New Car Rebates Scams

[Sierra048]

I hope this is the right forum. Just need to vent.

Background: My son and daughter-in-law just lost a car in the Atlanta snow/ice storms a few back. Since I'm retired, and they both are extremely busy, they told me what they were interested in, and I started contacting multiple local dealers to get an idea what kind of pricing they could expect.

My beef: Toyota offers a college grad $750 rebate, assuming you graduated from an accredited college within the past two years, or are gong to graduate within the next six months. My son qualifies in both instances since he gets his masters in April and got his Bachelors a year and a half ago. These are the only posted requirements to receive the rebate that I could find. So my son and daughter-in-law go to purchase their vehicle and they are denied this rebate because they claimed their credit score was not as good as it should have been due to a short sale on a home due to the housing mess several years back. Ironically, his credit wasn't bad enough that he didn't qualify for the Toyota low interest financing. Given this rebate program, what the in the world does a credit score have to do with it? I've never had a soft spot in my heart for new car dealerships and this just reinforces my distrust in them. And I think these types of rebates and incentives turn out to be more of a scam than anything else. For crying out loud, Toyota even has a loyal customer discount program (they already own one Toyota they bought new) they wouldn't consider them for. For what good it's worth, I shot an e-mail to the sales manager of the dealership they purchased their car from Thursday evening voicing my extreme displeasure at this scam. They were very accommodating before the sale and always were quick with a response; after the sale and in response to my e-mail, not so much. I'm the one who steered my son and dil to this dealership based on the correspondences I had with them, especially after they told me the graduate rebate would be given.

Just curious, has anybody ever had any luck using any of these programs? Thanks for letting me vent.

 

[sir1900]

Try another dealership and see what they say or go to the Toyota website and read the fine print.

 

[Tdbo]

If you have researched it to the point that there is no mice type stating that this rebate is tied to credit score, or you can't commingle offers, your next e-mail needs to be to the Georgia Attorney General's consumer protection office.

 

[The_Jeff]

They should prequalify for a loan through their bank/ credit union then go in the the proverbial "check in hand".

Also find out if the "toyota rebate" is through Toyota of North America or your regional distributor.

 

[mrsilv04]

So, did they buy the car anyway?

Because of the weather in that area, demand is likely high for vehicles, so some dealers will try pulling stunts like this.

I refuse to even set foot on my local Toyota dealers' lot.

 

[spackard]

> what the in the world does a credit score have to do with it?

On their website, in very large letters:
$750 rebate on select new Toyota models when you finance or lease through a Toyota dealer and Toyota Financial Services (TFS).

So, there are two qualifications that I see, in 5 seconds of trying.

http://www.toyotafinancial.com/static/college/CollegeGradLanding.html?referrer=TFS_CG_College_Grad

The fine print:

* Toyota Financial Services College Graduate Program is available on approved credit through participating Toyota dealer and Toyota Financial Services. Not all applicants will qualify. Rebate offered by Toyota Motor Sales, U.S.A., Inc. On lease contracts, rebates must be applied toward the Amount Due at Lease Signing or toward the Capitalized Cost Reduction. On finance contracts, rebates must be applied toward the Down Payment. One rebate per finance transaction. Not compatible with the Toyota Military Rebate Program. Rebate available on contracts executed through March 31, 2014. Only available on select new untitled Toyota Camry (excludes Hybrid model), Corolla, Matrix, Prius c, RAV4, Tacoma or Yaris. College Graduate Program is subject to change or termination at any time. Some restrictions apply. Program may not be available in all states. On eligible finance contracts with terms up to 60 months, first payment may be deferred for first 90 days on eligible new Toyota vehicles; finance charges accrue from contract date. Deferred payment not available in Pennsylvania or in connection with the preferred option financial plan.

 

[cpayne5]

I got the college graduate discount when I purchased my 4Runner new 9 years ago. The rebate was lower back then (I think), but they never mentioned any credit score requirement.

 

[The_Jeff]

^ Well there you go, "on approved credit."

What a rip-off.

This reminds me in a way of Target not carrying many "fat girl" clothes. Pretty soon the shoppers aren't fat anymore.

Toyota doesn't want "poor credit" customers because in their minds those poor credit customers won't take care of their cars, hurt their resale value, and brand image.

They do want "college grads" because in their minds the grads will be successful stewards of their mediocre vehicles.

There, off my soapbox.

 

[Doog]

I have purchased 5 Toyotas on all kinds of special financing and rebates. Never a problem. But my credit score is over 800 so I don't get a second look when financing. BTW, I always get my own financing from Chase or Bank America and then make the dealer beat it. They always do.

 

[Doog]

Originally Posted By: eljefino
^ Well there you go, "on approved credit."

What a rip-off.

This reminds me in a way of Target not carrying many "fat girl" clothes. Pretty soon the shoppers aren't fat anymore.

Toyota doesn't want "poor credit" customers because in their minds those poor credit customers won't take care of their cars, hurt their resale value, and brand image.

They do want "college grads" because in their minds the grads will be successful stewards of their mediocre vehicles.

There, off my soapbox.

Which successful business is preferring to loan money to people with poor credit? And what does this have to do with Target and fat people? And yes, college grads usually earn more money in their lifetime and statistically pay their bills and purchase more vehicles. So this is a "rip off" LOL

I guess if someone is an uneducated fat slob with poor credit it must seem like it.

 

[otis24]

Never have I heard of a rebate being tied to credit score. I was in car sales for seven years. In many cases, we want a customer with bad credit to qualify for as many rebates as possible. It sounds like the dealer "scooped" the rebate (i.e., kept it for themselves as part of the deal).

