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Lexus of valencia (ca) - buyer beware

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Old 08-23-20, 02:46 PM
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Baby ///M3
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Default Lexus of valencia (ca) - buyer beware

Hi all,

Has any one ever purchased a new or used Lexus vehicle from Lexus of Valencia in the past? I am sorry for the long rant but I hope this message can help other members of this community from being taken advantage of by unscrupulous Lexus dealerships.


BACKGROUND INFORMATION

I traded in my 2016 GSF and picked up a new 2019 GSF “demo” car from Lexus of Valencia on August 10, 2020. The car they sold me is fine and performs the way it should. I am, however, very concerned about the way Lexus of Valencia conducts its business and the the poor quality of services provided by Lexus Guest Experience in response to my concerns.

To clarify, this demo car was never registered under anyone’s or the dealer’s name. Per Carfax, I am the first owner of the car. Legally speaking, an unregistered demo car is sold as a new car.

Before I begin, I want to say that my gripe is not about the car’s asking price or the salesman’s demeanors. Lexus of Valencia wanted a high price ($73.5k plus taxes) for the car and I agreed to pay for it as it’s the only car with the color combo/options I want that’s available locally. The salesman is new to Lexus and does not know much about Lexus cars. The salesman’s lack of knowledge didn’t bother me, as I am a current GSF owner and really didn’t need his help. The sales manager was not very flexible on the asking price; he agreed to reduce the asking price from $75.5k to $73.5k on the phone but no more than that. After I decided to purchase the car at the dealership, the sales manager gave me a mug and a keychain; he threw in a car cover after I asked for it. Nothing to brag about here. Overall, everything that happened prior to dealing with the finance guy was rather unremarkable. What happened afterward, was completely unacceptable. Here are the four issues I can identify so far:



ISSUE 1: FORCING CUSTOMERS TO PAY AN EXPENSIVE ADD-ON BOGUS ALARM FEE

Before I signed the documents, I noticed a “$995” surcharge on the purchase contract “on top of the $73.5k agreed price” so I verbally objected to it. The finance guy said it’s a “theft deterrent” system that has been previously installed so therefore the fee must be absorbed by the customers. Really? Then why is there a window sign on my “new GSF” that gives the customer an option to activate an alarm system? Anyway, the so-called $995 theft deterrent system is nothing but a few coded stickers placed on each door, hood, and trunk of the car. The finance guy assured me that the security company, Southwest Dealer Services (SWD), will give me a $2.5k check if the car is ever stolen; he insisted that I must pay the $995 or else he would have to redo the finance with the bank, which may cause problems.

I reluctantly signed the contract because I could not find another new GSF locally with the same color combo/options. In hindsight, I should’ve refused to sign anything and demanded them to remove this charge. The very next day, I sent the General Manager (Mike Murray) a polite email expressing my concerns and asked him to give me a call. The guy flat out ignored me.

A few days later, I contacted Lexus Guest (perhaps it should be reworded to Guess) Experience and was assigned a case manager, who called me the next day. I explained to her that charging $995 for a few stickers and forcing customers to pay for it is a fraudulent practice that’s no different from the practice of VIN etching; I also told her that I don’t think it’s proper for Lexus NA to allow its dealership to engage in such practices. The same case manager called me back a few days later and basically said sorry but we’re not sorry, there’s nothing Lexus NA can do to help me get the money back. To add insult to injury, the case manager implied that my case isn’t significant enough on its own. Really? Maybe I should take a survey and ask for the information of everyone who’s had to pay for this charge unwillingly and file a collective complaint against Lexus of Valencia. I have read at least one other review on Yelp against this dealership for the same charge and I am sure there are plenty who had to pay for it unwillingly as well.


ISSUE 2: FAILING TO PAY OFF MY EXISTING AUTO LOAN

Lexus of Valencia sure acted quickly to cash my check after the purchase contract was signed. What Lexus of Valencia did not do is pay off my old vehicle loan with BOA, which proceeded to charge me a monthly installment fee on 8/12/2020 ($300). The new car was purchased 8/10/20; as of today (8/23/20) Lexus of Valencia still has not paid off my old auto loan. God knows when they’re going to do so and whether they will ever refund the money they owe me.



