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Banned from selling cars after they were caught charging a $25,000 mark up for a used Mazda6, Ken Trung and Mohammed Shaikh could be back working on a car lot as early as next year. The two men weren’t just fired for selling the family sedan for $66,000 at a Orangeville dealer outside Toronto, Canada, Mazda Canada actually revoked the dealer’s license.
Carl Compton, executive director of the industry council, expressed that the regulator would prefer the two salesmen be permanently removed from showroom floors and away from vulnerable consumers. However, the two salesmen and their careers will be given a second chance. Ontario government tribunal chairman Harinder Gahir ruled the two salesmen are not chronic offenders and ordered a one year suspension plus a mandatory college certification course to reflect and familiarize themselves with legal and ethical obligations.
As Trung and Shaikh were fired last year, and face an extra year ban from conducting sales, Carl Compton added a comment, “It will be interesting to see how these guys account for the past two years on their resumes if they try to get back in at the end of their suspensions.”
President of the Automobile Protection Association, George Iny, also agrees with the ruling, noting, “It sends a good message. And if they come back, there should be further terms and conditions.”
[Source: The Star]
In a strong case of “caveat emptor“, a Madeline Leonard, who lives outside of Toronto, Canada brought her car to Orangeville Mazda, a local dealership to have her tires replaced. By the time she had left the dealership, she was on the hook for a grand total of $66,000 CDN, which included the cost of a new car, a 2010 Mazda 6, various dealer accessories (like rust proofing and window etching), taxes and an 8 year loan which added $16,000 to the cost of the car.
After complaining to the Ontario Motor Vehicle Industry Council (OMVIC), the local regulatory body, an investigation took place and found that the vehicle – which was actually a demonstrator with 3,750 miles on the odometer – should have sold for $41,000. The OMVIC has laid charges against Orangeville Mazda, which could face fines of up to $250,000. In addition, two dealership staff, including the salesman who sold Leonard the car, could face jail sentences or six figure fines. Buyer Beware.
[Source: Toronto Star]