Man Tries to Buy $40K Toyota Using $40K of Coupons

Murpheeee

Diamond Member
Apr 30, 2000
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PORTSMOUTH ? Chris Shields, a 40-year-old Eliot, Maine, resident who freely describes himself as a "coupon nut," is hoping his sharp eye for a deal will pay off in the form of a new car.

While perusing the classified ads section of the Portsmouth Herald early last week, Shields, a stay-at-home dad, came upon a coupon placed by Toyota of Portsmouth offering $200 off on any new or used car among the 300 vehicles the dealership has in stock.

"Twenty years ago I had a business law professor who saw an ad in the Yellow Pages offering $500 off on a car, and he clipped out 20 coupons and he wound up getting a $10,000 vehicle," Shields said. "Ever since then I?ve been checking coupons."

Noticing the coupon carried a Feb. 28 expiration date but no disclaimer limiting customers to one coupon, Shields decided to test the truth in advertising theory.

After purchasing over 200 Seacoast Newspapers carrying the ad, Shields clipped out 207 coupons worth $41,400.

On Jan. 4, a day after his 40th birthday, Shields packed up his coupons in a black briefcase and made his way to the dealership on Lafayette Road with the hope of returning home with a silver-colored, 2002 Sequoia Ltd. valued at approximately $42,000.

Shields? account of what took place over the course of the next couple of days amounted to what he refers to as "a complete runaround."

According to Shields, negotiations got off to a pleasant, courteous start and even reached the stage where a sales agreement was drawn up.

Shields said the situation took a turn when he inquired if the dealership was still accepting coupons.

"When I was told ?yes,? I opened my briefcase and his (salesman?s) jaw just dropped. I had written the words, ?including coupons? on the sales agreement when he left to speak to the sales manager. He returned about 10 minutes later and told me they wouldn?t accept the coupons, and that I?d have to come back with a lawyer."

However, Shields said he received a call from the sales manager the next day, who told him the car was cleaned up and ready to be delivered.

"I thought to myself, ?what a stand-up dealership.? But things changed when I went back. The first thing they gave me was the title, then a document authorizing acceptance of delivery.

"But then they handed me a second sales agreement they had drawn up, but that one made no reference to the coupons. I was then told by another sales manager that if I didn?t have a cashier?s check I wasn?t going to get a car, and that I should have been thrown out for bringing in the coupons."

At that time, Shield said he was also told specifically that the dealership had in its possession a letter from Seacoast Newspapers admitting that the publication had made an error in printing the coupon.

"They wouldn?t show it to me when I asked to see it, so I called the classifieds ads department to see if they had actually sent such a letter," Shields said.

Efforts to contact the Portsmouth Herald?s sales manager were unsuccessful, but according to Shields, he received a message on his answering machine from the Herald in which he was told that no such letter was ever sent to Toyota.

"The message said the letter was never sent because there was no error. I still have it saved on my machine," Shields said.

Shields, who says he is receiving informing counsel from an attorney friend but has no plans to hire a lawyer, said he has also contacted the state attorney general?s Consumer Protection and Anti-Trust Bureau office and has sent them copies of the coupons and the sales agreement.

When contacted Wednesday, Toyota of Portsmouth owner Jim Boyle said he had been out sick for several days and had not personally dealt with Shields.

Boyle did say, however, that Senior Assistant Attorney General Krysten Spath has already been in touch with him and has told him Shields? complaint "has no legs to it at all."

Efforts to contact Spath this morning were unsuccessful.

Boyle said Shields? attempt to buy a $40,000 car with coupons was a ridiculous attempt to try and take advantage of a situation, and that his allegations of unfair treatment on the part of the dealership only served to perpetuate an unfair presentation of car dealers in general.

When asked if he would have added a disclaimer limiting one coupon to a person if he had it to do all over again, Boyle said he had already been given that advice by the Consumer Protection office.

"One thing I am sure of. The ad ran as it was supposed to run, and there was nothing misleading or deceptive about it. No reasonable person could possibly expect to piggyback coupons like that and walk away with a new car," he said.

Shields said he holds absolutely no grudges against Toyota of Portsmouth, and would like to work out an arrangement where he could receive a car at half the value of the Sequoia and have the dealership donate another car to charity.

"It would be great public relations for them and a car for me, and it would demonstrate an honor to a commitment on their part. I want this to be a win-win situation for everyone."

But that?s not likely to happen if Boyle has the final say in the matter.

"If he wants to buy a car and use the $200 coupon, we?ll be more than happy to accommodate him, just as we have with a half-dozen other customers who were satisfied and thrilled with the offer," Boyle said.

