Dealer gouging public on delivered STis before filling pre-orders
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Dealer gouging public on delivered STis before filling pre-orders
Below is a fax I will be sending to all local media in Cincinnati Ohio. Please read through it and see how badly I've gotten screwed.
THEY'RE SELLING THE STi THAT I ORDERED TO THE PUBLIC!!!!
============================================
Subaru of Beechmont sells hot-item pre-order cars OVER MSRP to general public before filling pre-orders UNDER MSRP
A hard headline to believe, once you consider that Subaru of Beechmont is the highest volume Subaru dealer in Ohio or Indiana, but a true story nonetheless. If you are interested in my plight as a pre-order customer of a local car dealership, please read on. If you have received this in error, or are uninterested in a local business passing over pre-order customer to sell to the general public at a $5000 higher price tag, please excuse this intrusion and throw my fax away.
THE CAR:
2004 Subaru Impreza WRX STi Sedan. MSRP is $30,995 + $595 delivery + tax & title. This car is a very high performance sports sedan with 300 HP, 300 ft-lbs of torque, and Subaru trademark All Wheel Drive. This car is very sought-after and dealerships around the country are commonly making $4000 to $7000 over MSRP sales because of the very high demand. More information available here: http://www.usdmsti.com/ and http://impreza.subaru.com
BACKGROUND:
My associate Jason and I both own Subaru WRX Sedans (the predecessor to the car in question). I purchased mine from Subaru of Beechmont (513-474-4313) and Jason purchased his from another local dealer. My WRX was purchased under similar circumstance to the STi, by being pre-ordered over a month in advance and putting money down for it. Jason’s was bought a year later off of dealer inventory and not pre-ordered. Similar to the STi, my pre-order was at a discount under MSRP, but there was no similar trouble as I received one of the first cars delivered and was happily driving it before most other people in the Tri-State area. I had hoped this pre-order would go equally well.
THE PLIGHT:
Over a month ago, on April 23rd, Jason and I negotiated a contract with Mr. Wyler at Jake Sweeney Subaru to purchase two STi sports sedans. This contract came after calling all around town to insure we had the best price, including Subaru of Beechmont. This contract, however, ended up standing for less than a day’s time.
Promptly after hearing that they had been outsold by a local dealer, Subaru of Beechmont quickly offered us both $1500 under MSRP. This was an unheard of deal, since most dealerships were charging thousands OVER MSRP for pre-sales of the vehicle. My salesperson, Jim Gray, was excellent, even going so far as to call me from his cell phone on his way home to tell me the good news about the truly amazing offer. We had successfully secured the best deal that anyone had managed to get on this car (judging by postings on multiple Subaru-enthusiast websites). Actually, it just turns out that we thought that we had the best deal.
After repeated contact with the Sales Manager at Subaru of Beechmont, Jim Morefield, we were at no time advised when our cars were coming in. After speaking to the General Manager, Jerry Alley, Subaru of Beechmont clearly knew of two cars coming in since shortly after the time we ordered the cars. They were under the assumption that these cars were pre-sold to other customers, but we asked if ANY cars were coming in, not just ours. Last Wednesday, May 21st, Jim Morefield still told us that he had no idea how many or when the first allocation of STis would be coming in. They, along with an extra “gift from Subaru of America” car, arrived at the dealership only two days later on May 23rd. Jim had clearly lied to us, and after questioning Jerry Alley, he agreed that Jim would certainly have known well before the 21st. This was the first of many lies that were to come out of our contact with Jim Morefield at Subaru of Beechmont. Clearly, this man was a liar and not to be trusted.
THEY'RE SELLING THE STi THAT I ORDERED TO THE PUBLIC!!!!
============================================
Subaru of Beechmont sells hot-item pre-order cars OVER MSRP to general public before filling pre-orders UNDER MSRP
A hard headline to believe, once you consider that Subaru of Beechmont is the highest volume Subaru dealer in Ohio or Indiana, but a true story nonetheless. If you are interested in my plight as a pre-order customer of a local car dealership, please read on. If you have received this in error, or are uninterested in a local business passing over pre-order customer to sell to the general public at a $5000 higher price tag, please excuse this intrusion and throw my fax away.
