Romanosky Automotive Weekly Gazette #64

The Etch Scam

After an almost one year wait, our Hyundai Ioniq 5 EV came in. I'll do a review of it once I have a bit more time behind the wheel, but first impressions are terrific. I'm very pleased to be an EV owner as the novelty of paying over $200 to fill up our Range Rover has worn off.  Electricity for the Ioniq will cost one tenth of the Rover's fuel expense. 


I can't really say the same about the dealer experience, even though my expectations were very low. I ordered the car on-line and after configuring it, the website asks you to pick a dealer. I picked the one close to work. I really just needed a place to pick the car up, and if it was clean and undamaged and the paperwork correct I would have been perfectly happy.


I don't really expect anybody at a volume dealer to know anything about electric cars (and they don't). I have never received a single email from my assigned 'salesman', either before or after the purchase. I don't really care, as every bit of EV related information that he tried to give me was wrong.  But if the guy earned a commission I would have thought that he would have at least followed up the sale with a thank you and email address!  I got a single phone call from him well into the evening on August 2nd - the first communication from the dealer of any kind - telling me the car was here and would I mind expediting the paperwork so they could get the car out for July. Really? Start the warranty early just so you can get paid on your next cheque, even though I've never even talked to you about this car before?


The shine was further rubbed off the sale by the F&I office who, while competent and nice enough, are under huge pressure to sell you a bunch of stuff that is either marked up beyond reason, or complete nonsense. No surprise to most people who have bought a car. 


There is a 1 - 2 year wait for Ioniq 5's and used ones are selling for more than MRSP, meaning there was equity in the car just by taking delivery. I was actually concerned that if I didn't buy enough stuff from them there might be a 'communication error', and they might sell the car to somebody else for more money, despite my order. I felt I should be nice about it at least.


The one thing that I was adamant about and made clear from the very first telephone conversation and every subsequent conversation was that I didn't want them to put any stickers on the car. These are the etch stickers that are sold as a theft deterrent. I told everybody who was involved with the car that I didn't want any extra theft protection and hated the stickers. 


When the time came, I was summoned into the 'Box' as it is still called, so I could decide 'which protection package(s) I wanted'...


We had the sticker conversation again: 


Me: "Please don't put any stickers on my car. I really don't want them. They are completely valueless to me. I wouldn't take them if they were free."


F&I: "This is part of our PDI and our process can't be altered - the vehicle has to be registered."


Me: "The only place the vehicle has to be registered is Alberta Motor Vehicles, please don't put stickers on my car."


F&I: "We can't alter our PDI process"


Me: "Look, I'll give you the $500, just put the stickers in bag, and you can throw out the paperwork. I don't want stickers on the car, please don't put stickers on the car."


We continue....


I declined the pre-paid maintenance package, as there is not that much to maintain with an EV. 


Not wanting to sit through the whole pitch I intervened:


Me: "Look, I know that you are under big pressure to sell me a bunch of stuff and I get it, and I don't mind spending some money in here, but can we try to come up with some items that are useful to me?"


F & I: "Like what"


Me: "I'd be happy to buy a set of rubber mats."


F&I: "Oh, well you'd like our Alberta Winter Protection Package then?"


Me: "Sure, what's all in that?"


F&I: "You get the mats, the mudguards and the block heater for $995"


Me: "I don't really need a block heater considering there is no engine block to heat!"


F&I: "We'd make an adjustment"


Me: "Well, this is an EV and I need to charge it, and you have have a couple of EV Wall Box chargers on your website, so how about one of those? And I'll need winter tires."


 F & I: "Those are from the parts department [and I don't make anything]"


Me: "I'll buy a Hyundai extended warranty if one exists. [one doesn't for this car]"


F & I: "Are you at least going to buy some film protection?


Me: "Sure, I'll buy some film from you"


We go on for a while and wind up with $500 for the 'sticker delete', a winter wheel and tire package ($2,900), Two pieces of PPF on the front and rear bumper ($600 x 2), and a set of mats ($700). So $5,300 in adds. Not too bad for either party I thought.


A day later I get this email, 


"Hi Lawrence, 

 

I’ve been informed that the stickers have already been placed into the car. The car PDI process has already occurred, and the technicians place the stickers on as part of the PDI process. The request has been made to have them removed; however, this may result in any additional shop labour fee as the car has already been through the shop and is now in the process of the 3M application. Our cars have a strict PDI process that cannot be altered."


Really?


Next day I get another call saying that they can't install the film on the rear bumper. I tell them to delete the charge for the rear piece of film, and just install the front piece. 


