Many car dealerships in Ontario have been found to increase the prices of vehicles when customers inquire in person, despite advertised prices. This discovery was made during a hidden camera investigation by CBC’s Marketplace. The Ontario Motor Vehicle Industry Council (OMVIC) mandates that dealership ads must include all expected fees, except HST and licensing, as part of the total amount since 2010.
Undercover journalists from Marketplace visited dealerships in the Greater Toronto Area, posing as customers to determine if they could purchase vehicles at the advertised prices. Complaints from viewers indicated that additional charges for items like floor mats, rust protection, and warranties were being added by some dealerships.
The investigation involved 15 dealerships, including major brands like Chevrolet, Ford, Honda, Hyundai, and Toyota. Of these, six charged more than the advertised price, four displayed images of more expensive versions of the vehicles than those for sale, and six included extra features that were not requested by the shoppers.
According to George Iny, director of the Automobile Protection Association, deceptive practices in car advertisements have become more sophisticated, making it challenging for consumers to get accurate pricing information.
The surge in new car purchases post-COVID-19 has exacerbated the issue due to ongoing vehicle and parts shortages affecting the industry.
Challenges in Obtaining Advertised Prices
Marketplace encountered various obstacles while trying to secure the advertised prices. At different dealerships, discrepancies were found between the advertised prices and the actual costs, with some sales reps explaining additional charges not initially disclosed in the ads.
For instance, at Honda Queensway and 401 Dixie Hyundai, the salespersons provided explanations for why the advertised prices were not applicable, citing factors like future price adjustments and eligibility criteria for specific discounts.
Formula Ford also faced scrutiny as their advertised down payment amounts were significantly lower than the actual costs due to undisclosed charges included in the fine print.
OMVIC highlighted the importance of transparency in advertising to ensure consumers receive accurate pricing information and urged individuals to report any misleading practices.
Discrepancies in Advertised Vehicles
OMVIC regulations stipulate that ads featuring vehicles must accurately reflect the models available at the advertised prices. However, ads from several dealerships showcased higher-priced versions of vehicles while advertising base models, leading to confusion among potential buyers.
Dealerships like 401 Dixie Hyundai, Queensway Hyundai, and Agincourt Hyundai were called out for displaying images of deluxe vehicle versions in their ads while offering basic models at lower prices.
Hyundai Auto Canada responded to Marketplace‘s queries, expressing commitment to compliance with consumer protection laws and initiating investigations into the dealerships involved.
Inclusion of Extra Features in Pricing
Adding extra features to vehicles for sale, known as “tied selling,” is legal in Ontario as long as these additions are factored into the all-inclusive price advertised. Dealerships are required to present optional features transparently to consumers to prevent misleading practices.
Queensway Hyundai was flagged for including a “mandatory” theft deterrent in their vehicle prices, which was refuted by city officials. Consumers were advised to be vigilant about additional products offered by dealerships to make informed purchase decisions.
Advocating for Consumer Rights
OMVIC emphasized the importance of consumer awareness and called for a cooling-off period for car buyers in Ontario, allowing them to cancel purchases within 24 to 48 hours. This measure aims to protect consumers from making rushed decisions and promotes a more informed buying process.
Despite efforts to enhance transparency and compliance in the automotive industry, Marketplace‘s findings underscore the need for continued vigilance to safeguard consumer interests and promote fair trading practices.
Ontario Premier Doug Ford acknowledged the concerns raised and urged consumers to scrutinize advertised prices to ensure transparency and fairness in their car purchases.