Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Bait & Switch and Other Bad Advertising Tactics

123468

Comments

  • dtownfbdtownfb Posts: 2,915
    I agree with your assessment. Honestly, the expectations of large discounts has been around since post-9/11 when the big cash rebates started. Necessary then but now it has become the norm.

    Personally, I think it's time to re-evaluate the entire new car sales transaction. The whole process is too adversarial with both sides not trusting the other. This is no way to conduct business. Unfortunately, you need buy-in from ALL the dealers and manufacturers for it to work. Now might be the right time.

    Having been a part of the Edmunds forum for well over a decade now, I've read the posts of salesmen and finance managers who are on here regularly. There is no way i could put up with some of the customers they deal with. I don't go into a dealership to buy a car until I know I can afford it and have done my research. I'm also very clear to the salesman about my timetable. And I have walked out on a salesman when I didn't like the games he was playing (i.e. the old divide the paper into four squares :sick: ). I now understand that many customers are not like this and like to waste their time and the salesman's time. Unfortunately, you see it at all levels of retail.
  • volvomaxvolvomax Posts: 5,274
    Personally, I think it's time to re-evaluate the entire new car sales transaction. The whole process is too adversarial with both sides not trusting the other. This is no way to conduct business. Unfortunately, you need buy-in from ALL the dealers and manufacturers for it to work. Now might be the right time.

    Not just dealers. Sites like Edmunds have a vested interest in sowing fear and distrust as well. "Come to us, we'll tell you the truth" Even if their numbers don't add up either. "Confesssions of a Car Salesman" is pushed here. More fearmongering. Oh by the way, how does Edmunds make money? showing advertisers how many people are coming to their site every day.

    Fact is, most dealer do it the right way. Even so, consumers still believe that we should sell cars for triple net. :sick:
  • blueiedgodblueiedgod Posts: 2,797
    Did you mention C4C when you asked for the internet qoute?

    If you did, then it was bait and switch, but if you did not, then you tried to pull one on the dealer.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,341
    If C4C is the same as "CASH", how could there be any deception?

    When the internet price was 31,800, part of that should, could be in the form of C4C & the balance via Certified check for 27,300. B & S was committed.
  • qbrozenqbrozen Posts: 17,599
    BS maybe ... but not B&S.

    The salesperson did not try to "switch" the buyer to another car.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,341
    True, but the switch was the design of accepting payment.
  • blueiedgodblueiedgod Posts: 2,797
    If C4C is the same as "CASH", how could there be any deception?

    When the internet price was 31,800, part of that should, could be in the form of C4C & the balance via Certified check for 27,300. B & S was committed.


    The big operative here is "IF." C4C is not cold hard cash, but a promise to maybe given cash at some point in the future, which would then make it into a loan, or advance.

    I wonder how many people would agree to overpaying for the vehicle now, and maybe accpeting a refund from the dealer when the clunker was processed.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,341
    and what is my compensation for accepting a risky condition that is to be that of the dealers in the C4C program? The C4C value is a substitute for cash. Not immediate cash, but eventually coming to the dealer who willingly participated in the program.
  • hsilvahsilva Posts: 10
    In mid June I got a flyer from Balise Auto advertising 100% NADA pricing on trade ins, payoff of your current loan and 0% financing on certain models. I inquired by e-mail about a 2009 Subaru Forester and said I wanted NADA for my trade and 0% financing. They e-mailed me a price for the Forester, said it was on the lot and ready and invited me to come in. I thought I had a deal. When I got to Balise, the car I wanted was not there and they tried to sell me a 2010 at a higher price. Then they told me I couldn't combine offers (even though it said nothing about that on the flyer). So, they had no intention of selling me the car I wanted, and they had no intention of honoring the terms in the flyer. I checked FTC regulations and that's classic bait and switch. Careful about dealing with Balise in New England.
  • oldfarmer50oldfarmer50 Posts: 6,768
    "...They e-mailed me a price for the Forester..."

    Which one did they price for you, the 2009 or 2010? If the car you wanted was not there, what happened to it? Did they sell it before you arrived or was it never there at all? If it was never there that's sounds pretty crooked. If they sold it before you could get there, well, that happens.