"We?re not here to hoodwink people. I?ve invested a fortune in this business and I?ve been here for a year, and I expect to have another good 20 years. You don?t stay around by cheating your customers, and we try our very best to always provide honest, reliable service.

"But no mistake was made here, and we?re not going to let him capitalize on it."
 

StageLeft

No Lifer
Sep 29, 2000
70,150
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Well they should have had a disclaimer obviously. Technically they should accept all the coupons, but I wonder if there is something in the law that allows for assumed disclaimers in a matter like this.
 

NogginBoink

Diamond Member
Feb 17, 2002
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I have to side with the dealership on this one.
Boyle said Shields? attempt to buy a $40,000 car with coupons was a ridiculous attempt to try and take advantage of a situation, and that... no reasonable person could possibly expect to piggyback coupons like that and walk away with a new car," he said.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: NogginBoink
I have to side with the dealership on this one.
Boyle said Shields? attempt to buy a $40,000 car with coupons was a ridiculous attempt to try and take advantage of a situation, and that... no reasonable person could possibly expect to piggyback coupons like that and walk away with a new car," he said.
Yep, it's obviously trying to take advantage of the situation, so I wonder if the law makes allowances for not having a disclaimer, and won't make the dealership give the car, since the guy is being a little deviant.
 

propellerhead

Golden Member
Apr 25, 2001
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Did you guys read the one about the American Airlines Frequent Flyer Miles? Some promo offered so many AA miles for each package of yogurt and this one guy did the math and figured out that it would be cheaper to buy a crate of yogurt and claim the miles than to buy an actual airline ticket to London. So he did. And the airline honored it.
 

kranky

Elite Member
Oct 9, 1999
21,019
156
106
What the dealer should have done was to look at their profit margin on the car. Let's say it was $5000.

Then they should have done this:
Told the guy their policy is one coupon per purchase, but since he thought there was no limit on how many coupons you can use they will allow him to apply $4000 worth of coupons (so they still make something on the deal), plus give him back another $100 for the cost of the newspapers he bought.

Put up signs in the dealership saying "limit one coupon per purchase"

Call the newspaper and give them the story, which would let them put their own spin on it. They would have looked like very accommodating people if they had made that offer. No reasonable person would expect a car dealer to fork over a $40K car for the cost of 200 newspapers. They might get some free publicity and would have come across as fair.

The way they handled it was very poor.
 

Ornery

Lifer
Oct 9, 1999
20,022
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"No reasonable person could possibly expect to piggyback coupons like that and walk away with a new car."

No sh|t. What an ass. His law professor shouldn't have gotten a vehicle either.
 

Lonyo

Lifer
Aug 10, 2002
21,938
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Originally posted by: Skoorb
Originally posted by: johneetrash
if this guy gets the car, he'll have surpassed even rossman :Q
He'll be a legend.

Rossman will have to give up his title, no way you can be to Ferenghi if someone gets a $40k car for free.
 

FelixDeCat

Lifer
Aug 4, 2000
30,639
2,590
126
This is great but doesnt top the guy who tried to make Pepsi buy him a Harrier Jump Jet.
 

BatmanNate

Lifer
Jul 12, 2000
12,444
2
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Originally posted by: propellerhead
Did you guys read the one about the American Airlines Frequent Flyer Miles? Some promo offered so many AA miles for each package of yogurt and this one guy did the math and figured out that it would be cheaper to buy a crate of yogurt and claim the miles than to buy an actual airline ticket to London. So he did. And the airline honored it.



What did he do with all of the yogurt?
 

T2T III

Lifer
Oct 9, 1999
12,899
1
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Sounds like the Ultimate Ferengi to me. Way to go. :D

A few months back, I was watching a show on parents that adopted lots of children. The homes had about 15 children in each. During one shopping trip, the guy used enough coupons to get $100 worth of groceries for about $30.00. Given the guy's current living scenario, I think he did pretty good with his shopping.
 

Sundog

Lifer
Nov 20, 2000
12,342
1
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Originally posted by: Skoorb
Originally posted by: NogginBoink
I have to side with the dealership on this one.
Boyle said Shields? attempt to buy a $40,000 car with coupons was a ridiculous attempt to try and take advantage of a situation, and that... no reasonable person could possibly expect to piggyback coupons like that and walk away with a new car," he said.
Yep, it's obviously trying to take advantage of the situation, so I wonder if the law makes allowances for not having a disclaimer, and won't make the dealership give the car, since the guy is being a little deviant.


