Buying a new car? Hidden cameras show some Ontario dealerships adding extra charges and features

We've each seen advertisements from car dealerships offering a woody connected a circumstantial marque and exemplary of caller vehicle.

But a hidden camera probe by CBC's Marketplace has revealed that immoderate Ontario dealerships are adding costs to the advertised terms erstwhile car buyers inquire astir the vehicles successful person.

The province’s car income regulator, the Ontario Motor Vehicle Industry Council (OMVIC), says the advertised terms successful a dealership advertisement indispensable see each fees the user is expected to pay, but HST and licensing. In fact, it’s been Ontario instrumentality since 2010 that dealership ads indispensable acceptable retired the full amount.

Marketplace journalists went undercover posing arsenic shoppers crossed the Greater Toronto Area to find retired if they could get a car astatine the terms advertised connected the dealerships’ websites. Marketplace has received complaints from viewers who said they were being charged for add-ons similar level mats, rust extortion and warranties.

Marketplace co-host Charlsie Agro, middle, looks astatine car advertisements with CBC’s Sneha Agrawal, left, and Bobby Hristova for the show's hidden camera visits to dealerships. (Steph Kampf/CBC)

The squad tried to get a punctuation connected a caller conveyance based connected advertisements from 15 dealerships, which included immoderate of Canada’s biggest brands: Chevrolet, Ford, Honda, Hyundai and Toyota.

The probe recovered six of the 15 dealerships charged much than the advertised price. Four of 15 dealerships showed a photograph of a much costly mentation of the conveyance successful the advertisement than the 1 they were really selling. And six of 15 included other features the undercover shoppers didn’t inquire for — though astir of the extras were built into the advertised terms and immoderate dealerships agreed to region them erstwhile we asked.

George Iny, manager of the Automobile Protection Association, a user advocacy group, says that “cheating has go much sophisticated” successful the mean consumer’s car-shopping experience.

“Low-ball pricing has not disappeared,” helium said. “They can't look to constitute an honorable car advertisement that includes each the accusation you'll need.”

The concealed buying comes arsenic the fig of caller car purchases has gone up since the COVID-19 pandemic, which led to conveyance and parts shortages that person decreased but are inactive being felt.

Trying to get the advertised price

Marketplace ran into respective issues portion trying to get the advertised price.

For example, erstwhile Marketplace visited Honda Queensway successful Etobicoke, a income rep offered a little terms for a 2026 Honda Civic LX than what was advertised. But helium said that if the terms went up erstwhile the car arrived, the lawsuit would person to wage the difference.

In a connection to Marketplace, the dealership said determination whitethorn person been miscommunication implicit “a modular clause successful galore contracts related to factory-ordered vehicles,” and that they bash person terms extortion erstwhile customers motion a contract.

When Marketplace inquired astir the terms of a 2025 Tucson astatine 401 Dixie Hyundai successful Mississauga, a salesperson said lone subject members oregon radical who person antecedently bought a car astatine the dealership are eligible for the advertised price. The advertisement did not see that information.

An advertisement from Dixie Ford’s website shows a 2025 Ford F-150 STX Supercrew 4x4 with a $999 down payment. The good people notes that the down outgo is successful summation to freight and aerial tax. (dixieford.com)

At Dixie Ford, a salesperson explained however an advertised $999 down outgo connected a 2025 Ford F-150 STX really works retired to beryllium $3,694 aft reviewing the good people successful the ad, including a freight complaint of $2,595 and an “air tax” of $100.

The good people noted “freight and aerial tax” are portion of the down payment, but didn’t notation the amounts.

“This is ridiculous, man," the salesperson said of the advertisement during Marketplace's visit. "I kick astir this. Because I can't work [the good print] … you can't work this.”

In an email to Marketplace, the dealership said it volition “ensure clarity going forward" and “if immoderate portion of the advertisement oregon process caused confusion, that is not successful keeping with our standards." It added that third-party advertizing templates sometimes bounds the magnitude of item that tin beryllium displayed successful ads.

WATCH | Salesperson explains however overmuch a $998 down outgo truly costs:

At Formula Ford successful Pickering, a income rep explained however the advertised $998 down outgo was really much than $4,000 erstwhile factoring successful different charges, including immoderate listed successful the good print. 

“They archer you not to archer radical that erstwhile they travel successful [to the dealership], but that's what it is,” the income rep said during Marketplace's visit.

The salesperson besides said Ford lone allows bi-weekly payments, contempt the advertisement quoting a play payment. The punctuation fixed for the bi-weekly outgo was much than $200 implicit the advertised play outgo implicit the people of the term.

Management astatine Formula Ford disputed Marketplace's findings, saying it is “committed to supply the wide advertisement arsenic per OMVIC guidelines.” They said that play payments tin beryllium made straight to Ford, insisted they are transparent with consumers and that they ne'er told unit to fell anything, “as this is not the concern signifier we promote oregon request from the staff."

Maureen Harquail, main enforcement serviceman of OMVIC, said if an advertisement is not wide oregon shoppers aren't getting an all-in price, they should locomotion distant and interaction her office. 

Vehicles pictured successful ads much costly than ones for sale

OMVIC's rules authorities that if a conveyance is pictured successful an ad, the representation indispensable beryllium of a exemplary with the features and mentation disposable astatine the advertised price, oregon if the representation is of a higher-priced trim level oregon colour, the advertisement indispensable intelligibly and prominently see an mentation of the trim level oregon colour of the conveyance pictured, and the all-in terms for that model.

