Skip to playerSkip to main content
NovaStream
  • 22 hours ago
Transcript
00:00We're undercover at dealerships, putting popular car brands to the test.
00:14We're looking to buy a car.
00:15Are you getting that all-in price they promise?
00:18In Toronto, it's mandatory, so that's $5.95.
00:22We reveal the deceptive deals.
00:24The colour that you see in the car, the company doesn't make that.
00:28Car dealers have too much influence in the oversight in their own industry.
00:32Don't get taken for a ride.
00:34This is 100% a scam. I want my money back.
00:37You can't afford to miss your marketplace.
00:42We're cruising for some new wheels at Canada's biggest car brands
00:46to find out if we can get the car we see for the price they say.
00:54Two of our staffers are going to do the shopping.
00:57So let's see if you can actually get this car for this price.
01:04Will the dealerships honour their ads?
01:06Or will they add on extra fees or features?
01:10We're hitting up Chevrolet, Ford, Honda, Hyundai and Toyota.
01:20Three dealerships per brand in the Toronto area.
01:24Our hidden cameras are rolling.
01:26George Eaney is riding shotgun to see if car dealers try to take us for a ride.
01:35He's the director of the Automobile Protection Association, a consumer advocacy group.
01:41Can you give me a sense about what you at the APA are hearing from people about what it's really like to buy a car?
01:49Cheating has become more sophisticated.
01:51They can't seem to write an honest car ad that includes all the information we need.
01:56So what will we find when we hit the road?
01:59Just how honest are car ads like this?
02:02Right out of the gate we hit some car trouble at two Hyundai dealerships.
02:06Turns out the car in the photo is a different version and it's more money.
02:12Not a preferred model, it's actually the ultimate.
02:16The price is for the preferred but the picture they've shown is for the ultimate.
02:21They acknowledged, yeah, the wrong car is in the ad.
02:23The salesperson, they're on the front line.
02:25They're stuck trying to fix the broken promises in the ad.
02:29We run into the same problem at another Hyundai location.
02:34The base model they're actually selling doesn't even come in the colour you see in the ad.
02:39The colour that you see in the car, the company doesn't make that.
02:44That image has no place with the ad.
02:47You're passing off a different car as the one in the promotion.
02:53That's, in our mind, deception.
02:55When we take a closer look at the fine print, vehicles may not be exactly as shown and or vehicles are for illustrative purposes only.
03:05That disclaimer is just a joke.
03:08Show the right photo and do the job properly.
03:12This Toyota dealership gets it wrong too.
03:16Check out this tundra they're selling.
03:18That's not the truck.
03:20Sadly, they put a picture of an upgrade.
03:23We're just doing this just to get people in.
03:26This is extremely misleading.
03:29Here, the salesperson offers to make it right by selling us a more expensive truck at the ad's price.
03:37You will match the same payment that you saw on the house.
03:40You're getting like $7,000.
03:42Wow.
03:43It's very, very refreshing to see someone just tell you, yeah, you're getting screwed.
03:50Yeah.
03:51I can't do more.
03:52But here's what I can do.
03:53We'll do a workaround for you.
03:55In a statement, this Toyota dealership tells us they acted with integrity and comply with all government rules and regulations.
04:04In all, four out of 15 dealerships we visit show a photo of a more expensive vehicle than the one they're actually selling.
04:1325% non-compliance just on the photo.
04:16We haven't even gone into the showroom yet.
04:19Deborah Dunn recently visited a Hyundai showroom in Vancouver and says she feels like she got taken for a ride.
04:27Hi, Deborah.
04:31Tell me about those extra packages that you ended up paying for.
04:35Exterior and interior fob protection.
04:38And that was like $2,000.
04:41And I specifically said to him, this is optional.
04:44And he says, no, no, it's done at the factory.
04:46So he led you to believe this feature, you didn't have a choice.
04:51You had to go with this.
04:52Yeah, definitely.
04:54Yeah.
04:55Deborah says she felt pressured to sign the same day.
04:59And I didn't get a chance to think about it and look over the map.
05:03And I did it the very next morning.
05:06And I just discovered all kinds of stuff.
05:09Paint interior fob protection.
05:12They told you that it somehow protected the leather in your car?
05:16My car doesn't have leather in it.
05:19So then I knew like right away, this is 100% a scam.
05:22And I want my money back.
05:24Right.
05:25And don't put wax on cloth.
05:26Hello.
05:27George says adding extras like that is a tactic known as tied selling.
05:32Meaning if you want to buy the car, you're on the hook for extra features too.
05:37If you weren't interested in it to start with, don't buy it.
