This business is not BBB accredited.

South Tacoma Honda

Phone: (253) 472-2300 View Additional Phone Numbers 7802 South Tacoma Way, Tacoma, WA 98409 http://www.southtacomahonda.com


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Description

This company offers new and used car sales, parts and services.


BBB Accreditation

This business is not BBB accredited.

Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.

To be accredited by BBB, a business must apply for accreditation and BBB must determine that the business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses must pay a fee for accreditation review/monitoring and for support of BBB services to the public.


Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised the rating for South Tacoma Honda include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 3 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

3 complaints closed with BBB in last 3 years | 1 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 3
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 0
Total Closed Complaints 3

Customer Reviews Summary Read customer reviews

0 Customer Reviews on South Tacoma Honda
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 0
Total Customer Reviews 0

Additional Information

BBB file opened: March 17, 1988 Business started: 03/01/1988 in WA Business started locally: 03/01/1988 Business under new ownership as of: 06/18/2013 Business incorporated 02/01/1988 in WA
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

Washington Department of Revenue
6500 Linderson Way SW Fl 1, Tumwater WA 98501
http://www.dor.wa.gov
Phone Number: (800) 451-7985
bls@dor.wa.gov

Type of Entity

Limited Liability Company (LLC)

Business Management
Mr. Ryan Gee, Member Mr. Jeff Jackson, Member Mr. Dan Kiekenapp, General Manager
Contact Information
Principal: Mr. Ryan Gee, Member
Principal: Mr. Jeff Jackson, Member
Principal: Mr. Dan Kiekenapp, General Manager
Business Category

Auto Dealers - New Cars Auto Dealers - Used Cars New Car Dealers (NAICS: 441110)

Hours of Operation
M: 9:00 AM - 8:00 PM
T: 9:00 AM - 8:00 PM
W: 9:00 AM - 8:00 PM
Th: 9:00 AM - 8:00 PM
F: 9:00 AM - 8:00 PM
S: 9:00 AM - 6:00 PM
Su: 10:00 AM - 6:00 PM
Service Area
Pierce
Alternate Business Names
Tacoma Automotive Holdings LLC

Additional Locations

  • THIS LOCATION IS NOT BBB ACCREDITED

    7802 South Tacoma Way

    Tacoma, WA 98409 (253) 472-2300 (888) 746-4905 (888) 746-4565 (888) 746-4859

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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

Complaint Detail(s)

12/12/2014 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: My last lease of a Honda accord had the recall for faulty brakes. When I learned of it I had two months left to go and took the car in to either have the brakes fixed or end the lease early. They did neither and since it put me in a bad spot I had to lease a new accord and because they said they would let me out two months early if I did so. Time to turn in the lease again and now doing homework to see what the costs really are.... WOW they charged me $1298 in excess fee's over the markup on the price of the car at $24,000! That equates to a 11.8% Fee over the price of the car PLUS the Mark up of around $4,000

