Automotive

Trade in car after 2 years to the newest model for same payment... False advertising?

  • Last Updated:
  • May 9th, 2019 8:05 pm
[OP]
Deal Guru
Aug 14, 2007
10417 posts
1663 upvotes
Toronto

Trade in car after 2 years to the newest model for same payment... False advertising?

So usually 2 years after I've had a new car I receive (like many of us) one of those letters in the mail stating "We're looking for cars of your model and year, if you trade it in we'll upgrade you to the newest / latest model for the same price and finance term".

So just for the hell of it I went into the Honda dealership just to see / inquire. I did a 7 year finance on mine just to make it cheaper per month, but pay a bit extra here and there so I can hopefully have it done in the next 3 years (making it 5 years in total.

Anyways, Going over the paperwork I wanted to see the total amount and funny enough the car was $8500 more than what it was supposed to be so when I said what the hell is this? They said "Well, we try our best to give our customers that deal but it doesn't always work that way. Yet they couldn't give me a real solid reason as to why...

Has anyone had that happen? Or is this just a tactic where they hope in the end the customer doesn't notice until it's too late?

In the end I laughed and walked away it.

They wanted to give me about 58% of what I paid for the vehicle, not even close to what I had owing left on the vehicle and funny enough when I traded my last vehicle into them (for a good reason) they gave me $500 shy of what I owed on the last vehicle which wasn't even from the same manufacturer or dealer.

Unless the salesmen was just being sleazy and not following the promotion like he was supposed to? Who knows?


Note: I am no longer thinking of trading the car in, I was just inquiring and would like to hear other people's experience of looking into that kind of deal.
18 replies
Deal Expert
User avatar
Jun 23, 2005
21142 posts
152138 upvotes
GTA
Oldest trick in the book...

The stealerships are betting on being able to find someone gullible enough to get into a new model for the "same payments". The part they are banking on people forgetting about is the restarting of the loan.
[OP]
Deal Guru
Aug 14, 2007
10417 posts
1663 upvotes
Toronto
toguy wrote: Oldest trick in the book...

The stealerships are betting on being able to find someone gullible enough to get into a new model for the "same payments". The part they are banking on people forgetting about is the restarting of the loan.
It's one thing to restart the loan, this guy tried hiding 8000 of negative equity into the new loan making $33,000 vehicle $41,000.

I do wonder just how many people fall for it.

Maybe it's karma for trading in a 2 year old lemon hahaha

I have to say although it was a big waste of time, it was entertaining trying to see the tactics being played.

Would be nice to come across a sales person who doesn't treat their customers like gullible morons... If they even exist.
Deal Addict
Aug 1, 2007
2085 posts
630 upvotes
XtremeModder wrote: It's one thing to restart the loan, this guy tried hiding 8000 of negative equity into the new loan making $33,000 vehicle $41,000.

I do wonder just how many people fall for it.

Maybe it's karma for trading in a 2 year old lemon hahaha

I have to say although it was a big waste of time, it was entertaining trying to see the tactics being played.

Would be nice to come across a sales person who doesn't treat their customers like gullible morons... If they even exist.
so did you ask them how exactly were they planning to "keep the payments the same?" what was their response?
Deal Expert
Aug 22, 2011
32110 posts
17962 upvotes
Ottawa
No such thing as a free lunch.
I'm sure everyone has heard the very popular ad of "we'll even pay off your existing loan", if you buy a new vehicle from us...
Deal Addict
User avatar
Nov 28, 2007
1435 posts
516 upvotes
This is harder to do with cars I am sure, but they do actually do this with trucks at Yonge-Steeles from what I have seen
Deal Addict
Mar 20, 2005
1944 posts
527 upvotes
Maple
Im sure it all depends on the anont oweing on the car. If its not much and does not eat into their profits they will assume the balance. factoring in what they could sell for, vs what their paid + your balance.

Someone technically has the same payments at 400 a month at 84 months, and 400 a month one one month left.
Jr. Member
May 21, 2009
151 posts
180 upvotes
Canada
corcoran_chris wrote: ....

Someone technically has the same payments at 400 a month at 84 months, and 400 a month one one month left.
Seen this a few times when people get a new car and proudly exclaim they are paying the same amount as before. They leave out that the terms have been extended by another 7 years as well and there would be no payments for their old car after the original term. Always have to work the full numbers.

Surprised they didn’t try to get the OP into a lease to keep the payments the same.
Deal Addict
User avatar
Nov 24, 2016
1216 posts
1345 upvotes
I walked into a honda dealership and was thinking about getting an accord. Test drove one and then sat down to discuss pricing. First thing I said was no one pays msrp.., before I finished my sentence the guy said yeah everyone pays more than that. And starts giving me quotes. At that point I didn't even feel like haggling with these guys, And when I was walking out the dude went to get his manager to discuss what he did wrong? Like dude you quoted me above msrp and expect me to negotiate? I just said I wasn't really that interested in the accord and walked out. I hate dealerships. Yeah everyone pays above that Face With Tears Of Joy man that line was too funny... guy must think he works at a porsche dealership
Jr. Member
Feb 24, 2016
132 posts
140 upvotes
In his defence, After fees and taxes you generally do pay more then MSRP.
Deal Addict
User avatar
Nov 24, 2016
1216 posts
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jeremiahkool wrote: In his defence, After fees and taxes you generally do pay more then MSRP.
nah pretty much when i said that he brought out a sheet that had higher prices than msrp. And then he started adding fees and taxes. I get it there are destination fees and taxes but the worst deal you can possibly get is msrp+destination+taxes, and that is if you are horrible at negotiations.
Member
May 23, 2007
417 posts
120 upvotes
Ottawa
Scary. How do they sleep at night ?
Jr. Member
Mar 3, 2019
105 posts
81 upvotes
Cars are like cellphones, everyone wants the latest tech and looks. They pray on people that have spending issues and lure them in with "same payment". Chances are their 7 year finance or 5 year lease will be restarted with negative equity rolled in to make the payments work.
Deal Addict
User avatar
Aug 7, 2007
3384 posts
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GTA
I don't know what's more ridiculous. The advertising, or the people believing that a dealer will give you a brand new car for your 2 year old car with no surprise.
Deal Expert
User avatar
Jul 30, 2007
26068 posts
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Toronto
It would be true to some extent ... if you have a collectible car. Like Porsche 911GT2RS Smiling Face With Open Mouth And Smiling Eyes

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