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Bait N Switch? What do I do now?

Discussion in 'Newbie Forum' started by Freedom, Aug 27, 2008.

  1. Freedom

    Freedom Active Member

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    Well, I have just returned from going down there. My sales person is off today, but that was OK. I got a copy of THEIR form. It does NOT say "pending MSRP."

    I spoke with boh Sales Manager, and one of them went "in back" to speak with a General Manager.

    I think this is "bait and switch," see what you think? June 24th: I put down a $1,000 deposit. Both I and the sales person sign a PURCHASE CONTRACT for a 2008 Red Prius Package 3, for $X.

    So then I wait until a few weeks back when he calls to tell me there is a Red Package 3 in Assembly. Then he clls to say it is aboard ship. Next he calls to say it s ont he ground and he has the VIN # and the sticker. (Yesterday was that last call.) I had the sticker emailed to me.

    There IS a 2008 Red Prius, package 3. So what's the issue?
    1. The MSRP is $399 more than what my contract price is. Well, that is what it was the day I signed, we negotiated that deal. (So I thought!) Now they realize they can make the whole MSRP and want to? They are still above invoice, so they are still at a profit, just not the max.
    2. At the port (so I am told) "TOYOTA" (as if this is some out of control alien being) added 4 items: the first id kit, cargo net, alloy wheel locks and rear bumper applique. Total: $215.

    This is the car they have coming. It is $614 more than my purchase contract. They want to know: "do you want it?" If not, I go to the bottom of the list. Which between you and me, I think means I eventually have my deposit refunded, as how in heck are they going to continue getting a 2008, when 2009's are starting to be shipped? So they will eventually say they can't get me "this" car, and here is my deposit back.

    They are NOT budging from this line. They can NOT remove the 4 items added at port, that is what "TOYOTA" did, and that is what TOYOTA is billing them for.

    This car is due to arrive at the dealership anytime now, (before Sept 9th is all I know for sure).

    I'm furious and stumped what to do.
     
  2. Zythryn

    Zythryn Senior Member

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    If you don't want the extras for a higher price, and the price is listed in the contract you signed, insist on the contract price.
    If the price is listed in the contract and they refuse to honor it, I would say you have legal standing. They would need to either give it to you at that price, or remove the items.
    Please note, I am no lawyer;)
     
  3. gdbelden

    gdbelden Gator Hator

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    Toyota does not build Prius's to order (to my understanding)

    What they do is try to match what you want to what is coming in the dealer's allotment, or try to find one in another dealer's allotment.

    Not sure why you would go "to the botom of the list" if you said you did not want this one.

    I do suppose that the more you wait, the less likely you will find an "08" available.

    I got my Prius in June when the wait was about 8 weeks (but got it in about 4)

    But whatever you do, don't pay more than your contracted price. I suppose if you were to take this car with the add-ons, you could try to get the add-ons at cost.
     
  4. efusco

    efusco Moderator Emeritus
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    It's up to you...can you suck it up, pay the $600, never go back to them for service as your little stick it to them--deprive them of the after-sale profits.

    But if you need/want the car without more wait you may just eat the $700 and have a new car. It sucks, but many of the dealers pull this crap.
     
  5. a priori

    a priori Canonus Curiosus

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    If you have a contract listing the dealer and you, and it shows the year, make and model of the car, and it has a specific purchase price (not an estimate or something subject to change), and you have listed the specific package (options package), then you have an enforceable contract -- at least it is enforceable if both parties signed the contract and there isn't some "out" listed in the contract. Even it there is an "out" in the contract, they (or you) would have to follow the terms in order to get out of the contract.

    You have two real issues:

    1. How badly do you want this car? You can just take it and deal with the extras, and you'll have a great car. Yes, you'll have paid an inflated price, but then that is what you're doing anyway.
    2. What kind of relationship do you want with this dealer? If you are going elsewhere for service and have other options in dealing with Toyota dealerships, then you can push this thing. If this is the case, I'd start at the level of the owner of the dealership. If you do not get an immediate response, then go up the chain to the regional manager for Toyota. Time is short, so start now.
     
