Elmore Toyota Important financing terms not disclosed, stuffed cost of car hided during contract signing, rip-off Westminster California

1) On June 26, 2004 I was at Elmore Toyota to look for a new Toyota Tacoma 2004 and trade in my Ford Ranger 1999.

2)The first person that came to talk to me was: Scott Daily. He asked me what I was looking for I told him the type of car I was interested on. He took me to Paul Lustig and communicated to him what I was looking for and they decided to call another sales person: Fernando Guzman, to help me to choose the car and tests drive it.

3)I found the car I wanted, I test drove it and I went to a cubical with the Fernando Guzman for negotiations. The sticker price was $25,097.00 and at that time Toyota was offering $1,000.00 manufacture rebate (valid until July 7, 2004).

4)I wanted to purchase the car with a loan through my credit union or Toyota financing, if this one had better terms and interest rates than my credit union. I made my offer to Fernando and he went to check my credit and see if my request could be satisfied.

5)He came back with Paul, the manger, who said my request could not be fulfilled and made an offer on a purchase program however, I didn't agree with the terms and the financing. Paul offered a couple of other solutions for a purchase program but I still was not happy with the terms (rates, down payment, cash for my trade in, etc). I was ok with the cost of the car $24,000.00 offered (price of the window sticker: $25,097.00 rounded to $25,000.00 minus the $1,000 rebate the manufacture was offering on new cars at that time), but I was not happy with the financing terms.

6)I told Paul I would come back with my own financing through my credit union. At that point Paul tried to offer me a lease program, but I told him I didn't want to get into a lease. I don't personally like to lease cars. I wasn't interested in that option at all. My plan was to pay off the car soon and own the car. So the lease was not an option for me. Paul claimed that the lease option was better than a purchase option even if I was planning to pay off the car and keep the car. He also claimed that Toyota cars don't depreciate as much (he stated they depreciate 2%) and the truck I was buying in particular (Toyota Tacoma Pre Runner double cab) was so wanted that at the end of the lease, when I would have turned the car in, I would have gained equity in the car. He also asked me if I know what equity is, and being a homeowner myself, of course I know what the term equity means. I was still unconvinced about the lease program however I thought, wow! Equity in my car? That's great, I know Toyota's are great car'sreally??

7)Paul got up from his chair and he went to call Frank Garcia from the finance department to explain to me how their lease program works in detail, and how I would have a better advantage versus a loan program.

8)Frank Garcia came at the cubical where I was sitting by himself and he explained me the following: The lease is a 60 months program and the monthly payment would be $419.66/month without trade in of my Ford Ranger. If I want to buy out the car before the expiration of the five years lease I can do it by performing the remaining payments. But if I buy out the car within the first year I would have to pay also an early termination fee of the lease.

If I wait until the end of the lease (all 60 payments have been performed), I would have two options: give back the car, or purchase the car paying a residual.
I asked one more time by a practical example to make sure I understood exactly how much the car would cost me: So you are saying that if in two years after I performed 24 payments (that means I paid $10,056.00) I want to purchase the car; I just have to pay the remaining 36 payments ($15,084.00) with no residual and nothing else, in order to own the car? Frank Garcia confirmed stating that this is why it is more convenient to get a lease program versus a purchase plan because I wouldn't end up to pay any interest. He also said that people who are planning to own their car; don't wait until the end of the lease to avoid the residual fee. That category of people gets into the lease program and they buy out their car's before the lease expires.

9)The deal, in the way it was explained to me, seemed to meet my needs, and it was for sure more convenient than the purchase program. I asked more than one time to make sure I understood right and the 60 payments were the only expenses involved and each time it was confirmed by Frank. I told Frank Garcia I would accept the lease plan based on the terms we just discussed and agreed upon. I also asked Frank if he could waive the first payment so I had the time to sell my car. Frank agreed with my request. Frank left and Fernando Guzman (the original sales person I spoke with) came back to finalize our agreement. I told him I would accept the lease based on the oral terms I had just discussed with Frank Garcia and I would also want included on the agreed price ($24,000.00) the following items: over the rail bed liner, running boards and spare tire lock. Fernando said he would have to ask to see if it was possible to throw in those items on the agreed price with no extra charge, and he went to ask to Paul the manager. Paul never came to assist me with that request, instead Scott Daly came back to the cubical where I was sitting and after some negotiation back and forth he accepted to throw in those three accessories at no extra charge.

