Wil Brookins knows car dealerships don’t have the greatest reputations, but says what happened at the Kia West Edmonton dealership where he worked for almost two years was downright illegal.
People who browsed the dealership’s website and came in with a specific vehicle — and price — in mind were pressured to buy “extras,” he says, such as exterior paint protection, VIN etching and tire and rim warranties.
They would add thousands of dollars to the price and, he says, customers were told the extras were mandatory.
“This is our bait and switch,” said Brookins. “It’s really to pad the pockets of the [dealership] owner.”
Alberta has what’s called “all-in pricing” legislation. (As do Saskatchewan, Manitoba, Ontario and Quebec. B.C. has similar legislation.)
When a dealership advertises a new or used car the price must include all fees and charges, except for taxes and any financing costs.
“That’s the price we have to honour,” said Brookins. “Guess what? We don’t.”
He quit in frustration last month, but says until the day he left, the dealership was blatantly flouting the law, because the owner knew no one would crack down.
“We’ve been breaking rules since I’ve been there, and [the regulator’s] not doing a thing about it,” he said.
Regulators often say they don’t have jurisdiction to crack down on dealership wrongdoing — as outlined in a recent Go Public investigation — though they have full power to investigate and take action on all-in pricing.
But according to consumer advocate Mohamed Bouchama, formerly with Car Help Canada and the Ontario Motor Vehicle Industry Council (OMVIC), stiff penalties are almost non-existent.
“The dealers know that,” said Bouchama. “So they get away with a lot of stuff.”
