Most new car dealerships fail mystery shopper test

[Calgary14]

CTV did an interesting study on the price of a new vehicle and most of it was focused on dealers within Calgary. They tested to see if the advertised price was actually the price you would pay at some local dealers.

Almost all of them failed.

http://www.ctvnews.ca/w5/most-new-ca...rvey-1.2300369

[Igster]

Yeah, that's not really a surprise. Man I hate car dealerships.

[Ozy_Flame]

Direct Manufacturer to customer purchasing should be the norm, much like Tesla. Dealerships suck being in the middle of that.

[CaptainYooh]

APA President George Iny says that when so many dealerships fail to deliver the advertised vehicle at the advertised price, there is a problem in the market. “The market in Alberta, in Calgary at least, for new vehicles is out of control. It’s rampant with deception and misrepresentation.”

Is anyone really surprised by that? Who reads auto-dealer advertising though these days?

[saillias]

Not surprised, my search for a new car in Feb was very frustrating.

Ford was really bad in particular. I saw new Fusions advertised at 22 grand.

So I went in and test drove a mid-range fusion and the quoted price for this particular one was 37 grand. Not the top of the line model, a middle of the pack one.

[llwhiteoutll]

All the car ads have big chunks of fine print at the bottom showing what needs to be included in the advertised price. The survey didn't mention that at all or consider it, which is a huge flaw. Having a price shown with conditions attached is not misrepresentation or deception.

[nfotiu]

One thing I've always wondered about while watching Flames games on Center Ice. Why do Canadian dealers now advertise car payments in weekly installments? I don't remember ever seeing that in Canada when I last lived there, and I've never seen it in the US, but it seems standard on Canadian TV now. Do people actually make their payments weekly? I guess the idea is to make it sound lower by giving a smaller number, but then why don't US companies do it?

I have no good reason for wanting to know other than idle curiosity.

[llwhiteoutll]

Originally Posted by nfotiu

One thing I've always wondered about while watching Flames games on Center Ice. Why do Canadian dealers now advertise car payments in weekly installments? I don't remember ever seeing that in Canada when I last lived there, and I've never seen it in the US, but it seems standard on Canadian TV now. Do people actually make their payments weekly? I guess the idea is to make it sound lower by giving a smaller number, but then why don't US companies do it?

I have no good reason for wanting to know other than idle curiosity.

Tons of people shop by the payment, not by the total cost of the car. It's the totally wrong way to do it and the dealers love it. Goes to show how financially illiterate lots of people are.

[Igster]

Originally Posted by llwhiteoutll

All the car ads have big chunks of fine print at the bottom showing what needs to be included in the advertised price. The survey didn't mention that at all or consider it, which is a huge flaw. Having a price shown with conditions attached is not misrepresentation or deception.

A quote from the first link within the article (the summary document):

All-in pricing

In Alberta, as well as four other provinces, an all-included price is required by law in dealer advertising. Almost all the ads shopped by the APA in Calgary left out important information concerning additional charges added on at the dealerships.

[CaptainYooh]

Originally Posted by llwhiteoutll

All the car ads have big chunks of fine print at the bottom showing what needs to be included in the advertised price. The survey didn't mention that at all or consider it, which is a huge flaw. Having a price shown with conditions attached is not misrepresentation or deception.

This is complete BS. Due diligence is not something that HAS to be expected of a purchaser. The opposite is true - unambiguous representation HAS to be expected from a seller. Advertising must not be misleading and there's a law to ensure it. If they advertise a car for $15,000 + GST, they better have the exact same car available for that price, no small print, no extra fees. They can say, "starting from $15,000 depending on options chosen", they don't do that with only one purpose - to mislead purchasers and bring them to the car lot and complete the sale with all of the extra fees shoved down the throats of purchasers who just don't have the energy to argue or go through the same s...t by shoping somewhere else.

[btimbit]

Originally Posted by nfotiu

One thing I've always wondered about while watching Flames games on Center Ice. Why do Canadian dealers now advertise car payments in weekly installments? I don't remember ever seeing that in Canada when I last lived there, and I've never seen it in the US, but it seems standard on Canadian TV now. Do people actually make their payments weekly? I guess the idea is to make it sound lower by giving a smaller number, but then why don't US companies do it?

