Regulators need to step up and fight those dealers who are taking advantage of consumers
Who’s really in control of the Canadian auto market?
Car Help Canada commissioned Decision Point Research to poll 1,500 Canadians who purchased a new vehicle from a dealer between October 2021 and October 2023.
Are you being charged additional fees for your new car?
Prymak says a stubborn problem now is contract software that auto-populates some parts of the sale. “It looks very official and people may not notice them, but they should question each one.” Undefined fees and add-ons that you haven’t requested need to be removed. The law is clear: advertised prices must include everything except licences and taxes.
In Ontario, sales regulator OMVIC says in a statement they are monitoring the industry for “the practice of vehicles being advertised at a particular price — only for consumers to later find that accessing that price often requires purchasing additional products like extended warranties, rustproofing or specific financing options.” They go on to note that “It has also raised concerns among competing dealers who believe the practice undermines fair competition, disadvantages consumers, and erodes trust in the industry. Dealers and salespersons engaging in this practice risk violating the Code of Ethics under the Motor Vehicle Dealers Act (MVDA), which could lead to enforcement action. Under Ontario’s all-in price advertising rules, any mandatory fees or products must be included in the advertised price and reflected in the bill of sale. Car buyers have the right to walk away from a transaction if they feel pressured, misled or simply do not want to spend additional money on products they do not need.”
George Iny with the Automobile Protection Association (APA) agrees. “The consumer survey commissioned by Car Help Canada and published as part of its report makes a very important contribution to quantifying the frequency and dollar values of abusive retailing practices by auto dealers. The report confirms that some of the bad habits did not disappear after pandemic-related vehicle shortages eased a little. It’s incumbent on the dealer regulators to do something to address the decline in auto retailing business practices, more specifically to combat fake fees, markups over the advertised price and tied selling.”
As we enter another period of uncertainty in the marketplace, your local retailer should be offering a better experience than during the pandemic. It’s more important than ever that regulators step up and fight those dealers (again: not all dealers) who are taking advantage of consumers.
Sign up for our newsletter Blind-Spot Monitor and follow our social channels on X, Tiktok and LinkedIn to stay up to date on the latest automotive news, reviews, car culture, and vehicle shopping advice.