  6. efusco

    efusco Moderator Emeritus
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    Let me add that I think it is fair to charge you the higher MSRP price.
     
  7. Freedom

    Freedom Active Member

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    Help me understand WHY? The MSRP has NOT gone up since the day we signed the contract. It is the same then as now. And Prius waiting lists aside, dealers DO sell cars for less than MSRP. That is done often. And that day, during our negotiations, they were wiling to do just that. Why do you think that they are now allowed to change their minds, and strike a different bargain?
     
  8. rcaine

    rcaine Member

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    I'm going to agree with this. When we signed on with our dealership it was for MSRP. The dealership would not add on but Toyota might raise the MSRP and they would follow along. After another dealership was asking for $5000 over MSRP we agreed this. In this market I haven't heard of anybody getting under that.

    The options are another story. Could you get them to uninstall the first aid kit?:rolleyes::rolleyes:
     
  9. Freedom

    Freedom Active Member

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    Roll your eyes all you like, they refuse to, they say Toyota put it in there and billed them and that is that. I been rolling my eyes in between groaning!
     
  10. efusco

    efusco Moderator Emeritus
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    I'm sorry, I thought you were getting a higher MSRP...I guess I'm confused then...are you saying they're trying to charge you OVER MSRP or that you'd negotiated a price below MSRP initially?

    I think the bottom line is whether you're willing to take a stand for the principle of the matter or if you just want to get the car and be gone. For the sake of the rest of the world it's probably best to walk away...but I couldn't blame you for paying up.

    I think it is worth a sit-down with the manager with a copy of your "contract"...and I'd repeat that word very frequently...and explain how you thought a contract was a legally binding agreement b/w two parties. Asking if they think you should engage an attorney to help you understand your rights might not be a bad move either. Take the high road for now, get nasty when it's necessary.
     
  11. efusco

    efusco Moderator Emeritus
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    And if you have phone records that could be handy too, to prove that that package #3 is yours and was promised as yours.
     
  12. Freedom

    Freedom Active Member

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    We negotiated a price below MSRP initially.

    I called Toyota Customer Relations. All they do is give you a reference number and send your complaint to the "dealer's" customer service representative. So I've done that.

    I've also called the State Attorney General, Consumer Protection section, learned how to file a complaint with them.
     
  13. a priori

    a priori Canonus Curiosus

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    OK.

    Now you've decided to fight them. The only way to get this done right is to go to a local attorney who handles commercial contracts. Get a half-hour session ASAP with the attorney and find out whether you have an enforceable contract. Find out whether the actions of the dealer constitute a breach of the contract. I know they have not failed to produce the car (they haven't even received it yet), but there is such a thing as an anticipatory breach. They've just told you they will not honor their side of the bargain. This means they are in breach. The easy solution is for them to produce the car as promised and for you to pay the contract amount. If they cannot separate the Toyota add-ons, then see if they would be willing to have you purchase them at the dealer's cost. You then could hold them, use them or sell them on eBay.

    Really, though, the cost differential is not going to be worth much of a fight. Paying a lawyer for one-half of an hour may not be cheap, but it will be less than the current overcharge. Paying for a lawsuit is going to be expensive. Meanwhile, you will not have the Prius.

    And don't forget this: If you accept the car and pay the money, then you will have no further claim.
     
