Edmonton man told to pay $2,400 'market adjustment' fee on new car he'd ordered — or lose it
CBC
Randy Lowry was excited to drive the new Kia Telluride he'd ordered from a dealership, but wasn't excited to learn about the car's new price.
When he went to pick it up, the sales manager at Kia West Edmonton told him there was an extra $2,400 "market adjustment" fee — and if he didn't pay, the sale was off.
"I said, 'No, we have an agreement,'" said Lowry. "He didn't seem to care."
He said the manager blamed the current auto shortage and said the price had gone up, period.
Lowry says he needed a car because his current vehicle is 17 years old and starting to have issues.
He'd waited four months for the car to arrive and figured he had a contract. The sales rep had given Lowry a "worksheet agreement" spelling out the make, model, colour of the vehicle and listing the total price of $46,997. Lowry had also put down a $1,000 deposit.
But the dealer said that agreement wasn't a formal bill of sale — which would have been binding — so it didn't hold water.
"It's maddening," said Lowry.
He complained to Kia Canada.
In an email, a Kia customer service rep apologized for the inconvenience, but said that due to "volatility in the market," prices couldn't be guaranteed for "an extended period."
Kia Canada wouldn't address Go Public's questions, but in an email a spokesperson said the company "does not have control" over customer transactions as dealerships are independently owned and operated, and that dealerships are "encouraged to uphold pricing" whenever possible.
Kia West Edmonton did not respond to repeated interview requests from Go Public.
One consumer advocate says such fees are "unprofessional" and should not be allowed.
"I think it's unethical to add a mark up like that to a car in order to take advantage of a desperate buyer," said Shari Prymak, senior consultant at Car Help Canada, a non-profit association that helps people negotiate vehicle purchases.
