TORONTO -- Customers who had already made purchases and were waiting to take home their vehicles were in shock after learning that the popular General Motors dealership in Toronto had shut its doors.
The Dean Myers Chevrolet at 3180 Dufferin Street in North York has been placed in receivership on Wednesday after failing to repay debt.
“I had put down $25,000 on my dream car, a new 2020 Corvette,” Terry Mangal told CTV News Toronto. “Now I have no idea what is happening with my money or my car.”
A security guard was watching over an empty parking lot at the Dean Myers Chevrolet dealership on Wednesday. There were a few cars on the other side of the building.
A sign rests on the locked door, which says the dealer had been placed in receivership.
The Ontario Motor Vehicle Industry Council (OMVIC) which regulates vehicle sales in the province told CTV News Toronto that it’s very unusual for such a large dealership to go out of business.
The council’s spokesperson Terry O’Keefe said he has heard from seven other customers and expects there may be more people affected. In one case, he said a customer paid $77,000 for a brand new GMC Yukon and was planning to pick it up soon.
“The dealership requested payment in full for the Yukon. The person was going to take possession of the vehicle the next day and the doors [of the dealership] were locked,” O’Keefe said.
CTV News Torontoreached out to the dealership but did not receive a response.
The Toronto-based dealership was placed in receivership on application by the Royal Bank of Canada (RBC), which said it is owed $9.2 million.
In its application, RBC said an audit conducted by the bank revealed the company had been selling vehicles without remitting the required repayments to RBC as required under its financing agreement.
“There are customers who have paid deposits and haven't received their vehicles,” he said. “We also have concerns about people who have purchased extended warranty and protection plans."
There may also be issues with customers who have traded in cars, or bought used cars that could have liens placed on them. OMVIC is advising anyone affected to contact the receiver, OMVIC and General Motors Canada.
Some customers may be eligible to be reimbursed for their losses through OMVIC’s compensation fund, he said. They may be eligible for up to $45,000 for a valid claim.
A spokesperson for General Motors Canada told CTV News that it’s working with the council.
"GM Canada is working with OMVIC to transition these customers to another dealer, find them another vehicle and provide goodwill reimbursements for their lost deposits,” a spokesperson said.
