Was I an ass??

[Nathans_Dad]

Ok, let me set this up here.

I am buying a 2011 Mazda CX-9. There are about 5 dealerships in the metroplex. After test driving and deciding on what I wanted, I emailed all the dealerships. There were two that came in lowest. One had an original price of $28100 for the car, the other said $27700 over the phone. So, I went to the $27700 dealership. Talked with them. Mazda has an offer of $1000 cash or $500 cash and 0% financing. I wanted the 0%. The sales manager came back with an offer of $29500 for the car with 0%. I said "What happened to $27700?". They said the incentives were different because of the 0% and that the guy over the phone threw out a number to "get me in here" but that he didn't clear the number with the manager. So, I offered to up my offer to $28000 with 0%. Sales manager came down to $28500 and said he was firm there. They didn't have the car I wanted so they were going to have to trade with another dealer. He said that would cost him $300 which is why he wouldn't come down. So, I eventually shook his hand and said I would do the deal and said I would let them know on my final color choice so they could get the car.

I get home and there is an email from the other dealer. He is willing to beat the first dealer's price now. I called him and told him I had $28500 from dealer A with 0%. He offered $28300 with 0%. I told him I would not break the deal for $200 and thanks for his time. He then came back with $28100 and 0%.

At that point I broke the deal with dealer A (after they said they wouldn't come down to dealer B's price). The salesman at Dealer A said "My manager says he can't come down any more so I guess it's just an integrity thing at this point."

So, was I an ass? In my defense, they did not have integrity when they wouldn't honor the over the phone price that got me there in the first place. Second, I did not sign anything official, it was a handshake deal and they were going to order the car (which they had not yet done). Third, I was willing to suck up $200 difference, but $400 is a decent amount of money to me.

What do you think?

[mossguy]

I'm thinking that if you have to ask, you already know the answer. YMMV.

[Burnin' oil]

"So, I eventually shook his hand and said I would do the deal and said I would let them know on my final color choice so they could get the car. "

[krichard]

The dealer can't throw the "integrity" thing at you since they openly admitted they made the original 27700 offer to "get you in there" and then couldn't honor it. Unless you signed on the bottom line, there was no deal.....

[McLovin]

Originally Posted by Burnin' oil

"So, I eventually shook his hand and said I would do the deal and said I would let them know on my final color choice so they could get the car. "

But first . . .

Originally Posted by Nathans_Dad

The sales manager came back with an offer of $29500 for the car with 0%. I said "What happened to $27700?". They said the incentives were different because of the 0% and that the guy over the phone threw out a number to "get me in here" but that he didn't clear the number with the manager.

Dealership punked ND first, so dealership rightfully had one punking coming back at them.

All square now.

[TGTIW]

I agree, they screwed you to get you in, you screwed them to get out.

Even Steven.

[dad911]

They lied to get you in the door. Even some written contracts would have a 3 day right of rescission.

If you gave them a color, they ordered the car, and it was on the lot, you'd be an ass.... in this case, no harm no foul.

[sammyg2]

If I wanted to be an ass, I'd say you were no different than the dealer but I've had plenty of problems with dishonest dealers over the years so there's no way I'm gonna suggest they deserve any better.

I don't want to stoop to their level but they almost force you into that sometimes.

[madmmac]

Originally Posted by TGTIW

I agree, they screwed you to get you in, you screwed them to get out.

Even Steven.

Not quite.

Drive through their lot in your new car with your flashers on, honking your horn and giving them the finger. Try to do it when they are busy if possible.


Then, Even Steven.

I have a friend that has been in car sales for 30 years, to them, every customer that comes on the lot is an idiot.

[nostatic]

This is a reason I don't shop based on price alone. When I was looking for my VW there were dealers who gave me a better price but did not have good reviews and/or I didn't get a warm fuzzy. I ended up paying a little more at the place I bought the car but they were up front at every step of the way and went out of their way to make sure I was taken care of during and after the purchase.

All dealers are not the same, and sometimes saving $100 just buys you a bunch of aggravation. fwiw the minute they said, "oh, he said that price to get you in the door" I would have walked. No good can come from a dealership that does that.

