In an all-too-rare win for a car buyer, a B.C. civil resolution tribunal has returned a sneaky overcharge that a dealer attempted to slide past on an invoice for a used Pioneer Pilot. The amount — $2,166.88 — was rolled into the price of the vehicle. Under the guise of a “prep fee”, the seller’s website, Driveco, stated the advertised price of $44,888 plus taxes and licencing; the price at sale however, was $46,787. Driveco claimed the additional charge of $1,899 (plus tax) was laid out on a subsequent tab of the website under “vehicle disclaimer.” The tribunal found this defence to be nonsense.
“The decision explained that provincial legislation lays out ‘specific disclosure requirements for the sale of a used vehicle’ and that a purchase agreement must include ‘the actual selling price of the vehicle and an itemized list of the cost of any other charges,’” reports CTV News.
George Iny with the Automotible Protection Association (APA) isn’t surprised.
“Like other provinces, B.C. is experiencing widespread price ‘packing’ by auto dealers. Over 20 years ending in 2018, the APA found dealers were consistent innovators in deceptive pricing practices. Our very first new car dealership extra charge was uncovered in Vancouver in 1997– it was $99 for D.O.C. printed on the sales agreement. Verbally the seller called it a ‘doc fee’ but in fact it stood for Dealership Overhead Charge (the periods were the giveaway). The dealership protected itself for the day the regulator would ask for an explanation, but that day never came, and the fee increased and multiplied into other charges and spread to other jurisdictions,” said Iny.
Consumer protection ranges from lacking to abysmal in too many provinces. While outcomes like this from B.C. are welcome, it raised the obvious question posed by Iny: “Since the dealer likely added this fake charge to other customers’ vehicles, will the B.C. dealer regulator pursue refunds to customers or are they planning disciplinary action?”
Consumers shouldn’t be tasked with enforcing the law case-by-case. Regulators need to remove any upside from dealers who operate outside of the intent of the law.
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