THE CAR:
2004 Subaru Impreza WRX STi Sedan. MSRP is $30,995 + $595 delivery + tax & title. This car is a very high performance sports sedan with 300 HP, 300 ft-lbs of torque, and Subaru trademark All Wheel Drive. This car is very sought-after and dealerships around the country are commonly making $4000 to $7000 over MSRP sales because of the very high demand. More information available here: http://www.usdmsti.com/ and http://impreza.subaru.com
BACKGROUND:
My associate Jason and I both own Subaru WRX Sedans (the predecessor to the car in question). I purchased mine from Subaru of Beechmont (513-474-4313) and Jason purchased his from another local dealer. My WRX was purchased under similar circumstance to the STi, by being pre-ordered over a month in advance and putting money down for it. Jason’s was bought a year later off of dealer inventory and not pre-ordered. Similar to the STi, my pre-order was at a discount under MSRP, but there was no similar trouble as I received one of the first cars delivered and was happily driving it before most other people in the Tri-State area. I had hoped this pre-order would go equally well.
THE PLIGHT:
Over a month ago, on April 23rd, Jason and I negotiated a contract with Mr. Wyler at Jake Sweeney Subaru to purchase two STi sports sedans. This contract came after calling all around town to insure we had the best price, including Subaru of Beechmont. This contract, however, ended up standing for less than a day’s time.
Promptly after hearing that they had been outsold by a local dealer, Subaru of Beechmont quickly offered us both $1500 under MSRP. This was an unheard of deal, since most dealerships were charging thousands OVER MSRP for pre-sales of the vehicle. My salesperson, Jim Gray, was excellent, even going so far as to call me from his cell phone on his way home to tell me the good news about the truly amazing offer. We had successfully secured the best deal that anyone had managed to get on this car (judging by postings on multiple Subaru-enthusiast websites). Actually, it just turns out that we thought that we had the best deal.
After repeated contact with the Sales Manager at Subaru of Beechmont, Jim Morefield, we were at no time advised when our cars were coming in. After speaking to the General Manager, Jerry Alley, Subaru of Beechmont clearly knew of two cars coming in since shortly after the time we ordered the cars. They were under the assumption that these cars were pre-sold to other customers, but we asked if ANY cars were coming in, not just ours. Last Wednesday, May 21st, Jim Morefield still told us that he had no idea how many or when the first allocation of STis would be coming in. They, along with an extra “gift from Subaru of America” car, arrived at the dealership only two days later on May 23rd. Jim had clearly lied to us, and after questioning Jerry Alley, he agreed that Jim would certainly have known well before the 21st. This was the first of many lies that were to come out of our contact with Jim Morefield at Subaru of Beechmont. Clearly, this man was a liar and not to be trusted.
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[...continued... stupid message lenght maximum...]
Fast forward a week to today, and you see a very interesting situation. Subaru of Beechmont currently has two shiny, new UNSOLD STis sitting on their lot. One of them is sitting there due to a person backing out on a pre-order and the other is simply an extra “gift from Subaru of America” to the dealership, which they say is different than their standard allocation (thus freeing them from giving it to us under their contract). They refuse to give us either of these cars, even after personally going in and talking to Jerry Alley for over an hour. They have given no reason for not selling us the cars other than the fact that they can sell them outright to the general public for a higher markup than they can sell them to us. In our contract, they purposely left out wording indicating that we would get the “first available” STis, so they contend that since we will eventually get STi (most likely after they can no longer sell them above MSRP) that they are not in breech of contract. They did this simply because they can sell them for thousands over MSRP on the open market rather than letting us have them. To directly quote Jerry Alley, “I could give you the cars today; it would just be costing the dealership $5000”. That is a direct quote, and Jason was witness to it as well. For Subaru of Beechmont, the potential for higher resale value supercedes their commitment to current customers and outstanding signed contracts it would seem.
What’s worse is that they are refusing to refund my deposit. Jerry Alley told me that legally he is not compelled to refund my deposit to me, and that he has no intentions of doing so today. As a compromise, he said that if for any reason he decides not to give us our cars when then next allocation comes in over a month from now, he’ll refund it them. I assume that since he’ll still be able to sell them for MSRP a month from now, that he’ll just refund my money then and sell them outright again. Basically after people have had their STis for over a month, I’ll just be getting my money refunded.
