• May 14, 2010
The public outcry over an unscrupulous Canadian Mazda dealership that sold a Mazda6 to a woman with a learning disability for over $25,000 Canadian dollars over sticker has been understandably strong. The Mazda6 wasn't even new and it was rolling on steel wheels for crying out loud. It appears that fact wasn't lost on Mazda corporate, as The Star reports that the dealer has been given the pink slip.

The Star quotes Mazda PR director Greg Young as saying, "We informed the dealer this morning that we were terminating the agreement because he had not adhered to the business standards, under the terms of the sales and service agreement." The terminated contract means the Orangeville dealer can no longer sell any new Mazda vehicles or parts to customers or make repairs. The hammer of justice has fallen, and the sound was deafening.

That's quite the punishment, there, but the Canadian government still hasn't taken its turn at the firing squad. Under the Consumer Protection Act the dealer is subject to a fine of up to $250,000, while the employees involved could be hit with a fine of up to $100,000 in addition to potential jail time. The owner of the dealership could also lose his license to sell vehicles. The next likely step in this saga is that Mazda of Orangeville will seek an injunction temporarily blocking Mazda's termination.

We had a feeling that justice would be done, but we didn't know the long arm of the law would be that swift. Thanks to everyone for the tips!

[Source: The Star]


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  • 97 Comments
      • 4 Years Ago
      @S.P.

      "blah blah blah foreign immigrants. They simply don't have the same moral or ethical code the rest of us do."

      Wow, I would hate to live in your small sad world.
      • 4 Years Ago
      -1 Autoblog for deceptive article. She didn't pay $25k over sticker. She actually paid $5k over sticker which was likely all the extras that dealers typically offer you (tire insurance, clear coat, etc). The $20k additional was interest over the 8 year loan term.... a lot of interest yes, but who counts that? And the car was new technically, only had 3,700 demo miles. Geesh.

      That said, I don't like that the dealer pressured this medicated person into the sale. But the punishment is harsh. 1000's of normal people knowingly sign deals like that every day.
      • 4 Years Ago
      I commend Mazda for the expedien "zoom-zoom" justice, but I would stop short of demanding that they give this woman a free car. We don't know how badly mentally handicapped this person is, or if she is a safe driver, but now that she's in the spotlight, putting a new set of keys in her hands might be a PR problem down the road if heaven forbid something happened to her in that vehicle.
      • 4 Years Ago
      That's like a double-tap to the head. Terminated with extreme prejudice.
      • 4 Years Ago
      I applaud Mazdas actions. This is a very clear message to unfair dealerships who try to prey on consumers. Great Job Mazda!

      More car companies should take a lesson from this move!
      • 4 Years Ago
      The two employees, Kien Trung and Mohammed (Moe) Shaikh were the primary suspects in this con job. Oddly, Shaikh is a partner with the owner, Sunny Bains, at another dealership, Bains Suzuki of Pickering.
      • 4 Years Ago
      As someone else had mentioned, after further investigation into this dealerships practices and past transactions, this cutomers story was only one of many.

      Shutting them down was the right thing to do and I am sure that Mazda Canada looked at the legal ramifications of shutting down this dealership. Any smart company would be prepared to deal with a possible lawsuit or appeal. If what is being said is true, the owner of this dealership would be better off walking away and avoid any further embarressment before more crap hits the media about their shady dealings.
      • 4 Years Ago
      Profit is not a dirty word!! Dealers are there to make money!! It is the only business where everything like invoice, trade in, and rebates are all posted online and everyone who sees them thinks they're an expert. Can anyone here tell me what the invoice was for the last TV, washer/dryer, or lawn mower. they bought? NO!!!! I'm sure they would be amazed at the mark up of any of these.
      Also saying this lady paid $25,000 over the market value of the car is absolutly false. This is the total calculating all the interest, taxes, and who knows how much she owed the bank on the trade in. We don't have all the details.
        • 4 Years Ago
        Which ones are you missing?

