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Rebates, Incentives, APRs - Questions & Comments

4048 messages,  Last post on Feb 06, 2012 at 9:13 AM

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What is this discussion about? Car Financing

Messages Page 402 of 405

#4008 of 4048 Suburu Financing by ollie126

Sep 12, 2010 (12:40 pm)

Does anyone know if Suburu is doing any financing deals beyond 36 mos?

#4009 of 4048 Honda Finance Bait and Switch? by 0101000082

Oct 19, 2010 (6:30 pm)

I am in the marker for a new car and was looking at a 2010 Honda model that qualifies for 1.9% APR. The dealer ran my credit and Honda Financial Services classified me in a credit tier" that qualifies for the promotion, but the dealer wouldn't honor it saying that the best he could do is 3.74%
 
I know dealers often tack on interest rate rates from loans, but this one is advertised nationally by Honda Financial Services for qualified buyers, which by their own accreditation I am.
 
To me this seems to have crossed the line from hard negotiation into "bait and switch". Anyone else had any similar experience and/or advice.

#4010 of 4048 Re: Honda Finance Bait and Switch? [0101000082] by jipster

Oct 20, 2010 (9:01 am)

Replying to: 0101000082 (Oct 19, 2010 6:30 pm)
Maybe you were at the low end of that "tier"? I'd try another Honda dealership.

#4011 of 4048 Re: Honda Finance Bait and Switch? [jipster] by 0101000082

Oct 20, 2010 (10:11 am)

Replying to: jipster (Oct 20, 2010 9:01 am)
Even if I were at the low end of Super Preferred, that would put me squarely in preferred which also qualifies for the promo...
 
What concerns me the most is that neither Honda Financial or Honda Corporate customer service is willing to do anything... not even issue an apology. If the issue were just a bad dealer, I'd just go to a different one, but I have spoken to 3 different "customer service" representatives at Honda, and they don't even feign concern. They insist that I have to take up the problem with the dealer, despite the fact that the offer is from Honda Financial.
 
I wonder how often dealers add APR points onto loans for people who qualify for nationally advertised promo rates... There is clearly an institutionalized denial of responsibility when this happens, which gives great cover for dealers and thereby generates risk free opportunity for them.

#4012 of 4048 Re: Honda Finance Bait and Switch? [0101000082] by jwilliams2

Oct 20, 2010 (10:26 am)

Replying to: 0101000082 (Oct 20, 2010 10:11 am)
Honda usually states in the fine print that "Not all Honda automobile dealers participate in these programs." Perhaps this is one who doesn't participate.
 
I'm not sure what Honda can do to an independently owned dealer, although you have to wonder how long any dealer can stay in business this way. They must lose lots of sales by not being competitive.
 
I would simply find a dealer who will honor the program.

#4013 of 4048 Re: Honda Finance Bait and Switch? [0101000082] by jipster

Oct 20, 2010 (10:26 am)

Replying to: 0101000082 (Oct 20, 2010 10:11 am)
They insist that I have to take up the problem with the dealer, despite the fact that the offer is from Honda Financial.
 
Maybe someone else can chime in here, but I don't understand why the dealership wouldn't let you buy the car at 1.9%... it's not their money. Maybe the dealership has some type of restrictions on how many low interest car loans they can sell per month... who knows. Or maybe they are just trying to get more money out of you. Dealerships are independently owned and have flexibility in how they manage their loans. I would still try another Honda dealership though, as this does sound more like a dealership issue than a Honda Financial. Though why Honda Corporate doesn't do more is also puzzling.

#4014 of 4048 Re: Honda Finance Bait and Switch? [jwilliams2] by jipster

Oct 20, 2010 (10:31 am)

Replying to: jwilliams2 (Oct 20, 2010 10:26 am)
Honda usually states in the fine print that "Not all Honda automobile dealers participate in these programs." Perhaps this is one who doesn't participate.
 
Yeah, this dealership is hoping 01010000082 will take the 3.74% loan. If they say, "Sorry we don't participate in the 1.9% financing program", then they know he'll buy elsewhere.

#4015 of 4048 Re: Honda Finance Bait and Switch? [jipster] by 0101000082

Oct 20, 2010 (11:13 am)

Replying to: jipster (Oct 20, 2010 10:31 am)
This dealer participates. They advertise it all over their website.
 
Maybe I'm reading too much into this, but my worry is that Honda Corporate is intentionally turning a blind eye to this dealer tactic, which is either in violation of truth in advertising laws or (if their legal department is good) as close to it as legally possible.
 
Given the relative price transparency that the internet provides, taking a cut of elevated interest rates is probably one of the few remaining safe-havens for dealer profit, and it's an easy and free way for Honda to keep their dealers happy.
 
Still it rubs me the wrong way... particularly the lack of response from Customer Service. They at least supposed to pretend to be concerned in these situations.

#4016 of 4048 Re: Honda Finance Bait and Switch? [0101000082] by tallman1

Oct 20, 2010 (6:09 pm)

Replying to: 0101000082 (Oct 20, 2010 11:13 am)
This dealer participates. They advertise it all over their website.
 
Okay, that just doesn't make sense. If what you are saying is true, contact your state's attorney general.
 
Do you have a local TV station that takes on consumer issues?
 
There has to more to this story.

#4017 of 4048 Dealer says 'holdback not a guarantee' by kirama

Nov 01, 2010 (11:31 pm)

I contacted a local dealer who participates in truecar, but they never have prices listed, on the list of dealers it simply says 'contact this dealer for your price'..so, I did. And I asked him for his price. It came in almost 1k higher than the other two dealers listed on the site. I asked him to explain and he said 'here is how we calculate it' we deduct dealer incentives from the invoice price and add back $600. I showed him what the holdback was and he said 'we can't give you a discount based on that since holdbacks are not guaranteed' and he went into some elaborate explanation as to how they only get the holdback if they sell x # of cars in a given period. None of that makes sense to me. Is there any validity to what he is saying? It was clear from the pricing offered by the other two truecar dealers they were taking the holdback into account.

Messages Page 402 of 405

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