A Calgary man is warning other Canadians following a frustrating car-buying experience that left him without a vehicle and $500.
Amin Maherali told Global News he was looking to buy a Hyundai and so he went online to the company’s used car site back in February. He found a vehicle he liked and said the price was right. He then contacted the dealership that had that vehicle in stock, which was in Montreal.
“I was told right away that, ‘For us to take you seriously we need some deposit,'” he said. “That was one of the conditions so he could proceed with the sale.”
Maherali said the salesperson didn’t tell him how much of a deposit, but he didn’t think it would be much, so he provided him with his credit card number in order to go ahead. He added he thought it was just to “hold” the vehicle until he checked out shipping charges from Montreal to Calgary.
“The shipping was very expensive, over $3,000,” he pointed out. “So we cancelled, and everything was done. ”
Maherali said he was shocked to see a charge on his credit card bill shortly afterwards.
“I saw a $500 fee in there and I phoned (the salesperson) and said, ‘How come you’ve charged me $500?’ He said, ‘Because we had to prepare your car.'”
“The deal was never done. There was nothing in writing. I never gave them anything in writing.”
Maherali said he contacted the dealership again and was told he would not get a refund. He then pressed officials again and was eventually told he could get the money back in the form of a certified cheque.
The catch — he had to go to Montreal and pick it up in person.
“I explained to them I’m very far away from you,” he said. “I can’t travel just to pick up the cheque and they said, ‘That’s our policy.'”
Dealership response
Global News reached out to Coiteux Hyundai. Officials told us that all purchases require a deposit to secure the “reservation of a vehicle”. They also said they didn’t know why Maherali wasn’t reimbursed sooner adding they had had a “change in staff and it had probably fell through the crack” (sic).
The dealership told Global News Tuesday that Maherali would be getting a refund back directly to his credit card.
Hyundai Canada said it had “reviewed the case in full with the dealership in question, and can confirm Mr. Maherali has been directly, and fully reimbursed.”
Maherali said he hadn’t received any refund, or notice of one, despite several months having passed. He even contacted the Better Business Bureau and hadn’t been able to get a resolution.
That’s why in his frustration, he contacted Global News.
“It’s very bad for consumers. For small people,” he said.
Deposits when car-buying
The Motor Dealers Association of Alberta (MDA) said dealerships asking for deposits is actually “a very common practice” nowadays adding it makes sense both financially and timewise.
“Especially on used vehicles, there are a number of things that have to be done in respect to inspections and so on in order to get it prepared,” MDA president Gerald Wood pointed out.
“I can tell you that the normal practice with our members is if the consumer ultimately decides not to purchase the vehicle — they will refund that deposit.”
Wood said that’s assuming that the dealership hasn’t gone to certain lengths to get the vehicle in from other jurisdictions or ready for the customer. He also said there may be an agreement signed on both sides stating the deposit is not refundable.
“So there are no surprises,” he said.
The Alberta Motor Vehicle Industry Council (AMVIC), which regulates Alberta’s automotive industry, reiterated Wood’s comments.
In a statement, it told Global News, “A consumer could put a deposit down and not buy a vehicle but the business may keep the deposit even if they agree to cancel the contract, depending on the deposit agreement.”
AMVIC also pointed out that in Alberta, there is no “cooling off” period. That means once you sign, you have contractually agreed to buy the vehicle. Wood said a “cooling period” is actually not as good as it sounds.
“It sounds good to let the consumer sit for 48 hours but the cost that that incurs… if there is a trade, the dealer would have to hold the trade. What if the vehicle gets driven over the course of those 48 hours? It feels really good, but there are a lot of other issues.”
Wood recommends consumers only put a deposit down when they’re sure they want to buy — or at least test drive the vehicle.
AMVIC can investigate deposit-related complaints if there is evidence that the consumer was misled or there was an unfair practice.