To whom it may concern:
Its time to make a stand and show automotive dealers that the old bait and switch routine is not only illegal, but its will not tolerated by our governing agencies. My complaint falls within the category of Gross Negligent and Fraudulent Misrepresentation, and I feel its my duty as a consumer to help protect my fellow consumers from this type of textbook used car manipulation and coercion.
On June 22, at approximately 1pm, I was greeted at the Lithia Jeep Dealership, 4470 Cerrillos Road Santa Fe, NM 87507; by Mark. We test drove a 2007 Jeep Wrangler Sahara 4x4 in rescue green (VIN: 1J4GA59157L126829) for the retail price of $23,995. When we returned to the dealership to discuss the vehicle, I told Mark and another sales person, Anthony, that I wasnt interested in a Jeep that had over 34k miles on it with only a 6o day warranty, and I wasnt interested in paying for an extended warranty. I started to leave the building, they asked me to wait, and came back with another offer: $25,995, with an 8 year/100K mile bumper to bumper warranty, with $0 deducible. I declined; this was too much to pay for a Jeep that in my opinion was only worth 21K. So I got into my car a proceeded to pull out of the parking lot, the sales people stopped me again and said that they could do better. I waited another 30 minutes for another offer. They came back with 22,375 with a 100K miles warranty. I specifically asked, if the 100K mile warranty was included with a Zero Deductible. The sales people confirmed and I accepted the deal.
Next, I met with Kristin, the finance manager. She quoted me 7.1% interest for 72 months, a payment of $347/month. Which wasnt making sense to me because I have another vehicle that I financed $21,500 at 6.75%, for 72 months and my payment was $365. So I asked her to break it down for me. Below is an example of the sheet she showed me:
Retail Price: 28K
Dealer Discount 5.6K
Down Payment: 6K
Remaining Balance: 16K
Warranty Box Lithia Warranty
18,995.00 They crossed this section out
This still wasnt making sense. I asked 3 times what the final amount that I would be financing, and she kept going back to the purchase price of 22K. This didnt make any sense. With taxes and registration, I should have been looking at a final total purchase price of 23K. Minus my 6K down, I should have been financing ~17K. Which my terms would have been approximately $300/month. The numbers where not making any sense. So she called Cory, the sales manager, who explained that the price with warranty was approx. 26K, which meant I was financing 20K. This was a classic bate and switch. I hold a degree in finance and worked for 3 years writing mortgage loans, and that was the only reason I that the numbers we discussed were not what was on paper, but they were representing the amount financed as the Total Sales Prices. They purposely where manipulating numbers in order to coerce me into signing a contract that we had not agreed on, and that I had walked out on that deal three hours before. The sales manager blamed Mark, who had only been with the company a few days. Mark wasnt the one that offered me the final deal, Chris was. It was obvious that they were running a well orchestrated web of miscommunication that coincidently worked to their benefit. I believe this racket is one that this dealership executes often, but had no proof.
Then on Monday, June 23, I received a call from Chris. He explained that the GM, Joseph, was really upset over what had happened and they decided to make me a ridiculous deal, $19,700 with tax, title, and registration. Still I wasnt convinced. I asked, 19,700 included the warranty? He said yes, so I asked again, 19,700 is the PURCHASE PRICE, including the 100K warranty, (bumper to bumper, zero deductible), included taxes, registration, and title. He said the warranty was the same one they offered before and yes, final purchase price. This was better then the deal I was offered before. He explained that they were really interested in making it better then right. So I said I would come down.
When I get into Mistys office, another finance manager, (she is the ONLY member of the team that would answer my questions) I asked what was the amount I was financing, she said 19,700, the purchase price $25,700. Which is exactly were we were 30 hours before. So we called in Joseph, 2nd in command, the one who made the deal, and I told him that I was tired of repackaging the same numbers and misreprenting the numbers to make them work. He explained that it wasnt a scam, they werent bright enough to run that scam, and they were just stupid. I explained that ignorance of the law is never a defense. They brought me in on false pretenses, again. He asked what would make me sign, I said I wanted the deal offered. He proceeded to take off $1000 (which I later saw was my add on for oil changes and fabric protection). The deal that they presented was misrepresenting the final numbers; because they where not taking my 6K down payment into account for the FINAL PURCHASE PRICE. I asked to remove the 6K from the equation. He did, as he worked up another deal, and then he slipped the 6K back in. I declined the same offer that they had creative rearranged 5 times and walked out.
I would like an investigation into there business practices. If mortgage lenders are being put in jail for the same practices, I believe that car dealerships should be held to the same standard of integrity. This dealership has consistently misrepresented the bottom line, and I feel that if I wasnt so heavily trained in finance that I would have signed the deal that they had misrepresented before. This deal they were offering would have made me upside down in the vehicle (Kelly Blue Book Private Party sale is $20,675), which shouldnt be the case if your putting 25% down. Being upside down in a vehicle is the cause of most repossession. Ignorance of financial terms isnt a defense, they are the professionals, if they cant get there terminology down correctly, they have no business in the business of selling cars.
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