Dealership cartels - horror stories

[MountainDad]

Colorado legislators have introduced a bill, clearly supported by dealership cartels, to reverse a law on the books in Colorado that allows direct to consumer auto sales. Ineos (an ICE vehicle), and Tesla are offered here in direct to consumer channels. Polestar allows you to use the automaker website to customize and order a vehicle, as well as upload all qualifying documents before you even walk into the dealership - when we leased our Polestar 2, we were in and out with our new car in an hour.

Post your horror stories of buying vehicles from a dealer, where direct sales would have solved the problem.

I know there are myriad stories of unreasonable markups (Ford Bronco, anyone?), shenanigans like the yo-yo financing scam, and others nationwide that should yank the rug right out from under the arguments NADA and their localized cartel capos are regurgitating.

 

[MountainDad]

Here is my story.

Phil Long Hyundai of Chapel Hills in Colorado Springs. 2009. My wife and I, and our father-in-law, were shopping for new vehicles. My wife decided after some test drives that she wanted a new Santa Fe. Our sales rep handed us off to a sales manager. We offered a negotiating position on the price; it was immediately rejected, with the sales manager stating that they don't negotiate on their vehicles. Only...that wasn't true. He didn't know that a few cubicles away, the person he was actively negotiating with was my father-in-law, buying a different vehicle. We all walked out.

2017 or '18, same dealership. I'm a co-signer for a new Hyundai for my mother-in-law, and my credit is impeccable. This time, they did negotiate a bit (after arm-twisting, they also agreed to not charge us a $1,000 add-on for seat stain protection, a stupid blinking center high mounted stop light, and a wheel package for a car with plastic hubcaps, which they claimed, "we put these protection packages on all of our cars, it's already on there so we have to charge you" - strangely, her CHMSL doesn't blink). Signed the deal, we drove off the lot. This was a Saturday. She's a senior citizen and has severe anxiety issues.

Two days later, the dealer calls her back, she needs to come in RIGHT AWAY to sign new paperwork, or they're going to have to reposess the vehicle. There was an error on the paperwork and her interest rate is going to go up from 3.9 percent to 14 percent. She calls me in a panic at work, she can barely breathe, I'm like NFW. Sit tight. I called them and they tried to tell me she has to re-sign. I said no thanks, give us her old car back and cancel the deal under Colorado law. Sorry, we can't, they say - her old car has gone to auction. Cool, I said, give us a car of equal value to the trade value listed on the deal off your used car lot. Sorry, we can't do that either. I ask, what's the problem with the deal? They said it turns out she didn't qualify for the best financing. I reminded them I'm the co-signer, my credit is over 800, and would they like to speak to my attorney? I then advised them that I'm now going to leave a negative review online.

I immediately write a truthful negative review on Google, Edmunds, and one other site I don't recall. The dealership GM calls me back within 10 minutes of the review going live and says it's all good, we actually just forgot to sign a mileage disclosure statement for the trade in, and if we make this right would you take down the negative review please? And that finance manager wasn't from our dealer, he was from another dealer up in Denver, so sorry, he's not here any more.

Sure, I'll modify the review to describe how you made it right but I'm not taking anything down. We both went in, signed a new disclosure statement (there were 4 more miles on her old car than the *original* disclosure, because they drove it around to get it to the truck to send it to auction, whatever, it's gone).

We have since blackballed them and they us - we went shopping for a Genesis GV60 recently, they wouldn't even call us back; we leased from a dealer in Denver 50 miles away.

 

[Latrant]

Here is my story.

Phil Long Hyundai of Chapel Hills in Colorado Springs. 2009. My wife and I, and our father-in-law, were shopping for new vehicles. My wife decided after some test drives that she wanted a new Santa Fe. Our sales rep handed us off to a sales manager. We offered a negotiating position on the price; it was immediately rejected, with the sales manager stating that they don't negotiate on their vehicles. Only...that wasn't true. He didn't know that a few cubicles away, the person he was actively negotiating with was my father-in-law, buying a different vehicle. We all walked out.

2017 or '18, same dealership. I'm a co-signer for a new Hyundai for my mother-in-law, and my credit is impeccable. This time, they did negotiate a bit (after arm-twisting, they also agreed to not charge us a $1,000 add-on for seat stain protection, a stupid blinking center high mounted stop light, and a wheel package for a car with plastic hubcaps, which they claimed, "we put these protection packages on all of our cars, it's already on there so we have to charge you" - strangely, her CHMSL doesn't blink). Signed the deal, we drove off the lot. This was a Saturday. She's a senior citizen and has severe anxiety issues.

Two days later, the dealer calls her back, she needs to come in RIGHT AWAY to sign new paperwork, or they're going to have to reposess the vehicle. There was an error on the paperwork and her interest rate is going to go up from 3.9 percent to 14 percent. She calls me in a panic at work, she can barely breathe, I'm like NFW. Sit tight. I called them and they tried to tell me she has to re-sign. I said no thanks, give us her old car back and cancel the deal under Colorado law. Sorry, we can't, they say - her old car has gone to auction. Cool, I said, give us a car of equal value to the trade value listed on the deal off your used car lot. Sorry, we can't do that either. I ask, what's the problem with the deal? They said it turns out she didn't qualify for the best financing. I reminded them I'm the co-signer, my credit is over 800, and would they like to speak to my attorney? I then advised them that I'm now going to leave a negative review online.

