15 Jul, 2024

Ontario car dealerships are gouging customers: survey

When you buy a car, you’ll be offered warranties, rust protection and other add-ons you can usually accept or decline.

However, a new survey by Car Help Canada, a non-profit group that provides assistance to customers buying cars, finds that some car dealers are forcing customers to buy add-ons, and if they don’t, the dealer will refuse to sell them the car.

“Many dealerships are price gouging consumers charging them excessive fees and forcing them to pay for add-on products they don’t necessarily want or need,” said Shari Prymak, executive director of Car Help Canada.

The Canadian Car Buyers Survey asked 1,500 adult Canadians who purchased a car within the past two years about their car buying process.

Thirty-seven per cent of new car buyers said they were forced to pay a mark-up over the Manufactured Suggested Retail Price (MSRP) and 85 per cent of those profit mark-ups ranged from $1,000 to over $10,000.

Some of the options customers were forced to buy included extended warranties, paint protection, tinted windows, key fob insurance, rust protection, tire and rim protection and VIN etching.

According to the survey, some dealers told customers they had to pay for the add-ons or they couldn’t

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Tax Season Should Bring Peak Wholesale Used-Car Values

Tax refund season has begun, which usually results in the annual peak for wholesale used-vehicle values.

Anticipating that demand, dealer business picked up in late February, according to the latest Manheim Used Vehicle Value Index. Manheim says dealers should be aware tax refund/spring selling season for used cars is getting under way.

Averaged out over the entire month of February, wholesale used-vehicle values ​​were virtually flat for the third consecutive month, comparing December 2023, January 2024 and February. Manheim says price stability is welcome, but values ​​were still lower than a year ago.

The Manheim Index for February, which was published March 7, was 203.8. For December and January, it was 204. However, the February Manheim Index was down 13.1% vs. a year ago. The Manheim Index has been below the year-ago month for 18 consecutive months, according to Manheim data.

The seasonally adjusted average used car price was $18,645 in February 2024. That was down 13.1% from $21,452 in February 2023, Manheim says.

Analysts say used-vehicle values ​​are down in part because of the recovery in new-vehicle availability, along with an increase in new-vehicle factory incentives. That’s drawing well-qualified buyers back to new vehicles.

During the height of the

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Fisker Ocean called ‘inexcusable’ in Consumer Reports review































Fisker Ocean called ‘inexcusable’ in Consumer Reports review | Automotive News


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Car Deals Are Easier to Find but Lenders Are Tightening Their Terms

New cars are more available this spring, and manufacturers have even begun offering deals to interested buyers.

But at the same time, lenders have been tightening the terms of car loans as they deal with a rising number of delinquencies. That has made it harder for some people to get affordable loans.

Access to auto loans for both new and used cars was generally worse in January than in December and down year over year, according to Dealertrack, a Cox Automotive service that tracks credit availability based on factors like loan approvals, terms and down payments. The impact was seen at banks, credit unions and dealerships.

“We are seeing credit access tighten in all channels,” said Sean Tucker, a senior editor at Kelley Blue Book, Cox’s car research and sales website.

Subprime borrowers in particular — consumers with the lowest credit scores — may face challenges finding financing, Mr. Tucker said. The share of subprime new-car loans has fallen to about 6 percent, roughly half what it was before the pandemic.

Borrowers with strong credit are especially attractive to lenders. The average credit score for new-car shoppers taking out a loan or lease rose to 743 at the end of

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Dan Sale announces retirement, Sale Auto Mall under new ownership — Neuse News

Dan Sale, the owner of Sale Auto Mall in Kinston, has announced his retirement and the subsequent sale of the dealership. Established in 1986, Sale Auto Mall has been a significant player in the local automotive industry. The business includes BMW, Kia, Chevrolet, Buick, GMC, Ford, and a wide variety of certified used vehicles.

“We are selling to another family auto group, the Deacon Jones Auto Group from the Smithfield/Goldsboro area,” said Sale. “It was important for us to have another family group take over. They will take good care of my wonderful 100 plus employees.”

The next chapter for Sale is a future business called Sale Land and Sea Collectibles, which will feature classic cars, motorcycles and boats. It will be located near Lowes.

“I have the building, but it will remodel before we officially open,” said Sale. “I need to take a break first.”

This period of transition is a family affair. Cathy Sale, Dan Sale’s wife, is also set to retire in February. Her retirement aligns with the shift in their professional lives, marking the end of an era for the Sale family in the automotive dealership industry and the beginning of a new chapter with Sale

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UAE used car prices see sudden sharp increases – will buyers have to delay their plans?

But in general, the availability of these vehicles has come down from other sourcing points as well, they add.

What it means for potential buyers is that they will end up paying 10-30 per cent higher on their model choice than if a similar deal had been made in October or November. Throw in the higher insurance rates they need to pay on their vehicles – many used car vehicle sellers are not offering free insurance perks – and the cost of ownership has jacked up quite a bit.

For the UAE’s secondhand car dealerships, it all adds up to a most unfortunate set of circumstances. “It’s even tougher because we are still uncertain when the shipments will come in,” said Hamid Shah, CEO of The4x$.com dealership network. “When we have that uncertainty on top of the struggle to source vehicles, it makes for a big impact on the used car trade.”

In each of the last two years, sales of pre-owned vehicles in the UAE were on a tear, with many industry sources saying they have not seen a similar demand rush ever. So much so, during the peak phase of 2021-22, prices of used cars that were 6

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