4 years ago
Don't buy a car here until they change their polic...
Don't buy a car here until they change their policies. The current policies are disingenuous, deceitful, and injurious to the uninformed buyer!
Okay, so that was pretty direct. How do I get there? Let me explain. Google won't let me write as much as I would like, but here are the highlights:
My mother asked me to go with her to help buy her new Lexus RX450H which she ordered a few months ago. She is single and will be 70 this year, so I'm always happy to help. It should be noted that this was to be my mother's 6th Lexus since 1999 (only cars she's owned during that time), so she's a very loyal customer and has never had a single issue buying any of them (I've been there for each one as well).
Here are the three main issues we had:
1) The saleswoman told my mom I didn't need to be there because they were "no haggle." Not bad by itself, but a huge red flag when taken into account with the other issues. I've work in the automotive industry and I've personally bought several vehicles from "no haggle" dealerships and all sales have been great. Thus, why she asked.
2) The dealership demanded that, despite my mother being completely approved for financing (all docs signed, etc.) from USAA, they wanted to run her credit because:
a. It is their "company policy" since "this is a $60k car" and
b. The finance manager said it was "federal law," but couldn't tell me which law (The federal law that the finance manager was likely referring to, albeit confused about, comes from the Consumer Financial Protection Bureau of the FDIC which requires that the LENDER make disclosures to the APPLICANT. My mom wasn't borrowing money from them or their affiliates, so this law doesn't apply). The finance manager than just said, "Well it won't hurt your credit that much and it's our policy, do what you want."
I don't know what the reason behind this policy is, but regardless, it's not a good one. I can only assume they get finance kickbacks or have been ripped off by a customer.
3) This is the worst issue. When valuing my mom's trade in value, the saleswoman shows us the price that Kelly Blue Book would pay as part of their car buying service (Instant Cash Offer) where they make an offer sight unseen. This was $6k to $9k less than the actual trade-in value of the car which is consistent to what KBB even says about it. When we asked about this, we were told, "This is just our policy to show you this offer FIRST," even though the saleswoman admitted it wasn't the actual trade-in value according to KBB after I pressed her on the issue. If this is truly a store policy, it's DECEITFUL. It was clear she wanted my mom to take KBB Instant Cash Offer value which would have netted them about $12k assuming that the car would have sold for the same as another 450h they had on their lot with MORE miles. They came back with another value at $40k because there was a new recall on my mom's car, but at least they could explain that one a little easier (although the price was probably a bit too far below actual KBB trade-in to be considered reasonable).
Needless to say, we left. The sales manager called a few days later, said that he was returning my mom's deposit because the ordered RX sold fast (he'd actually be required to return it anyway), and that he was disappointed that there was no sale because the saleswoman worked so hard on it. Nothing else. No other apology. No, "We'd still like to earn your business." or "What could we do differently?" Nothing.
Clearly Kuni has forgotten this is a customer-based business. They'll remember at some point, like when the customers go elsewhere.
So why after all this do they get 3 stars, they have a great service department and the sale two years ago (under different company policies) was smooth as butter. Without the service department and the previous sale, this would have been a "1 Star" review. They only get a 1.8 on Edmunds for a reason. Today, if you're buying a Lexus in Denver, go to Stevenson.