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Read fine print for cost of buying or leasing new car - Dec. 01, 07
A friend recently told me about a car advertisement she read in the newspaper.
At first, she was drawn to the $179-per-month lease payment on a new two-door sedan.
She read about the standard features, and how the car had been recognized by consumer advocacy groups for its superb handling and high safety ratings.
But when my friend read the fine print, she felt let down. To qualify for the $179 per month, she would need to make a down payment of $4,000. If she couldn't come up with that much, the monthly lease payment would climb to more than $200.
I explained that the fine print ? which usually appears at the bottom of an ad ? is for the benefit of consumers, and that it's standard practice for car ads to contain essential details pertaining to the offer.
By law, all advertisements for new and used cars in Ontario must disclose relevant information about any offers. Car dealers and manufacturers use a variety of legitimate incentives to promote new and used vehicles, including low monthly payments, low interest rates, rebates and sale prices.
New-car dealers and auto manufacturers are committed to providing full disclosure when advertising new and used vehicles. In 1991, new-car dealers voluntarily agreed to enforce advertising guidelines created by the Ontario government and the Toronto Automobile Dealers Association.
The Ontario Motor Vehicle Industry Council (OMVIC) is a self-managed organization made up of registered new-car dealers, which administers the Motor Vehicle Dealers Act and monitors and enforces advertising standards.
In 1999, OMVIC introduced the first mandatory certification course for new dealers and salespeople in Canada. The course is administered by the Canadian Automotive Institute at Georgian College and it focuses on law and ethical business practices.
The wording and content of fine print depends on the offer. If a dealership is advertising a sale price for a new car, the fine print will include such things as the manufacturer's suggested retail price (MSRP), administrative fees, freight charges, applicable taxes, licence and insurance costs and the models covered in the offer.
On a lease offer, the fine print will include the term of the lease, payment amounts, security deposit (if applicable), cost of borrowing, additional costs for vehicle options, the number of kilometres allowed, excess kilometre costs and how those costs are calculated.
Consumers need to know that the fine print is not meant to mislead or deceive you. On the contrary, it's meant to clarify the offers so you can make informed ? and confident ? buying decisions.
When customers understand what they're buying, they will have a deeper sense of appreciation for their vehicles and the dealers that sell them.
By carefully reading the fine print, car buyers should get an accurate picture of the financial realities of the offer. If a new-car ad is missing any essential information, contact the dealership, the manufacturer or OMVIC.
Car dealers want their customers to fully comprehend the financial implications of purchase and lease deals offered for new vehicles.
The last thing they want is for customers to discover, after a deal has been signed, that they have made serious errors in judgment as a result of a lack of information.
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