10)The final agreed deal was this: The car was sold to me for $24,000.00 with three accessories (over the rail bed liner, running boards, spare tire lock) at no extra charge. The financing of the car was a lease of 60 month with monthly payment of $419.66. In order to own the car, I could pay the remaining number of payments and as long as the pay off is performed after the first year and before the five years, no other charges would have been involved on my pay off and I would own the car from that point on.

11)When I went to the finance department to sign the paperwork, I was assigned to a different finance person: Jeffrey Burber. Jeffrey had me sign quickly, a series of documents. Before to sign I asked one more time to Jeffrey to confirm the lease terms the way Frank Garcia presented them to me. Jeffrey confirmed and showed me the document where it was showing the agreed monthly payment was $419.66. He had me sign and quickly moved to the next document. Everything looked clear and I went ahead to sign.

12)I went home with the new car Toyota Tacoma (after 9 pm).

13)Couple days later I was filing the documents I signed and before to file them I took one more look at them. On a document called Auto express lease (the one was showed to me with the monthly payment of $419.66 as agreed upon), I found all a series of numbers that were not showed nor explained to me at all at the moment Jeffrey was holding the document and had me sign it. These numbers were completely different from what I agreed with Frank Garcia and Jeffrey.

14)On the document there was an amount of $28,676.06 as Adjusted Capitalized Cost. I never saw or heard that number before, so I truly believe it was intentionally hidden from me at the time of signing. The only number that was explained and showed to me it was the $419.66 of the monthly payment.

15)I went back to the dealership on July 2, 2004 to ask for clarification about these new numbers that I wasn't aware of.

16)I spoke with a new finance person ( I don't recall the name but it wasn't Frank Garcia or Jeffrey Burber) and he said the amount of $28,676.06 was the cost of the car if I decided to buy out the car.

17)That was far different from the amount of $419.66/month by 60 months that Frank Garcia explained me. I complained and I asked to speak with Frank Garcia.

18)When Frank Garcia came in I asked him to clarify the numbers on the document and he explained something new that neither him nor Jeffrey had explained to me on June 26, 2004: He explained that $25,179.60 ($419.66x60) is the lease pay off but if I decide to buy out the car I have to pay the loan pay off ($28,676.06). I got really upset because the loan pay off amount was not disclosed or explained to me at all by Frank Garcia or Jeffrey.

19)Frank Garcia stated $28,676.06 is still a better deal compared to any purchase program, however if I was unhappy with this lease program he would take care of the problem and allow me to get my own financing with a loan program. He also gave me his cell phone number to contact him if I decided to go ahead with my own financing program.

20)In the following days I applied for a loan with my EDS credit union and waited to see if I could qualify.

21)In the meantime on: July 17, 2004 I received the first payment from Wells Fargo, the bank the lease was done through. I called Wells Fargo to make sure the updated information Frank Garcia gave to me was correct.

22)I spoke with a supervisor Bryan, who again told me something new: the loan pay off amount is: $29,209.08 (which is different from the one on the Adjusted Capitalized Cost document), and if I decide to pay off the car I have to pay taxes on top of $29,209.08. What! This information was never disclosed or explained to me at all.

23)I am extremely disappointed with the way this situation has unfolded. I chose to buy with Toyota because of their impeccable reputation and I was really excited about owning my first NEW car. As a foreigner in this country I have heard about situations such as this but had not encountered one for myself. Most people are gracias and go out of their way to explain details so there is no confusion. I completely trusted my salesman: Fernando, the manager: Paul and the finance persons: Frank and Jeffrey, and cannot believe that I was taken advantage of in this way. I believe Elmore Toyota dealership did the extreme opposite by hiding details and not disclosing important facts that had I known earlier, would not have resulted in the lease of this vehicle.

24)I am expecting a complete rectification of this situation. I am a fair man and understand that nothing is free. However, I expect honesty and integrity and original agreed terms to be honored.

25)Again, I would NOT have agreed to this lease had all the terms been explained to me properly and am looking forward to a quick resolution.

