getting back from the test drive. It was absolutely amazing...I can see why they had such awesome reviews. Such a different experience than when my DW was trying to buy a new Toyota a few months ago.

 

[Car-Guy]

I have a good one. About 25 years ago I walk into a Nissan dealer, looking to buy an Altima. The salesman takes my information and said let me go get the keys and go for a test drive. He never did come back.

As I'm waiting at his desk, instead a youngish girl (age 20-25), holding the keys, comes over and said let's go for the test drive. (I was about late 30's at the time).

The girl was complete eye candy - absolutely stunning. Now we are going for a test drive and all she is doing is non-stop complimenting me about how great I look behind the wheel etc. etc. She apparently was the front desk "meet and greet" person and was set up to charm and distract the male customers.

I never did buy the car.

I completely lost track in the second and third paragraphs.... What car.....