Was this a jerk move?

I bought my 07 Legacy 5MT SE a couple weeks ago. When me and the salesperson agreed on a price, she told me I could only get the special financing or $750 cash back. So I chose the special financing. Before I go to the finance guy, she tells me he's working on a way to get me non-subaru financing for the same rate so I could get the $750 cash also.

 

So I get to the finance guy and he's pushing this maintenance contract for $1095, but selling it like it would only cost $345 since he's 'giving' me the $750 for nto using subaru financing. I agreed to the maintenance contract, $750 cash back and the matched non-subaru financing.

 

So I get home and look at the scheduled maintenance, and I basically paid $1095 for each 7.5k maintenance (which I thought was a rip). I decided to take it back (since it said I could refund it within 60 days. I end up getting the same guy that I financed with when I went today, and he acts like he was doing me a favor by giving me the same rate, 750 cash back with the contract. When I wouldnt' budge, he started telling me 'if I knew you were going to take it back, I wouldn't have given you the rebate.' He said it about 3 times. So I'm guessing he was pissed because he lost on commission with the subaru financing and the warranty.

 

I definitely didn't plan to take it back when I bought it, but 1095 for the contract was just ridiculous. The icing on the cake was how much of a jerk he became after being so buddy buddy with me at first.

sounds ok to me. don't offer a refund if you don't intend to honor it. I'd have a word with the GM, relaying the strongarm tactics and attitude. Not that it will matter

DUDE! thats awesome! dealerships screw people over every day. don't feel bad....you should be proud of yourself

So I get home and look at the scheduled maintenance, and I basically paid $1095 for each 7.5k maintenance (which I thought was a rip).

I don't follow this - what did the $1095 maintanaince contract cover? Obviously maintainance, but for how long etc?

 

And if you don't mind me asking, what was the interest rate on the outside financing they arranged for you? What was the special Subaru rate?

Sounds like they misrepresented the terms of the service contract. You figured it out, and took them on something else they agreed to clearly in writing: a refund. Sounds reasonable to me.

The service plan was every 7500 mi service (7500, 15000, 22500, etc) up until the 45000 mile service. Reading the manual, theres no way all that stuff could possible add up to $1095.

 

My credit isnt the greatest, so the 'special' subaru rate was 7.9/60 mo, and magically, the outside creditor's rate was 7.9 once I agreed to buy the service plan.

 

I usually try not to piss off people that have all my personal info (especially SSN and all my credit info) but I'm probably just paranoid. Once he started jerking me around and trying to run numbers again, I didn't feel as bad.

The dealers, especially the finance guys can be real A$$holes! When I bought my wifes car he got upset I didnt buy anything from him like an extended warranty or lojak, and acted like a total baby. He even cursed while he walked away. I went nuts inside the dealership. Another guy looking to buy a car there saw the whole thing and backed out of his deal. The GM apologized to me and the finance guy closed the door to his office and locked it. Wilmington Subaru in MA sucks. I have an even better story for the prick in the service dept.

Slightly OT: What should a 15k mile service cost? I'm due for one as of this morning.

You done fine and the guy is a jerk. He wagered on you not standing up for what you wanted and lost...his problem, not yours.

 

FWIW, the finance guy I delt with at the Chevy dealership I just bought my wife's truck from was like dealing with a saint in comparison to the local Subaru dealer...after all said and done, papers signed, he ended up getting me an interest rate a full 1.0% lower than gauranteed...fairly close to your 7.9 if I recall, which is really good these days...it's amazing how much prime has gone up in the last couple years! Wow!

Credit Union FTW: I got my loan for $18k at 5.25%.

 

Not to rub it in or anything, but if you can get into one, you probably should. It might be easier than you thinkg, the restrictions on membership got a lot less strict a few years ago.

Subaru special financing FTW! 2.9% on my LGT over 5 years. 3.9% on the wife's Tribeca over 4 years. Even better was the 0% we had on her old Mazda6. So really it's good credit FTW!

Maestro, how do you normally feel towards people who try to steal several thousand dollars from you? That's what he tried to do.

 

Post his name and dealership name - and fax him this thread to boot!

 

I'd bet any dealer in the area could match this deal. They should get straight who is doing the favors.

 

I usually start negotiating the other way - if they pull those stunts I want another $100 off the deal for each attempt because they're wasting my time and taking the fun out of it.

Well done /\

Click me\/

Whatever you do to a dealership is never a jerk move. Especially since they have the balls to charge $300 to get the license, registration and other BS...

don't blame the dealer....blame your state legislature for allowing them to do it. In VA, it's $299. In MD, it's $99. For me, it's worth an extra ten minutes in drive time to save $200.

Subaru special financing FTW! 2.9% on my LGT over 5 years. 3.9% on the wife's Tribeca over 4 years. Even better was the 0% we had on her old Mazda6. So really it's good credit FTW!

 

Yes, if you have good credit and you know it, it can be used as power. I tried a tactic this time when I bought the Forester XT. I told the sales person the amount I would pay and the loan terms I was willing to accept.

 

I got what I wanted (3.9% at 48 mos, the only Subie credit offers on FXT at the time was 2.9@24 mos), but I thought stating the loan terms might be pushing my luck, but I do know that they have a lot of room to work when they "sell your loan" if you have good credit. They generally have a long list of companies that they can sell your loan through and they get a commission on the loan sale. I don't know this for sure, but I suspect they get a larger commission if they sell you a higher interest rate. (It used to work this way with leases when I was leasing computer systems to customers)

 

My first comment when I sit down with the finance people is; I'm not buying any extended warranty or service contracts so please don't waste our time discussing them.

