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Undercover investigation into one local car dealership's advertising

Reported by: Joe Ducey
Email: jducey@abc15.com
Produced by: Jodie Heisner
Last Update: 7/19/2008 11:30 am
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Video Click the play button on the video window to the right to see the story

It’s a car you want, at a price you can’t believe. Just when you think it’s yours to take, it’s sold and the salesman wants to sell you another vehicle.

Isolated case? Not at 20/20 automotive at 20th Street and Bell in Phoenix.
“I am just really upset with how they treated us,” said Brandi Schneider.

Justin and Brandi Schneider say they called the same dealership when they saw a car ad online for a vehicle nearly $4,000 under Blue Book.

“We drove up to the dealership. They said great we will go ahead and get the keys,” said Justin.

Then Justin says a salesman comes back.
“He said oh yeah I just sold that vehicle.”

Justin says he was given another offer on a different car, but it was for $2,000 more.

20/20 Automotive has an unsatisfactory rating with the Better Business Bureau. Thirty-three complaints in the last three years, sixteen were not resolved within the BBB’s time frame. Nearly half of the total are related to sales and advertising.

“They get one price on the website, but when they actually go to the sales center it’s a different price,” said Felicia Overton with the BBB of Arizona.

So how often does it happen? We went back three times with undercover cameras. Each time calling ahead to confirm the car is there.

We call on a 2006 Dodge Charger and make an appointment to see it.
But once we get on the lot the salesman has bad news.
“It is sold right now,” said the salesman.

The next day another undercover employee calls the dealership.
“I’m calling about a 2006 Dodge Charger. I saw it on your website.”

Wait a minute. We were told this car was sold yesterday! They say it’s still on the lot, but guess what?

“I guess the certain vehicle you came in on has been sold,” said the salesman.

We found a pattern. Each time brought in because of a low price ad and pushed to buy a more expensive model. Our employees were shown vehicles $4,000 more than the car in the ad.

Now it’s my turn. I make an appointment to look at a PT Cruiser advertised online $3,000 below blue book and it’s actually here. But is the price?

“What was it advertised at eight or nine? Yeah, you’re probably looking at nine or $10,000,” the salesman told me.

Turns out its $11,000 plus taxes and fees, because of dealer ad-ons listed in the fine print. So why not list the actual price on the Internet?

“This is the way we do our advertising,” said the salesman.

It’s time to talk to the manager. We bring out our cameras and see what we can learn.

“I’m with Channel 15, ABC 15, The Investigators and we’ve been watching you guys for a while,” said Investigative Reporter Joe Ducey.

“I’ll sell it to you for the price,” said the sales manager.

The cameras are out, now the manager is willing to give me the deal, but we’re not here for a car we’re here to get some answers.

We move inside to talk to another manager.
“I don’t want to be recorded, but we can talk about it.”

We’re told to leave the property and we did. We were promised a meeting with the owner; instead we get the following response in an email from a representative.

Thank you for your request for an on camera interview. At this time, we are unable to accommodate your request. Regarding the information you have provided, we do not condone this behavior, and we appreciate your bringing this to our attention. We sincerely apologize to any customers who feel they were misled. Our business has been built on satisfied customers who have purchased nearly new vehicles at or below market prices. The situation to which you referred in your letter has been addressed, and again, we apologize for any inconvenience this may have caused.
Patrick Beck, 2020 Automotive

The Schneider’s say they’ve learned from the situation and point to an old lesson.
“If they sound too good to be true, they probably are,” said Brandi Schneider.

If you’ve had a similar situation at any dealership you can file a complaint with the Arizona Attorney General’s office, it regulates advertising.



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