I would call Toyota customer service. There should be a number in the owner's manual. An inquiry could trigger an audit of the dealer by Toyota, which the dealer does not want.

When/if you get a customer survey, report the problem there as well.

 

[sir1900]

Originally Posted By: eljefino
^ Well there you go, "on approved credit."

What a rip-off.

This reminds me in a way of Target not carrying many "fat girl" clothes. Pretty soon the shoppers aren't fat anymore.

Toyota doesn't want "poor credit" customers because in their minds those poor credit customers won't take care of their cars, hurt their resale value, and brand image.

They do want "college grads" because in their minds the grads will be successful stewards of their mediocre vehicles.

There, off my soapbox.

OP says his son qualified for the low rate financing from Toyota, but not the rebate. As far as I am concerned, he should've been approved for the rebate by virtue of being approved for financing.

 

[otis24]

Just an FYI, there are certain rebates that you can get, but in many instances, if you take one, you can't take the other. For instance, they may offer $1500 customer cash. If you take that you can't get the $500 military discount.

However, if they are saying it because of credit score, the dealer probably kept the rebate. I would continue to inquire on this.

 

[Doog]

Originally Posted By: otis24
Never have I heard of a rebate being tied to credit score. I was in car sales for seven years. In many cases, we want a customer with bad credit to qualify for as many rebates as possible. It sounds like the dealer "scooped" the rebate (i.e., kept it for themselves as part of the deal).

I would call Toyota customer service. There should be a number in the owner's manual. An inquiry could trigger an audit of the dealer by Toyota, which the dealer does not want.

When/if you get a customer survey, report the problem there as well.


TFS doesn't want people with poor credit ratings. They will consistently reject and push them to outside financing. But once you are approved you get all kinds of benefits. You are probably comparing a "Big 3" auto dealer mentality to Toyota. Which doesn't compute.

 

[Doog]

Call Toyota corporate...they will respond.

1 (800) 331-4331

 

[The_Jeff]

Originally Posted By: Doog
Originally Posted By: eljefino
^ Well there you go, "on approved credit."

What a rip-off.

This reminds me in a way of Target not carrying many "fat girl" clothes. Pretty soon the shoppers aren't fat anymore.

Toyota doesn't want "poor credit" customers because in their minds those poor credit customers won't take care of their cars, hurt their resale value, and brand image.

They do want "college grads" because in their minds the grads will be successful stewards of their mediocre vehicles.

There, off my soapbox.

Which successful business is preferring to loan money to people with poor credit? And what does this have to do with Target and fat people? And yes, college grads usually earn more money in their lifetime and statistically pay their bills and purchase more vehicles. So this is a "rip off" LOL

I guess if someone is an uneducated fat slob with poor credit it must seem like it.


IDK, the shoppers in Targets around me are more attractive than those in Walmart. My point is that the marketing people know what sort of people they want to attract to be their brand ambassadors, and will subtly push to get those people. If they don't carry clothes that fit, it's a subtle push that they aren't the end-all, be-all store for the un-targeted demo.

Toyota doesn't care if you managed a BA in Art History. They do want you to take care of your car and appear smart to your friends, family, and co-workers for buying a new one vs a Honda or Mitsubishi. So they're throwing extra money at a sliver of the population, calling it for college grads. The fine print explains what they really mean. For all we know they could be trying to exclude minorities... marketing gets all the psychiatrists in and are privately quite devious.

There's already a punishment for poor credit, it's called a higher interest rate. This college grad thing is just an extra push. They have to find ways to dangle incentives that seem unique and special to a particular buyer. It also doesn't hurt that college grads are young and Toyota hopes to get some brand loyalty going.

 

[KrisZ]

From what I gather from the OP they purchased the car from that dealer. If that's the case, your beef should be with your son and DIL for not walking away and going to another dealer.
By purchasing the car and complaining later on about something you did not get, you're just reinforcing dealer's strategy as the correct one.

 

[The_Jeff]

does this happen a lot, a parent guides a 20-something through buying a car? The parent doesn't have the time to go in with the kids, but lets the dealer know there's another party monitoring the deal.

Is that tipping more cards before the sale than helping the deal?

Is the dealer pretty good at sniffing out who's in charge? What if a husband/wife go in to buy a car and one is enthusiastic and the other isn't, will the dealer work that one over? Did the dealer sniff out the kids as "rubes" and get them to sign that day without "daddy interfering"?

 

[dparm]

Originally Posted By: KrisZ
From what I gather from the OP they purchased the car from that dealer. If that's the case, your beef should be with your son and DIL for not walking away and going to another dealer.
By purchasing the car and complaining later on about something you did not get, you're just reinforcing dealer's strategy as the correct one.


Bingo. This is not a scam at all. You have to read the fine print.

 

[Sierra048]

Unfortunately, since my son had to turn the rental car furnished by the insurance company, he felt he had to get something done that night in order to get to work the next day; they let him drive it home that night. I wasn't there. I didn't make the deal for them at all. That was all on them. I just tried to help them out by doing some preliminary fact finding to hopefully make it easier on them. It's certainly not how I buy a vehicle. I usually have four or five dealers working on a deal for me, let them know it, and tell them the best deal for me will get my business. I will admit that I didn't see that full explanation on the college program rebate. I saw an abbreviated version that didn't mention most of that. Definitely calls for more due diligence the next time. With that said, I still can't fathom what a credit score/rating should have to do with a college graduate rebate program like this, which again, is the reason they claimed he was denied. Had I been there, you can bet I would have suggested they shop several other dealers. Honestly, this forum was an avenue that allowed me to vent and I've doe that now. My son and daughter-in-law have bought the car, so they can deal with it going forward. Thanks for all the input.