Desired Settlement: Full refund of all excessive fee's

Business Response: Initial Business Response /* (1000, 6, 2014/11/26) */ November 24, 2014 Better Business Bureau Complaint# XXXXXXXX Dear *** *** I sympathize with *** ****'s curiosity, sometimes it is difficult looking back. I believe Mr. **** has a career in financial planning and I am surprised that it took over two years before he became concerned about these issues and, not at the time of sale. Let's start with the Gross Capitalized Cost: 2012 Honda Fit 2012Honda Accord Sale Price $21,000.00 $24,000.00 Plus Acquisition Fee $595.00 $595.00 Acquisition fee (or bank fee or initiation fee) A fee charged by a lessor to begin a lease. An acquisition fee is also known as an initiation fee or a bank fee if the lessor is a bank rather than a dealer. ***** ********** Acquisition fee is $595.00. This is not negotiable and something that the dealership cannot mark up. Equals the Gross Capitalized Cost $21.595.00 $24,595.00 Capitalized Cost Reduction Capitalized cost reduction A down payment or other credit that lowers the capitalized cost of a lease. Mr. **** had an amount of $829.28 that was due at lease signing for the 2012 Honda Fit. This amount comprised of the following: $150.00 "negotiable" documentary fee $137.25 for licensing (This is non-negotiable and is $134.75 plus a $2.50 admin Fee.) $329.01 for first payment due $194.36 capitalized cost reduction $18.66 tax on the capitalized cost reduction $829.28 Mr. **** could have, at the time of sale, negotiated for a lower documentary fee. It clearly states on his lease agreement, and I quote, "Vehicle Dealer Documentary Services Fee (DOCUMENTARY SERVICE FEE IS A NEGOTIABLE FEE. Documentary services fees are not required by the state of Washington.)" The Capitalized Cost Reduction reduces the Gross Capitalized Cost to the Adjusted Capitalized Cost which is then used to calculate your base monthly payment. RENT CHARGE Rent charge A term used to describe the lease fee or charge, most notably in the federal Consumer Leasing Act disclosures form. The rent charge is calculated by taking the Adjusted Capitalized Cost adding the residual and multiplying by the money factor times the number of months in the lease. So, with Mr. ****'s 2012 Honda Fit the calculation is as follows: Adjusted Capitalized Cost $21,400.64 Plus: Residual Value $10,006.20 Total $31,406.84 Multiply by the money factor of .00200 equals $62.81 multiply this by 48 months and you get $3,014.88 which is the rent charge for this vehicle. Mr. ****'s 2012 Honda Accord calculation is as follows: Adjusted Capitalized Cost $24,427.22 Plus: Residual Value $13,891.00 Total $38,318.22 Multiply by the money factor of .00033 equals $12.65 multiply this by 36 months and you get $455.40 which is the rent charge for this vehicle. The rent charge is all paid to ***** ********* not South Tacoma Honda! Please note that the money factors and residuals are set by Honda. Money factors can be written up but in this case they were not. We made the standard $100.00 per lease paid to us by ***** ********** (Also, you can determine a rough interest rate by multiplying the money factor by 2400. So in the case of the Honda Fit it was 4.9% and the Honda Accord was .79%) I hope this response answers Mr. ****'s confusion. I have attached copies of Mr. ***** registrations from the State of Washington and made copies of the lease agreements (though it was only 8 1/2 X 14) Respectfully Yours, *** ********* General Manager South Tacoma Honda Initial Consumer Rebuttal /* (3000, 8, 2014/11/28) */ (The consumer indicated he/she DID NOT accept the response from the business.) Dear Mr. *** I appreciate your willingness to facilitate this conversation. I am unsatisfied with the response from Mr. ********* of South Tacoma Honda for the following reasons: First, my sole complaint is that the fee structure South Tacoma Honda uses for their lease business is excessive and disclosed poorly. I did have a conversation with ***** ********* ******** and they conveyed to me that the dealership is the entity that writes the agreement and they approve it. I was told by them directly that each dealership creates their fee structure differently and that this particular lease was a very expensive one. I expressly asked the representative if he would want his mother to sign this lease and how they would feel if this was posted on the news. He replied that he would not want either to happen. The one part that Mr. ********* did not address at all was that the sales prices of the cars were full sticker price. There is quite enough profit margin in the mark-up from the invoiced amount to the sticker price. A case in point with the Acquisition fee, I've talked to two other local Honda Dealerships and neither of them charge that. One dealership told me the lease was totally based on the difference between the price and residual value with only tax and licensing fees added. The other told me there was the Acquisition fee but the would be willing to lower the Sales price by $595 to make the deal work. I did as to have the Documentary fee waived and was told no by the business manager. The one that still gets me is the Rental charge. Mr. *********'s explanation was confusing at best if not an outright misleading. He explained the math behind how they come up. Why my wife was charged 20 basis points and I was charged 3.3 basis points of the Sum of the Adjusted capital cost AND the residual value is a mystery. (As a side note, I'm wondering why someone would add the residual value to the Capital cost to begin with. The residual value is, by nature, included in the Capital Cost already. This is circular logic that appears to confuse and disorientate customers.) The Rental Fee is quite clearly added to the "Depreciation and Amortized Amounts" to equal the "Total of Base Payments." When I asked ***** ********* ******** why that fee was there they simply answered that the dealership charges that because they can. This is a bad business and unfair to consumers. Sincerely, **** **** Final Business Response /* (4000, 10, 2014/12/09) */ December 5, 2014 Dear Mr. ****, I am not sure who you talked with at ***** ********* but let's begin with the basics. First, a monthly lease payment is made up of three components: a Depreciation Fee, a Finance (or Rent) Fee, and Sales Tax - all added together. 