How To Avoid Car Dealer Rip-Offs & Scams - How to Buy a New Car, Used Car, Car Leasing, Car Financing, Auto Warranties & More! - Spilling the Beans on the Car Dealers!
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You Won't Believe What This Car Dealer Tried to Pull on This Woman! Just Unbelievable! This is One Pathetic Car Dealer!

Hello Tony,

I've read through many pages on your website looking for any reference to what I encountered tonight. I'm madder than a hornet and intend to pursue my experience with the appropriate state agencies. Below is my story.

I currently drive a Mazda RX-8 (FIRST mistake in this ordeal). With 20,000 miles on the car, the clutch goes out. Now, mind you, I'm a 52 year old woman who has driven manual transmissions for over 35 years and who doesn't go out "hot-rodding" on Saturday nights! After finding out that Mazda wouldn't replace the clutch (normal wear and tear and/or abuse), I decided to dump the thing and began looking for a late model Chevy Corvette. Within a day or two, I found the perfect car on a large, new car dealership's lot here in Las Vegas; it was exactly what I wanted. It was a little pricey: $31,995; but I really wanted out from under the Mazda so I decided to see what kind of a deal I could make.

It was at this point that I found out the bottom had dropped out of the RX-8's value because Mazda wasn't standing behind the model on many levels. Instead of being offered in the neighborhood of $19,000 (the value I thought the car would bring given its condition and mileage), I was offered $14,000 which put me upside down in my loan. I drove away in my Mazda.

Over the next 4 months, I watch the price drop on the Corvette. Further, I'd been making double monthly payments on the Mazda in order to be closer to even if I could make a deal. Tonight, I walked back into the dealership. Corvette's price: $26,588 … $29,000 and change with sales tax, doc fees, etc. I've done my research on the Corvette; confirmed the VIN; and pulled a Carfax on it which I paid for myself - Simply so I could intelligently and confidently negotiate a deal.

I despise dealing with car salespeople but we all have to at some time or another. What I neglected to do, however, was to obtain a auto loan on my own. I had worked the numbers beforehand and knew I wanted to finance about $19,000. Knowing my current payoff on the Mazda, I knew I'd have to come up with about $2,000 cash.

I refused to sign any paperwork … anything … until I knew the deal could be financed so the salesman goes to see the Finance Manager. After about 45 minutes he finally returns and states "he tried everything; he can get $18,900 financed, but you need to put $5,300 down!" I calmly sat there and asked "why the large increase in the down payment?" while I pulled my calculations out of my purse. After letting him stutter and stammer for a couple of minutes, I laid the paper down in front on him and explained my figures. I then asked him to get me an explanation for the extra $3,300.

Now, I may look blonde, but it's actually white hair - and I've earned everyone of them! And here is where it gets good. I'm told the $3,300 is the fee the BANK is charging to process the loan! I already knew that dealerships routinely receive fees from financial institutions; but they don't pay them! To say I was livid is putting it mildly. He went on to explain that they "normally eat the bank fee" but since the price on the car is so low, they simply can't on this one.

In the middle of a crowded showroom and in a very unprofessional way, I let the poor salesman know exactly how I felt: "The car is priced on the internet and in the paper at $26,588 - not $26,588 and bank fees! Further, I've purchased many cars during my lifetime and have never been made to feel like my money isn't as good as the next persons! I don't like being lied to and I want to speak to the General Manager." Of course, I was told I couldn't!

And with that, I turned around and began to walk out but not before I got in one more remark: "I've never been treated so unethically by anyone in my life and if this is the way you treat prospective customers, then I am glad I'm no longer one of them!"

After returning home and calming down a bit, I think I've figured out what may be going on. The $3,300 added to the current price of the vehicle is very close to what the price was when I initially looked at the car. And, what financial institution would charge a fee to process a loan when they're going to be receiving all the interest on the financed amount over the term of the loan? Regardless of whatever the reason, this simply is not a good way to do business.

Have you ever heard of a dealership charging the customer a fee for the bank processing the loan?

Thanks for letting me vent!

Not Lucky in Vegas!

My Response:


There's no such thing as a "processing fee" for the privilege of getting a car loan! What an absurd way to try to get additional profit out of you. This is just a flat out rip-off! These idiots must have figured you were an easy mark!

"They normally eat the bank fee!" Ha! That's a good one! That's so pathetic it's laughable!! I'm embarrassed for the salesman!

The best thing that could have happened is for you not to have bought a car from these turkeys! These people are shameless losers! You're much better off without them. Who knows what else they would have lied to you about.

You should contact the owner of the dealership and raise hell. You should also file a complaint with the Better Business Bureau. Let them know that they can't get away with this kind of crap!

All my very best to you . . .

Tony Iorio

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