I have no good reason for wanting to know other than idle curiosity.

Ask someone how much their new car cost, a lot won't be able to tell you. But they'll know the payments

[Canehdianman]

Originally Posted by llwhiteoutll

Tons of people shop by the payment, not by the total cost of the car. It's the totally wrong way to do it and the dealers love it. Goes to show how financially illiterate lots of people are.

This. I always just start laughing when I walk into a dealership and the first question I get is "What sort of monthly payment are you looking for?"

[Derek Sutton]

Originally Posted by saillias

Not surprised, my search for a new car in Feb was very frustrating.

Ford was really bad in particular. I saw new Fusions advertised at 22 grand.

So I went in and test drove a mid-range fusion and the quoted price for this particular one was 37 grand. Not the top of the line model, a middle of the pack one.

22k price is for a Manual transmition, no a/c, no anything, cars nobody wants.

This one is an automatic, so that's another 4 four thousand dollars, it also has a USB port, that's another $1500. A/c, rear window defroster and floor mats, $3000. Keyless entry, power windows and command start, $3500. AWD, $4000. There now you have a $37000 Fusion, add in a sunroof, leather, sound system and and self parking and that car is now $45k.

[llwhiteoutll]

Originally Posted by CaptainYooh

This is complete BS. Due diligence is not something that HAS to be expected of a purchaser. The opposite is true - unambiguous representation HAS to be expected from a seller. Advertising must not be misleading and there's a law to ensure it. If they advertise a car for $15,000 + GST, they better have the exact same car available for that price, no small print, no extra fees. They can say, "starting from $15,000 depending on options chosen", they don't do that with only one purpose - to mislead purchasers and bring them to the car lot and complete the sale with all of the extra fees shoved down the throats of purchasers who just don't have the energy to argue or go through the same s...t by shoping somewhere else.

Having a price with an asterisk next to it and then some fine print isn't misleading and is pretty darn clear. Saying that due diligence should not be required on the buyer's part has to be a joke.

[cDnStealth]

Originally Posted by Canehdianman

This. I always just start laughing when I walk into a dealership and the first question I get is "What sort of monthly payment are you looking for?"

I got into some fun arguments with dealerships a few years ago when I was looking for a car. I think every conversation started with that. I just wanted to know what the final price of the vehicle would be and then I'd decide how I would pay for it. The entire experience was worse than pulling teeth.

[Derek Sutton]

Originally Posted by CaptainYooh

This is complete BS. Due diligence is not something that HAS to be expected of a purchaser. The opposite is true - unambiguous representation HAS to be expected from a seller. Advertising must not be misleading and there's a law to ensure it. If they advertise a car for $15,000 + GST, they better have the exact same car available for that price, no small print, no extra fees. They can say, "starting from $15,000 depending on options chosen", they don't do that with only one purpose - to mislead purchasers and bring them to the car lot and complete the sale with all of the extra fees shoved down the throats of purchasers who just don't have the energy to argue or go through the same s...t by shoping somewhere else.

They will have the $15000 car, or can bring ione in, but the sales person will immediately try selling you a more expensive one with more options at a much higher price.

[CaptainYooh]

Originally Posted by Derek Sutton

They will have the $15000 car, or can bring ione in, but the sales person will immediately try selling you a more expensive one with more options at a much higher price.

That's OK, why not? Any good commission salesperson should try and do that. The problem is, and the mystery shopping proved it, they add fees and charges to the advertised price, which is against the current rules and regulations their own industry has implemented. So, no, when they bring you that $15,000+GST car, it ends up costing $16,275 + GST after all the bogus fees are added.

[CorsiHockeyLeague]

Originally Posted by Canehdianman

This. I always just start laughing when I walk into a dealership and the first question I get is "What sort of monthly payment are you looking for?"

I actually sort of did both - told the dealership I'd be willing to pay so many dollars per month for a specific length of term with a specific down payment, and it was on them to put together a financing option that would make that happen. They managed it.

[Locke]

Damn that $10,000 undercoating!!

[peter12]

Now, the question is, what were the 4 dealerships who passed the test. I will give them my business.