Toronto, Ontario, November 2, 2023 - Car Help Canada conducted a survey which found that many car dealerships across Canada have been price gouging consumers who purchased a new car over the past two years. The survey found that many dealers have been charging markups or forcing consumers to pay for expensive products. These markups or products can add thousands to the regular price of the car.
The majority of consumers have had to order their car from the dealer and wait for it to arrive. Most consumers have had to wait between 1-6 months for their car to arrive. Not all dealers honoured the original price that was agreed upon. Some consumers had to pay a higher price when taking delivery. Despite the many concerns, most consumers felt that they paid the "right price" for their car.
Car Help Canada commissioned Decision Point Research to conduct the Canada-wide survey. The survey data revealed that:
- 36.6% of consumers were forced to pay a markup over the original MSRP. 85% of these profit markups ranged from $1,000 to over $10,000.
- 41.3% of consumers were required to pay for dealer products, such as extended warranty plans, insurance, or protection products.
- Over 60% of these products added between $1,000 to over $3,000 to the final price.
- 54.5% of consumers had to order their new car and wait for it to arrive. Over 40% had to wait longer than originally promised.
- The majority of consumers had to wait between 1-6 months.
- The majority of consumers believed they paid the right price and felt the dealer was professional, honest and transparent.
Car Help Canada would like to acknowledge that it received funding from Innovation, Science, and Economic Development Canada (ISED) for this survey.