A recent Global News article is cautioning those on the hunt for a new vehicle to ask questions if extra charges suddenly appear when asking for a quote.
A Calgary man was surprised when their salesperson provided an amount that was several thousand more than the amount posted as the selling price at a north Calgary Hyundai dealership. When he inquired why the difference was so dramatic he was told that the charges were for “packages.” One package, called “Winter Group,” totalled close to $4,000 for winter accessories such as such as branded winter tires, a block heater, locking wheel nuts, molded mudguards, all-weather mats, and nitrogen-filled tires.
The other package, titled “Safeguard,” came with three benefits including protection for tires and rims, an annual tire rotation, and anti-theft insurance coverage for three years.
The dealership told the buyer that the additional costs were “mandatory” and “store policy by AutoCanada.”
After much back-and-forth, and plenty of arguing, the buyer eventually discovered that the added packages were not, in fact, “mandatory,” and not mandated by AutoCanada. Dealerships are independent businesses does mean they can essentially do what they like (or at least try).
Hyundai Canada replied to Global’s request for information that it “strongly reinforces” that prices on websites need to align with pricing in the store.
What you see is not what you get
The bait and switch is not a new tactic by any means. Encyclopedia.com describes this tactic as “fraudulent deceptive marketing in which a retail business advertises a certain product at an irresistibly low price (the bait) in order to lure consumers into their store.”
They are then told that that item is no longer available, but a more expensive one is, or that there are more costs involved
While all dealerships operate outside of the jurisdiction of the company’s product they sell, in the case mentioned above Hyundai has made it clear that they expect dealerships’ websites to offer vehicles priced in line with, and not more than, the Manufacturer’s Suggested Retail Price (MSRP).
Lines of defense for vehicle buyers
The Alberta Motor Vehicle Industry Council (AMVIC) protects consumers and industry from unfair practices in the automotive business industry, according to its website. Consumers can file a complaint against shady automotive industry practises, which will then be evaluated. Progressive enforcement action may then be taken, and compensation (up to a maximum of $25,000) may be available for eligible financial losses.
The AMVIC also provides information on what you need to know before you go shopping, buying a vehicle for the first time, repairing a vehicle, leasing a vehicle, and many more general questions asked.
The MSRP is another line of defense for car buyers looking to double-check sticker prices. In most cases you can easily find an MSRP for a new vehicle on the manufacturer’s website. Buyers can usually “build and price” their desired set of wheels, and the website will provide what the manufacturer would recommend as the cost. This can be a great way to approach negotiations for a vehicle you believe has been overpriced.
Obtaining a proper MSRP for a used vehicle is much harder, if not impossible. Sleuthing an appropriate cost for a car that has been driven before requires some extra legwork, and even then the result is dependent upon numerous factors such as the condition of the vehicle, the mileage, how it was driven, and even where it was parked. Take the time to do your research. Check consumer reports, buyers’ guides and other resources for market-specific tips and current trends in the Alberta (and Calgary) used car market. The Government of Alberta recommends checking the public library for new versions of the Gold Book of Used Car Prices and the Canadian Red Book to research prices. Also check CARFAX Canada’s Vehicle History Report + Lien Check, which provides the most comprehensive report, providing information about the history of a vehicle including accident damage, open safety recalls, service records, branding, registration, as well as a Canadian lien check.
Look into your vehicle insurance options … you have time!
Although it may seem nice and easy, buyers should be very wary of a dealership trying to sell vehicle insurance policies on top of your purchasing a car. Dealerships have no jurisdiction to sell insurance, and these sorts of incidences are more than likely the sign of a vary shady salesperson who may have an off-the-books relationship with a vehicle insurance company. This is definitely a sign of a business that shouldn’t be trusted.
In Alberta, drivers have a grace period of up to 14 days to insure their new (or used) vehicle after purchase. During this time, you can usually use your existing vehicle insurance coverage, if you have one, or you must arrange for a new policy. It’s crucial to secure insurance promptly, but not so promptly that you can’t check out some options.
If you have recently purchased a new vehicle, give us at Lane’s a call. As certified insurance brokers, we are uniquely positioned to help you secure the lowest possible vehicle insurance rates. We work for you, not the insurance companies, and can cross-compare policies provided by our partners among Canada’s top insurance agencies to find you the best deal for your particular situation.