05:41If you are interested in it, you might want to price it at an aftermarket shop that sells the same thing and see how they compare.
05:47So will the dealerships we visit add extra products?
05:52Every vehicle comes with a lock.
05:55Can we get rid of the wheel locks or we have to?
05:58The wheel locks are already in the pricing.
06:00Wheel locks.
06:01Hmm.
06:02We didn't ask for that.
06:03Wheel locks can be an effective theft protection for wheels and tires.
06:08But do you have to have them?
06:10You do not have to have wheel locks.
06:12And in fact, if it's a standard wheel on a standard product, you probably have a low risk of having your wheel stolen.
06:20There should be no wheel locks unless you ask for them.
06:23In an email, this Ford dealership tells us that the cost of the wheel locks is included in their advertised payments.
06:30Which complies with regulations.
06:34At this Hyundai location, they say the car comes with a different anti-theft feature.
06:40One thing that in Toronto is mandatory is theft deterrent.
06:45So that's another $5.95.
06:47The theft deterrent comes in with a vehicle.
06:49It gives you another $3,500 if your vehicle...
06:53If it gets stolen, you get $3,500 on the top of whatever your insurance pays to you.
06:59What you have here is a sort of a buffet of misdirections.
07:06That's deceptive.
07:07It's deceptive to claim that it's mandatory.
07:10What they don't tell you is that usually that $3,500 has to be spent at the same dealership to replace your stolen vehicle.
07:17You're paying them for a loyalty program that ties you to them in the future.
07:23In total, six out of the 15 dealerships we visit include extra features.
07:29Most of those extras are built into the ad price.
07:32And some dealerships agree to remove them when we ask.
07:37What does that tell you about what's happening out there?
07:40It shows, I guess, if you complain, there's still an opportunity to remove the charge.
07:46So maybe watch Marketplace and pick up some tips and remove the charges.
07:50Speaking of charges, time for our next test.
07:54So, the big question, can we get the price in the ad?
07:58The price is the price.
08:00No extra charges beyond taxes and licensing, but that's it.
08:07When it comes to cars, all-in pricing in dealership ads is the law in Ontario and for much of Canada.
08:15At this Honda dealer, we're told we can lease this Civic for an even better price than what they advertised.
08:21But if the price goes up when the car comes in in a few weeks, they say we'll be on the hook for the difference.
08:29If there happens to be a price change before the car comes in, then I have no choice to charge it.
08:34So, for the price change, we have to pay.
08:36People don't look for it.
08:37Hurry up.
08:38In fact, it says service to price change and cable to price change.
08:40So, prices change and risk to block, and you have to pay it as well.
08:46So, that's the permit all in account.
08:48We cannot guarantee anything.
08:50How is it fair if I've just agreed to a contract and a price based on an ad that they made that then, poof, we can just change what you pay for this?
09:01It's deceptive.
09:02You have no business selling vehicles that way.
09:05In a statement, this Honda dealership says it may have been a miscommunication.
09:10They do have price protection when you sign a contract.
09:15When we drive on over to this Hyundai dealership, we're told not everyone is eligible for the advertised price.
09:23So, to qualify for that, if you have a loyalty or a military, have you bought a Hyundai vehicle in the past?
09:32No.
09:33That's with the loyalty.
09:34So, we're unable to get to the advertised price because we don't have the loyalty.
09:38It's, you are unable to, yes.
09:41Oh, that is so slippery.
09:43Is it fair?
09:44It's totally fair to advertise those prices if you're advertising in an armed forces publication or to your existing customers and you tell them that's your price with your loyalty rebate.
09:54But to have it in a general market ad without showing the true cost before the rebate is simply a lowball to get you in.
10:03At a different Hyundai dealership, a different ad with a costly fee hiding in the fine print.
10:10This says they don't include a $599 dealer fee in the fine print.
10:15Is that allowed in Ontario?
10:17No.
10:18No.
10:19You have to have that in your price for the vehicle.
10:22Hyundai Canada sends us a statement in response to our visits at three dealerships telling us they are committed to the highest standards and expect all dealerships to comply with consumer protection and advertising laws.
10:37They also say they are doing a review.
10:41At this Ford location, the devil is in the details when it comes to the down payment.
10:46It's $999 down plus the freight and air tax.
10:51Freight is $25.95 and air tax is $100.
10:55So, total down payment?
10:57More than three times the number in the ad.
11:00The fine print does mention freight and air tax but doesn't say how much.
11:06I don't know if you read that fine print, I think it's hard to read.
11:11Even the sales person is critical.
11:14This is ridiculous man.