The day after I go in to sign the paperwork and pick up the car with stickers. On the Bill of Sale I now have one charge of $1000 for the single piece of front film which replaced two charges of $600 for the front and rear piece - they credited me $600 for not installing the rear piece but then increased the other one $400. Nice. Their cost on the single strip of film on the front bumper was probably $50 for material and 45 minutes of $25/hr labour. You can see why they try so hard to sell it. . 


So I get the car and everything is otherwise fine. They did make an accommodation to let me pick it up earlier as I couldn't align myself with the salesman's evening schedule. The car was presented well enough, though some of the parts were backordered. 


In the end the dealer stuck me with an extra $900, but the car is probably worth at least $10k more than I paid for it.  I'm sure I could get the $900 back if I made a big fuss about it, but I really just don't want to go back there. They sold me *one* car, but I'll select a different dealer for my next on line Hyundai purchase. That's if I don't buy a Tesla which takes two minutes on my phone and eliminates all the dealer BS.


These stickers really bug me. The premise is that cars get stolen to be parted out, and that the parts get sold to bodyshops. If the body panel has a sticker on it, the bodyshop won't buy it. Therefor, the thieves won't steal the car because they won't be able to sell the parts.


This is all ridiculous. Bodyshops don't stock random body parts. Thieves send cars to Asia or Africa where nobody cares about stickers. Anybody can get some sandpaper or lacquer thinner and wipe off the etch. No thief is going to care if the cars have stickers or not. You don't get a discount from your insurance company if your car has stickers. If you really want stickers you can buy a set from Amazon for $25.


They bundle the theft deterrent premise with some insurance:  If the vehicle gets stolen and is unrecovered or a write off in the first few years, they will pay $5,000 to the selling dealer who will then give you a credit on the price of a new car.  What is this really worth?


If you take the odds that your car will be stolen and is a total loss in the first 3 years and multiply that by the payout, that gives you an idea.  The fact that the $500 premium doesn't change depending on what vehicle it is, or where it is driven gives you a hint that it is near worthless.  But, to attach a number to it, Statistics Canada reports about 200 vehicle thefts per 100,000 residents, or a  .2% chance that your vehicle will be stolen.  Adjust for the theft being in the first 3 years of ownership and you can see that this is going to be a very small number.  Multiply, say, .1% times $5,000 and you get $5.  Maybe somebody could argue with my math, but this Invisitrak Theft Deterrent scheme is worth, to me,  $5 for the insurance plus $25 for the stickers, or $30 total.  I don't want evidence of a cheesy warranty scheme visible when I open the door of my car, and I certainly don't want to pay $500 for it. 


Dealers can charge anything they want and add anything to the price of a car that they feel like.  We have a free enterprise economy.  But they have to disclose it. When I ordered the car from Hyundai Canada and selected my dealer which populated the Freight/PDI taxes and fees, $500 for Invisitrak wasn't in there.  If it was, I would have selected another dealer.  Consumer protection legislation, which the dealer management should be well aware of, is very specific when it comes to hidden 'mandatory' fees.  They should really know better. 


I would say, based on buying about a dozen cars from multiple dealerships, that 2/3 of all car dealerships in Alberta are engaged in this practice. To the owners of these businesses I would say that when the time comes - and sooner or later it will - when you at you are at your dealer meeting and the manufacturers tell you that they will start selling cars direct to consumers, to not complain about it.  

Some car dealers need to wake up: hidden 'mandatory' fees need to go away.  This CBC article from 2013 shows that the industry is stuck in the past.

For Sale This week on Bring-A-Trailer

1997 Toyota Century for Sale in Coquitlam, BC

Auction ends Wed Aug 24th, 11:00am


Somebody I know needs to buy this car. The best, highest quality, most luxurious car Toyota could build (by hand) with its most skilled employees on a special assembly line. 


Bespoke 5.0L V12 tuned for torque and smoothness.  Built for Japanese Sr. Japanese executives and politicians (and the emperor); "The Century is acquired through persistent work, the kind that is done in a plain but formal suit', according to Toyota.


Every gadget imaginable. Buttons galore. Power lace curtains(!) Low flat sills so the ladies can get in elegantly while wearing Kimonos. Flag masts. Passenger seat turns into footrest for rear passenger.  RHD and good luck figuring out the touchscreen if you don't read Japanese. 


Here is Jay Leno's take on it...

Last Week on Bring A Trailer

1969 Mercedes-Benz 280SE Cabriolet for sale in CA

Sold  Aug 18, 2022 for $198,777


A predictably high result for a very nice car.


"This looks like an honest car that was never rusted (the BIG problem with these). Thankfully not cheaply primped up for resale. This won't be inexpensive, but whatever it sells for it will be worth it."