1.) The Depreciation Fee pays the leasing company ****** ********** for the loss in value of its car, spread over the lease term. This is also based on the time you intend to keep the car and the miles you intend to drive. You pay off an equal portion of the total expected depreciation each month. This calculation involves the Net Capitalized Cost. The Residual Value, and the lease term. The calculation looks like this: Depreciation Fee = (Net Capitalized Cost - Residual Value) / Term 2.) The Finance (or Rent) Fee is like interest on a loan and pays the leasing company for the use of their money. This calculation involves the Net Capitalized Cost, the Residual Value, and the money factor. The calculation looks like this: Finance (or Rent) Fee = (Net Capitalized Cost + Residual Value) X Money Factor Yes, you add Net Capitalized Cost and the Residual Value - this is not a mistake. It is not double counting as it may appear. It is a way of calculating the average amount financed without using complicated constant-yield annuity business formulas. This method is used by all lease companies. Also, please note that you are paying finance charges on both the depreciation and residual. You are tying up the leasing company's money while you are driving their car. They have used their money to buy the car that you will drive while you lease. Basically, you are paying finance charges on half of the depreciation and all of the residual for the term of the lease. 3.) The Sales Tax is calculated as follows: Monthly Depreciation Fee +Monthly Finance (or Rent) Fee X Washington State Sales tax based on where the car is garaged + .003 (For car sales) Now let's put this all together using your 2012 Honda Accord. The List price at the time of sale was $25,425.25. This was calculated as follows: MSRP $23,950.00 Our Markup $999.00 Décor Package $149.95 Mud Guards $172.10 Wheel Locks $84.25 Hand Wax $69.95 Total $25,425.25 You negotiated the selling price to $24,000.00. ***** ********* has a $595.00 Acquisition Fee. These are added together to become your Total Gross Capitalized Cost, which is $24,595.00. You made a down payment of $829.28 that was due at lease signing for the 2012 Honda Accord. This amount is comprised of the following: $150.00 "negotiable" documentary fee $152.25 for licensing (This is non-negotiable and is $149.75 plus a $2.50 Admin Fee.) $334.38 for first payment due $192.67 which is $175.79 for the Capitalized Cost Reduction and $16.88 of Sales Tax on the $175.79. Now subtract $175.79 from the Total Gross Capitalized Cost. This amount is now your Adjusted (or Net) Capitalized Cost of $24,419.21. To calculate your Residual Value you take M.S.R.P. of the vehicle which is $23,950 X .58 which is the Residual factor set by ***** ********** This number equals $13,891.00 and is your Residual Value. We take the formula from #1 (Depreciation Fee = (Net Capitalized Cost - Residual Value) / Term) Plug in your numbers ($24,419.21 - $13,891)/36 = $292.45. We take the formula from #2 (Finance (or Rent) Fee = (Net Capitalized Cost + Residual Value) X Money Factor) $24,419.21 + $13,891.00 = $38,310.21 X .00033 = $12.64 Multiply $12.64 X 36 months and your Finance (Rent) Fee is $455.04. Monthly Depreciation Fee $292.45 Finance (or Rent) Fee $12.64 Total $305.09 We now need to calculate the tax on your payment. $305.09 X 9.6% = $29.29 $305.09 + $29.29 = $334.38 which is your monthly payment. I understand the concept can be confusing; however, this is how most leases are calculated. Please compare the above to your leasing agreement, they are equal. The facts are that ***** ********* sets the money factor and the residual. As to the Acquisition Fee, you can have the $595.00 Acquisition Fee waived but you must add .00055 to the Standard Money Factor. So, as an example, the Special Money Factor for the 2012 Honda Accord was .00033 if you were to waive the $595.00 we would need to raise the money factor by the .00055 which is .00033 + .00055 = .00088. With the new money factor at .00088, your new Rent Fee would be $33.73 X 36 months which is $1,214.28. Compare that to the $455.04 you actually paid this is an increase of $759.24. Plus, your new monthly payment would be $358.15 which is $23.52 per month more than what you are paying now. Multiply that times 36 months and you would be paying $846.72 more over the life of the lease. Waiving the $595.00 acquisition fee would cost you $1,466.00. It doesn't make sense to us, or our customers, so we don't offer it since it only leads to confusion. The Acquisition Fee, and Finance (or Rent) Fee all go to ***** ********** not the dealership. Also, the money factors and residuals are all set by ***** ********** They are different for each model. I have enclosed a link below that will direct you to ************ It is a great article on how to calculate a lease that will give further clarification on leasing a new vehicle. Respectfully Yours, *** ********* General Manager South Tacoma Honda ************************************************************************ Final Consumer Response /* (2000, 12, 2014/12/11) */ (The consumer indicated he/she ACCEPTED the response from the business.)