        - Lady comes in to have tires rotated
        - Lady is taking meds for fibromyalgia
        - Lady is talked into trading in her vehicle (no info provided as to why) on a new vehicle
        - Lady was charged list price for a used vehicle, as well as significantly overcharged for dealer extras
        - Lady is on a disability pension, with an income of $1800/month
        - Lady is given loan for 8 years at 7.4%, with payments of roughly $350 every 2 weeks, despite the fact that she should never have qualified for such a loan, given her income
        - Dealership has a history of customer complaints, resulting in a D- rating with the BBB

        ...in other words, a simple credit check / proper financing procedures should have negated this deal from ever happening.


        I wanted to reply to this poster,
        - If dealerships had negative consequences for selling to people who were in for service work, there wouldn't be a dealer open in this country.
        - How are the sales people suposed to know she's on meds?
        - I didn't realize people have to give a reason why they want to trade in a vehicle before they can buy a new one? I have certainly took trades without a valid reasoning. Most people do it for change. But really it's none of my business as a salesperson why someone wants to change, other than they want another vehicle.
        - It says she bought a new demo, which is exactly that a NEW demonstrator, which is still a new car and has never been registered to anyone. I have sold lots of demo's at list price, but I still have a job. As far as the extras go, sure $4500 may seem excessive, but she's the one who agreed to the price and signed on the dotted line.
        - So the lady has a income and applied for a loan? And got approved. I don't see the wrong in someone wanting a car and getting an approval based on her income.
        - As far as the 8 year term, again, the customer is the one buying the car and had to know what she was getting into,
        - I bet there isn't a dealership out there without any complaints.

        I still don't see how this dealership is in the wrong. If selling demo's for list price is enough to get a dealership closed, I should have lost my job a long time ago. Same goes for with financing a car over 7 or 8 years. Would I do it, nope. But there are some people who want more than they can afford and the only way to do it is longer terms. Again, customers decesion not the salespersons. I don't see what was wrong in this whole "scandal" The way I see it is:
        Lady comes into dealership with car, for service reasons, sees new car that she wants, buys said car along with extras, only way she can afford the payments is over 8 year or 7 years whatever it is, and says sign me up. If thats all it takes to shut down a dealership there will be lots more gone soon.


        • 4 Years Ago
        Which ones are you missing?

        - Lady comes in to have tires rotated
        - Lady is taking meds for fibromyalgia
        - Lady is talked into trading in her vehicle (no info provided as to why) on a new vehicle
        - Lady was charged list price for a used vehicle, as well as significantly overcharged for dealer extras
        - Lady is on a disability pension, with an income of $1800/month
        - Lady is given loan for 8 years at 7.4%, with payments of roughly $350 every 2 weeks, despite the fact that she should never have qualified for such a loan, given her income
        - Dealership has a history of customer complaints, resulting in a D- rating with the BBB

        ...in other words, a simple credit check / proper financing procedures should have negated this deal from ever happening.
      • 4 Years Ago
      test
      • 4 Years Ago
      Mazda has once again became my favorite Automaker!
      I'm sure the owner of the dealership is furious about it but at the same time is most likely kicking himself due to the fact he knew it was coming and didnt do anything to prevent it. The dealership had a low rating to begin with and with the screw job they did to that woman, handicapped or not was the final tipping point for Mazda. I work at a dealership and since I've been there (about a year now) we've been through 3 sales managers, if you don't perform your gone, guess this owner learned this the hard way.

      Keep your Customers happy and they'll always come back.
      • 4 Years Ago
      with all the bad publicity Toyota has gotten ........ im sure even mazda isnt playing around with issues that might hurt there brand name!!!!! good riddance....1 less scammership to worry about.
      • 4 Years Ago
      all dealers are crooks
        • 4 Years Ago
        +1 -
        some are just worse than others and get caught.

        As for the people losign jobs, yes, I feel very sorry for them, but on the other hand, they hand to have known their boss was a crook and when you work for a crook, sooner or later he's going to get caught and you will be on the street.

        The very fact the deal didn't get red flagged on the spot by someone in the dealership is proof enough to me that the entire management chain was crooked and they need to be shut down.
        • 4 Years Ago
        that is a stereotyping comment, but unfortunately it is almost always true. my bro and his buddies are have worked at many dealers in the NY metro area. and as slimy as some of the salesmen were, the owner was always a notch lower.

        i'd bet good money that the top brass at that dealership was high fiving these salesmen after they wrote that deal.
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