I immediately write a truthful negative review on Google, Edmunds, and one other site I don't recall. The dealership GM calls me back within 10 minutes of the review going live and says it's all good, we actually just forgot to sign a mileage disclosure statement for the trade in, and if we make this right would you take down the negative review please? And that finance manager wasn't from our dealer, he was from another dealer up in Denver, so sorry, he's not here any more.

Sure, I'll modify the review to describe how you made it right but I'm not taking anything down. We both went in, signed a new disclosure statement (there were 4 more miles on her old car than the *original* disclosure, because they drove it around to get it to the truck to send it to auction, whatever, it's gone).

We have since blackballed them and they us - we went shopping for a Genesis GV60 recently, they wouldn't even call us back; we leased from a dealer in Denver 50 miles away.

Perfect example why I never want to deal with a stealership again. What a waste of your time and effort and money and emotions. Glad you stood your ground. I've had dealerships here call to tell me I still owed "$250" or "$1250" on a completed deal because they 'forgot' to charge me for X. Such nonsense and why they need to go out of business.

 

[bwdavis7]

My wife wanted to purchase a Prius shortly after they came out. The local dealership where I had bought my Sequoia didn't have any in stock so we decided to go to Georgia to see what the dealer had on their lot. There was not one that had the right options but the salesperson found one that was en-route to them and so we proceeded with the contract paperwork which included all the information about the vehicle including the VIN. A few weeks later, I was emailed and told that my vehicle had arrived. When I looked at the documents attached to the email, the VIN didn't match and many of the options were not included. The paint color was correct but that was about it. When I confronted them with the bait and switch they wouldn't comment. When I asked where the original vehicle with the VIN I ordered was, they said it was gone. I called the GM and told him what had occurred and when I accused them of selling to a higher bidder he hung up on me. Needless to say, a Prius never made it into our garage...we bought a Honda Civic instead...worked out to best for me in the end but...DANG those dealers! Just one of few my stealership stories. I could go on for days and when these conversations come up among friends, you hear some amazing stories and they are never good. It's sad that there are laws to protect the dealerships and so few to protect the consumer from them. They are way out of control.

 

[cyure]

My wife wanted to purchase a Prius shortly after they came out. The local dealership where I had bought my Sequoia didn't have any in stock so we decided to go to Georgia to see what the dealer had on their lot. There was not one that had the right options but the salesperson found one that was en-route to them and so we proceeded with the contract paperwork which included all the information about the vehicle including the VIN. A few weeks later, I was emailed and told that my vehicle had arrived. When I looked at the documents attached to the email, the VIN didn't match and many of the options were not included. The paint color was correct but that was about it. When I confronted them with the bait and switch they wouldn't comment. When I asked where the original vehicle with the VIN I ordered was, they said it was gone. I called the GM and told him what had occurred and when I accused them of selling to a higher bidder he hung up on me. Needless to say, a Prius never made it into our garage...we bought a Honda Civic instead...worked out to best for me in the end but...DANG those dealers! Just one of few my stealership stories. I could go on for days and when these conversations come up among friends, you hear some amazing stories and they are never good. It's sad that there are laws to protect the dealerships and so few to protect the consumer from them. They are way out of control.

Don’t even get me started. In 6 months in 2022 beginning of 2023 we bought 4 cars. If I never deal with one again it will be too soon.

 

[chucchinchilla]

IMO we're beating a dead horse but in the spirit of discussion I'll throw down one pic that sums up why interest in DTC sales is growing and why I feel zero pity for dealers who will lose out.

 

[cyure]

IMO we're beating a dead horse but in the spirit of discussion I'll throw down one pic that sums up why interest in DTC sales is growing and why I feel zero pity for dealers who will lose out.
View attachment 5945

Oh my lord! And I thought the $1000 they added to our Supra for Simonize was outrageous! What in the world is an ultimate clear bra? PPF?

 

[SpaceEVDriver]

My biggest story is from 2018 when my partner went looking at a used car a local dealer had advertised online. When she got there, they claimed it was several thousand more than advertised. She left. I went back the next day to look at the car. They offered it to me for a couple thousand less than advertised. It's not worth the effort to bring them to court for discrimination, but that was the last time we shopped at that dealership or for that brand. I despise dealers. The Lightning we recently bought is the last vehicle I'll buy through a dealership.

And then there's this kind of ADM:

 

[SpaceEVDriver]

Oh my lord! And I thought the $1000 they added to our Supra for Simonize was outrageous! What in the world is an ultimate clear bra? PPF?

Don't forget the extra $10k they added because they "have the best interests of the consumer in mind."

 

[cyure]

Don't forget the extra $10k they added because they "have the best interests of the consumer in mind."