 

One goal in your financial life has to be a stellar credit record, it is a tool.

never negotiate by a monthly payment. too many ways for a dealer to hide profit you don't need to give him.

Another thing to remember is, you can always get up and walk away up until you sign the papers. Unless you are buying a rare, hard to find car, you can just walk away to another dealer.

 

When i bought my car, the sales guy said I should get the extended warranty, and it would only cost $1600. (about $400 less than outside warranty)

 

When i went to the finance guy, he said the subaru warranty was $2000 with a $100 deductable, then he found out the car was a turbo and added another $250.

 

I told him I didn't want it, and i could get a better deal outside. When he pushed, I stood up and said, 'this isn't going to work out.' and reached for the door. He somehow and got the warranty down to what the sales guy said it was.

Why so much dealer hating?

We have family to support to. And the way resale businesses usually operate is by selling for more than cost- right?

 

And since nobody comes to us asking how much profit would be fare, but how can I pay as less as possible, dealers forced to find alternative ways.

Making money on just selling the car becomes increasingly difficult- too much info out there, so dealers stressing "back end" more- extended warranties, service contracts and so on.

 

So finance managers under incising pressure to make money for the dealership, so that dealership can stay in business.

 

Most of the bad rep for dealers is from old days when they were making wild money in many wild ways, it's not like that any more.

 

 

 

never negotiate by a monthly payment. too many ways for a dealer to hide profit you don't need to give him.

 

If the same logic would be applied to every retail business, or any business for that matter- how would economy function.

 

Lets say next time you go to restaurant try to ask waiter for cost of ingredients in food and try to convince them that you only paying that- see how far that goes before they kick your ass out.

 

Unlike many other businesses we negotiate- appreciate that, but do not be so ignorant as saying we do not deserve a profit.

Sorry for the long post.

Your playing against a stacked deck if you think coming on here and defending dealer practices is going to work.

You know as well as I do that dealerships will take anyone to the cleaners if they can.Most consumers arent educated enough to know how to deal with sales/ finance people who are trained to do this everyday.

For every car you guys sell at below dealer invoice I'll bet you sell 10 at right around sticker with all your dealer addons.(extended warranty,paint protection,rustproofing,kickback from outside financing,factory incentives etc)

So please don't come on here whining about profits.

 

Most of the bad rep for dealers is from old days when they were making wild money in many wild ways, it's not like that any more.

 

 

yea right:rolleyes:

 

 

If the same logic would be applied to every retail business, or any business for that matter- how would economy function.

 

Probably very well,

 

 

Unlike many other businesses we negotiate- appreciate that, but do not be so ignorant as saying we do not deserve a profit.

Sorry for the long post.

 

Nobody said you don't deserve a profit,it's just how much that gets people irked.

 

 

And just to add,,your not talking to a bunch of uneducated car buying rookies here.Alot of us have been around the block once or twice.

Most of the bad rep for dealers is from old days when they were making wild money in many wild ways, it's not like that any more.

 

 

not true at all. it is indeed still like this, albeit not at every dealer. I've bought four new cars since 2002 and I have to say three of the dealers played games with me on pricing, even though we had agreed to the price and I had my own financing.

 

 

 

If the same logic would be applied to every retail business, or any business for that matter- how would economy function.

 

Lets say next time you go to restaurant try to ask waiter for cost of ingredients in food and try to convince them that you only paying that- see how far that goes before they kick your ass out.

 

Unlike many other businesses we negotiate- appreciate that, but do not be so ignorant as saying we do not deserve a profit.

Sorry for the long post.

 

who said you don't deserve a profit? I assume you mean me since you quoted me. Negotiating a deal on a car based on a monthly payment is the WORST POSSIBLE WAY for the consumer. There are so many components to the transaction and you won't know if the price is fair and market rate unless you know the details.

 

some dealers, like fitzmall.com have it right - up front pricing, no BS. cash price is cash price. sure, they can do financing for you, but any benefit they get from that is not padded in the price you pay for the car itself.

 

using a restaurant as an analogy to back up unscrupulous dealer practives is poor form. In fact, it's the OPPOSITE of your point. Follow me for a second..... I don't ask the waiter to run my credit and spread the cost over five years of payments. the price is clearly marked on teh menu, I order what I want, I eat, I get the bill, tax is fixed and listed, I pay and leave a tip that I decide.

Your playing against a stacked deck if you think coming on here and defending dealer practices is going to work.

You know as well as I do that dealerships will take anyone to the cleaners if they can.Most consumers arent educated enough to know how to deal with sales/ finance people who are trained to do this everyday.

For every car you guys sell at below dealer invoice I'll bet you sell 10 at right around sticker with all your dealer addons.(extended warranty,paint protection,rustproofing,kickback from outside financing,factory incentives etc)

So please don't come on here whining about profits.

 

OK, you have lost one more bet in you life.

DO not worry , it's no big deal, just don't gamble.

 

And accusing somebody of whining is condescending- not the best way co carry on an intelligent conversation.

who said you don't deserve a profit? I assume you mean me since you quoted me. Negotiating a deal on a car based on a monthly payment is the WORST POSSIBLE WAY for the consumer. There are so many components to the transaction and you won't know if the price is fair and market rate unless you know the details.

 

 

ALL the details(rate, price, term and so on) on the contract you signing- just pay attention.

When I was looking at this car, the first salesman at the dealership gave me their special price on his business card to get me to come back, without me even asking. It was 18,988 for an 07 5MT SE, which is below invoice. I figured when I came in the next salesman would offer me that price as well. Guess what, she came back with $370/mo for 72 mo. Then I showed her the card from her co-salesman and they honored, but still, they tried to run one over on me.

 

I've never bought a car where they haven't played games like only giving you the monthly payment, which NEVER works out for the buyer.