ISSUE 3: FAILING TO UPDATE THE CAR PURCHASE DATE WITH LEXUS

Lexus of Valencia sold me at 2019 demo GSF, which they represented to me as a new car. For new 2018+ Lexus car owner, Lexus provides three complimentary services from Enform, as follows:

1. 1-year free trial of remote vehicle access ($80 value)

2. 1-year free trial of destination/navigation assistance ($80 value)

3. 10-year free safety & connect ($800 value)

That’s $960 worth of products and services that I am eligible to receive as a new Lexus car owner.

After I drove the car home on 8/10/20, I discovered that my Enform had been used by Lexus of Valencia for the past year (or since August 2019). It’s not a big deal since the car was used by the dealership. What’s upsetting is that Lexus of Valencia not only used the Enform subscription at my expense, but also has been evasive about resolving this issue with me.

Since the salesman could not answer my questions about my Enform subscription, I had to personally contact Enform, whose representatives (according to its managers) lacked training and were not equipped to handle my situation (that’s another story which I won’t elaborate here). Bottom line, when I asked to speak with an Enform manager, that manager confirmed that Lexus of Valencia should have done a “RDR reversal” with Toyota Corporate to adjust the purchase date of the vehicle from August 2019 to August 2020, so that the Enform services could start from 8/10/20.

On 8/17/20, I passed on the above-stated information to my salesman in hope that he would resolve this issue for me. Unsurprisingly, I never heard back from him and had to remind him again on 8/21/20. Conveniently, he told me that my Enform subscription started in August 2019; and that to continue using it I would just have to pay for the services (like a robot, he basically just repeated the same words as what the “untrained” Enform representative told me, not to mention that anyone who’s gone to elementary school could have given me the same information from Lexus Drivers’ website).

On 8/21/20, I took an hour of my time and personally joined a 3-way call with the salesman and an unhelpful Enform representative; I demanded to speak to an Enform manager, who had to explain to my salesman how RDR reversal works. The Enform manager also stated that this is a process initiated by the dealership to correct the paperwork with Toyota Corporate; and that dealership should have handled this issue when the vehicle was sold.

After we got off the call, the salesman simply said he would “good will” me for the remote service for 3 months ($24 value). I told him that I don’t need any sympathy from the dealership and need to be provided with the services that I am owed. He promised that he would get back to me the next day after he speaks with his manager. I did not hear back from him.

Not including any other issues I have identified, Lexus of Valencia owes me $240 for my Enform services alone.



ISSUE 4: LACK OF TRANSPARENCY REGARDING THE ORIGINAL MANUFACTURER’S WARRANTY

On the date of purchase, I asked the sales manager to clarify the beginning/ending dates of the factory warranty. He said I had 3 years left but it doesn’t matter because the vehicle has been driven for so few miles (4k miles) so I still had 46k miles of coverage. I said no and demanded him to confirm that the warranty period must start on the date of purchase 8/10/20. He talked to someone upstairs and agreed that he was wrong. This is the second mistake I made; I neglected to ask for paperwork showing the starting date of the warranty and I am now left wondering if Lexus Guess Experience would tell me otherwise if I ever call them to confirm this information sometime in the future.


CONCLUSION

I’ve owned numerous cars in my life including five Lexus cars. I’ve never had to write anything negative against a car dealership in the past and I am shocked that I actually feel compelled to write one against a Lexus dealership. Not counting the time and efforts I’ve put forth to get these issues identified, the monetary loss I’ve incurred and lack of response from the dealership and its general manager are simply unacceptable. As a matter of fact, I probably would have been better off buying a brand new 2020 GSF, which has been discounted to $77k plus taxes, instead of saving a few grands and wasting my time doing work for people who are either trying to rip me off or don’t know what they’re doing.

If you have ever purchased a vehicle from Lexus of Valencia and have encountered a similar issue(s), I encourage you to contact Lexus NA and voice your concerns. Maybe someone will respond when they hear enough from us.

Thank you for taking the time to read my comments and feedback.

Jon

Last edited by Baby ///M3; 08-24-20 at 12:00 PM.
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