I am in the market to buy a car and have a very good credit score. I have owned and leased new and used cars. I don't think I have ever had a monthly payment less than $400 and more often it is closer to $500, for cars that cost about $40,000.
I asked the GM of a car dealership why I never seem to be offered the low monthly rates quoted in TV ads, that range from $199 to $329 for very expensive cars. He told me that those deals are for a short time period (24-36 months vs. usual term of 48-60) and for low annual mileage (8,000 vs. average 12,000-15,000).
So, it is a bait-n-switch offer - employed by all the major players in the industry. A technically accurate offer, but one that does not align with the way people purchase/finance or drive their cars.
When you learn that an offer is bait-n-switch, do you ever say ... Well, I should have known better? Or, The company is being fair and treating me with respect. Or, I really like to do business with a company that behaves this way. Me neither.
If even banks like ING Direct and Ally are now winning by being totally upfront about what they will and won't give you for being a customer and treating customer using the "Golden Rule", why aren't any major car companies following suit? When an industry is hurting badly, is it smart to promote via a bait-n-screw strategy?
O.D.O.o.O.D.B.
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