I'm in the market for a new car.

Up until recently I leased my cars because I would get a greater write off at tax time than if I financed. Not to mention that the payments were also lower. 

Since the Government recently restricted the amount a business can deduct car payments, and on the advice of my accountant, I decided to finance. 

I first stared with Charlsglen Toyota as my first two cars were leased from them. I thought that as a repeat customer I would be treated well and given a great deal. Well, I had to fight for every cent I wanted to save on my new car. And then, just when I thought we had struck a deal, I then find out that I was the victim of the old 'bait and switch'. I was told my monthly payments would only be $439 (on a four year term) to lease with a multiple security deposit of $3100. The sales rep went on and on about how I am actually making 41% interest on this deposit yet oddly enough I would still only get back the same amount at the end of my lease. 

I told them I would think about it. When I went back to ask a few more questions, I was told that with the same security deposit as a down payment this time, my monthly payments would be $449. When I asked to see the breakdown of the 'great deal' I got, the discounts I was assured I was getting were not all there and the dealership inflated the buyout of my car by $4000! (According to my accountant this is a common practice) I told this particular 'manager' that I am aware of their cost for the vehicle and that while the deal is good it is not great. The guy flat out lied to me and told me that they pay much more than the number I quoted! What he did not know is that on my previous visit I had asked to see the book value of the car.

I then told him that I am aware of the commission paid to their sales reps, a flat $200 for the sale of a new car. He denied that too. I also mentioned that I am aware that the $1000 manufacturer's incentive is actually from Toyota Canada and not from the dealership's pocket. Well, surprisingly he denied that too. I guess he could read the expression on my face because he then came clean. I told him that again, I wish to think about this. He didn't try to convince me to buy, probably because I caught him in his bold faced lies. 

Frustrated I went home and sent two emails. One email was to the manager at Heninger Toyota and the other was to Cochrane Toyota. I figured I had nothing to lose. I was very clear that I am aware of the dealer's cost for the vehicle I'm interested in and  that I wish to only pay $500 over their price. That's $200 for the sales rep and $300 for the dealership. In exchange they get my business for servicing the car and referrals as well. 

Well, I was impressed to get an email from the manager at Heninger Toyota that same night! He defended his sales team which is admirable and told me he would have someone get back to me the next day. And true to his word, another manager contacted me. He didn't try to haggle over the price since I made it clear that I am not interested in this game. Later that night I went in and signed the paperwork. I was treated very well and wasn't pressured into any further sales. The next day I received a call  telling me that I have been approved and that my new car is on its way! I received another call from my Heninger rep just to touch base today. 

It has now been three days and I have still not heard a word from Cochrane Toyota. No phone call, no email, nothing. The same goes for Charlsglen Toyota. No one has called me to follow up or address my concerns. What frustrates me the most is that this would have been my THIRD new Toyota with Charlsglen. I expected better treatment especially considering that I stupidly paid full price the first two times! I guess they aren't interested in customer satisfaction or retention. I have had other problems with Charlsglen's service department in the past. I was just over my 60 000 KM warranty and the service manager would not help me out in any way. He wanted me to pay full price to have the rear passenger door fixed so that it would stay open when I parked on a hill. He didn't care that the door would slam into me every time that I tried to put my new born into her car seat. 

Oh, and by the way, I didn't even consider contacting Country Hill Toyota because of a similar experience four years ago. 

Update

I am now being told that there is a $295 'document fee' by Heninger Toyota. But I should be happy about this because the fee is normally $500. When I asked the new car sales manager what this fee is for he told me its for being a part of their loyalty program and for all the paper work they have to fill out. Are you kidding me? Since when is it okay to pay someone a fee just for the pleasure of doing business with them? I call that "The cost of doing business". Sounds like another money grab to me! The finance manager called me yesterday to tell me that this fee has been waived because management wanted to thank me for bringing them my business. And now I'm being told that it is their 'policy' to charge this fee! Something isn't right here. I will keep you updated.  

Update

Heninger Toyota has agreed to waive the $295 'document fee'. I guess they sensed I was ready to walk away from the deal. I still have no clear idea what this fee is for and way it is kept separate from the total cost that is calculated on Toyota's website. Very odd....