I know this is a long read and there's a lot of math involved, but if you don't want to get ripped off, SERIOUSLY RIPPED OFF, then read and heed.
If anyone in the Charleston area is considering buying a new or used Toyota, and you have good credit, take my advice and stay away from Gene Reed Toyota.
I have never been led around the bush so much in my life! I understand that Gene Reed is in the business to make a profit, but they attempt to make their ENTIRE profit off you!
My wife and I recently went there to buy two certified used vehicles. Vehicle 1 was a 2004 Toyota Highlander with 19000 miles (NADA value:$21200). Vehicle 2 was a 2005 Tacoma with 19000 miles (NADA:$22000). We were wanting to trade a 2002 Chevy Silverado 4x4 Z71 with 68000 miles (NADA Trade in value:$20000, which we still owed $9800 on).
Here's where the deal sucked. I had financing pre-approved through Capital One. They wanted me to write them checks totaling $39000. SO let me see: Gene Reed Toyota wanted my 02 Silverado with positive revenue worth $10200 AND $39000 for a grand total of $49200 for 2 used rice banger Toyotas? And we have perfect credit (740 for both of us) AND they could have turned around and sold the Silverado for $23250 easily.
So let's tally this up this time:
Total value of the 2 Toyotas (NADA): $43400
Amount Gene Reed was asking for Toyotas: $44200
Pure profit for Gene Reed (had I fallen for it) $ 800
Trade-in value of Chevy: $20000
Amount still owed on Chevy: $ 9800
Amount Gene Reed was 'willing' to put to vehicles: $ 6500
Pure profit for Gene Reed on Chevy trade-in: $ 3700
Amount Gene Reed could re sell Chevy: $23250
Total Profit Gene Reed could have made on deal: $ 6950
Now that $6950 is PURE PROFIT. This is the amount that these dealers can "play with" when they're negotiating with you. This is not "Actual profit", which for this deal is probably around $14000 or so, taking into account what they actually paid for these vehicles I wanted to buy.
Mind you, this is not financing through the dealer. This is like a cash purchase, which most dealers drool over. But not these numbskulls. I offered to write them 2 checks for the vehicles totaling $34000, and they 'offered' to put $6500 from the trade in for a grand total of $40500.
So you may be asking yourself "why is he complaining? Sounds like they offered him a good deal." Because that $6500 that they 'offered' should have been more like $10000 (I'll give them the other $200) Bringing the total that they were trying to get me to give them to: $44000.
Now let's add in their "Actual Profit" of around $14000. They expected me to give them a grand total of $58000 for 2 used toyotas. Sorry. Too rich for my blood.
A lot of people (myself included) don't factor these things in when considering a used dealer purchase. I saw 2 nice used vehicles for $44200 and thought that was a good deal, which it wasn't. But when the trade was factored in, the Gene Reed screw factor kicked into overdrive and I would have ended up paying $58000 in the end, both directly and indirectly, not to mention the finance charge I would have been paying to Capital One. Big difference for 2 grown adults with excellent credit. And Gene Reed was more than happy to try and exploit this nauseating profit margin.
And to think, if they would have come down $3000 in their price, I would have taken the deal and happily lived on thinking I got at least a good deal. It is abhorrent to think that Gene Reed Toyota would treat 2 people with excellent credit in this manner.
I know these shenanagans go on every day hundreds of times a day, but not to me. I want to help everyone out there that has excellent credit, but not a lick of sense when it comes to dealing with car salesmen and their managers. We are all puppets in their game. Maybe that's why you never see a run down franchised car dealership or one of their salesmen in the poor house... Because they put you in the poor house. They are winged vampires knowingly sucking your hard-earned money out of your wallets without you knowing of it.
Bottom line: They tried to take me for $14600, and they could have legally done it. That's right, $14600, and that doesn't include financing... Where they REALLY make the killing at your expense.
Michael
Summerville, South Carolina
U.S.A.
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