Just when you thought car dealers could not come up with a new scam, comes this:
According to a story in the September 8, edition of the Arizona Daily Star, Arizona Attorney General Terry Goddard has filed a consumer fraud lawsuit against Precision Toyota of Tucson.
During the Summer Olympics, Precision Toyota ran ads offering their cars at one-half the manufacturer's suggested retail price. When customers tried to take advantage of the offer, Precision Toyota said the offer was only good on the residual value of a lease.
As I understood the story, if the car would normally have a residual value of $10,000 at the end of the lease under this offer the residual value would be $5,000.
The Attorney General characterized this offer as a bait-and-switch. Customers were lured into the dealership with the offer of a new car at half price and found that they had to lease the car for three years and then purchase it as a used car.
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