  14. Paducah Dave

    Paducah Dave New Member

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    [FONT='Verdana','sans-serif']I am a salesman in Paducah Ky. Did you both sign an agreement and did you give a deposit on the Prius you were interested in? A deposit (in most states ) will lock in the price unless the MSRP has risen. Still I am amazed that a dealer would offer to sell you a Prius at sticker or less. That makes no sense because in this market the Prius is a serious commodity. While Toyota dealers are making more profit on Prius, Corolla, Yaris and Matrix models, dealers are losing thousands of dollars in profits Tundras, 4-Runners and Sequois. It is the just ebb and flow of the market. [/FONT]
     
  15. Paducah Dave

    Paducah Dave New Member

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    Whoa Freedom. That is not the approach most dealers will repsond to. Once a Toyota is sold, Toyota Corp will send consumers surveys to see how thier experiance was at the Dealer level. THESE SURVEYS ARE TAKEN VERY SERIOUSLY by the Dealers. If a dealer believes there is a danger in a bad survey from you, many times they will pass on selling you a car. Especially a Prius. A dealer would rather sell to someone else that will give them a good survey.
    The dealer will correctly assume that someone that has called the State Attorney, Consumer Protection section and Contacted Toyota Customer Relations is someone that will definately trash the dealer on the survey if the dealer sold that someone a car.
     
  16. a priori

    a priori Canonus Curiosus

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    Whoa, Paducah Dave! (And welcome to PriusChat, and thank you for your first two posts.)

    If the dealer is so concerned, then the dealer should honor the contract.

    If what Freedom has is not a binding contract, then the action of going to the Attorney General and others certainly will label Freedom as a big risk. On the other hand, if the contract is as Freedom has said, then the dealer has taken an even bigger risk by not honoring the deal. There was a time to negotiate the price, and it was before signing the deal.

    What is your response to the dealer's statements that the add-ons were done by Toyota and are out of the dealer's control? If this is the case, then the dealer should have put language in the contract to cover it. After all, who wrote the contract? Believe me, such add-ons, if they are not mentioned in the contract, will not be the buyer's responsibility. If the dealer and Toyota are bound by a separate agreement, then the dealer has to live with it, not Freedom.
     
  17. Paducah Dave

    Paducah Dave New Member

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    In a perfect world The Dealer would honor the agreement. Most Dealers will. We are only hearing one side of the story but it sounds like maybe this Dealer got greedy. In the Automotive business a deal is not a deal till the car crosses the curb onto the public streets with a temp registration in the name of the new owner. Up to that point the car belongs to the dealer. Many customers have changed thier minds after they signned contracts and refused to "TAKE DELIVERY" of thier new car. The dealer can do nothing but put the car back in stock and return the downpayment.

    About add ons If they are added by the regional there is nothing the dealer can do about it. Different regions have different add ons. Dealer do not always know what add ons if any the region may add. Prius and all other Toyotas are not ordered by the dealer but they are allicated to the dealer. The dealer may request a color and option list from the factory and the factory will usually preferance the car toward that dealer but it is not a guarantee. It depends on how many cars the dealer is selling for toyota and believe it or not the factory / regional office looks hard at the dealers survey scores from previous customers when deciding on which dealer gets the most desired cars.

    Sorry I tend to ramble I hope this answers your questions.
     
  18. Freedom

    Freedom Active Member

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    Yes, exactly right.

    Haven't filed with the State. YET. I am REALLY upset over this, I have a contract for $X and I want that car!!!

    I just phoned Better Business Bureau. This dealership has 28 complaints in the past 3 years, but 22 are in the past ONE year, and more than HALF are for sales practices. Also, they are currently not in good standing with BBB. :faint:
     
  19. bac

    bac Active Member

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    Call Toyota corporate (edit: sorry, just read that you've already done this). Tell them about the shady way this dealership is doing business. They should straighten it out. If they don't, I would demand my deposit back, and begin looking again.

    Some dealerships are just thieves - sadly, there's no way around it. Feel free to drop their name here. At least someone may benefit (by staying FAR away) from your bad experience.

    .... Brad
     
  20. subarutoo

    subarutoo New Member

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    Its a car dealer. What do you expect? Mine was $500 over the agreed on internet price when I got there. (Added pinstripes, door and wheel moldings). How bad do you want the car? I paid the extra, drove out happy. At least you got some added value, not just a jacked price for the same car. Write the check, or walk, its your choice. I wrote the check.