Leased a “Demo” 2020 Mercedes C300 - I got Screwed but was it “Legal?”

I say “legal loosely.” And I’ll preface all of this by saying that while I was dumb enough to sign this terrible lease, I did hit the record button on my iPhone each time I was in the dealership so everything that’s said in the below can be verified.

Anyway, I’m new and it’s a pleasure to be here— I wish that I had found you guys before I walked into the car dealership to get reamed 4 days ago.

First off, to avoid any passive aggressive + aggressive comments, I will say right away, that the way I went about leasing a car was very schmucky. I was a schmuck. I’ve lived in Manhattan my entire life. Nobody drives there. It’s all subways and cabs. I had a 4-Runner in college, but my parents took it away after only one semester— apparently they didn’t appreciate it when I crashed into a Pizzeria.

I just moved to California and now I need a car. I liked the look and price of the Mercedes C-Class so I just walked into the car dealership (Big mistake). Whatever low level associate on call rushed over. I said I was looking to buy a CPO car (since I haven’t driven in forever and know nothing about cars I thought it best not to buy new). I said I’d also be interested in leasing a new one.

There was one 2018 C300 on the lot for $28k with 16k miles. I drove it. It’s nice, but it’s a blinding blue color that is just too blue for me. So we walk to his desk so he can check what new models he has, and we pass a lunar blue C300. He says that it’s a “demo” car so he can get me a huge deal. I had no idea what a demo car was but he kept saying demo. He tells me that it has 8k miles and is around $48k. I say that’s pretty expensive for a used car and he said not to think of it as a used car, think of it as a new one, since it’s only been given to “VIPs” to test drive. I don’t think I need to tell you, but I’d later find out that it was actually a loaner, not a demo.

Here is where things get fishy, and I want to know if he and/or his sales manager did anything that was glaringly unethical enough to get me out of my lease contract. Or if it was just purely a slimy move.

We went to his desk and he presented me with this sheet of paper (attached) showing the MSRP for the car. Let me preface this by saying that the only reason I have a copy of the invoice is because I snuck a picture of it while he wasn’t looking. When I first asked if I could take it home he said “no,” and his reasoning was that it belonged to Mercedes and he couldn’t let it off the property. That’s weird. How was I meant to research this vehicle or even look up its vin? A sales listing didn’t even exist for the car. So, when he wasn’t looking, I snuck a pic. The purple highlights were made by him.

As you can see it’s $47,950. To start with, is it fair to show me the MSRP for a non-existent car? I didn’t know it, but I was looking at the price tag for a brand new one. Why show me a sticker of a year old car? Apple wouldn’t sell me a used 2019 iPhone for the price of a 2021 iPhone. So I’m under the impression that this was our starting off point and that this was the fair market msrp for a “demo” car (I now realize that there is no such thing). I had no idea it was for the same car brand new from a year earlier. I later went on the MBUSA website and built this exact car, and it came out to $47,220 (and that’s custom built, with no miles and a 2021 model).

Lastly, this document is either for another car or someone at the dealership just started throwing things onto this invoice because: My car DID NOT come with 1) a comfort box 2) an illuminating star or 3) wheel locking bolts. That right there alone jacks the price up $900.

Also 4) Aren’t the AMG twin spoke wheels with black accents already part of the AMG Night Edition package? (There’s another $500 they tacked on) 5) The AMG Night edition already comes with MB-TEX Dashboard & Upper Door Sills (that’s another $350). 6) isn’t the 12.5 digital cluster standard with the C-Class (there’s $750)? Aren’t heated front seats standard? (There’s another $580. I don’t realize any of this because at the time I was still just totally unaware of what anything on that sheet meant.

He goes and talks to his sales manager and says he can sell if for 43k or $460/month with 5k down. I said that was too much and I asked him for the invoice price. He tells me that there is no invoice price, this sheet (the one attached) is the invoice price. I didn’t know what that meant but I told him that I’d go home and do some research. This is when he tells me I can’t have the piece of paper with the detailed invoice.

I leave, not thinking I’d be back. The next morning he calls and says “you won’t believe it, I spoke with my sakes manager and he can take another couple of thousand off,” the usual pitch. He can now do it for $420/mo with 5k down and I have to get there quick because there’s a lot of interest. I knew that was BS so I took my time I wasn’t in a big rush to get there.

I ask him to send me the vin # before I come, just because I want to see if he’s trying to hide something from me, and he says he’ll find it soon and then stalls and I say that I’m not coming in until I get it (even though I already had it). I buy a Carfax report and see that the car is actually only worth 36k with CarFax and $35k with KBB.