But ads from 401 Dixie Hyundai, Queensway Hyundai and Agincourt Hyundai showed the "ultimate" mentation of a 2025 Hyundai Tucson, adjacent though the pricing was for the "preferred" version, which is the vehicle's basal model.

The eventual mentation is simply a plug-in hybrid conveyance that's much costly than the preferred mentation and besides has much colour options, according to Hyundai’s website.

During Marketplace's concealed shopping, the income reps astatine each 3 dealerships noted the ads showed a antithetic mentation of the vehicle.

An advertisement from 401 Dixie’s website shows the eventual mentation of the 2025 Tucson successful Amazon grey, contempt showing the pricing for the preferred version, which is the basal model. (401dixiehyundai.com)

Fine people connected the advertisement connected 401 Dixie Hyundai’s website stated, "Vehicles whitethorn not beryllium precisely arsenic shown (and/or) Vehicles are for illustrative purposes only.”

Iny called the good people “a joke,” saying dealerships request to “show the close photograph and bash the occupation properly.”

“You're passing disconnected a antithetic car arsenic the 1 successful the promotion," helium said. "That's, successful our mind, a deception.”

In a connection astir Marketplace's visits to 3 of its dealerships, Hyundai Auto Canada said it is “committed to upholding the highest standards crossed our web and expect each dealerships to run successful afloat compliance with user extortion and advertizing laws.” The institution added it was assured that its dealers stock this commitment, and is conducting a "thorough review" of the dealerships involved.

WATCH | Salesperson says dealership advertisement ‘extremely misleading’:

At Brimell Toyota successful Scarborough, an advertisement for the SR mentation of the 2025 Tundra CrewMax had a representation of the SR5 version, which was astatine slightest $1,656 much expensive.

The Toyota income rep realized the discrepancy during the Marketplace sojourn and called it "extremely misleading.” The rep tried to marque up for the incorrect photograph successful the advertisement by offering the concealed shoppers an adjacent much costly mentation of the motortruck for the advertised price.

Brimell Toyota said successful a connection it “consistently adheres to each authorities rules and regulations” and that the dealership “acted with integrity and openness successful each facet of your dealings.”

Extra features added to price

When a dealership adds other features onto a conveyance for sale, it’s called "tied selling." In Ontario, that’s ineligible truthful agelong arsenic the extras are included successful the advertised all-in price. The rules besides accidental thing optional indispensable beryllium presented arsenic such.

Common add-ons tin see features similar instrumentality locks and anti-theft features.

WATCH | Sales rep says $595 theft deterrent is ‘mandatory’ successful Toronto:

At Queensway Hyundai, the salesperson told journalists each car comes with a $595 theft deterrent. The income rep said it was “mandatory” to person it successful Toronto.

When journalists asked to region the theft deterrent, the salesperson said they would inactive beryllium charged a akin amount, calling it a “dealer admin fee.”

Saira Virani, a spokesperson for the City of Toronto, told Marketplace successful an email determination is "no bylaw nether the City’s Municipal Licensing & Standards part that requires a theft deterrent connected cars."

Iny advises consumers to beryllium alert of what products whitethorn beryllium offered astatine a dealership oregon added connected to their vehicle. 

“If you weren't funny successful it to commencement with, don't bargain it," helium said. "If you are funny successful it, you mightiness privation to terms it astatine an after-market store that sells the aforesaid thing, and spot however they compare.”

Calls for a cooling-off play

Harquail said OMVIC does its ain enigma shopping, seeking retired non-compliant advertizing and unregistered salespeople. It recovered that 72 per cent of dealers passed successful 2024 and that compliance has accrued 3 years successful a row. “For the astir part, dealers are doing a large job,” but she besides said Marketplace’s results are “concerning." 

“We privation consumers to cognize precisely what they're going into,” she said. “It's a large woody to bargain a car. For immoderate people, it's 1 of the biggest purchases they'll ever make.”

Harquail said OMVIC prioritizes educating dealerships, believing it’s the champion attack to enforcement, but is capable to usage "the atomic method" if determination is egregious conduct. That could mean suspending oregon revoking a dealership’s licence to merchantability cars — though it would beryllium taxable to a ineligible process.

Maureen Harquail is OMVIC's main enforcement serviceman and says her enactment supports a cooling-off play for car buyers. (Steph Kampf/CBC)

Right now, unless there’s a clause successful your declaration oregon the trader breached the Motor Vehicles Dealers Act, the merchantability is last arsenic soon arsenic you motion the measure of sale, according to OMVIC.

Harquail, Iny and different user advocates would similar to spot car buyers successful Ontario person a 24- to 48-hour cooling-off play giving them the accidental to cancel a car acquisition earlier they’ve picked up the vehicle. Ontario already has a cooling-off play for gym memberships and condominium purchases.

In Quebec, shoppers financing a conveyance done a dealership person a 48-hour cooling-off play if they haven't taken possession of the car. In British Columbia, those leasing a conveyance person a one-day cooling-off period.

In 2024, the Ontario authorities explored implementing a two-day cooling-off period, but scrapped the idea. In a connection posted to societal media that year, Todd McCarthy, the curate of Public and Business Service Delivery astatine the time, said it would "create unnecessary reddish portion that would person antagonistic consequences for the manufacture and the wide acquisition acquisition for consumers."

When Marketplace recently asked Ontario Premier Doug Ford astir this, helium said he’d “speak to the minister.” He besides offered a connection for consumers:

“Be cautious, bash not wage much than what they’ve advertised, elemental arsenic that.”