Bait and switch or not?

[John105]

I was able to knock down the price on my last purchase due to them pricing it wrong on 3 websites. Got up to walk and they honored the price. I had all three websites up on my phone to show them. They claimed clerical error.

A farmer truck shopping has asked about a very similar issue on an Ag forum. Sounds like typical dealership behavior.

When we bought my wife’s GM the salesman said, “Do I deserve to make a profit?” I said let’s not do this and got up and walked away and he said to come back. I haven’t purchased a new car since 2011 and I’m sure it’s different. No more $4k below invoice (and they still made a profit) I bet

 

[97prizm]

Saw an online dealership advertisement for a 2024 Volkswagen Taos S 4 motion vehicle. It was advertised @$21,XXX and in transit. MSRP is $28,000 so a $6500 discount from msrp. I contacted the dealership via email about this vehicle and the unrealistic price they promptly emailed me back and requested my phone info. I supplied it. I did a nationwide apple to apple search for this vehicle and the closest match was $5000 dollars more. In the meantime a day goes by without them contacting me and then I get an email asking if I was satisfied with their response to my query. I never received any info in any manner from them. I also noticed that the before IN TRANSIT vehicle is now on their lot for the full msrp price. I have pretty much ruled out this vehicle due to ongoing head gasket issues but may have gambled it for the fairytale original price. I haven't been financially harmed and have bought two new vehicles from them in the past. Everything above board and straightforward. No high pressure. Now I see what I see are tactics to rob the naive by generating foot traffic with blatantly, I believe, false advertising. This practice is illegal in Wyoming. I got on the state Attorney General's website and filled out a consumer complaint for investigation. I haven't submitted it yet. And emailed the sales manager with my concerns. I have not heard back. Should I just move on and enjoy life or spend my time pursuing this matter, if for nothing else other than perhaps saving someone else a
car dealer con job. Opinions?

Part of the problem is that except during the pandemic for the most part vehicle margins aren't nearly as high as they used to be. $6500 off sounds like they'd be losing money but not sure. When I worked for a VW dealership years ago the base model Jetta was a $700 loss and a Jetta s was $300-500 in profit.

 

[Elkins45]

Probably included every possible incentive in eluding ones you cant combine and so forth...

In the fall of 2019 I purchased a new Ford Fiesta S manual for $9999 plus tax. https://bobistheoilguy.com/forums/threads/ford-fiesta-worth-the-gamble.315273/

It was advertised at that price stacking up a whole bunch of discounts that I didn't qualify for, like firefighter, recent college grad, etc. My sales negotiation was the absolute shortest in history, if you can even call it that. I asked "what's the deal with this advertised price?" and the salesman asked "will you take it if I get it for you at the advertised price?" I said yes and five minutes later there was a sales contract in front of me.

I can't imagine something similar will ever happen again. Everything was better before Covid.

 

[fantastic]

Part of the problem is that except during the pandemic for the most part vehicle margins aren't nearly as high as they used to be. $6500 off sounds like they'd be losing money but not sure. When I worked for a VW dealership years ago the base model Jetta was a $700 loss and a Jetta s was $300-500 in profit.

Was that "Dealer Invoice" that was losing pricing? As you well may already know it's what the dealer actually pays & the dealer invoice is usually just a piece of paper that they use to show to the potential buyer.

 

[ChrisMU]

Besides during the pandemic, typical mass-market brands would typically show very little or no profit for new cars sold. It looks better to the customer, and the dealerships don’t have pay as large of a commission to the salespeople. Service/parts/accessories, as well as used cars were the main profit centers. Still, the dealerships also make profit off new cars through other ways like holdbacks, financing, volume incentives from the manufacturers, add-ons like extended warranties and various coatings, and document fees, which can be up to $1000 (I’m looking at you, Florida). That invoice-priced “deal” still makes them money.

I still remember when my folks bought a “front-of-the-lot special” new 2001 Honda Accord for $14,995 + TTL. The salesman and F&I guy weren’t too happy letting that car go without add-ons. Sticker price was $17,700. That was a minimum commission car for sure.

 

[4WD]

Besides during the pandemic, typical mass-market brands would typically show very little or no profit for new cars sold. It looks better to the customer, and the dealerships don’t have pay as large of a commission to the salespeople. Service/parts/accessories, as well as used cars were the main profit centers. Still, the dealerships also make profit off new cars through other ways like holdbacks, financing, volume incentives from the manufacturers, add-ons like extended warranties and various coatings, and document fees, which can be up to $1000 (I’m looking at you, Florida). That invoice-priced “deal” still makes them money.

I still remember when my folks bought a “front-of-the-lot special” new 2001 Honda Accord for $14,995 + TTL. The salesman and F&I guy weren’t too happy letting that car go without add-ons. Sticker price was $17,700. That was a minimum commission car for sure.

Which pandemic - CV19 or the ensuing Zoom pandemic?

 

[ARCOgraphite]

VW has some deals going down right now. Here are two at a dealer near me:

 

[sw99]

If you like the car, (ewww VW/jk ) take your evidence to the dealer and tell them you want that price or you're filing with the states AG's office. I get bored and its principle so screw those tarts...