[masraum]

I thought this was interesting regarding 0%...
from MX-5 Miata Forum

GM was the first company to use 0% as a selling tool and I was still in banking at the time and we did some jumbo mortgage financing in conjunction with GMAC so got to know one of their regional reps fairly well. His explanation for why 0% financing didn't cost them anything was pretty eye opening.

30% of the people who are attracted by the 0% financing don't qualify and are usually steered into some other GMAC financing vehicle which provides an kickback to the dealer and a good rate of return to GMAC.

Of those that do qualify, about 25% of them default at some point and if you read the fine print, their is usually a default rate built into the contract which is excessively high or, at the very least, a substantial late penalty. The default doesn't have to be extreme - one late payment is often enough to trigger default rates so read the contract carefully.

Another 25% trade or sell that vehicle within eighteen months.
Another 25% traded or sold before the end of the contract but after eighteen months. Why is that significant? GMAC actually had a prepayment penalty (early termination fee) built into a 0% financing contract! I don't think that can be done any longer under revised truth in lending laws but not 100% sure about that. It wasn't a huge number IIRC, maybe a few hundred bucks but it all added up so that their 0% only applied to those who took the contract to term and never defaulted.

GMAC (at the time) charged the dealer a participation rate for the 0% which was then built into the price of the vehicle so it wasn't really free to begin with. Dealers would often offer you another $1000 off for cash since they didn't have to kick into the fund or there were rebates that weren't applicable if you took the 0%.

It's a great sales tool and can be very valuable to those that qualify, don't default and carry the loan to term. Otherwise, it's smart to do a cash price comparison with the finance comparison. Also, money is cheap and you may get a 3% loan on your own and even though you'll pay finance charges, they may add up to less than the cash discount you get by not participating in the 0% plan.

I know lots of folks looking at new Miatas because of the 0% financing that Mazda is doing for the first time ever AFAIK. Just be aware that sometimes not all is at it seems and that the consumer still needs to read contracts and do cost comparisons.

[BeyGon]

I don't see a problem with what you did, they didn't see a problem with what they did. We were lied to twice straight out at the dealers when we bought our last VW Golf, but the deal was too good to pass up and we just smiled, asked them why they lied, listened to the excuses, and still bought the car. drove away.

[Fresno Bob]

Two wrongs don't make a right. Or a left

Handshake deals still hold meaning for some.

[M.D. Holloway]

So whats wrong with a lie? Its a bluff. Who says you can't back in or out as you see fit?

We try to play by a certain rule book but not everyone plays by the same rules. Unless your breaking a law say anything you want when ever in order to get the best for your family!

F***'m if they can't take a joke!

[BeyGon]

Originally Posted by LubeMaster77

So whats wrong with a lie? Its a bluff. Who says you can't back in or out as you see fit?

We try to play by a certain rule book but not everyone plays by the same rules. Unless your breaking a law say anything you want when ever in order to get the best for your family!

F***'m if they can't take a joke!

The dealers have to expect this, it's what they do. they know it's never over until it leaves the lot, and sometimes not even then.

[M.D. Holloway]

when I was much younger i used to test drive all sorts of cars with the 'intent' of buying them. I never bought. Prolly wasted untold salesmens hours but I did get to drive various cars and have some fun. Was it cool - personally yes but less than honorable.

If I was selling cars it wouldn't happen to me. I would qualify better and npt play the stupid games. I wouldn't make as much per car but I would have more sales volume and as well as more sales per day. At the end of the day less tired because all that BS can wear a guy out!

[RWebb]

I would not say you were an ass but you should reconsider how you treat the value of your handshake and promise in the future.

Next time, just say "That sounds great -- I think we can do this"

[sammyg2]

Originally Posted by LubeMaster77

So whats wrong with a lie? Its a bluff. Who says you can't back in or out as you see fit?

Ask your parents.

[vash]

Originally Posted by krichard

The dealer can't throw the "integrity" thing at you since they openly admitted they made the original 27700 offer to "get you in there" and then couldn't honor it. Unless you signed on the bottom line, there was no deal.....

i love it.. unless it's on paper, it's vapor.

[Nathans_Dad]

In retrospect I should have told them I would talk to my wife on color and let them know. I do think it's funny for a car dealer to use an integrity card tho...