    Usually you can not combine discounts (or in this case over allowance on your trade) with 0% financing. So if they said you could that should have been a warning.

    Sadly, some dealers will do anything to get you in the door. Shop elsewhere.

    2009 PT Cruiser, 2008 Eclipse, 1995 Mark VIII, 1988 GMC Van

  • g5iveg5ive Posts: 6
    Hi,

    I've been doing some research on this and other sites for about a month and a half now. I'm interested in buying a used car and decided to try and get it financed through "online lending" that Edmunds recommends. I filled out everything and I was contacted by a dealer.

    I received an email from the dealer stating how my application was approved and that I needed to go in and visit them to go over the loan details. I called the person that sent me the email and when I asked about the interest rate on the loan she told me that No details on the loan can be released until these documents are verified in person due to privacy laws.

    Those documents are any recent paystubs, proof of address and my drivers license, so then I asked her if I was approved for the loan, would I need to purchase the car from them and she said NO.

    If I remember correctly, one of the things that Edmunds recommends is, avoiding dealer financing, yet they're referring me to get financed through a dealer. I'm I misunderstanding something or can someone explain what's going on here.
  • oldfarmer50oldfarmer50 Posts: 6,768
    "...I was contacted by a dealer..."

    Was it a specific dealer or was it a corporate manufacturer's finance arm like GMAC?

    If it was a specific dealer I'd be curious to know why also.

    BTW, if you belong to a credit union they often have lower rates.

    2009 PT Cruiser, 2008 Eclipse, 1995 Mark VIII, 1988 GMC Van

  • g5iveg5ive Posts: 6
    "Was it a specific dealer or was it a corporate manufacturer's finance arm like GMAC?

    If it was a specific dealer I'd be curious to know why also.

    BTW, if you belong to a credit union they often have lower rates."

    I was contacted by 2 seprated dealers. I first applied with edmunds and I was contacted by greenbrook auto of new jersey and then I applied through carsdirect and I was contacted by planethondanj

    I don't belong to a credit union, I'm assuming that my credit has to be very in order to get a loan from one?
  • Not sure which link you clicked on, perhaps you could share? Edmunds has tons of useful information on financing. There are also sponsor links including "Marketplace" ads, most of which have agreements in the fine print such as:

    "I authorize xxxxxxxx to forward my application information (excluding any consumer report) to a non affiliated third party marketing company ("Third Party"). I authorize the Third Party to in turn share my application information with motor vehicle dealers and other third parties who may be able to assist me in obtaining financing."

    That is probably why you were contacted. They assume you want to buy a car and need financing.

    Best advice to finance a used car would be to get your bank or credit unions best rate, which you can compare to the online rate as well as the dealers best rate. Also, many manufacturers have special rates for certified used cars. You should know what your credit score is going in.

    Not sure what this has to do with Bait & Switch. Have you found a car you want to buy yet?
  • g5iveg5ive Posts: 6
    "I authorize xxxxxxxx to forward my application information (excluding any consumer report) to a non affiliated third party marketing company ("Third Party"). I authorize the Third Party to in turn share my application information with motor vehicle dealers and other third parties who may be able to assist me in obtaining financing."

    "That is probably why you were contacted. They assume you want to buy a car and need financing.

    Best advice to finance a used car would be to get your bank or credit unions best rate, which you can compare to the online rate as well as the dealers best rate. Also, many manufacturers have special rates for certified used cars. You should know what your credit score is going in.

    Not sure what this has to do with Bait & Switch. Have you found a car you want to buy yet?"

    My credit score is 592 and I placed this in the Bait & Switch because I didn't know how to start my own thread.

    Yes I already have 2 cars in mind, either a 2003-05 Corolla or a 2007 Yaris. I want to avoid going into a dealer and having to hear how "this" car is better and we can give you a better deal if you buy here.

    There's a credit union where I work and I used to belong to it a few years back, but how possible is it that they can approve me for a loan if my credit score is 592?
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,873
    Well, of course you were contacted by a dealer. Who did you think would contact you?

