Car dealers reiterate consumer commitment

By Collin Gallant on July 13, 2018.

cgallant@medicinehatnews.com @CollinGallant

A local car dealer is hoping to clear up any misconception that although he operates at the former location of a now suspended car dealer, there’s no connection between the two.

Other car dealers, too, say news that Autos R Less is being investigated for passing vehicles with active liens onto unknowing customers casts a bad light on the industry.

House of Cars owner Mark Terrio-Cameron says people are arriving at his shop on 15th Street near the Trans-Canada Highway to inquire about the former tenant, which moved out of the location in 2015.

That company’s licence was halted last week by regulators who say customers weren’t made aware of outstanding liens on their purchases.

Its most recent location is off 10th Avenue, about six blocks away, but it is empty this week. A compound on the site is bare except for motorhome storage by the landlord.

“People were stopping by thinking we had sold them a car,” said Terrio-Cameron, who says adding to the confusion is a small sign nearby that still advertises Autos R Less.

“That sign will be down this afternoon.”

The trouble involves cars that carry loans on the title. Typically those are cleared up when a dealer buys a car at an adjusted price, then resells it clear of encumbrances.

The Alberta Motor Vehicles Industry Council says at least 21 cars, with liens totalling $480,000, were sold by Autos R Less, with that liability transferring to new owners.

Terrio-Cameron, who is a franchise owner in a much larger auto group, said his policy is to buy his stock outright, rather than take over payments from former owners. That means liens are extinguished and therefore don’t trail to a new owner.

Howard Baigent, of Baigent Auto Sales on South Railway, says he and others in the industry have worked hard to reverse a public perception about “slimy used car salesmen.”

“We’ve worked hard for 21 years to build up our reputation, and things like this (with Auto R Less) set that back years and years. We have customers who know us and trust us, but new (customers) may think twice.”

Baigent says his customers are presented with a complete vehicle history and title search before purchases are completed. That practice, he said, isn’t required but should be expected by car buyers and is a service reputable dealers should provide.

If not, said Baigent, “I’d think twice.”

The AMVIC encourages consumers also conduct vehicle identification searches at Alberta registry offices for about a $20 fee, and legal, costly problems can be avoided.

Bob Altonen, of Southland Volkswagon, said every dealership, large and small, is audited regularly, and the amount of money owners have invested gives them reason to operate above board.

“It’s a bit unusual because the industry is so heavily regulated — you don’t usually see it,” said Altonen, of the Autos R Less suspension.

“Obviously from time to time people can stray in how they do business.

“If there was anything that was amiss, we’d make it right for the consumer … and not just large dealerships, there are smaller businesses that have good reputations as well. You have to check them out.”

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