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Phone: (253) 472-2300 View Additional Phone Numbers 7802 South Tacoma Way, Tacoma, WA 98409
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This company offers new and used car sales, parts and services.
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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 6 complaint(s) filed against business
- Resolution of complaint(s) filed against business
Customer Complaints Summary Read complaint details
|Complaint Type||Total Closed Complaints|
|Problems with Product/Service||2|
|Total Closed Complaints||6|
Customer Reviews Summary Read customer reviews
|Customer Experience||Total Customer Reviews|
|Total Customer Reviews||0|
Licensing, Bonding or Registration
These agencies may include:
Type of Entity
Limited Liability Company (LLC)
Business ManagementMr. Ryan Gee, Member Mr. Jeff Jackson, Member Mr. Dan Kiekenapp, General Manager
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|
Alternate Business NamesTacoma Automotive Holdings LLC
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 Directions
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Additional Phone Numbers
- (888) 746-4905(Phone)
- (888) 746-4565(Phone)
- (888) 746-4859(Phone)
Complaint Trends - Last 3 Years
Customer Review Trends
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|
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Problems with Product/Service
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Complaint: Went in to get a coupon for oil change verified and to test drive a new vehicle. Test drove 2 new vehicles and settled on one to possibly purchase. Went into the office for paperwork and get the trade in value of current car and selling price of car we were looking at. Immediately we were asked if the numbers are OK will we purchase the same day. We told them that we always think about a large purchase for at least a full 24 hours. At this point we were shown the exit door ! No trade in value, no selling price, no nothing ! If we did not agree to buy right then and there they wanted nothing to do with us. This dealership is all Tricks and Lies. After purchasing 5 new vehicles from then I have discovered that a lot of things changed. Used to be an honest dealership -- not any more.
Desired Settlement: I would like to know why the dealership is so insecure that a potential buyer can not be given trade in value and selling price without having to buy that same day. Why can't a potential buyer think about this large purchase for at least 24 hours. Why all the pressure, tricks and lies ?
Dear Mr. *******,
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Complaint: My complaint is that the sales person Leon at South Tacoma Honda engaged in unscrupulous and unlawful sales practices when selling a new car to my husband. The asking price for the car was $22,000, according to the sticker. The price listed on my husband's contract was over $25,000. He also added on additional unnecessary charges.
Desired Settlement: This business owes additional trade in value for my husbands old Honda (quote of $500), when the vehicle is actually worth about $3,000, according to the Kelley Blue Book Value.
Mr. ******** *. *******, Mrs. ******** husband, called our sales department Thursday morning, March
Please see the attached.
While I appreciate the general manager's (Dan K.) response to my complaint, as well as his offer to send my husband a check for the double billed charges (which is only the correct thing to do), I am still upset with South Tacoma Honda. I have never received a return call regarding my complaint, as was originally promised. My husband has also received the "run-around" when trying to contact the dealership regarding various issues, the most important issue being a dispute over the trade in value. I researched the trade in value for my husband's 2006 Honda Civic, and the amount is between 3,000-$5,000 USD for a vehicle in "fair" condition. I agree that my husband's vehicle may not have been in "fair" condition, however, I think that an offer of only 500 USD is unacceptable and unfair. My husband was promised that a manager would call him to discuss the trade in value amount, however, he has never received a call, and 3 weeks has elapsed so far. So, in conclusion, my major complaints with this dealership are lack of follow through on complaints, unfair trade in value amount (based in Kelley Blue Book report), and unclear explanation of the costs and charges involved with financing a vehicle through their dealership.
Problems with Product/Service
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Complaint: I took my car to South Tacoma Honda on November 23rd for a service recall. After leaving the dealership, I discovered that my horn and lights (that are connected to my alarm) were no longer working when I set the alram. When I called South Tacoma Honda I was told that I could bring my car in without an appointment. I took my car back on November 30th. The Service Member, Warren, tried to fix the problem, which he thought was attached to the remote. After consulting with several team members he took my name and telephone number with a promise to call, but he never did. I called the dealership on December 8th and spoke to the Service Manager, Don. An appointment was made at that time for December 10th. On December 10th I was told that the problem was a hood latch and that the cost would be $519.95. After leaving the dealership I discovered that my remote was no longer working. On December 11th, I sent the General Manager, Dan, an email. He responded that he was going out of town and would follow up when he returned. The Service Manager, Don, followed up with that email saying that it was a coincidence that the horn stopped working while my car was in the possession of South Tacoma Honda and that he would talk to the Parts Manager to see if a discount could be offered on the hood latch. There was no mention of why my remote was not working or what was going to be done to fix it.
Desired Settlement: Both my alarm, including the flashing lights and horn, and my remote were working when I took my car to South Tacoma Honda and I would like for both to continue to work. I believe that South Tacoma is at fault and should fix both.
December 30, 2015
Better Business Bureau
P.O. Box 1000
DuPont, WA 98327
RE: ID# ********
Ms. ****** did contact me and I passed this on to my Service Manager Dan G*******. To my knowledge I thought the concern had been handled. When I received the letter from the Better Business Bureau I knew the problem had not been resolved.
I contacted Dan to just take of the problem. I believe the work was done yesterday (12/29/2015) and Ms. ****** had been helped by our Service Drive Manager, Chad B****. Mr. B**** told me the problem was handled and her desired settlement has been taken care of.
South Tacoma Honda
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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.)
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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.
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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