ZAG zigs on their "guaranteed, no hassle" car pricing

We've recently outgrown our 4 door sedan and decided it was time to upgrade to a SUV/Crossover.  We reserached and drove 5 of them before deciding on the Mazda CX-9.  Our insurance company offered a new car buying service through ZAG.  ZAG is a thrid party that negotiates pricing with dealerships and then offers you a "guaranteed, no-haggle price."  They email you a "Pricing Certificate" that you take to the dealership who then sells you the car at that price.  On ZAGs website (zag.com) it says "... allows us to guarantee upfront pricing and a sales experience that is fast, predicatble, and hassle-free."

We drank their cool-aid and built the car on their site that we wanted.  I researched the inventory at our local Tustin Mazda and found a 2009 CX-9 Sport Black with Black interior and power/heated seats.  ZAG's pricing showed that Tustin would give us $5,800 below invoice!  Not MSRP but, dealer invoice.  Our total price would be $22,971 for a car with a $31,000 sticker price.  I printed the Pricing Certificate and headed in to Tustin Mazda.  I sat down with the sales person, handed him the inventory for their website and the pricing certificate and said "I want this car at this price."  He went to talk with his manager and came back saying "I don't know where you got that inventory but we sold that car months ago.  We don't have any 2009's left but we can get close on a 2010 if you want."  I thought it was BS but said "fine, what's the price?"  I went outside with Cherish and Ainsley while he went to talk with a manager again.  While we were out there I spotted a Black, 2009 CX-9.  I checked the VIN and it was the exact one I had printed and asked to buy.  I went inside to see what they would come up with on the 2010 (just in case it was going to be really close in price) and wasn't going to mention the car out front right away.  They were $6,000 over what the $22,971 that we had intended to pay.  Not sure how they considered that "close" but, that's another story.  I then told him I saw the car outside so we went outside to verify the VIN and indeed, it was the exact car.  This is a perfect example of a bait and switch program; they have a car online for a certain price and when you get there, they try to sell you the newer model at more money while lying about their inventory.  Very disappointing from a dealership that has a good reputation.  

We went back inside while the salesperson asked about the car.  He came back about 10 minutes later to tell me that they couldn't sell it to me for my guaranteed, no-haggle price and that it was going to be $2,000 more.  I asked for his manager who came out and gave me some story about how ZAG messed up on the pricing.  I said, "I don't care who messed up.  This is a guarantee so, I want that car at that price."  I knew I was getting in to a losing battle so we walked out.

The next day I contacted ZAG and asked them if they were going to stand by their guarantee.  They said they would research the pricing and get back to me.  About an hour later they came back and said that the dealership was correct, there was an incentive that was being counted twice on ZAG's website and that the price was $1500 more, bringing it to $24,471.  I pushed them on the "guaranteed" price and they wouldn't do anything.  So, they say there is a guarantee but there is actually on guarantee.  They blamed the dealership for putting in the wrong price.  I searched and found that dealerships all across the country had the exact same price so it wasn't Tustin Mazda, it was ZAG's fault.

I ended up talking with Jim Feinstein, the owner of Tustin Mazda, and we talked through the issues.  He was a little upset when I told him I felt I had been a victim of bait and switch but, anyone reading this blog, tell me if you would have though anything different.  I provided a price (that they didn't want to honor) with a VIN number they looked up in their computer and then claimed it was sold months ago.  Only after I found the car myself did they cough up to the fact it was there and that they didn't want to honor the price.

Who is to blame?  Mazda USA?  Tustin Mazda?  ZAG?  I think ZAG.  I'm shocked that they wouldn't honor their guarantee!  How can you base your entire company on a simple guarantee and then not honor it?  I wonder what their investors would think if they knew that the single item that allows them to be in business is a lie.

I recommend staying away from ZAG.  It doesn't give you any guarantee and frankly, it added 3 extra days of headaches than if we had just went in to negotiate to begin with.

After all of our hassles, Jim and I came to an understanding and negotiated a good deal.  It wasn't the $22,971 but it was within a few hundres dollars.  We love our new car!