Don't Get Mad, Get Even

Alternate title: Don't fuck with a motorhead in sales.

Here's the text of the e-mail I sent to the sales manager at the Toyota dealership:

Thank you for the courtesy of a follow-up e-mail. There is actually something that you can do for us. You can register our disappointment with our sales experience at Jaffarian Volvo-Toyota.

We came to Jaffarian with the intent of buying a new Toyota Tundra pickup truck. We had researched this exciting new vehicle online, learning about its re-designed body and new and more powerful 5.7L V8 engine, and were interested in test-driving it. I was a little apprehensive about this truck, as it is the first year of the re-design, and if there are any design quirks, they become apparent in the first model year. On Saturday, March 17th we met with A*., your “Truck Specialist”, who walked us through the introductory material for the new Tundra and took us for the test drive. He was very knowledgeable about the new truck and also about the competition, and was eager to assist us.

Once we had completed the test drive, we sat down to talk price. I had configured the Tundra we liked through both the Toyota.com website and also through Edmunds.com, and the truck we discussed was extremely close to what we had configured. The only option this truck had that we had not configured was the “Option B” plan available on the Toyota web site, which includes the in-dash 6-CD changer. This is listed as a $735 option. We had no interest in the 6-CD changer, but were told that we could get the best deal on a truck on the lot rather than one that was ordered.

So we sat down with A. to talk payments. We had discussed our budget before going into the dealership, and had agreed that $400 a month was the most that we could afford to spend. We had a 2001 Dodge Durango Sport 4X4 with low mileage (58,000 miles) as a trade-in, which Kelly Blue Book lists as being worth $7,500 in “good” condition. A. worked through the financing, and even consulted with J. the sales manager, and they both assured us that our payment figure of $400 a month was realistic (with a 72-month payment plan). We walked out of Jaffarian ecstatic – we were going to be able to get the Toyota Tundra that we wanted.

Imagine our surprise, then, when we came back the next day to discover that our figure was, in fact, not realistic. We sat down with J. (the sales manager who talked to us the day before), who prepared the numbers and showed us that our monthly payment over 60 months would be $557 a month. He then brought back a “revised” figure for a 72 month loan that had a monthly payment of $459 a month. That is 15% higher than our budget allowed, and nowhere near the $400 a month J. and A. told us was “realistic” and “doable” the day before. Our trade-in, which A. had valued at $7,500 on Saturday, was now valued at $5,000 (adjusted to $5,500 final).

Running the numbers through a bank loan calculator, the total amount we would be financing over 60 months to achieve a monthly payment of $557 a month (assuming an interest rate of 7%) turns out to be a little over $28,000. For the 72 month term with a monthly payment of $459, the amount financed is $27,000. MSRP on the Tundra according to Toyota.com is $31,805. Edmunds.com lists the MSRP as $31,895. Even with the “Option B” added, the total is $32,500 for MSRP. Interestingly enough, that’s exactly the right figure to yield $27,000 (minus $5,500 for the trade) that, financed over 72 months at 7% interest, gave the monthly payment of $459 that was over our budget.

Jaffarian was not willing to budge from this figure. They wanted us to pay full MSRP for the Tundra and also to accept $2,000 below book value for our trade. They chose to let us walk out of the dealership rather than slightly reduce their profit margin or offer fair market value for our trade. It would not have taken much extra to sway us; in fact, we offered that we could increase our monthly payment to $425 to make things work. We even provided ads showing two different competitors’ models and prices as evidence that there were trucks out there in our price range.

And this was not good enough. Jaffarian was not willing to work with us in the least. They let us walk out the door without dropping the price a single penny. They wouldn’t consider giving us blue book value for our low-mileage trade-in; nor would they lower the price of the Tundra, even though Jaffarian’s own web site lists the “Invoice Price” as $30,400. In fact, they used the old canard that if they lowered the price any more, they wouldn’t be making any money on the truck. Considering that Edmunds.com lists the average Invoice Price at $28,900, if Jaffarian is paying Toyota $30,400 for a Tundra, they need to re-evaluate their business model.

Jaffarian has lost not only this sale (we bought a new Dodge Ram 1500 with more features for $7,000 less), but they have lost any future business from our family. My wife and I are extremely dissatisfied with how we were treated by Jaffarian, and feel that we were initially misled as to what we could afford. Jaffarian’s unwillingness to work with us to sell us a truck will be the only thing on our minds should anyone ask our opinion of the dealership. A. called me the next morning to offer some ideas (including an 84 month loan, which was completely out of the question), then told me he would “get right back to me” with more ideas. That was 9:30 AM Monday morning. It’s Thursday evening and I haven’t heard back.

In closing, it’s easy to see why Toyota’s light trucks only represent 10-12% of the total light truck market. While they’re well-built, reliable vehicles, the dealers that sell them insist on absolute top-dollar for them and are completely unwilling to work with their customers to suit their customers’ needs. I will not deal with Toyota Motor Sales again, and will caution any who seek my counsel as to the poor treatment I received from one of their dealers. A copy of this letter has been sent to the Toyota Customer Experience Center.

*Names have been truncated so I don't get sued... I suppose I should do the same with the dealership... But I won't.

Perhaps I'm being too harsh. Maybe I should have let them ass-rape me on the price simply because they're Toyota. Or maybe they can shove their over-priced rice burners up their asses... Either way, I've got a shiny new Dodge Ram 1500 in my garage (barely) that's got a 345 HP Hemi V8 under the hood, 3.92 rear axle with 8,500 pound towing capacity, all for $60 a month less than the Toyota (and 12 months fewer payments). The Dodge probably won't last as long as the Toyota. But for a final price of $9,000 less, I'm waaaay ahead of the game.

(And no, there's no truth to the rumor that the e-mail actually ended with "or brake if I see you crossing the street." Simpsons fans will get the reference...)