Registrar's Decision 12-029

Outcome:

• Based on all of the evidence, the Registrar finds that on a balance of probabilities, Mr. Foster and Nanaimo Chrysler represented to the consumer that he was receiving $4,100 for the Trade-in.
• The Registrar also finds on a balance of probabilities that the consumer was not told he was receiving the consumer cash incentive of $1,750 as part of the Trade-in.
• By mixing in a consumer cash incentive with the actual value of the Trade-in and not advising the Consumer of that fact, a dealer deprives the consumer of making an informed decision of entering into the agreement. How is a consumer to know what value he is getting for the vehicle he is selling to the dealer if its value is mixed in with a manufacturer’s incentive, the amount of which is unknown to the consumer.
• The Registrar finds the consumer is entitled to the $1,750 consumer cash incentive as he was not advised of the incentive. This amount would have reduced the selling price of the Jeep and therefore the taxes payable.
• The consumer is also entitled to that lost tax benefit which at the time was 12% HST. The consumer is entitled to damages in the amount of $1,960 ($1,750 x 1.12).
• Nanaimo Chrysler and Mr. Foster have not met the burden of proof placed upon them by the BPCPA.
• The Registrar does not find that Mr. Douglas Green committed a deceptive act or practice as alleged.
• No finding is made in relation to Michael Lax’s conduct.
• Nanaimo Chrysler and Elwood Foster have breached the BPCPA and a compliance order will be issued.
• Nanaimo Chrysler and Elwood Foster are ordered to pay the consumer $1,960.
• Nanaimo Chrysler and Elwood Foster are ordered to pay $1,710.38 being the Registrar’s investigation and hearing costs in this matter.
• No administrative penalty is levied in this matter.

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