Crappy Companies and Front-Running Favorites

I read Frugal Scholar's post, Virgin Mobile: Worst Customer Service Ever: Move Over Chico's, and thought this would be a great time to bring up the companies I truly despise and the ones that I sincerely appreciate.

Crappy Companies:

• Fedex - My most recent experience has convinced me to avoid them as much as possible in the future.  There will be a post about it as soon as everything is wrapped up.
• Comcast - Multiple awful customer service experiences regarding glitchy hardware after Time Warner was bought out by Comcast caused us to move to AT&T U-Verse.
• General Motors - As I posted earlier this week, I will never give Chevy my money again after the multiple problems due to poor materials on my Aveo in the last 6 months even though it has less than 42,000 miles.
• Chase - When we were moved over from WAMU, Chase double-charged our $900 mortgage payment and took a little more than 3 weeks to credit it back to our account.  We actually received the credit exactly 5 days before our next mortgage payment was due.
• Gentle Dental - Wiggled while they gave me the shot for pain (that hurt ALOT) and then kept accidentally spraying me in the face since the doctor and assistant were too busy talking to each other to notice.

Front-Running Favorites

• ING Direct - Unknown to me, ING accidentally paid a bill 3 days before my scheduled billing date last year, called me to explain their mistake as soon as they notices their error, offered to waive any overdraft fees that might occur (not a problem since we have $1000 padding built-in to our checking accounts), and credited my account with the lost interest.  I was most impressed by the actual call explaining the mistake mere hours after they found out.
• Discover Card - Two businesses have accidentally double-charged my card and Discover was easy to use online and over the phone.
• AT&T U-Verse - I called to extend my discount rate since my salary had been frozen for another year, but they had already extended it an extra 2 months.  The rep also secured me an additional $10 one-time discount just because I called and "AT&T is trying to help out customers that are suffering in this economic climate".  The icing on the cake is that the next bills were actually for the stated amounts and continue to be correct!  That never happened when Comcast offered us a credit.

What companies have lost or earned your continued business?

My Crappy Car

About a month ago, I mentioned car problems.  Here's the whole story of my crappy car so far.

The Car

I own a 2005 Chevy Aveo that I bought brand new for $11,200 on a 5 year loan.  I ended up paying a total of about $12,800 by the time I paid it off 2 years later.  It's currently 5 years old and has driven about 42,000 miles.  I bought it because I needed an inexpensive car, I was young enough to think that used cars sucked, and I only needed a commuter vehicle.

For 4 years, my Aveo did its job with only a few minor problems.  It slowly leaks about an inch of brake fluid every 4-6 months which I refill on my own now for $2 a shot.  It also wears down good tires every 2 1/2 years or 20,000 miles.

I've stuck to the maintenance schedule in the owner manual since I first bought it, so I thought I would be okay until at least 2012.

The First Situation

Last November (2009), my check engine light popped on while I was heading to work.  I was worried, so I stopped by my mechanic who was 5 miles away.  It took him 10 minutes to find out that my 02 sensor was broken and my serpentine belt was cracked.  My car had less than 39,000 miles at this point. 

Luckily, my husband had the day off and drove me into work.  My supervisor lives in my direction and was able to drop me off on his way home.  Since my mechanic could get the parts from a dealer nearby, I was able to pick up my car that afternoon but had to fork over $540 total with tax.  But it worked, so I swallowed my annoyance and hoped for the best.

The Second Situation

This April I was driving home from work and my A/C started blowing hot air that smelled a little.  It took me 2 miles of feeder road before I noticed that my car's thermostat gauge was reading a big fat H for hot.  After pulling over and calling my husband, I opened the hood and it looked like some icky liquid had exploded all over the place.

I called my mechanic and asked what I should do.  Obviously he suggested having it towed in so they could take a look.  I wrote down his address.  I then called our insurance company to see if I had towing on my policy.  I did and she sent out a tow truck to my location.  By that time my husband was waiting with me and I was so proud of not freaking out.  Let's just say I don't usually handle stress very well.

