Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Hidden camera investigation finds most Calgary car dealerships breach consumer rules

Derek Sutton · 03-20-2017, 02:36 PM

So much misinformation in this thread, first with the APA story then followed up by "advice" which is either wrong or on accurate. IF you have any real questions or would like some real advice please pm me or I'll try to respond to any replies.

First off the Dealers are free and clear to charge whatevr the heck they want for a doc fee provided that the total price does not exceed the advertised price (this is on the APA web site somewhere in the small print). Meaning that an ad says $19995, the dealer can reduce the price $600, add in a $400 doc fee, $6.25 AMVIC $100 A/C tax and $20 tire levy $526.25 giving an all in price of $19916.25 which is less then the advertised price and is completely legal.

From a dealers perspective buying new and used are two totally different cans of worms. Used is very straight forward but with new the rebates from the manufacturer to the dealer play a huge part in the pricing. Dealers can hide the rebates in the trade (inflate the value), take them off the price or not disclose or include them at all (profit!!!). As well rates rebates and incnetives change each month and its up to the dealers to apply them, therefore letting human error run its course.

I belief it was mentioned earlier but far and away the biggest problem with the auto indusrty are dealers burrying customers in high interest (30% is not out of the question) loans that take years and years to payoff. The stories I see on a weekly basis are astounding. These are either "payment shoppers" or customeres with bad/ no credit or a combination of both, and they often fall for teh "$5000 cash back" crap. They work with sub prime lenders and take on customers who would not otherwise get financing. As a Sales guy at a very reputable, full disclosure dealership, 30% of our deals do not go through do to poor credit. The "We Finance Everyone" dealers are a huge problem.

May post more but i have to fill up a new diesel a customer is picking up in 1/2 hour. Will address email, internet shopping as well... and how the best practises for internet selling are changing.

03-20-2017, 02:36 PM	#52
Derek Sutton First Line Centre Join Date: Nov 2010 Location: Sunnyvale Exp:	So much misinformation in this thread, first with the APA story then followed up by "advice" which is either wrong or on accurate. IF you have any real questions or would like some real advice please pm me or I'll try to respond to any replies. First off the Dealers are free and clear to charge whatevr the heck they want for a doc fee provided that the total price does not exceed the advertised price (this is on the APA web site somewhere in the small print). Meaning that an ad says $19995, the dealer can reduce the price $600, add in a $400 doc fee, $6.25 AMVIC $100 A/C tax and $20 tire levy $526.25 giving an all in price of $19916.25 which is less then the advertised price and is completely legal. From a dealers perspective buying new and used are two totally different cans of worms. Used is very straight forward but with new the rebates from the manufacturer to the dealer play a huge part in the pricing. Dealers can hide the rebates in the trade (inflate the value), take them off the price or not disclose or include them at all (profit!!!). As well rates rebates and incnetives change each month and its up to the dealers to apply them, therefore letting human error run its course. I belief it was mentioned earlier but far and away the biggest problem with the auto indusrty are dealers burrying customers in high interest (30% is not out of the question) loans that take years and years to payoff. The stories I see on a weekly basis are astounding. These are either "payment shoppers" or customeres with bad/ no credit or a combination of both, and they often fall for teh "$5000 cash back" crap. They work with sub prime lenders and take on customers who would not otherwise get financing. As a Sales guy at a very reputable, full disclosure dealership, 30% of our deals do not go through do to poor credit. The "We Finance Everyone" dealers are a huge problem. May post more but i have to fill up a new diesel a customer is picking up in 1/2 hour. Will address email, internet shopping as well... and how the best practises for internet selling are changing. __________________ The only thing better then a glass of beer is tea with Ms McGill