Buying a car? Why you may have to pay more at some dealers if you use cash
It used to be cash was king and that you could get a better deal if you paid for a car in full, but now many dealers want you to finance your purchase so they can make more money.
While in Ontario dealers must use "all-in-price-advertising," meaning the price you see is the price you get, some car dealers aren’t following the rules.
"There is a huge incentive for dealerships to get the consumers to finance the car and if they get paid cash for the car, the dealership could be missing out on a lot of profit,” said Shari Prymak with Car Help Canada, a non-profit group that helps buyers with car purchases.
When you see car ad, some dealers show two prices, a cash price and a finance price. In many cases, the cash price can be $2000 to $3000 higher.
The Used Car Dealers Association of Ontario (UCDA) said selling a car this way is allowed as long as the pricing in the ad is clear and transparent.
"It's not illegal for a dealer to sell a vehicle for a cash price that’s at a different level than a financed price, but as the Ontario Motor Vehicle Industry Council (OMVIC) has indicated, it really comes down to disclosure,” said James Hamilton, executive director of the UCDA.
In a statement OMVIC told CTV News, “As the regulator for motor vehicle sales in Ontario, our role is to ensure registrants strictly adhere to all-in price advertising. Car buyers should be able to walk into a dealership and buy the vehicle for the exact price that is noted in the ad (except HST and licensing). Dealers offering pricing options for finance and cash purchases are required to disclose both prices in their ads, in a clear, comprehensible and prominent manner, not hidden below, on a different page or tab or in fine print."
“Dealers advertising two prices must also disclose the nature of the price (for example 'finance deals only' or 'cash price'). If dealers advertise only one price, this price should be available to all interested buyers. Charging a higher price from the advertised price is non-compliant with the all-in price advertisement regulations set out in the Motor Vehicle Dealers Act.”
But Prymak said many dealers are not following the rules and showed CTV News examples of ads where the advertised price is $26,000, but in fine print in the body of the ad it says "for cash purchases an extra $2,000 is necessary."
Another ad showed a price of $37,400, but later in the ad it says the cash price is $39,000.
Under Ontario rules, Prymak said that's not allowed.
“If you go to the dealership and the dealership tells you, 'Well sorry, to get that price you need to finance it with our dealership,' they are breaking the law,” said Prymak.
Prymak said any dealer pricing cars this way should be reported to OMVIC.
The UCDA said there are over 8,000 car dealers in Ontario and said if consumers aren’t happy with one dealer, they should find another one.
"It really comes down to the consumer’s ability to shop around and get the best deal they can and if they look they will find it,” said Hamilton.
OMVIC added: “Our priority is to protect car buyers. We have increased enforcement against non-compliant activities by expanding our mystery shopping program, dealer audits and investigations to ensure compliance. In 2023, we conducted 2,471 inspections across Ontario and laid nearly 1,600 charges. OMVIC is also taking stronger actions against repeat offenders with higher penalties. We continue to increase our efforts to educate dealers, salespeople and car buyers on all-in price advertisement requirements.”
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6953874.1720232402!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Protesters smash windows at McGill University; police use tear gas to disperse crowd
Montreal police deployed tear gas as they dispersed a crowd of protesters participating in a pro-Palestinian demonstration after members of the group smashed windows at McGill University Friday evening.
Biden rejects independent medical evaluation in ABC interview as he fights to stay in race
U.S. President Joe Biden, fighting to save his endangered reelection effort, used a highly anticipated TV interview Friday to repeatedly reject taking an independent medical evaluation that would show voters he is up for serving another term in office while blaming his disastrous debate performance on a 'bad episode' and saying there were 'no indications of any serious condition.'
Canada beats Venezuela to advance to Copa America semifinals
Canada has advanced to the semifinals of Copa America after beating Venezuela in a shootout.
Owe money for CERB? Here's how the CRA is getting it back
The Canada Revenue Agency (CRA) may face some hurdles in collecting the money loaned through COVID-19 pandemic relief programs, like the Canada Emergency Response Benefit (CERB), according to a tax lawyer.
Stay away from hogweed: What you need to know about these pesky and dangerous plants
Hogweed is harmful to humans and, experts say, the invasive species has become a growing problem in southern Ontario.
N.B. man denied flight due to tear in passport’s seam
What seemed to be a minor passport issue turned into a major problem for a New Brunswick man who was denied a boarding pass from Air Canada.
Earth's core has slowed so much it's moving backward, scientists confirm. Here's what it could mean
Deep inside Earth is a solid metal ball that rotates independently of our spinning planet, like a top whirling around inside a bigger top, shrouded in mystery.
Summer jobs could prove tough to come by for students, according to latest job stats
Statistics Canada’s latest jobs report shows youth unemployment reached a near decade high.
Ottawa woman, 49, wins $70 million, plans to help community
An Ottawa woman, who has survived cancer and has overcome addiction, has won $70 million with Lotto Max.