My mechanic called me the next morning with the happy news that my thermostat housing had cracked in half.  I knew this was coming since I had googled "Chevy Aveo Overheating" the night before and the first page of results all mentioned broken thermostat housings for the 2004-2006 models.  Why?  Because they used cruddy plastic housings instead of metal ones like everybody else.

My mechanic quoted $375 plus tax, which was similar to mentioned prices online, so I gave him the go ahead.  It was ready that afternoon and cost $343 total.  My crappy plastic thermostat housing was replaced with a much better metal one and now the car is driving fine again.

The Official Complaint

Call me crazy, but I do not think I should have to spend $900 on major parts in less than 6 months on a car with less than 42,000 miles! 

I emailed an official complaint to GM's customer service department detailing everything.  I received a phone call a few days later, went over the specifics, and was told that Paul would get back to me the next day.  Paul did not call.  I left a voicemail a week later and received a call back the next morning.  Since none of the parts that were replaced were part of a recall or replaced by a Chevrolet dealership, there's nothing they can do. 

He was nice enough to tell me that there was a recall for part of the electronics system though - they need to reprogram my Engine Control Module.  Fantastic. *heavy sarcasm*

I have filed complaints with the Better Business Bureau and Consumer Affairs.  I also see a Hyundai Accent or Toyota Yaris in my future.  Maybe a used Prius since my husband's has worked out so well...hmmm...choices, choices.

Any car horror stories out there?  Any suggestions for my next car?

Did You Know Car Financing is Negotiable?

Today we have a guest post from the Car Negotiation Coach offering advice on car financing. The Coach’s blog provides people with practical negotiation strategies and financial advice on car purchases.

Whenever one of my friends buys a new car, I always ask them what interest rate they got on their loan. And it always surprises me how little effort they put into finding a competitive rate. It’s often a percent or two above the best rates available at the time. They devote time and effort to researching car prices, driving around to several dealerships, and trying to drive a hard bargain with salesmen. But once they get what they believe is a good price, they put down their guard and consider the deal done. When they walk into the Finance office, they just take whatever rate the Finance Manager offers them.

What most people don’t realize is that shaving off a couple of percentage points of interest can make a huge difference.

For example, a $15,000 loan with a rate of 7.5% paid over 5 years results in a monthly payment of $300. That same loan with a rate of 9.5% would have monthly payments of $315 - a cost of $900 over the life of the loan.

So how can you get competitive car financing?

First off, there is nothing that says you have to get a loan from the dealership. It pays to shop for rates before buying a car. Check with your bank, credit union, or on the Internet for good rates. You can get pre-approved for a loan and get a blank lender check (up to a predetermined amount) to pay for a vehicle. Take this check or documentation of a rate quote with you to the dealership when you are ready to buy.

Once you get to the Finance office at the dealership, ask the Finance Manager for his best rate. If he gives you a rate that’s higher than your online quote, show him the quote and give him a chance to beat it. Most people don’t realize that car financing is negotiable! Loans are a big source of margin for dealerships and they will often try to win your business. Don’t be surprised if they are able to beat your best quote. But if the Finance Manager is unable or unwilling to beat or match your outside lending quote then just use the pre-approved blank check to pay for the car.

Summary
Don’t assume the price of a car is the only aspect of a car purchase that is negotiable. Get competitive offers before going to the dealership and see if the Finance Manager will beat them. Check out my website if you want more car financing tips.

My Guest Post at Studenomics – How to Buy a Car

Just wanted to say a quick thank you to MD over at Studenomics for inviting me to guest post!

Feel free to take a look at “How to Buy a Car – What You Need to Know so You Don’t Get Ripped Off” to see my take on the car buying experience.

I have been working with finance managers for car dealerships for about 5 years, so this is experience talking.  Please feel free to contact me with specific questions since one blog post is not enough to fit everything in that I have learned.  :-)

Thanks again to MD!