Further, Jerry Alley absolutely REFUSED to give me the phone number or even the name of the owner of the dealership. He said, “Since I haven’t done anything illegal, he will not even take your call.” Again, Jason was witness to this. The only number he would give is 1-800-SUBARU3, which has absolutely nothing to do with complaints or customers service of this kind. We were again turned down when asking for a district or regional contact name and number
MY PLEA:
As I seem to be at the mercy of immoral management of Subaru of Beechmont, I must plea with the media to hear my case. There is nothing I can do to force them to give me one of the cars. Legally, I think I could sue to get my deposit back, but it would cost far more than the $1000 I put down a month ago. I’ve been advised by legal counsel that since it’s not a special order vehicle, they have no right to hold my deposit.
You shouldn’t have to be a lawyer to buy a car in today’s market. You shouldn’t have to know that when pre-ordering, you need to know to put wording in the contract to insure you’re actually getting the first cars as you were promised. You simply shouldn’t have to deal with these types of things when you put $1000 down a month before a car comes out. Why would they take pre-orders if you end up getting your car MONTHS after the general public has the opportunity to buy the same car?
Please run my story, as I feel the consumer out there should know how Subaru of Beechmont treats their customers.
If you have any questions or need clarification, please call me during the day at
[phone number deleted for internet posting]
Scott R. Frost
Fast forward a week to today, and you see a very interesting situation. Subaru of Beechmont currently has two shiny, new UNSOLD STis sitting on their lot. One of them is sitting there due to a person backing out on a pre-order and the other is simply an extra “gift from Subaru of America” to the dealership, which they say is different than their standard allocation (thus freeing them from giving it to us under their contract). They refuse to give us either of these cars, even after personally going in and talking to Jerry Alley for over an hour. They have given no reason for not selling us the cars other than the fact that they can sell them outright to the general public for a higher markup than they can sell them to us. In our contract, they purposely left out wording indicating that we would get the “first available” STis, so they contend that since we will eventually get STi (most likely after they can no longer sell them above MSRP) that they are not in breech of contract. They did this simply because they can sell them for thousands over MSRP on the open market rather than letting us have them. To directly quote Jerry Alley, “I could give you the cars today; it would just be costing the dealership $5000”. That is a direct quote, and Jason was witness to it as well. For Subaru of Beechmont, the potential for higher resale value supercedes their commitment to current customers and outstanding signed contracts it would seem.
What’s worse is that they are refusing to refund my deposit. Jerry Alley told me that legally he is not compelled to refund my deposit to me, and that he has no intentions of doing so today. As a compromise, he said that if for any reason he decides not to give us our cars when then next allocation comes in over a month from now, he’ll refund it them. I assume that since he’ll still be able to sell them for MSRP a month from now, that he’ll just refund my money then and sell them outright again. Basically after people have had their STis for over a month, I’ll just be getting my money refunded.
Further, Jerry Alley absolutely REFUSED to give me the phone number or even the name of the owner of the dealership. He said, “Since I haven’t done anything illegal, he will not even take your call.” Again, Jason was witness to this. The only number he would give is 1-800-SUBARU3, which has absolutely nothing to do with complaints or customers service of this kind. We were again turned down when asking for a district or regional contact name and number
MY PLEA:
As I seem to be at the mercy of immoral management of Subaru of Beechmont, I must plea with the media to hear my case. There is nothing I can do to force them to give me one of the cars. Legally, I think I could sue to get my deposit back, but it would cost far more than the $1000 I put down a month ago. I’ve been advised by legal counsel that since it’s not a special order vehicle, they have no right to hold my deposit.
You shouldn’t have to be a lawyer to buy a car in today’s market. You shouldn’t have to know that when pre-ordering, you need to know to put wording in the contract to insure you’re actually getting the first cars as you were promised. You simply shouldn’t have to deal with these types of things when you put $1000 down a month before a car comes out. Why would they take pre-orders if you end up getting your car MONTHS after the general public has the opportunity to buy the same car?
Please run my story, as I feel the consumer out there should know how Subaru of Beechmont treats their customers.
If you have any questions or need clarification, please call me during the day at
[phone number deleted for internet posting]
Scott R. Frost
Last edited by SKroWL; May 28, 2003 at 07:57 AM.
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Originally posted by Blue-Adept
Find a local TV station that takes on Business Fraud. The local station WZZM13 in Grand Rapids Michigan does these strories that force the business to honor contracts. One station near you may help to put the pressure on the dealer.
Blue
Find a local TV station that takes on Business Fraud. The local station WZZM13 in Grand Rapids Michigan does these strories that force the business to honor contracts. One station near you may help to put the pressure on the dealer.
Blue
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It is unethical and slimey business practices but there is no fraud, they are not in breach of contract.