26)On July 19th 2004, I called Frank Garcia presenting him all these new information that were not disclosed to me on June 26th 2004. After speaking over the phone with Frank Garcia about the problems he agreed that: Elmore Toyota dealership would buy out the car from the bank Wells Fargo, taking care of all the expenses (earlier termination fee, etc) involved.
Than I would purchase the car from Elmore Toyota with the price we agreed upon on: $24,000.00 and the three items included on the price (over the rail bed liner, running boards, spare tire lock). I would provide my own financing through my EDS credit union.

27)I asked Frank Garcia if I could meet him at the dealer ship, and he told me he couldn't make it because it works only some days of the month at the Elmore Toyota dealership. What he could do was to contact a sales manager at the dealership: Marco Sanchez, and explain to him the details we just agreed. So all I had to do was go there and they would have take care of the problem.

28)Later I spoke with Frank Garcia and he said he talked to Marco Sanchez and all I had to do was to contact him.

29)I contacted Marco Sanchez, who thought I was going to pay off the car. I said what? I told him Frank Garcia was supposed to contact him and have explained to him what the problem was. Marco Sanchez said that he talked to Frank, but he was on hurry so he really didn't understand completely.

30)I had Frank to call Marco and explain him again what the problem was. I than called Marco again who said he would have to talk with the General Sales Manager: Sean Davisson and the Finance Director: Charlie Potalivo to see if it was possible. I told him: Frank already told me it is possible. Marco said: No we really can't do those kind of things.

31)So I called Frank again telling him what Marco said, Frank called Marco with me on the other line and they agreed to wait until the day after to speak with Sean Davisson.

32)On July 20th Marco Sanchez called me after he spoke to Sean Davisson. He stated that I bought some accessories when I bought the car. The accessories where all the ones I had agreed with Scott Daly to be thrown in the $24,000.00 at no extra charge. Also they charged me for the alarm and poly seal, without asking me if I wanted them. The alarm in particular, came with the car. The alarm was already installed on the car I picked for the price on the window sticker. None never mention I would have to pay extra for that. Marco Sanchez stated he had a document where I had put my initials to agree I was purchasing those accessories. I told him I didn't have a copy of such document.

33)I decided to go down the dealership to clarify this unbelievable messy situation. I informed Frank Garcia of what was going on, and he said he talked to Sean Davisson and everything was taken care of. All I had to do was go down the dealership and ask for Sean who was waiting for me. I asked Frank to make sure Sean was going to do what myself and Frank agreed which was: Elmore Toyota dealership would buy out the car from the bank Wells Fargo, taking care of all the expenses (earlier termination fee, etc) involved.
Than I would purchase the car from Elmore Toyota with the price we agreed upon on: $24,000.00 Frank said yes that was what Sean Davisson was going to do.

34)The same day (July 20th 2004) at about 3 pm I was down the dealership where Marco Sanchez came first to meet me. We sat at an office where I explained to him all the problems:
a) undisclosed lease costs.
b) undisclosed amount I was paying sales tax on.
c) stuffed in accessories (that were agreed to be at no extra charge) in the cost of the car.
d) Charge for alarm and poly seal without specifically asking if I want them. In particular the alarm came on the car already installed and nobody mentioned it was installed but if I wanted I had to pay extra for it or if I didn't want it they would have uninstalled it.
Marco Sanchez refused to negotiate based on the resolution that Frank Garcia offered me previously. I asked them to call Scott Daly the person I agreed with for the accessories to be part of the deal of $24,000.00 at no extra charge. Marco claimed Scott no longer works there.

35)I spoke than with Sean Davisson who also refused to collaborate to resolve the issues. He actually claimed the following: I made most of the money out of you not selling you the car but selling you the accessories. Again I asked him to call Scott Daly and he also said he was not longer working there for about 2 weeks.

36)The day after July 21th 2004 I called Toyota receptionist to ask to talk with Scott Daily. She said he was not in until 11.00 am. I asked than if I could have a number he could be contacted at, and the receptionist gave me his cell phone number. I went ahead to call Scott Daily who answered his cell phone number and said he was on vacation until the following week. He would have been back on the Thursday of the following week (July 29th 2004).

Diego
Cypress, California
U.S.A.

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