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Here’s a warning for all car buyers. Do car dealers still use a bait-and-switch car-buying tactic? Yes, and here’s an incredible story about a dishonest Nissan dealer.
A report from Automotive News (subscription only) states that Tanisha Burress saw a Nissan dealer’s car ad online, found a car she could afford, and was ready to pay cash. However, when she arrived at the dealer, they told her she could not take the car out for a test drive.
Tanisha, in her federal court complaint against Western Avenue Nissan, expressed her frustration, “I found a car I could afford on the Nissan dealer’s website. I was unemployed, but I had the cash to buy the car. However, when I went to the dealer, they told me the car I wanted ‘was not operational’ and that I could not test drive it.” Tanisha’s story is a cautionary tale for all car buyers.
Bait and Switch
The May 8 complaint says, “Instead, a Nissan dealer salesperson steered her to a more expensive 2019 Nissan Sentra, although Tanisha told the salesperson that she couldn’t afford it.”
Tanisha says she was then pressured to buy the more expensive Nissan Sentra.
“I was overwhelmed by high-pressure sales tactics, and I finally agreed to buy the Sentra only after being told I would qualify for financing despite having no job.”
“But the salesman was persistent and told me I could get a loan and pay for it by driving for Uber or Lyft,” the complaint said.
“I didn’t want to buy the more expensive Nissan Sentra, but I finally relented.”
Tanisha was then coerced into signing a three-year retail installment sales contract for $14,912 at a staggering 24.9 percent interest, which was assigned to Santander Consumer USA, as stated in her complaint. This financial burden is a stark reminder of the consequences of deceptive car dealership practices.
The Automotive News report states that Tanisha Burress’s lawsuit alleges the Chicago Nissan dealer has “systematically misrepresented financial and employment information on credit applications it submits to Santander Consumer USA, knowing customers otherwise wouldn’t have qualified for financing.”
More False Representations Were Made To Tanisha
The complaint states that the Nissan salesperson failed to inform her that driving for a ride-hailing service, such as Uber or Lyft, would result in increased insurance premiums. Tanisha was also told she could return the car in three months “if things were not working for her.”
What the Nissan dealer told Tanisha was untrue
“When she tried to return the vehicle after learning it would be financially unfeasible to pay the loan, the store refused, saying she signed a contract,” the complaint said.
“Tanisha predictably fell behind in her payments,” the complaint said. When she asked Santander why it approved the loan despite her unemployment, a representative of the lender responded that her application listed an employer where she hadn’t worked for about eight years.
Tanisha Can’t Make the Car Payments
Tanisha was unable to make the high-interest car loan payments and ultimately defaulted on the loan; the car was subsequently repossessed.
The complaint alleged the store frequently used bait-and-switch tactics, and it included excerpts from 12 critical Google reviews and Better Business Bureau complaints.
“The review and complaints online are replete with stories of dishonesty concerning financing, the availability of vehicles, bait-and-switch tactics, hidden fees in the thousands of dollars, and other untoward business practices,” it said.
“Western Avenue Nissan has a pattern and practice of conducting and participating in the activities of the auto loan enterprise through a pattern of racketeering activity — namely mail and wire fraud — that has injured Burress and similarly situated consumer borrowers,” it alleged.
What Are Bait-And-Switch Tactics?
LawInfo states that a bait-and-switch tactic at a car dealership involves advertising a specific vehicle at an attractive price to entice customers. Then, the dealer claims the car is no longer available or steers the customer toward a more expensive option. This is considered a deceptive and unethical practice.
Here’s a more detailed breakdown:
- Bait: The dealership advertises a particular car at a low price or with a special offer to attract potential buyers.
- Switch: When the customer arrives, the dealer either claims the car is no longer available (sold, not in stock, or “not operational”) in Tanisha’s case, then pressures the customer to consider a different, more expensive vehicle.
- Pressure to buy: The dealer may use aggressive tactics to persuade the customer to purchase the alternative vehicle, even if it’s more expensive or has worse terms.
Examples of bait-and-switch tactics:
- Advertising a car at a specific price, but when the customer arrives, the dealer says it’s sold and tries to sell them a more expensive model.
- Claiming the advertised car is not available , but then suggesting they purchase a newer, more expensive model with different features.
- Advertising a low payment offer but then informing the customer that the advertised financing is not available, and encouraging them to opt for a higher-priced financing option.
How to avoid being a victim of a bait-and-switch:
- Be cautious of low prices: If an advertised price seems too good to be true, it might be a bait-and-switch tactic.
- Read the fine print: Carefully review the advertisement and any other documentation to understand the terms and conditions of the offer.
- Get pre-approved financing: This can help you know your budget and avoid being pressured into high-interest financing by the dealership.
- Don’t be afraid to walk away: If you feel pressured or the deal doesn’t seem right, it’s okay to leave and shop elsewhere.
Conclusion:
Tanisha had the cash to buy a less expensive Nissan car, which was a wise financial decision because she knew what she could afford. She did not want car payments because she was unemployed at the time.
However, she succumbed to the “high-pressure” sales tactics of the Nissan dealer salesperson who gets paid on commission. The Nissan dealer and employee lied to Tanisha, got her approved for a high-interest car loan she could not afford, and misrepresented her employment to the lender.
The promises made by the Nissan dealer to Tanisha were nothing but a web of lies. This betrayal serves as a stark reminder of the importance of exercising caution when dealing with car dealerships.
It’s a good lesson for all car buyers to be aware of. Not all Nissan car dealers employ bait-and-switch tactics on customers, but some do, as Tanisha discovered.
How About You?
Has a dishonest car dealer taken advantage of you? If so, click the red Add New Comment link below and let us know.
Check out my 2024 Toyota RAV4 story: I Paid Too Much For My 2024 Toyota RAV4 Because the Dealer Stung Me By Issuing a Verbally Undisclosed Credit Card For an Extra $1,500 Down Payment
Also check out my Nissan story: Price Is Right Car Winner Says, “I Didn’t Want the Nissan Versa, So I Traded It For A Toyota RAV4, But Now My ‘Free’ Car Comes With A $400 a Month Payment”
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you’ll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl
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Source: torquenews.com