6/24/2014 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: False advertisement; I have evidence to show that the Honda Accord Coupe was on sale for 22,998 and when I wanted to purchase the car I was told that it's 26,400.

Desired Settlement: Sell me the car for the advertised amount

Business Response: Initial Business Response /* (1000, 5, 2014/06/09) */ Dear Mr. ****, First, if we are selling a vehicle which has an advertised price, we are obligated to sell it at that price. I apologize if one of my salespeople was not informed. I am not sure if you are talking about a new or used vehicle. If you could pass the information on to me I would be happy to look into it. Respectfully Yours, *** ********* General Manager (XXX)XXX-XXXX Initial Consumer Rebuttal /* (3000, 7, 2014/06/11) */ (The consumer indicated he/she DID NOT accept the response from the business.) The car is a 2014 accord 2dr vin # 1HGCT1B89EAXXXXXX, the car was advertised for 22,977 and I have the photos to show it. If you will not sell me the car for the advertised price I will be reporting your store to the attorney general's office. Again I have the photos to show the car and the proc your store advertised. If you are willing to sell me the car for the advertised amount please call me and I will come pick it up. Final Business Response /* (4000, 9, 2014/06/13) */ Dear Mr. ****, After discussing this with my Sales Managers and Sales Consultants I now have an understanding of what happened. You came onto our lot and were looking at our 2014 Honda Accord EX-L Coupe which had a large price sticker on the front windshield for $22,998. The price should have been $27,998. You talked to one of our Sales Consultants, Mr. ******* **** who realized that the price was incorrectly marked on the windshield. He was right. One of our detail kids accidently put the wrong price on that vehicle the day before. The invoice amount on the car you are looking at is $26,843.50. (Invoice attached) It also has $718.00 worth of aftermarket accessories on the vehicle When we realized that the price was wrong we pulled the #2 sticker off the car and replaced it with #7. As a sign of goodwill we offered you the car for the $26,400 plus, tax, license, and documentary fee. That price is $1,161.50 under our cost. At that time you thought our price was still too high. You then made threats to Mr. *** that you would bring a lawsuit against us. Everyone makes mistakes, even you Mr. ****, and one of our lot people made one. There is also no "bait and switch" because we never tried to "switch" cars on you. Our offer of $26,000.00 plus, tax, license, and documentary fee, still stands. I don't think you will get a better deal anywhere else. Respectfully Yours, *** ********* General Manager South Tacoma Honda ***SUPPORTING DOCUMENTS REDACTED BY BBB*** Final Consumer Response /* (4200, 11, 2014/06/20) */ (The consumer indicated he/she DID NOT accept the response from the business.) The law states that you have to sell the car for the advertised amount. I also know that the invoice price does not include any discount or incentives provided to your dealership. I also showed you sales person that I can go get the same car at any other dealer for the price he quotes me. I am willing to pay 24,000.00 for the car. that's $1,000.00 more than what you advertised it for otherwise I will be reporting this to the general attorney's office.

