Father and daughter cough up $25k to unload a lemon

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http://www.ottawacitizen.com/Father+daughter+cough+unload+lemon/6443724/story.html

OTTAWA — After 11 visits to a car dealer’s service department, Cheshta Sharma was fed up with the 2012 Hyundai Genesis Coupe that her father, Rakesh, helped her finance last summer.

So Rakesh, who works in the Citizen mailroom, says he told Myers Hyundai Kanata last month that if they couldn’t be assured that the car would finally be fixed for good, he and his daughter wanted to get rid of it and the loan on the vehicle. They would then negotiate to buy another car from the dealership.

Today, two weeks later, the Genesis is gone and so is that car loan. But there’s no new car, and father and daughter are collectively out almost $25,000.

The dealer says it feels badly about the situation, but it can’t do more than what it is offering Rakesh and Cheshta. It will try to get the bank to reinstate their loan for the car. If it does, Myers will return the vehicle, which it now owns, to them. With the car back in their hands, they would be able to appeal to the Canadian Motor Vehicle Arbitration Plan (CAMVAP) if problems recur. CAMVAP is a dispute resolution program in which most car manufacturers, including Hyundai, participate.

Had the dealership told them about the program before they decided to get rid of the car, perhaps they would have held on to it so that they could have appealed to CAMVAP immediately. But they say they are too fed up to take the car back now, and there are no guarantees they’ll get anything from CAMVAP anyway.

The manufacturer and customer are bound by whatever a CAMVAP arbitrator decides, whether it’s a refund, minus some depreciation costs; repairs; or no award at all. But the battle is between the manufacturer and customer, and does not involve the dealer. Myers offered Rakesh $1,500 on April 2 to settle the dispute outright. Rakesh says he wants way more than that.

For now, Hyundai Auto Canada is washing its hands of the matter. It has told Rakesh by email to deal with Myers because the manufacturer “cannot assist you.”

When Rakesh and Cheshta decided they wanted a new car to replace the Genesis, Rakesh says Myers Hyundai was more than willing to oblige.

According to emails sent or copied to Rakesh, the dealer was frustrated that it couldn’t figure out why the ‘check engine’ light kept coming on — even though nothing appeared to be wrong with the car. Even Hyundai Auto Canada technicians were stumped. Myers notified the manufacturer’s district manager that the car was a pain. (By the time Rakesh and Cheshta decided to get rid of it, the car had been in the shop eight times for the light problem alone.) Myers told the district manager that the customer had “reasonably lost faith” in the car. Myers asked for “assistance or suggestions ... on how to best serve the customer.”

Of the 5,300 kilometres on the car, Rakesh estimates 2,000 were logged driving to and from the dealership, and in test drives by Myers’ mechanics. Cheshta was given a ‘loaner’ whenever the Genesis was in the shop.

After they decided to return the Genesis, Cheshta picked out a 2012 Sonata. It supposedly came with zero-per-cent financing, and its base price was slightly higher than the Genesis’. But then they saw all the numbers on the car’s purchase agreement. Rakesh says he knew the $2,400 they paid on the old $39,200 loan was gone, as was $4,564 in HST. But he says they didn’t know they were going to be hit with depreciation costs of $13,873.87. Though shocked, they still decided to proceed with what now was a $51,177.47 purchase. However, they opted out of the deal soon after when they were notified that there would be interest on the loan.

Still, they didn’t want to take the Genesis back, even though Myers had changed yet another part — the dashboard’s instrument cluster, where the ‘check engine’ light is situated. This time, it stayed off when the car was running, leading Myers to conclude that it was the engine light on the old instrument cluster that was defective.

As Rakesh and Cheshta stood firm, they were hit with more bad news: Walking away without a new car would end up costing them even more in depreciation charges. They were now being pegged at $17,714.24. Their losses were now nearing $25,000, including the lost HST and what had been paid on the old loan. All Marc Le Beau, Myers’ general manager, would say about the depreciation costs was that they were lower on the sales agreement because “the numbers worked.”

Rakesh says even though the $17,714 makes up about 10 months of his earnings at the Citizen, he wrote the dealer a cheque on his personal line of credit.

Cheshta, who intends to repay her father, says the car wasn’t worth the hassle, especially with the demands of her nursing job at the Ottawa Hospital. She says it’s better paying $17,714 to get out of a loan for a bad car than having the same vehicle and owing the bank well more than double that amount. She’s now driving a 2002 Buick, which Rakesh bought last week for $1,000.

Rakesh agrees with his daughter, but feels the manufacturer or the dealer owes them great deal of money as they are out thousands. Rakesh can’t understand how a car can depreciate so much and so quickly. But, in their case, he says, it doesn’t really matter, because the Genesis was a lemon and they should have been given a new one at little or no extra cost.

In an email to Rakesh, Le Beau explained that: “Cars normally depreciate 35 to 45 per cent in their first year, depending on what is happening with the model. In the case of the (Genesis Coupe), we have a worst-case scenario (as a result of) a major model change.”

Read more: http://www.ottawacitizen.com/Father+daughter+cough+unload+lemon/6443724/story.html#ixzz1rqB6HlsL
 
Bulls#it! Do they price their pre-owned cars based on this theory? :mad:

... Le Beau explained that: “Cars normally depreciate 35 to 45 per cent in their first year, depending on what is happening with the model.
 
Is there a lemon in Canada? Always wondered.
 
只是一盏小灯的问题,又不是车不能开,而且最后还修好了!
搞不清这父女咋怎么倔,当个护士损失2万5不当一回事,还情愿去开个2002的瘪客。
 
Heeee... I can understand this... After many times of failed repairs, how could they be assured that was just a light problem? With computerized system built in, I even hesitated to drive a car with any warning light on, even a tire pressure sensor light...

It is called 'Total lost faith' in the brand and they could not trust anything the brand/dealer would say anymore... What should they do?

They totally got ripped off, just because of a bad product or service... Then, they don't have much money to drive a newer car, rather an older Buick... Nothing really wrong...


只是一盏小灯的问题,又不是车不能开,而且最后还修好了!
搞不清这父女咋怎么倔,当个护士损失2万5不当一回事,还情愿去开个2002的瘪客。
 
昨天晚上还在想打Hyundai 的主意。这一事故让我顿失此意。
 
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