Wow, you two have never been over to the hot deals section have you. Every person in there would have caught it, and incessantly whined about not getting the deal.
 

kranky

Elite Member
Oct 9, 1999
21,019
156
106
This is the story propellerhead is referring to:

The Pudding Guy (from frequentflyer.com)
In the annals of mileage accrual, David Phillips of Davis, California, rates his own chapter.
David's mileage escapade began when he became aware of an offer of AAdvantage miles for purchases of Healthy Choice products. Long story short, he did the math and the results were compelling.

First, he determined that he could purchase Healthy Choice pudding for $0.25 a cup. Each cup earned him 50 miles. And with the double-mile bonus in effect at the time, the end result was 100 miles for every $0.25 spent, or $0.0025 (a quarter of a cent) per mile. Since the conventional wisdom values a mile at between $0.01 and $0.02, David realized that that he had an opportunity to buy miles at 12-25% of their value.

This was a volume play, and it wasn't long before David realized the volume was more than he could handle. Acquiring the pudding was challenge enough; stripping the labels off (required to get the miles) was more than he could accomplish before the end of the double-mile period. So he found a solution which benefited all concerned: he offered the pudding cups to the Salvation Army and other charitable organizations in exchange for their help in peeling the labels. After all, he and his family could only eat so much pudding. And the labels were of no use to the hungry.

In the end, he was able to buy 12,000 cups of pudding, for $3,000. That translates into more than 1.2 million miles, redeemable for 48 free domestic tickets, worth approximately $20,000. Parlaying $3,000 worth of pudding into $20,000 worth of travel is a nice bit of arbitrage, in anybody's book.

Of course, what we're not figuring into the computation is the value of your time. So this is not a recommendation that you follow David's example. Think of it rather as a case study in how an unintended mismatch between price and incentive can be exploited to your advantage.

(On the other hand, from Healthy Choice's perspective, the story is more nightmare than fairy tale. Assuming Healthy Choice was able to purchase the miles for $0.01 each from American, each time David earned 100 miles for a $0.25 pudding purchase, the company paid four times more in mileage costs than the purchase price of the product. Ouch!)

 

Zebo

Elite Member
Jul 29, 2001
39,398
19
81
Is there no perception of context anymore? The coupon was for one car -$200 same with a cereal coupon or anything which is offering an incentive to buy. This guy is a loser scam artist rying to take advantage like he's doing with his wife...Stay at home dad. What a pansy.,
 

Scarpozzi

Lifer
Jun 13, 2000
26,391
1,780
126
That's pretty funny... What can you say... I hate it when people do extreme things like this because it makes all businesses start to look for loopholes and there will be less and less "really hot deals" available because they have to analyze every promotion they offer too thoroughly.
 

propellerhead

Golden Member
Apr 25, 2001
1,160
0
0
Originally posted by: kranky
This is the story propellerhead is referring to:

The Pudding Guy (from frequentflyer.com)
In the annals of mileage accrual, David Phillips of Davis, California, rates his own chapter.
David's mileage escapade began when he became aware of an offer of AAdvantage miles for purchases of Healthy Choice products. Long story short, he did the math and the results were compelling.

First, he determined that he could purchase Healthy Choice pudding for $0.25 a cup. Each cup earned him 50 miles. And with the double-mile bonus in effect at the time, the end result was 100 miles for every $0.25 spent, or $0.0025 (a quarter of a cent) per mile. Since the conventional wisdom values a mile at between $0.01 and $0.02, David realized that that he had an opportunity to buy miles at 12-25% of their value.

This was a volume play, and it wasn't long before David realized the volume was more than he could handle. Acquiring the pudding was challenge enough; stripping the labels off (required to get the miles) was more than he could accomplish before the end of the double-mile period. So he found a solution which benefited all concerned: he offered the pudding cups to the Salvation Army and other charitable organizations in exchange for their help in peeling the labels. After all, he and his family could only eat so much pudding. And the labels were of no use to the hungry.

In the end, he was able to buy 12,000 cups of pudding, for $3,000. That translates into more than 1.2 million miles, redeemable for 48 free domestic tickets, worth approximately $20,000. Parlaying $3,000 worth of pudding into $20,000 worth of travel is a nice bit of arbitrage, in anybody's book.

Of course, what we're not figuring into the computation is the value of your time. So this is not a recommendation that you follow David's example. Think of it rather as a case study in how an unintended mismatch between price and incentive can be exploited to your advantage.

(On the other hand, from Healthy Choice's perspective, the story is more nightmare than fairy tale. Assuming Healthy Choice was able to purchase the miles for $0.01 each from American, each time David earned 100 miles for a $0.25 pudding purchase, the company paid four times more in mileage costs than the purchase price of the product. Ouch!)

The full story includes a section on how he donated all that pudding and used it as a deduction on his taxes. It also mentions he became like a Platinum member since he had over a million miles.

The whole thing was a good read.