A Calgary man is warning others to be aware of “extra, mandatory” costs when buying a new vehicle at some dealerships, adding he was told to “pay up” for these extras or walk away with no vehicle.
“It was extremely frustrating,” Jason Gray told Global News.
Gray said the “nightmare started when he went with his young daughter to buy her first vehicle. They went to several dealerships, including Crowfoot Hyundai in northwest Calgary.
Gray said they picked out a vehicle and then asked about the price. He added he was shocked to see the quote included some extra charges that were not included in the selling price. Those charges included thousands of dollars for a so-called “Winter Group” package and a “Safeguard” package.
When Gray tried to get those taken off the final price, he said he was told that was not possible.
“If I wanted the vehicle, I had to pay these additional fees,” he said. “They were saying it’s company policy, corporate policy. I was required to pay it if I wanted the vehicle itself.”
What these packages cover
Gray’s quote that he provided to Global News was for a 2024 Hyundai Elantra Luxury. The selling price was listed at $32,979 with $799 in admin fees already included.
The “Winter Group” package at $3,895 includes items such as branded winter tires, block heater, locking wheel nuts, molded mudguards, all-weather mats and nitrogen-filled tires.
In the emailed quote, the salesperson told Gray the Winter Group package is needed, “…as all of our inventory is made in Korea (sic) and we have to winterize it according to our weather here in Canada.”
The “Safeguard” package at $999 comes with three benefits, according to Crowfoot Hyundai. Those include protection for tires and rims, annual rotation of tires and anti-theft insurance coverage for three years.
The final cash price, after all of the add-ons and taxes, was $39,766.
Gray said he understands markups, but he doesn’t understand or accept this.
“When you advertise that price and then try and tack on a bunch of more fees, it’s totally misleading,” he added.
Dealership response
Crowfoot Hyundai didn’t respond to any of Global’s requests for comment. It did send Gray a follow-up email stating the Winter Group package was never mandatory, and that only the Safeguard package had to be included.
Gray disputed that and provided recordings to Global News with several back-and-forth conversations where he does question the “mandatory” part. In those recordings, a salesperson with Crowfoot Hyundai was heard telling Gray that the services “come as part of the package” and that “this is a store policy by AutoCanada.”
AutoCanada describes itself as “a leading North American multi-location automobile dealership group currently operating 67 dealerships, comprised of 25 brands, in 8 provinces in Canada” on its website. One of those dealerships is Crowfoot Hyundai.
It would not comment on this particular case but in a statement, the company’s chief strategy officer and general counsel Peter Hong said, “AutoCanada takes its responsibility to conduct business in compliance with all applicable laws seriously, and we have strict policies in place regarding this.”
“We are unable to be available for any interviews at this time in light of the fact that the matter appears to be before AMVIC.”
AMVIC is Alberta’s regulatory board set up to protect consumers and industry from unfair practices in the automotive business industry.
It told Global News no consumer should ever be forced to agree to extra fees, additional equipment or services if they do not want them. It added misrepresenting fees or failing to disclose additional fees can be in contravention of the Consumer Protection Act and can result in various enforcement actions.
But there is a caveat, according to AMVIC.
“If a vehicle was not advertised at a specific price, businesses can charge the market rate and add extra fees, assuming the consumer is willing to pay them.”
If a consumer is unable to negotiate to remove extra fees, AMVIC suggests walking away.
Hyundai Canada response
Global News tried to find out if all Hyundai’s in Canada are adding on “mandatory” fees. A spokesperson with Hyundai Canada told us dealerships are “independent businesses that ultimately decide on the final price with customers.”
However, the automaker added it does “strongly reinforce” that prices on websites need to align with pricing in the store, adding dealers must offer vehicles priced in line with, and not more than, the Manufacturer’s Suggested Retail Price (M.S.R.P).
Jason Gray’s daughter did eventually drive away with a vehicle, but from another dealership. Gray said the experience they had overall was disappointing, to say the least.
“She was pretty excited about it and I thought this was going to be a fun day,” he said. “It actually turned out to be quite the nightmare.”
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