Consumers Facing Raised Prices in BC
After what seemed like forever, a 2-year global pandemic has finally passed for the most part in British Columbia. Throughout the past 2 years, many consumers experienced price hikes across the board for almost everything. From housing, to groceries, to gas, and even the purchase of a new vehicle.
With so many issues brought about due to inflation, buying a car is the last thing you want to fork out more money for. But believe it or not, even though the prices of many things are starting to come down now, new car prices seem to continue to go up. But why?
No Regulations in BC for Preventing Car Dealership Mark Ups
Unfortunately, there is no legislation preventing dealerships from hiking up the price of a new vehicle. The MSRP is a “suggested retail price” and there is no law in British Columbia, or Canada for that matter, that prevents car dealerships from selling a car way above what is suggested by the manufacturer.
Additionally, there is nothing to prevent them from adding additional fees like documentation fees, service fees, and even pre-ordering fees. What’s worse, the additional “fees” are typically not disclosed to consumers until the very end when they are signing off on the paperwork. If you don’t read the fine print carefully, you could be overpaying for a new car substantially.
Car Dealerships in the Driver’s Seat for New Vehicle Purchases
It’s never a great experience when you shell out good money for a large purchase, only to not get what you are paying for, or what was advertised. Particularly in the case of a brand-new vehicle purchase. When you’re making a big purchase like a new car, and one that is on the more expensive side, not getting what you were told you’d be getting can be frustrating.
However, it seems to be something that is occurring more and more these days. Particularly because there is a supply shortage of new vehicles, so dealers know they have more bargaining power than they used to.
BC Man Overcharged $8,000 for New Car Purchase
What’s worse, is you could also be overcharged for it in addition to not getting what you’re paying for. Which was the case for local BC resident Richard Lim, who pre-ordered a Kia EV-6 in 2021.