Car dealerships often advertise deals on specific new vehicle models, but a recent hidden camera investigation by CBC’s Marketplace uncovered a concerning practice in some Ontario dealerships. It was found that when customers inquired about vehicles in person, additional costs were added to the advertised price.
The Ontario Motor Vehicle Industry Council (OMVIC), the province’s car sales regulator, mandates that dealership ads must include all fees expected to be paid by the consumer, except for HST and licensing. This requirement has been in place since 2010, aiming for transparency in pricing.
Undercover journalists from Marketplace visited various dealerships in the Greater Toronto Area to investigate if customers could actually purchase a vehicle at the advertised price. Complaints received by Marketplace revealed instances where buyers were charged for extras like floor mats, rust protection, and warranties.
The investigation involved obtaining quotes from 15 dealerships representing major brands like Chevrolet, Ford, Honda, Hyundai, and Toyota. Out of these, six dealerships charged more than the advertised price, four displayed photos of pricier vehicle versions than what was being sold, and six included extra features not requested by the undercover shoppers. While most extras were factored into the advertised price, some dealerships agreed to remove them upon request.
According to George Iny, director of the Automobile Protection Association, deceptive practices have evolved in the car-buying experience, making it challenging for consumers to find transparent pricing in ads.
The surge in new car purchases post-COVID-19, due to ongoing vehicle and parts shortages, has heightened the importance of ensuring accurate and upfront pricing for buyers.
Challenges in Obtaining Advertised Prices
During their investigation, Marketplace faced obstacles in securing the advertised prices. At Honda Queensway, a sales representative quoted a lower price for a 2026 Honda Civic LX than advertised but indicated potential price fluctuations upon delivery. At 401 Dixie Hyundai, only military members or past customers were offered the advertised price for a 2025 Tucson, a detail missing from the ad.
At Dixie Ford, advertised as a $999 down payment for a 2025 Ford F-150 STX actually amounted to $3,694 after factoring in undisclosed charges like freight and air tax, sparking frustration among customers.
Formula Ford faced criticism for misleading pricing practices, where a $998 down payment turned out to be over $4,000 due to undisclosed charges. The dealership insisted on bi-weekly payments despite the advertised weekly rate, causing further discrepancies.
OMVIC’s rules require accurate advertising, including using images of models available at the advertised price. However, some dealerships, like 401 Dixie Hyundai, showcased higher-priced versions in ads for base models, leading to confusion among buyers.
