Used luxury vehicles may not be all they seem: CBC investigation
Last Updated: Tuesday, October 21, 2008 | 2:44 PM CT
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A questionable sales technique at used-car dealerships could cause consumers to drive away with vehicles not matching their model descriptions, a CBC News investigation has discovered.
In a practice sometimes called "rebadging" or "rebranding," base models of used cars have other features such as sunroofs, leather seats or roof racks added — along with badges or stickers indicating the vehicles are factory-built luxury models.
"They're not getting what they're being sold, not even close," said a former salesman at Haber Suzuki in Winnipeg, who asked that his identity be concealed out of fear of reprisal.
During his two years at the Winnipeg dealership, the salesman said, he sold "definitely over 100" such vehicles. About 30 per cent of the customers knew what they were buying, he estimated.
"You lie, you make money," he said. "If you don't lie, you're broke and you won't have a job."
Warranty issues
In addition to not getting what they believe they've paid for, consumers who drive off the lot in such vehicles could face other problems.
Brian Schwarchuk of Ortynsky Nissan in Winnipeg said such cars are often sold with factory warranties, but the warranties won't cover the added parts.
"They're not going to be under warranty in the first place. But if it causes any problems anywhere else in the vehicle, they're going to void the warranty on the rest of those pieces, also."
Ben Haber, president of Haber Suzuki, told CBC News his sale staff always disclose to the customer when a car is not what its label suggests.
But they were at a loss to explain why, in several cases investigated by CBC News, the labels indicating the upgraded package were left on vehicles.
Complaints more common
Haber said the dealership would compensate a man who paid for a Nismo off-road package on a Nissan Frontier truck that he later learned included non-Nismo and aftermarket products.
"We'll give him $3,500 back. It's not a problem," Haber said. He also agreed to cover the man's warranty.
Officials with Carfax, which provides vehicle histories, told CBC News that complaints about rebranding are becoming more common, although they did not have exact figures on the number of complaints.
You can see more on this story with CBC I-Team's Alex Freedman Tuesday night on CBC Television's News at Six. If you've had had a similar experience, call the I-Team tipline at (204) 788-3744.
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