11:16I complain about this because I can't read this.
11:18You can't read this.
11:19I love this guy.
11:21A straight shooter.
11:23In an email, that Ford dealership tells us if any part of the ad caused confusion that's not in line with their standards and they'll ensure clarity going forward.
11:33A different Ford location we visit advertises weekly payments but the sales person tells us that's not even possible.
11:42Ford does not do weekly by the way.
11:44Your payment bi-weekly is $199.
11:47That's 98 times 2.
11:49It's the same thing.
11:50Right?
11:51Not according to our math.
11:5398 times 2 is not $199.
11:57It's actually $196.
11:59So if you add that up over the course of the payment, it works out to an extra $200.
12:06$200 is a significant difference.
12:10And it also shows you how being off by $2 or $3 or $4 on a weekly payment can become expensive over the term of a loan.
12:18And there's more.
12:20I-98 sounds like it's only $1000.
12:23Freight is $2600.
12:25With freight and some other charges in the fine print, this truck actually has a due on delivery payment of more than $4,000.
12:34They tell you not to tell people that when they come in but that's what it is.
12:37In a statement that Ford dealership disputes our findings, they tell us you can make weekly payments directly to Ford.
12:44They say their ads are clear, they are transparent with consumers and they never told staff to hide anything.
12:50The total due at signing should be in the bold print.
12:53This is like a selective presentation of the information designed to bring you in on this and hope that you forget all about everything else.
13:08Coming up, an idea that could level the playing field for consumers.
13:13I believe that Canadian consumers should have a cooling off period.
13:17So what is the government waiting for?
13:20We've been a big supporter of car drivers in Ontario.
13:23Can you tell me why your government hasn't supported that yet?
13:26It's been a bit of a bumpy ride on our car shopping trip.
13:40Six out of 15 dealerships charge us more than what their ad says.
13:45Very disappointing.
13:47Lowball pricing has not disappeared.
13:50Next stop on our car shopping trip, the Ontario Motor Vehicle Industry Council or OMVIC.
13:57It's their job to enforce how dealerships sell vehicles in Ontario.
14:01Maureen Harkwell is the CEO.
14:04So we did some secret shopping and what we wanted to see is can we actually get the car that's featured in an ad for the price that it's advertised at?
14:15Right.
14:16In Ontario, of course, all in pricing is the law.
14:20It's been the law since 2010.
14:22We tell her that several dealerships we visited charged us more than the price in the ad.
14:28Six out of 15 is concerning.
14:32And when we tell her about the four dealerships showing a more expensive vehicle in their ad.
14:38Listen, this could very well be seen as misrepresentation.
14:42We expect dealers to be open and transparent, be clear with consumers.
14:49And certainly we'd want us to look into that one 100%.
14:52OMVIC does secret shopping too.
14:55And Maureen says their findings show the industry is improving.
14:59And for the most part, dealers are doing a great job.
15:03Clearly, and based on some of these examples that you've shared with me today, there's some who are not.
15:09How effective do you feel OMVIC is if even in our sample, 40% of dealerships are charging us more than what they're advertising in those ads?
15:19Well, listen, I actually think we are effective.
15:22We're also doing a lot of the education piece.
15:26Educating not just consumers so that they know what to expect when they walk in.
15:30But it's also about reminding dealers of what their obligation is in terms of all-in pricing.
15:36We did speak to a consumer advocate who says a license to sell cars is a privilege, not a right.
15:44And that OMVIC should suspend a car dealer's license for charging more for the advertised price.
15:50So what do you say to that?
15:51We have a legal process that we have to go through.
15:54It would be about how egregious the conduct is, how long the conduct has been going on.
16:01If it's very egregious, you know, sure, that's part of my toolbox.
16:06But we believe, and it's best practice in regulation, to have a progressive enforcement program.
16:14Because you can change behavior sometimes without using the nuclear method, for example.
16:22Okay.
16:23I hear what you're saying.
16:24You want a progressive approach and you want education.
16:26But honestly, this seems pretty egregious to me.
16:30And so my sense is, respectfully, that's not working.
16:36You brought this legislation in in 2010.
16:39It's 2025.
16:41We only looked at 15.
16:43And this is what we found.
16:45So why not change your approach?
16:48You know, as registrar, I have that toolbox of powers.
16:53I take those powers very seriously.
16:55And I also know that we have to ensure that we have sufficient grounds to defend my decision.
17:05So, again, could I use the power?
17:09I could.
17:13Meantime, car columnist Lorraine Sommerfeld would like to see consumers have the final word.
17:20I believe that Canadian consumers should have a cooling off period.