I tell him that I’m no longer interested and he says he can now do it for $420 (after tax). So I go in with print outs of the KBB and CarFax estimates. I also have about ten comps printed out from nearby dealerships. All were less $, had fewer miles and were all CPO. I tell him that I want to speak with his sales manager.

I go in and this guy points to the $47k price and says “that’s what its really worth and this is what I’m actually able to do for you,” and points to the 41k price. So I’m thinking 6k off, but I still say it isn’t enough and I show him the estimate and the comps. He says that the estimates are wrong because they don’t include the AMG Night Edition, which I’d later go back and realize that the estimates did in fact factor this in. He looks at the comps (which are all less $ and CPO) and he says that these don’t count because they’re not being sold by exclusively Mercedes Dealerships and don’t have nearly the same premium packages (lie). the fact that I didn’t seriously question him here was my biggest gaff, because I didn’t realize at the time, but the one I’d be leasing was in fact not CPO and that this very dealership also sold used cars by other brands.

So I lease the damn thing.

They rush me through the paperwork and I say to the manager that since my carfax report was “wrong,” can he give me one. I only thought to ask that Bc of the damn fox in those commercials. He says that I could, but it won’t say anything because nobody has ever owned it, it’s always belonged to them. Again I just take him for his word. On the contract there is a section that asks if the client was given a used car report and it just has a N/A written in.

So after a day of driving the car, it just drives like a rental car. You know when you’re in a rental and you inexplicably want to just push its engine to the limit? And it felt like everyone before you had the same idea? It just drives like that. So I go and take it to a local auto shop to get it fully inspected. While it’s in the shop I call the dealership to ask them to send me the vehicle’s last inspection report. They ask why and I say that I’m just getting the car inspected and I want to make sure everything lines up. I get hung up on and then all of a sudden nobody can find my salesman or the manager. Finally I’m persistent enough to get the salesman and he says that he’ll send me one right away. He then sends me a file that lists the car’s tire pressure. That’s it. Just the tire pressure. I call back and the manager now says that they don’t need to provide me with one since it’s a used car. All of a sudden now they call it a used car.

So I’m pissed. The auto shop can’t do the full inspection they Mercedes is capable of doing, but they say that the car looks fine except for the fact that the onboard computer said that it’s battery had died twice. WTF?

Also, there was never a sales listing for the car until after I leased it. I went on CarFax today and saw that the dealership had listed it for sale the day after I signed all the papers. The listing was then taken right down.

So I got screwed here and most of it is my fault for not doing my own due diligence. Since this whole debacle, every single other comparable is much better priced, has fewer miles and better packages. But I’d like to know:

1- is a salesperson allowed to call a car a demo when it’s not? Is he allowed to shop me a price tag for the car from a year earlier and 8k miles less? I genuinely thought that was the value of the car and was the start of the negotiations. And he told me that there was no invoice price.
2- aren’t I meant to be shown a car fax report if I’m buying a used car? I asked for one but was told I didn’t need it since the one I brought in was wrong.
3- is he allowed to say that the KBB price is wrong and that the msrp of a new car is the right one?

So was the dealership “allowed” to do what they did? Do I have any angle that might make it so that I can return it and lease a new one? Does the fact that the car didn’t come with two of the features from the MARO sheet matter?

Thanks! And sorry if I broke any forum decorum!

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Even if the salesman lied, you were naive enough to sign for the car and drive it off of the lot… theres really nothing you can do. You live and you learn.

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First off, welcome to LH and welcome to CA.

Take a read through this article, it’ll help answer most of your questions in #1. Also, knowing invoice pricing isn’t worth much, and it’s available through car sites.

CA does not have a “cooling off” period, so the moment you signed and drove off the lot, it’s yours. It’s got 8k miles on it, so wear/tear is expected. Plus new batteries on a demo/loaner is not terribly unusual. Modern cars have so many electronics that there is always a constant drain, and if it’s not charged or maintained regularly, batteries can go bad.

#2 - well, you coulda/shoulda gotten one, but the paperwork doesn’t reflect it.

#3 - KBB pricing doesn’t really mean much more than a reference point, and it’s accuracy is debatable.

IANAL, but I believe you need all parties to consent to a/the recording in CA for it to be admissible.

Tough pill to swallow, but enjoy your new ride as much as you can. Out of curiosity, what were your final deal terms?

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I’m gonna take a wild guess that you brought this situation on yourself.

As for your invoice sheet, was the VIN on your sheet the VIN of the car? If so, the odds of anything being added to that by the dealer is slim to none since that looks like an original sheet as it comes from the MB system.