10/23/2013 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: Prior to purchasing a a hybrid battery for our 2004 Honda civic hybrid we were promised a new battery and an 8 year warranty.Upon pick up of our car and once we had paid we were to told that we had only a battery that was warrantied for only three years. Also upon digging deeper we discovered that a refurbished battery was installed thus leaving us with a feeling of betrayal. Lastly, I feel that the service members at Honda have in fact pulled a bait and switch to personally benefit themselves when it comes to their commissions.

Desired Settlement: Full refund.

Business Response: Initial Business Response /* (1000, 6, 2013/10/04) */ October 3, 2013 Better Business Bureau 1000 Station Drive, Suite 222 DuPont, WA 98327 Attn: ******* **** BBB Services Consultant RE: Case ID: XXXXXXXX Dear *** ***** **** ***** brought her 2004 Honda Civic Hybrid to our dealership on September 4th for a check engine light, which was on. We informed her that it would cost $108.00 plus tax and shop supplies to diagnose her car. She accepted. Our technicians determined that her vehicle had an IMA battery failure. Our service writer, ****** ****** let her know that a replacement battery would cost $3,260.00 plus tax and shop supplies. He also told her that it would come with an 8 year / 80,000 mile warranty. She declined at the time and paid for her diagnostic charge of $124.17 and left. Later that day *** ***** called ****** and told him he would go ahead with the replacement. ****** informed him that the battery was not in stock and that we would have it the next day. We replaced the IMA battery on September 5th. When *** and **** ***** came in to pick up their vehicle ****** was at lunch. Our other service writer **** ****** helped the *****'s. At this point when they questioned ***** about the warranty we found out that ****** had made a mistake. ***** confirmed that it had 3 year / 36,000 mile warranty. ****** had made a mistake and told them the wrong warranty coverage. Only new Honda Civic Hybrid's come with an 8 year / 80,000 mile warranty. We called ****** back from lunch early to discuss this matter with the *****'s. When ****** came back he apologized for his mistake. *** ***** was also under the impression that it would be a new battery. ****** took *** ***** back to our parts counter and had him talk with our parts person. They informed *** ***** that Honda does not offer a "new" battery it is a remanufactured battery, which is an old case (the outside) and new compenents (the inside). At this point, after apologizing profusely, we offered the *****'s two options: 1.) Take the remanufactured battery with a 20% off for parts and labor, which amounted to a $623.98 discount, or 2.) We would put their old battery back in, at no charge to them. In essence, make them whole again. *** ***** chose option number 1. He paid the bill and left while his wife was crying and threatening to call the police on us, which I believe she did. His wife filed a small claims court case against us on September 6th, the next day. That will be mediated on November 13th, 2013. In conclusion, we once again apologize to *** and **** *****. ****** is an outstanding service writer and has been with us for 25 years. He made a mistake. I feel we gave *** and **** ***** the best solutions possible. Either we put their car back to its original condition, or we give them a deep discount for a battery that they were going to need anyway. Respectfully Yours, ****** ********* General Manager South Tacoma Honda Final Consumer Response /* (2000, 21, 2013/10/23) */ (The consumer indicated he/she ACCEPTED the response from the business.) Resolved Final Business Response /* (4000, 19, 2013/10/22) */ October 22, 2013 Better Business Bureau 1000 Station Drive, Suite 222 DuPont, WA 98327 Attn: ******* **** BBB Services Consultant RE: Case ID: XXXXXXXX Dear *** ***** *** ***** and I have come to an agreement that will be amicable to both parties. I have sent *** ***** a check for $1,000.00. If you should have any questions, regarding this matter, please feel free to contact *** ***** or myself. Respectfully Yours, ****** ********* General Manager South Tacoma Honda XXX-XXX-XXXX