Alberta auto watchdog warns buyers over dealer deception

Car and truck buyers need to be wary of salespeople who misrepresent optional products as mandatory fees, says the Alberta Motor Vehicle Industry Council, (AMVIC), which regulates vehicle sales in the province.

• Edmonton dealership exploited naivet, says car buyer
• Alberta government vows action on auto dealer fees
• Vehicle buyers paying hundreds more for extras they didnt request

If you are told any fee or charge, other than GST and the tire levy, is mandatory by law then you should walk away from the deal and contact AMVIC right away, said John Bachinski, AMVIC Executive Director, in a news release.

The warning was posted on the AMVIC website the same day as Go Public published a story about a woman who paid thousands of dollars for options she didnt ask for or understand, on a car she wasnt happy with.

Go Public has reported that many Alberta vehicle buyers say they were duped into paying hundreds, even thousands of dollars more than the agreed-to price, for inflated fees or optional products.

Optional products include things such as registration numbers etched in window glass or body panels and sold as a theft deterrent, extra warranties for tires and rims, and inflating tires with nitrogen gas instead of air.

The charge each of the products is typically $300-$600.

Other questionable charges include administration or document fees of up to $400, and air conditioning taxes that are already included in the sticker price of the vehicle.

Crackdown promised

In April the Alberta government promised a crackdown.

"I see it to be a very big problem," Manmeet Bhullar, Service Alberta Minister, said at the time "(Its) a very serious issue that demands the attention of government."

Since April, Go Public continued to hear from buyers who say they complained to AMVIC about having paid for options they didnt want, but were told there werent sufficient grounds for an investigation.

In a Go Public story on Nov. 13th, Winifred Kollie complained about signing a deal to pay over $32,000 for a base model Toyota Corolla. The final tally included almost $4,000 in optional charges, including extra warranties, undercoating, and administration fees.

After Go Public began looking into the story, Kingsway Toyota tore up the deal.

In an interview Bachinski says the news release was timed to capitalize on the attention Kollies story garnered.

Its something that we want to bring to the publics attention, encouraging them to do more more homework and to be as diligent as possible, to be careful in the shopping, Bachinski said.

AMVIC Investigators also visited Kollie within days of our story and she says negotiated further refunds from Kingsway Toyota.

Bachinski says the onus is on the salesperson to be honest and forthright, but that its difficult to prove someone was misled.

Its not an easy matter to decide or resolve, Bachinski said. Were not present at the actual negotiation, so were relying on documentation and information that we can gather. Its a challenge for investigators.

'Good first step,' advocate says

George Iny of the Automobile Protection Association agrees.

The kind of people who run sales rackets will generally make sure their paperwork will pass muster, Iny said.

However, Iny says the AMVIC warning sends a strong message to car dealers even though it falls short of a cease-and-desist order to unscrupulous salespeople.

Wed love it if they did that, but I dont think that would solve the problem, Iny said, while calling it a good first step.

This is just a line in the sand. The reality is that the level of greed would indicate they will need a very robust and sustained intervention if they (AMVIC) really take this issue seriously.