P.S. you are doing the right thing to get the word out that they are being slimey. Dealers need to know that jerking around good repeat customers like this only hurts them in the long run. Eventually, when they realize they will LOSE more then $5-7k in repeat business they will sacrifice the quick buck for long term prosperity.
Witness Van Bortel Subaru; truly a class-act organization.
I am on the other side of the COUNTRY and will probably end up buying from them.
P.S. you are doing the right thing to get the word out that they are being slimey. Dealers need to know that jerking around good repeat customers like this only hurts them in the long run. Eventually, when they realize they will LOSE more then $5-7k in repeat business they will sacrifice the quick buck for long term prosperity.
Witness Van Bortel Subaru; truly a class-act organization.
I am on the other side of the COUNTRY and will probably end up buying from them.
Guest
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Good to hear you at least get your deposit back if you want it.
It's too bad that the TV stations are probably at the mercy of the dealers because they advertise so much. By running a story like yours, the TV station is biting the hand that feeds it.
So much for journalistic integrity...
It's too bad that the TV stations are probably at the mercy of the dealers because they advertise so much. By running a story like yours, the TV station is biting the hand that feeds it.
So much for journalistic integrity...
Guest
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Your mom never told you if it sounds too good to be true it probably is... well it was.. thats all. Dont cry about it. you are the consumer just take your business elsewhere. And guess what you are going to have to pay or you are going to have to wait.. thats all there is too it.... Back in 1997 the SLK and ML320 were hot hot mercedes vehicles. What the dealer I worked at did was took deposits, saw who was on the lists.. checked their names against previous owner service customers.. and who ever had spent the most money in service got their car first.. So if they knew you serviced your car there and spent big bucks then you weer first... if you serviced it elsewhere or had never owned a benz.. you went to the bottom of the list.. made tons of business sense and the people never knew.
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Jason immediately took his deposit check and went up to Stacey Wyler at Jake Sweeney (513.489.5253) and picked up an STi off of their lot for MSRP.
Since Jason had ordered Black/Silver, that's likely to be what their next STi in is. If you're interested please give Stacey a call and mention that you read it here on the forums. Straight MSRP, no BS, no run-arounds like Subaru of Beechmont.
I get the first blue/silver/no options that comes in to Jake Sweeney, but if you want to get your order in do it up now! As one of the few dealerships in town selling at MSRP, it's going to fill up F A S T.
Since Jason had ordered Black/Silver, that's likely to be what their next STi in is. If you're interested please give Stacey a call and mention that you read it here on the forums. Straight MSRP, no BS, no run-arounds like Subaru of Beechmont.
I get the first blue/silver/no options that comes in to Jake Sweeney, but if you want to get your order in do it up now! As one of the few dealerships in town selling at MSRP, it's going to fill up F A S T.
Guest
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Thanks for the information. I sent of a nasty e-mail to that dealership from their website about how I won't be buying an STi from them, nor any other car. Sad part was that if they had got it for you for $1500 under MSRP they would have had 20 or 30 more people lining up outside their door to get one.
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Joined: Jan 2003
Posts: 58
From: Pembroke Pines, FL
Car Info: 2004 Platinum Silver WRX
I hope it works out for you it. Those guys sound like some really underhanded scum bags, especially when they try and take advantage of "technicalities" and "loopholes" to try and get around what they promised you.
This is the perfect example as to why I NEVER give cash or a check as a deposit. I ALWAYS use my credit card so that if the dealer for whatever reason decides to pull something like this or any other underhanded stunts and refuses to give me my money back, I simply contact my credit card company, explain the situation and have them take it up with the dealership while I get my money credited back to me.
Also, I refuse to sign any contract prior to delivery of the car unless it specifically states that my deposit is refundable so as not to give them any legal recourse for having my credit card company reimburse me.
It's the shady dealers like that one that give the good ones a bad name!
This is the perfect example as to why I NEVER give cash or a check as a deposit. I ALWAYS use my credit card so that if the dealer for whatever reason decides to pull something like this or any other underhanded stunts and refuses to give me my money back, I simply contact my credit card company, explain the situation and have them take it up with the dealership while I get my money credited back to me.
Also, I refuse to sign any contract prior to delivery of the car unless it specifically states that my deposit is refundable so as not to give them any legal recourse for having my credit card company reimburse me.
It's the shady dealers like that one that give the good ones a bad name!
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