Coquitlam car dealership ordered to pay ‘preparation fee’ back to customer

A Lougheed Highway car dealership has been ordered to pay $2,291 to a customer who was wrongly charged an “undisclosed preparation fee,” following a recent Civil Resolution Tribunal ruling.

In September 2023, Ashish Malik picked up a Honda Pilot from Driveco Motors in Coquitlam.

The vehicle was listed on the dealership’s website for $44,888. However, not including taxes, the purchase price, was $46,787.

The day he bought the vehicle, Malik called Driveco to ask about the discrepancy. A company representative told him there was an added $1,899 preparation fee, according to Malik.

Malik told the tribunal he: “relied on the advertisement for the purchase price, and trusted Driveco to complete the paperwork.”

Driveco contended it always verbally disclosed all prices and fees.

“However, it provided no evidence from any employees who met with Mr. Malik that this was done in this instance,” wrote tribunal member Deanna Rivers.

The dealership also stated the preparation fee is set out on its website, noting that by clicking the heading “Vehicle Disclaimer,” the page notes a $1,899 fee will be added.

The website wasn’t sufficient to bring that fee to the attention of a buyer, Rivers decided.
The webpage includes information about licensing and taxes, Rivers noted. “It is reasonable for a consumer to believe these are the only additional costs above the listing price.”

Given that a disclaimer is used as a defence against legal liability, there is no reason for a buyer to look for information about extra fees on that page, Rivers added.

Driveco also argued the fee was included on the window sticker.

Driveco provided a copy of the window sticker to the Civil Resolution Tribunal, and during a previous hearing, gave a copy to the Vehicle Sales Authority of British Columbia. There is a discrepancy in the evidence, Rivers noted, as the two copies of the window sticker each show different prices and different fees.

“I place no weight on this evidence as it is not consistent with the cash or financing price,” Rivers wrote.

The purchase agreement shows Malik initialed certain sections but did not initial beside the increased purchase price.

“I find that Driveco unilaterally changed the price of the vehicle without Mr. Malik’s agreement, and did not bring the change to Mr. Malik’s the attention,” Rivers concluded.

The dealership was ordered to pay Malik $2,291. The payment includes the $1,899 fee, taxes, and $125 in Civil Resolution Tribunal fees.

As the case was a civil proceeding, rather than a criminal case, Malik had to prove his case on the balance of probabilities.