The Automobile Protection Association released the results of its latest undercover investigation today. APA mystery shoppers visited 61 dealers in Toronto and Montreal. The sample included conventional used car lots, some new car dealers and a couple of curbsiders. Results were disappointing, with just over half the sellers earning a failing grade. A television report on the investigation was aired on CTV’s W FIVE current affairs program on Saturday March 13 at 7:00 p.m. and is now available on the CTV W FIVE website. APA field studies are designed to duplicate the experience of actual consumers. For the purpose of this investigation, the APA car buyers were asked to look for a small car in the $3,000 to $8,000 range. Where no car fell into that category, the shoppers looked for a cheaper or more expensive car or minivan on the lot. The APA shoppers began their search by consulting classified ads primarily placed by used car dealers. Dealerships were visited by two mystery shoppers. The APA mystery shoppers expressed a preference for cars featured in promotions, or selling at the lower end of the price range for similar models. Where possible, vehicles were road tested and evaluated by an APA-recommended expert. VIN numbers were recorded and the vehicle history was verified in the applicable provincial registry. To APA’s knowledge, this is the most in-depth examination of how used vehicles are sold in Canada to date.

Findings:
Problems began with the ads. Curbsiders, who are unlicensed private individuals or small business that dabble in the used car market, account for about one in four ads placed by private parties in Greater Toronto. When problems occur, a curbsider who is operating below the radar of motor vehicle and taxation authorities is unlikely to be around to collect from.

In Toronto, information disclosure of interest charges and extra fees was more consistent and advertising more complete than in Montreal. Advertised vehicles were more likely to be available on dealers’ lots in Toronto. Representations as to vehicle condition were frequently incomplete, sometimes deceptive, and occasionally whimsical. Some vehicles had been involved in serious collisions, but information provided about prior collision history was frequently misleading. Major damage was explained as a minor fender bender; no vehicle with a salvage or rebuilt title was accurately represented. At three Toronto dealerships, the road test had to be aborted because the car’s defects were too serious to complete the run. Several Toronto dealerships said they do not inspect vehicles prior to sale because the safety standards certificate required under Ontario law is only good for 36 days. As a consequence, several vehicles had defective brakes, oil leaks, even cracked windshields, because dealers had not performed even a cursory inspection and repairs. Some dealers in Toronto stated they are not required to provide a warranty on the cars they sell. This is incorrect. Among dealerships that performed well in the survey, Roy Foss Pontiac Buick, 7200 Yonge Street in Thornhill had a 30-day exchange policy and provided a detailed vehicle history. Weston Motors on Weston Road in Toronto had all vehicles for sale certified and emissions-tested, and posted prices clearly.

What you can do:
Having your used vehicle inspected is one of the best preventive measures you can take. In Toronto, this proved more difficult than it should be. Many dealers required a signed offer or contract of sale, credit approval, and a deposit before they would release a vehicle for an inspection. Some of them limited the inspection to a facility located close by. The APA web sit lists reliable inspection services for the vehicle you intend to buy. In the Toronto area, the most thorough service is Priority Plus Inspection Centres, an inspection-only facility (tel: 905-264-1142). Use the internet to look up the vehicle history at web sites like CarProof.ca and RoadCompanion.ca. At around $25, the searches are not cheap, and information from several provincial databases is still incomplete, but a search remains the best way for you to learn more about the previous history of a vehicle you are considering. For a vehicle from outside your home jurisdiction, a vehicle history search is essential, as its prior collision and mileage history may not have been recorded when the car arrived. This is especially important for vehicles coming into Ontario from Quebec or the United States. Ontario’s historically porous vehicle registration system has made it an attractive dumping ground for vehicles from other jurisdictions.

APA President, George Iny, says Ontario needs a minimum time and mileage warranty with full coverage for, say, the first 30 days. The safety certification system is more promise than reality when it comes to buying a used vehicle. Because a safety certificate lapses after only 36 days, it has the effect of encouraging some dealers to actually postpone needed inspections and repairs until after the customer has bought the vehicle. A mandatory Used Vehicle Information Label in a user-friendly form with accident and mileage history should be posted on every vehicle offered for sale, and it should be made affordable for the dealers.

All of these measures would give some encouragement to the more ethical dealers says the APA. Because of the way the market currently works, the dealers with the best vehicles and selling practices cannot charge the premium they deserve.

Follow this link to view the results for individual dealerships in Greater Toronto.  For more information, call the APA (514) 272-5555, or apamontreal@apa.ca

That warranty company, called Auto Shield - normally covers wheel bearing replacement, if they need to be changed. But when neither Auto Shield - nor the dealership where she bought the warranty would pay the cost of changing the wheel bearings, Sparks got frustrated. She was convinced there was a bigger problem. She eventually called the Global Defenders. We wanted to find out whether the wheel bearings were just a noisy nuisance - or indeed a safety hazard. So we arranged for Sparks to bring her Jimmy to Priority Plus Inspection Centre. It's a company that is strictly in the business of auto inspections. Since they don't do mechanical repairs, they have no incentive to recommend unnecessary work.

We had owner Vince Carnovale check the Jimmy's front end...and it didn't take him long to find a problem. He says the ball joint has to be replaced.

Carnovale: "And this shaft bearing here is going to have to be replaced because of the humming noise."

Carnovale describes the bearings as very "dangerous."

Carnovale: "They could disintegrate." There's no question here about repairs, or who should pay.

Carnovale: "It's definitely got to be done under whatever extended warranty, it's got to be done. Under your power train warranty, this should be covered."

Sparks: "So I guess go back to Boyer's again?"

Carnovale: "Uh huh."

After hearing the news, Cynthia Sparks went straight back to the Boyer dealership. The company repeated an earlier offer to cover half of the repair...but the warranty company won't pay up. Neither the Boyer dealership nor the warranty company wanted to be interviewed.

Vince Carnovale says if the car were his? ..."I wouldn't want to be driving that car down the highway, no."

Sparks: "And now I'm driving on the road in a car that could disintegrate? It's a little scary."

The Jimmy is now technically beyond the 160,000-kilometre warranty period; she believes the warranty company wanted to downplay the seriousness of the bearing problem, to avoid paying her repair bill.

Extended warranties can sometimes be worthwhile, but there's a good chance that after you pay all that money - you too will have problems getting work done.
Remember this: a warranty is not the same as insurance, which is a regulated business. You might be better off putting the money you'd spend on a warranty into a separate rainy day account.