Honestly. We managed to get the Supra for MSRP but I could not get them to take that stupid Simonize off. They had not even put it on yet! I got them to discount it but so frustrating.

I used to live near San Bernardino. I can’t believe that. I know is Southern California, but honestly!

 

[dreamweaver]

IMO we're beating a dead horse but in the spirit of discussion I'll throw down one pic that sums up why interest in DTC sales is growing and why I feel zero pity for dealers who will lose out.
View attachment 5945

Amen. What a bunch of thieves.

 

[oldgeeksguide]

IMO we're beating a dead horse but in the spirit of discussion I'll throw down one pic that sums up why interest in DTC sales is growing and why I feel zero pity for dealers who will lose out.
View attachment 5945

Ok, the price is pretty bad, but the geek in me is really distracted by their font choice.

 

[N Wilson]

Ok, the price is pretty bad, but the geek in me is really distracted by their font choice.

Same!

 

[THil08]

IMO we're beating a dead horse but in the spirit of discussion I'll throw down one pic that sums up why interest in DTC sales is growing and why I feel zero pity for dealers who will lose out.
View attachment 5945

dealers have way too much control. its pretty messed up

This guy shows how they really don't care about how much the cars cost they care more about being able to pay off the vehicles and to pay back the manufacture they had bought for their lot. https://www.youtube.com/@WheelsandWallets

Do Car Dealerships Own the Cars They Are Selling | Easterns

Did you know that dealerships might not own the car outright that you are purchasing from them. Easterns explains, in detail, here!

www.easterns.com

 

[MountainDad]

IMO we're beating a dead horse but in the spirit of discussion I'll throw down one pic that sums up why interest in DTC sales is growing and why I feel zero pity for dealers who will lose out.
View attachment 5945

Yep, the "market adjustment" is the epitome of dealership cartels nonsense.

Land Rover penalized dealerships that tried this when the New Discovery (Discovery 5) and New Defender came out, by reducing allocations.

 

[J Alynn]

Yep, the "market adjustment" is the epitome of dealership cartels nonsense.

Land Rover penalized dealerships that tried this when the New Discovery (Discovery 5) and New Defender came out, by reducing allocations.

I’ve said it before and second your comment. Heaven forbid SM needs dealers. Allocation is (1) per happy buyer review based on pre-orders lime Bronco did. If reviews aren’t at least a 4.5 out of 5 allocations end. At least two questions should be price related happiness and if either are less than a 5 you lose next available month of allocation. There’s got to be a way to put teeth to allocations and force the dealerships to change their ways.
Any sale over MSRP-done. Any undercoating or non requested add ons-done. Bait and switch, holding vehicle hostage. Should be an online survey so if you don’t go through with a purchase you can still put a nail in their coffin.

 

[THil08]

It's easier to do what Rivian is, just set up "service centers" and make it a vehicle pickup location and do orders.

but if dealerships are happening it should be done how J Alynn explained.

 

[dreamweaver]

I’ve said it before and second your comment. Heaven forbid SM needs dealers. Allocation is (1) per happy buyer review based on pre-orders lime Bronco did. If reviews aren’t at least a 4.5 out of 5 allocations end. At least two questions should be price related happiness and if either are less than a 5 you lose next available month of allocation. There’s got to be a way to put teeth to allocations and force the dealerships to change their ways.
Any sale over MSRP-done. Any undercoating or non requested add ons-done. Bait and switch, holding vehicle hostage. Should be an online survey so if you don’t go through with a purchase you can still put a nail in their coffin.

Well said.
Allocations are key for dealers, more stock more sales . However, allocations are also why there are so many over MSRP sales. This needs to be flipped on its head just like J. Alynn said. Hit them where it hurts.

 

[cyure]

Well said.
Allocations are key for dealers, more stock more sales . However, allocations are also why there are so many over MSRP sales. This needs to be flipped on its head just like J. Alynn said. Hit them where it hurts.

And if they are going to go through dealers do it like BMW does where you can order a car. My friend ordered her X5 exactly how she wanted it and had it in about 10 weeks. So many manufacturers don’t do it that way. My son wanted a Hyundai Elantra N and you can’t order it. We left a deposit at one dealer and it took 8 months and ended up getting it at a different dealer that got it sooner than his was slated to come in. Thankfully they gave him his deposit back.

 

[Chaz26]

And if they are going to go through dealers do it like BMW does where you can order a car. My friend ordered her X5 exactly how she wanted it and had it in about 10 weeks. So many manufacturers don’t do it that way. My son wanted a Hyundai Elantra N and you can’t order it. We left a deposit at one dealer and it took 8 months and ended up getting it at a different dealer that got it sooner than his was slated to come in. Thankfully they gave him his deposit back.

This is one thing I've always found weird. I'm from the UK originally, and there it was always order specifically what you want and the dealer orders it in from the manufacturer. Granted you could never go in and leave same day with a car but that was always what we were used to. When I first moved here and could buy a car straight off the dealer lot I found it so strange. Especially as you couldn't just custom order the trim/packages and color you wanted.