Mazda Canada announced Friday that a dealer that sold a Mazda6 demonstrator to a woman for nearly $25,000 above retail value has had its franchise agreement terminated. Mazda of Orangeville, situated about 35 miles northwest of Toronto, will no longer be able to sell new vehicles or parts or make repairs.
Mazda of Orangeville attracted a flurry of negative press after it emerged that it sold a disabled woman a 2010 Mazda6 demonstrator for $66,000, when it should have sold for roughly $41,000
In an interview with the Toronto Star, Greg Young, Mazda’s director of corporate public relations explained the reasoning behind the termination. “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.”
Young said that the overpriced car was one example found during an investigation into the dealership’s business practices. The dealership charged the buyer, Madeline Leonard, nearly three times the retail price for various accessories, and gave her an 8-year loan which added significant costs to the vehicle. Leonard is on a fixed income and should not have qualified for a standard loan.
[Source: Toronto Star]