  • Appraisals


  • Pre-Purchase Inspections


  • Pre-Sale Reconditioning


  • On-Line Auction preparation and management


  • Post-Sale logistics and sorting


  • Restoration Project Management


  • Dent Removal Wheel Repair Wraps and Tint Paint Touch Up Detail


Email Lawrence

Lromanosky@me.com

FOR SALE

1988 Corvette Coupe

35,000km


Auto, Red on Red, Z52 suspension, two tops.  GM employee owner, ordered directly from the GM production office, 35,000km, full one-owner dealer service history. Immaculate as found and when we are done with it it will look like it just rolled off the showroom floor.


Incoming, POA

2017 Jeep Wrangler Unlimited Sahara

23,000km


Top trim package on this 4-door Jeep with very low km.  One owner with clean history.  Replacement value $70k+.


$42,500

1993 MERCEDES-BENZ E320 CABRIOLET

120,000km


Extremely well preserved Victoria car reconditioned to the highest standard by meticulous owner. Over 100 hours and $13,000 in parts (wholesale) was recently spent to replace all consumables. Looks like a new car.


The W124 and W126 and their variants were design masterpieces from Bruno Sacco that are not outsold by current Mercedes-Benz offerings. They only made about 35,000 E Class Cabriolets, with about 20,000 of them being fitted with 6 cylinder engines. That is about the same production number as a Porsche 996 Turbo or a Ferrari 360 Modena.


$40,000

2019 BMW M550XI

25,000km

(Edmonton)


20” M alloy wheels, black Napa leather with contrast stitch, Aluminum Rhrombic interior trim, Premium Pkg,

Advanced Driver Assistance Pkg,

Bowers and Wilkins Diamond Surround Sound, Adaptive M suspension with active roll stabilization and rear steering

MRSP $105,412


$70,000

2007 Aston Martin V8 Vantage Roadster Sportshift


Bought at Desert European in Scottsdale, AZ and imported to Canada when new (this was before there was an Aston dealer in Calgary). 93,000km Aston Dealer 4-year service ($2,800) just completed. One owner. Can't be reasonably faulted for year and mileage.


Price Reduction to $55,000

Past Columns From Romanosky:

Lot Rot: My Alpina Story


On-Line or Live Auction?


Anatomy of a Spyker


Reimagining The Icons


Cryoblasting


When Bad Things Happen To Good Cars


Leasing made complicated


Quality Through the Decades


To Mod or not to Mod?


Death of a Salesman


The First or Last?


Musk, Lidar and Sensor Fusion


The $142M car


What Makes a Car Collectible?


Value In Today's Overheated Market


Great German Engineers Explained


Cross-Border Shopping For Canadians


The Romantic Automobile


Vin Stamping and Other Irregularities


Servicing Costs: Managing Expectations


Supply Chain Woes


Why Are Some Cars More Costly To Maintain Than Others?


Le Mans Engine In Your Road Car?


Lugnutz: A Calgary Automotive Hub


Bring-A-Trailer Marches Upmarket


A Guide To Getting Rid of Unwanted Customers


Where has the horizontal homogeneity and vertical affinity gone?


What's Undervalued In Today's Market


The Mercedes Benz Gullwing - Sports Car Of The Century


A Brand By Any Other Name


Grace, Space, Pace: Jaguar's Future


Max Hoffman: World's Best Car Salesman


2021: A Year Of Living Safely


PORSCHE DNA: More Than Just Sports Cars


Vive la Difference

The Noble Cause


Update on Electric Vehicles in Alberta


Automotive F&I - The Good, The Bad, and the Awful 


Restored or Original - Which Is Better To Drive?


Romanosky on Aston Martin


The Best Car In The World


Memories Of The Alfa Romeo GTV


Concours, Resto-mod or Original


Porsche, Ludvigsen & Collier: Excellence Is Expected


Tesla & Me: From Burning Man To The School Run


DC Disappointment: The Alberta DC Charging Infrastructure


Out Of Stock: What Is Going On With Retail Automotive?


Tales Of A Car Salesman Part 2: Having A Ruf Time


Tales Of A Car Salesman: Risky Purchases, Part 1


Road & Track Magazine: The Rise And Fall Of America's Great Automotive PublicationOn-


Line Collector and Specialty Car Auctions: How BaT Changed Everything


CSI And Google Reviews: The Good, The Bad, And The Ugly


On-Line Automobile Sales - Where Does This Leave Sales Managers and Salesmen?


Porsche + Bugatti + Rimac = ?


What About Hybrids?


Telsa's Head Start


Jaguar Gets Some Love


Camping With An Electric Truck: How Far Can We Go?


1000hp Tesla Plaid: Nobody May Have Asked For It, But We're Glad It's Here


Rimac Nevera - Not A Concept Anymore


Upcoming EV's: 400V or 800V - Why Does It Matter?


Will Electric Trucks Save The Planet?


Soleil EV Weekly Gazette

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