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Is this shady of a dealership

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Regular Contributor

Is this shady of a dealership

So I have a buddy that recently purchased a new Kia and really enjoyed the experience he had at the dealership. So I went there to work out a deal on a new Telluride (awesome SUV).  We work on the numbers, going back and forth and I ask about a rebate I see on the KIA website for 1000.00 that I qualify for based on my trade.  They said, no, KIA isn't doing that one anymore, the trucks are selling to good for rebates.  So we continue on with the deal.. finally get to the numbers I wanted for the OTD including my negative equity in my current SUV.  Handshake and go to financing.  Signing the paperwork, I noticed that the "Unit Price" is 2500.00 More than the MSRP price and that listed under that is " MFG Rebate: 2,500.00".. Sales price, 33, 055, which was the Original MSRP.  So I ask, thought they weren't doing rebates, "they're not, its just an accounting method".  I get up and walk way.  So i call my friend and sure enough, they did the same thing to him but he didn't catch it and it was a smaller amount of rebate.   Does he have any recourse or is it a done deal since he signed the contract.  Seems to me, they are just keeping the MFG rebates for themselves and not giving them to the customers as intended.  I did end up buying the Telluride from another dealership the next night,  they did give me the 1000.00 rebate. Funny thing is the OTD Price between the two places was less than 500.00. 

Message 1 of 6
Valued Contributor

Re: Is this shady of a dealership

The answer to is this a shady dealership is pretty much always yes unfortunately.  Your freind has no recourse, once he signed the deal its a binding contract.


On your deal because they were dealing with negative equity it is not unusal to see them put together all kinds of math magic to make the finance companies happy and to ensure they cloud the deal so they can maximize profit for themselves.  

Message 2 of 6
Regular Contributor

Re: Is this shady of a dealership

  • you don’t understand..first the rebate probably paid off your negative equity and second they can’t show negative numbers on a sales contract to a lender.. it may have been dealer cash they are sharing w you but they show it as a rebate to pay off your trade. were you $2500 upside down?
Message 3 of 6
Established Contributor

Re: Is this shady of a dealership

I had a similar experience at Mazda. I researched all of the incentives prior to shopping for the car I wanted. I also negotiated the price & discount with several dealererships before incentives (I stated this explicitly) via email. One offered me the price I wanted, so I went in. They gave me the price sheet with their initial discount offer, and other itemized costs and discounts, but incentives were at $0. So I pointed out that they forgot the incentives. They tried to tell me that they lumped all the discounts together, so I called them out and I showed them the email where they confirmed the incentives would be extra. They apologized for the "mistake" and gave me the full discount they promised, PLUS my $2,500 off in incentives. If they hadn't, I would have walked, as I had already made a backup appointment at another dealer.

October 2019:

Message 4 of 6
Regular Contributor

Re: Is this shady of a dealership

Yes, I was more than 2500 upside down.  But that doesn't doesnt make sense to add 2500 to the MSRP before anything else is done.  They should havve started at MSRP and worked from there,  they were going to roll the same amount of neg equity into the loan regardless.  And even if they were doing what you suggest, they should have explained it better and been up front about it and the dealership I actually bought from didn't do that at all and like I said, the price I paid for the Truck and the one they offered was less than 500 difference so there was no need to do the shady stuff they did.  

Message 5 of 6
Regular Contributor

Re: Is this shady of a dealership

Unfortunately once you sign the contract it’s a done deal.


Dealers do this to scoop the rebate from you, but in this scenario they stacked the rebates to cover up the negative equity in your vehicle. 

You would’ve ended up paying full MSRP for the vehicle if you signed.

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