    Moist stores use a variety of lenders and will try to find one that will approve you with your low score. Depending on things such as the reason for the score, down payment, job history etc, you should be able to get a loan.

    Just don't expect a great rate.
  • g5iveg5ive Posts: 6
    I understand this, but all I want is financing, I'm not interested on the dealers pitch to sell me their cars. I already know what I want, and I didn't think that dealers would contact me, I thought that some online lending company would contact me.
  • delthekingdeltheking Posts: 1,152
    Try your local credit unions..They offer the best rates..I would always finance through a bank or credit union-the dealer would be my last choice as in-when none of the banks can finance me.
  • g5iveg5ive Posts: 6
    I'm willing to try a credit union, but how likely is it that they approve me with my credit score? The company I work for is associated with a credit union.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,341
    Contact your employer's Credit Union - in person. They have several tiers of financing, depending on various factors in your application. Most CU's also provide personal finance education classes. You might find that an interesting feature of joining.
  • exb0exb0 Posts: 539
    Filling out credit applications online is just asking for "identity theft", especially with third party sites like Edmunds. Your personal information is now stored on Edmunds computers, multiple dealers computers and God only knows how many lending institutions. How many dozens of people now have access to your data, the data that anyone could use to get a loan for themselves?

    Not to mention that the computers where your information is stored, are more than likely are connected to the Internet, and easily hackable by the bad guys. Especially dealer's computers. Ninety percent of dealer sites that have credit application forms, are not encrypted. That means that your SSN is traveling the Internet in clear text where anybody can read it. If dealers are so ignorant of Internet security as not to use SSL encryption, how save do you think your data is on their computers?
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,873
    A lot of this will have to do with the reason your score is so low.

    If you have a history of not paying your bills or you have chargeoffs and collection accounts you may not get a loan.

    If you have a good history and just had a bad stretch or medical bills they may overlook this.
  • Kirstie_HKirstie_H Posts: 10,914
    Why this, and not many others, I can't tell you. Perhaps it's because I think it's different and may dupe uneducated consumers into believing that a fictional pricing structure exists.
    http://www.landmarkdodge.net/

    It's not overt on the website, but the television ads feature testimonials and voiceovers that heavily rely on the phrase "warehouse pricing." Where is this "warehouse," and what prices are available to those who shop there?

    What's worse is that their advertised prices are no lower than other local dealerships, and I found better advertised pricing in about 2 minutes. I honestly feel that this borders on deceptive advertising, given that there is, to my knowledge, no such animal.

    MODERATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,341
    Could Landmark Dodge be referring to Costco pricing schedules for new cars?

    Costco does have purchase agreements with different dealers in a given marketing area. Perhaps Landmark Dodge has one of those Costco connections.
  • verdugoverdugo Posts: 2,016
    Costco does have purchase agreements with different dealers in a given marketing area. Perhaps Landmark Dodge has one of those Costco connections.

    I highly doubt it. You can look in one of their pictures, there's the "used car wharehouse," aka, the used car lot.
  • Kirstie_HKirstie_H Posts: 10,914
    I also doubt it. There's not a word about such a deal on their website, nor in any of their TV ads. Just a lot of talk about "I got warehouse pricing..."

    MODERATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,341
    and Diane Sawyer was surprised to learn you could buy a new car from Costco due to selected local dealers with wholesale pricing.
  • jipsterjipster Posts: 5,345
    Saw this one in the paper today. "All new Mazda cars sold at invoice." They show the photo of an invoice statement. Everything looks good until you get to the bottom, under the invoice column, under transportation fee, there is something called a "Louisville Assessment" fee. This invoice price is $300, but there is nothing listed in the "Retail" column. Tack on anther $350 for doc. fee, and you're 3/4 of the way to MSRP. Booooo.... Hisssssss. :sick:
  • jwilliams2jwilliams2 Posts: 874
    Probably a legitimate adv charge to the dealer from the manufacturer if it is on the invoice. It is a part of his cost.
  • jipsterjipster Posts: 5,345
    Why so deceptive then? "Louisville Assesment", sounds to have a whole different meaning than anything connected to a advertising fee. Sorry, sounds like b.s to me.
Sign In or Register to comment.