Refunds roll in after I-Team car dealership investigation
Murray Hyundai provides fee refunds to 3 customers
When Jill Bristow pulled out of Murray Hyundai last week in her 2016 Tucson SUV, she was confident she negotiated the lowest price possible.
"It was a good car buying experience really," said Bristow.
It wasn't until she came across an CBC I-Team investigation published last week when she realized she paid more than she needed to.
- Surprise! Car buyers still asked to pay 100s in extra fees despite new law
- Customers should ask for refunds on extra fees, car dealers association says
The I-Team revealed that despite a 2015 law that prohibits adding extra fees to the advertised price of a vehicle, seven out of 10 salespeople insisted on extra fees ranging from $599 to $1,799 on top of the advertised price. The legislation aims to ensure "truth in advertising."
More than 250 people have contacted CBC's I-Team with complaints about Manitoba car dealerships, many involved extra fees.
But that was not the case. They were told a $499 administration fee and a $499 security transfer fee applied.
"We both questioned the fees in different ways, even called them bogus fees and asked if we could, how would we opt out," Bristow said. "It was firmly said that there was no opting out of them. So after trying multiple times and wording it differently, I just accepted that they were not budging."
Even though she had paid the fees, Bristow decided to take one more kick at getting the fees canned after reading the I-Team investigation.
"I forwarded it on to the general manager and the salesmen along with the ad that I had on my phone," said Bristow.
She said the dealership responded instantly and she was pleased with how she was treated.
Richard Eccleston, general manager of Murray Hyundai confirmed Bristow received a refund.
"We offered no resistance and Jill was a happy customer," said Eccleston.
"I don't think I really would want to comment too much on this matter. I would just like to deal with the customers that get in touch to us on a one-by-one basis. I wouldn't want to make a big deal of this, at this point," said Eccleston.
Murray Hyundai has provided reimbursements to three customers who complained about the added fees. Three more people who contacted the I-Team received refunds from other dealers in Winnipeg. Refunds range from $798 to $1,124.
Others waiting, hoping for a refund
Tammy Solleveld bought her 2016 Kia Soul at Birchwood Kia a year ago after spotting it on the dealership's website. She said the ad touted "no hidden fees" and the only extra above the price tag was GST and PST.
She alleges that's not what happened when it came time to pay.
"When I got the bill of sale, I was reading over it before I signed I saw the $799 and I questioned it and he [the salesperson] said it is a mandatory fee," said Solleveld.
On Friday afternoon Birchwood Automotive Group president Steve Chipman sent statement by email.
"Our records clearly show that the customer who was mentioned in your story today bought a vehicle that was not advertised," he said, though it wasn't immediately clear whether he was referring to Solleveld's Kia Soul purchase or a previous vehicle she had also bought at Birchwood.
Chipman also said "if a vehicle is sold for less than the advertised price, as is sometimes the case, then the regulation does not apply."
"We are currently reviewing all transactions that have been brought to our attention and any discrepancies with this important legislation will be rectified," wrote Chipman, who added complying with the law is critical.
Last week, Chipman said he was confident his managers are ensuring compliance with the law.
"We have sufficient oversight by our sales managers who finalize the purchase price and the financial services managers who complete all paperwork for the transaction including the bill of sale to ensure that the purchase prices that our customers have paid for their vehicles were compliant with the new legislation," wrote Chipman.
Solleveld hopes the Consumer Protection office will help her get her money back, although refunds are not mandated by the legislation. She said she could use the extra $799 to replace her dryer that recently broke down.
"To me it's like greed. You know you are making enough money selling these vehicles." said Solleveld. "I would like all of that money reimbursed. That's my message to Chipman."
The Consumer Protection Office can't say how many calls have been received about this specific complaint.
Got a tip for the CBC News I-Team? Email iteam@cbc.ca or call the confidential tip line at 204-788-3744.