17:25If you buy a condo or you buy a fitness membership, you have a cooling off period.
17:29Why do you think that that is so important, especially when it comes to a big purchase like a car?
17:35A 24-hour period when you have a signed contract, you haven't taken delivery of the car.
17:40You're not bringing back a used car.
17:42It's such a big purchase.
17:43Why shouldn't you have a chance to give it a minute?
17:46You get home and someone looks at it and says, why did you sign up for all this stuff?
17:51Turns out, Onvik would like a cooling off period too.
17:57We are a consumer protection organization.
17:59So, from our seat, it was something that was worthy of consideration.
18:04Unfortunately, you know, the government made the decision not to proceed with it.
18:09But here's the thing, in some parts of Canada, a cooling off period already exists.
18:15Quebec and BC have one for some car purchases, but not for the rest of Canada.
18:21And in 2024, the Ontario government said no to a cooling off period, saying it would create unnecessary red tape with negative consequences for the industry and consumer experience.
18:34You have been really clear, and so have other consumer advocates, cooling off period, that's what we need.
18:40Onvik wanted the cooling off period.
18:43How come we don't have one?
18:45Because those dealers have a lot of sway down the street here.
18:50Yeah.
18:51With our Premier.
18:52So, what does Ontario's Premier, Doug Ford, have to say about giving consumers the chance to walk away?
18:59Charles Siagra with Marketplace.
19:02We want to talk to you about cars.
19:04Consumer advocates have been calling for a cooling off period so that when someone buying a car changes their mind, they can back out of a deal.
19:13OMVIC wants a cooling off period too.
19:16You've been a big supporter of car drivers in Ontario.
19:19Can you tell me why your government hasn't supported that yet?
19:22Under the Motor Vehicles Dealer Act that you know, what is advertised, no matter if it's on television or newspaper, they have to meet that price.
19:32Yeah.
19:33I highly recommend, no matter what, no matter if it's furniture, cars, when you sign that bottom piece of paper, if it's not that price, don't sign it.
19:42Well, we tested that too.
19:43It's simple.
19:44It didn't go that well, but I'm talking about a cooling off period.
19:46So, if they want it back out, they can.
19:48Yeah.
19:49And your government hasn't supported that yet.
19:51Any plans to reconsider?
19:52I'll speak to the minister, but I'll tell you, be cautious.
19:57Do not pay more than what they've advertised.
19:59Simple as that.
20:00So, the next time you're car shopping, Lorraine wants you to remember, you're in the driver's seat.
20:07You can walk out of a dealership at any point during a sale whenever you want.
20:11Your feet are the most important part of this.
20:13If you're being taken advantage of, don't sit there and think you have to take it.
20:16Tons of decent people will sell you a car.
20:18Okay.
20:19Don't get beat up.
20:25After the break.
20:26Gridlock can be a nightmare for everybody.
20:29We're crowning Canada's worst commute.
20:31An hour and 50 minutes home tonight, which I'd consider a good day.
20:35What's a bad day?
20:37Four hours.
20:38A sneak peek coming right up.
20:40Next week, have you got Canada's worst commute?
20:53It is two hours for me to get home on the 401.
20:57This is the traffic trying to get onto the Trans-Canada Highway.
21:01It is so frustrating to see a green light that you can't go through.
21:04We take a drive south for a dose of New York medicine.
21:08Drivers have suddenly become supporters of congestion pricing because people value their time
21:13more than some of the opponents recognize.
21:15Who's ready for a race?
21:18And we're putting options to the test.
21:21Ready, set, go.
21:23Alright.
21:24Which of us will get to work fastest?
21:27Where are you guys right now?
21:28That's next week.
21:31Plus, emergency care is in crisis.
21:35It's been eight hours.
21:36Twelve hours.
21:37Twelve hours.
21:38So we're tracking wait times across the country.
21:41Anthony has just texted me now.
21:43I am still waiting.
21:44And patients desperate for help.
21:46I knew I was going to be there 20 or 30 hours.
21:49So how often then are you seeing a patient and thinking I should have seen you hours ago?
21:54Oh, every shift.
21:56And patients desperate for help.
21:58I go home and too many people wait inside.
22:02For others, the consequences of a stressed system are deadly.
22:06We trusted the system to take care of our son.
22:09And that is a trust that is forever gone.
22:12Do you think that his death was preventable?
22:15Yes.
22:16Coming soon on Your Marketplace.
22:28Good luck.
22:29Mostly Vs.
22:30Good luck.
22:31Thanks.
22:36க
Be the first to comment
Add your comment