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It’s sometimes worth a call to a consumer fraud attorney. The folks here are very smart but if you’re really upset, an attorney is the only way you’ll get a definitive answer. In the end write it off as a rookie mistake and next time you’re more likely to score a real deal. It’s not worth the anger, life is too short.

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Just my two cents here…

It seems like there were a lot of red flags here throughout the process that you identified, but went past.

The goal in store is always to move things along and overcome objections as quickly as possible. Based on the story I got the impression you smelled bull shit in a few places but still convinced yourself to step in it.

You’ve made some good suggestions for ensuring this doesn’t happen the next time around.

A couple of points-
Getting a car fax for a demo/loaner should never be an issue
VIPs don’t drive C classes
What is a dealer VIP anyways?
The build sheet you posted-is that of the actual car you got? It’s a factory sheet. Agree w those above who said nothing is added to it

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:rofl: :rofl:

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Is there a TL; DR version?

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FYI, CA is a 2 party consent state, and has some of the strictest wiretapping laws in the country. It is HIGHLY illegal to record anyone without their consent. So if you do lawyer up on this none of that can be used and in fact could get you in quite a lot of trouble. “I didn’t know” won’t save you on that.

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So, almost all of this falls under puffery from my understanding. It’s slimy, but not illegal

Puffery is a legal way of promoting a product or service through hyperbole or oversized statements that cannot be objectively verified. On the other hand, false advertising occurs when factually false statements are used to promote a product.

  1. Demo = Loaner. They allowed ‘VIP’ customers to demo a 300 while theirs was being worked on. Also known as a loaner.

  2. You weren’t buying a used car in essence, it never left their inventory and sat on the floor, so they don’t need to provide you with a CarFax, they aren’t hiding accidents.

  3. Yes, more puffery. “This car is the cream of the crop, KBB wouldn’t know this was the 3rd off the line and kissed by the engineer who designed it.”

If he told you it gets 45mpg and heated rear seats, and they didn’t, that’s false advertising.

You got someone just smart enough to stay on right side of puffery, in a very privacy concerned state when it comes to 2 party consent.

Throw the piece on CarMax, VROOM or GiveMeTheVin.com and see if you can escape with no / minimal loss. Possibly Shift.com too being in CA.

Recording a conversation without the consent of the second party is a crime in California

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As others said, it is not a used car because it was never titled. You are the first owner.

One thing I’m not clear on: did you not drive it before buying it? If so, THAT was your single biggest mistake, and entirely on you. If you did test drive it and now are complaining about it, that is also entirely on you.

On the bright side, it is only a lease.

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Even if both parties ok’d the recordings there is nothing in the above novel that appears even remotely illegal, just typical car sales gamesmanship on a completely uneducated buyer.

OP, you leased a loaner car with 8k miles on the clock. It’s not brand new. A replacement battery is no big deal at all.

And yes, dealers will consider a loaner/demo as “almost” new and show you the original build sheet and original MSRP from a year ago. It’s up to you to do your homework and know how much discount to ask for.

Nothing to see or do here other than enjoy your first Mercedes, and learn for next time.

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The deal is done, from what I can see here. You walked into a dealership knowing nothing about cars, demo vehicles, or how the process works. You were swayed into a lease, when you had preowned in your mind. If a rabbit is eaten because it walked into a wolf den, is it the fault of the wolves?

I don’t think anything is “illegal” here, but definitely unethical IMO. Be thankful that it is a lease and try to enjoy it.

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I thought the exact same thing! :rofl:

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So OP payment is 420 a month on an 8k miles 48k msrp “vip” loaner?
I don’t see this as too much of a ripoff. Depends on how much DAS was.

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All signs point to $5k DAS unfortunately…

Which even if correct is an effective $558/mo if 36 mos., not the best deal but certainly not the worst.

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ouch yeah that soundsl ike it might be an expensive lesson learned. i don’t know how soon you could do this but you could try selling it back to carmax, carvana, or shift or something in a month if you still don’t like it.

This is simply false. Most states have VERY strong consumer fraud acts. California likely has a great one. For example in NJ if a salesperson or broker makes any affirmative misrepresentation about a product and you rely on that to make your purchase and as a result you suffer damages you are entitled to treble (triple) your damages + attorney fees. Best part is you dont have to prove the salesman intentionally misrepresented.

The old cat in the bag trick.

Look, it is not like you bought a used c300 that has a rebuilt title from “ABCs wholesale to the public” lot. You are leasing a demo C class. Car is under warranty and after 36 months you ditch it or sell it to a third party.

Funny how the salesmen are readily available before you hand them the $5k and once the deal is done it’s crickets.

Share your deal sheet.

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