Don’t get yo-yo’ed by your car dealer!

Oh . . . one more car dealer story;

My wife wanted a new Honda Accord. So a few days before Christmas 2005 (I think the 21st or 22nd) I went to the Accura dealer and told the Sales guy I wanted to surprise my wife with an left over 2005 Accura TL (just a rebadged luxury Accord). I told him I didn't want to waste his time and understood if he wanted to kick me to the curb because I was going to cash a $25,000 CD and I would throw in an older Saturn that "needed work". In other words I would had a check for $25k to cover everything taxes fees blah blah blah and that was all I was could pay. He went to the Sale Manager and came back and said OK and I signed the deal - everything was listed and the bottom line was $25,000.

Now this Saturn was in really bad shape engine wise - I had mistakenly put on a Honda oil filter when changing the oil and it blew out and did serious damage to the engine. I got the correct oil filter on it right away but the car ran like crap and was really hard to start. I pulled it up by the side door to the show room where I pitched my deal. I even gave the sales guy the keys. I left the Saturn there as a friend followed me over to the Acura dealer. What surprised me was they never even looked the Saturn over or even tried to start it and drive it before making the deal -just excepted it as is.

When I came back on Christmas Eve day to pick up my wife's new TL the Saturn was still there where I had pulled in 48 hours previous. They were very unhappy and wanted me to show them how to get it started . . . . I tried but it wouldn't start - I am not sure if them trying and trying made things worse but it just would not start - usually I could get it started but not this time. I know they felt like I tricked them but I never thought they would not check the car out first - but then I never traded in a car before.

The daughter of a friend who worked for a dealership told me since the car was only four or five years old and except for the engine was in pretty good shape it was probably worth a few grand to a wholesaler . . . . I have no idea, I just knew I didn't want to spend the $$$ for a new engine and the labor to get it installed.

 

I did. I even had it in writing but they refused to pay it off. The bank came after me until I had a lawyer straighten it out.

 

Totally off topic because if you're a cash buyer most of the above does not apply. But, if you truly have $40+K in cash, paying cash is stupid. When I got my current loan I put as little as possible down because I want to use as much of the banks money as possible. My "cash" is invested and earns more than I'm paying in interest. Every month there is an auto transfer of funds and the remaining cash continues to work for me, not the bank and not depreciating in the vehicle.

 

It cost about $2k more to get the 0% financing. In 2018 I was negotiating for my father-in-law on a RAV4. Offer was $23,000 bring your own financing/cash or $25,000 with the 0%. He was in an abnormal credit situation so took the 0 despite my recommendation.

 

I really appreciate the op posting this article. I just put a deposit on a new Tacoma, first new car of my life and I’ll be buying it through my business. I started reading the article from NPR and started getting very concerned.

Fortunately there are protections in Washington state. Always good to be informed, especially of something as absolutely horrific as the subject of the article.
https://www.atg.wa.gov/bushing-scams

 

Never ever encountered this sort of BS.

 

no dealership wants to do a roll back. You have to have charge back the commissions, undo the TRIP if its gone out, and there's the risk that your asset (the loaned vehicle) arrives at the dealership with a few extra dings because the customer was mad they didn't get the deal, its already worth less due to more mileage. That's if they willingly return and you didn't have to pay someone to retrieve the asset.
In order for this to happen, the customer must have shitty credit or provided false/inaccurate info on the credit application.
Big banks like like ToyotaMotorCredit and Ford, gm, etc do not take risks on these people.
Loans for bad credit folks comes from small banks who re-coup risk with high interest rates (Patel credit) and loan volume. A special finance person usually stacks the jackets so that theres a couple juicy loans and some bad ones, the loan officer will approve them if the risk balances out. But its a risk all spelled out right next to your signature on the loan app.

I'm sure there are some smaller dealerships that have a B team GM that will get their guys to try and milk more gravy out of the weekend sales during slow months (sure sign of a horrible dealership), but you as the customer can always say no and secure your own funding OR return the car.
As others have pointed out this is why its crucial you focus on the SALE PRICE and not the payment terms.
Personal opinion, make your life less complicated and don't include a trade in the deal. If its old, donate and take the tax credit, the dealership is going to auction it anyway. If you must trade and owe on it, your down payment should be at least the payoff amount if not more. It should be more, unless you like paying interest on taxes

 

I disagree with rule#2 especially if you live in a state where the tax can offset what you trade your vehicle in for. Even in my state, where that is not the case with the tax offset, my last purchase in 2020, Koons in Maryland, offered me the standard crappy 22,400 for my trade-in whereas the dealer in my local area offered me 27,000 which was 3000 above Kelley blue book trade And I think 500 above Kelley blue book private. I got about 10% off MSRP and they also took off every possible option. Even the port options. The point is that if you know all the numbers and make that evident to them then you will find a dealer who will be willing to make the sale.

 

There is alway a scam, beware of the scam. Learned that in the Navy.

 

Honda dealer tried to yo yo me on a 2017 Civic Si I bought new. They sent me a letter saying I had 36 hours to return the car.

I proceeded to drive the living shit out of the car. I did 3 different canyon runs in 1 weekend. Drove over 1,000 miles in 3 days.

Went back to the dealer, literally threw the keys on the sales managers desk and said "take the fu***** car. By the way it's got a thousand miles on it already."

5 minutes later they shook my hand and said we will keep the original deal.

Sometimes you gotta call their bluff.

 

In terms of what your trade is valued at by and of itself, that rule is true. Otherwise, it varies.

Besides your example, sometimes you just don't ever want to see the old vehicle again. Private sales can really suck in that regard.

 

True

 

Send those young buyers my way
I have my Tacoma up for sale