Curbsiders

.on.ca
Spring 2012
In this issue:
•O
MVIC Investigates Curbsiders
•P
roviding Curbsiders with
Inventory is Illegal!
•O
MVIC on Curbsiders
•C
elebrating Gerry Kowalsky
•N
ews from Georgian College
Post Your
“Ontario-Registered
Dealer” Decal!
To request more decals,
contact OMVIC:
Phone: 1-800-943-6002 ext. 3335
Email: [email protected]
Download an image of the
decal from BuyWithConfidence.ca
and use it on your ads, website,
business cards, etc.
Curbsiders on the
Prowl Online
When the Used Car Dealers Association
(UCDA) released its recent curbsider
study, OMVIC was not surprised that the
report found nearly 29% of vehicle ads
listed on Kijiji and autoTRADER.ca were
placed by curbsiders. “Curbsiders have
been OMVIC’s ‘public enemy number one’
for many years,” explained Carey Smith,
OMVIC’s Director of Investigations, “and
today’s online marketplaces give them
even more anonymity and places from
which to pounce on unwary consumers.”
UCDA Executive Director Bob Beattie agrees. “The Kijiji marketplace
has made it much easier for curbsiders and this has led to an increase
in numbers… curbsiders have found a comfortable pew where it’s easy
to hide with legitimate private sellers.”
Read more inside
Celebrating Gerry Kowalsky
The Dealer Standard
is published by the
Ontario Motor Vehicle Industry Council
789 Don Mills Road, Suite 800
Toronto ON M3C 1T5
T: 416-226-4500
F: 416-226-3208
Toll-Free: 1-800-943-6002
Executive Director: Carl Compton
Writer: Terry O’Keefe
On March 19, 2012, Gerry Kowalsky walked down 15 floors
from his apartment, as he does every morning, on his way to
Olympic Honda in Guelph. Gerry is a registered salesperson
there, but spends most of his time handling Olympic’s
wholesaling. When he arrived at the dealership that morning,
the staff was prepared for a celebration. Yes, it was the
dealership’s 39th anniversary, but that’s not what most
people were talking about – it was also Gerry’s 90th
birthday. “You’d never believe he’s 90. He works here
full time. He’s a piece of the furniture, he’s a part of
the family and we love him,” stated David Brewis,
Olympic’s DP, who also added, “and he has the
cleanest demo I’ve ever seen.”
Continued on the back
News From Georgian College
Canadian Automotive Institute is Now
Automotive Business School of Canada
Automotive Business School of Canada (ABSC),
formerly known as Canadian Automotive
Institute, has undergone rebranding to fully
reflect that the program is a business school
for the automotive industry. Graduates work
in all aspects of the industry – from sales to
service. They might manage or own a
dealership, work for a head office, run an
aftermarket business, operate auto shows or
provide financing. This section of the ABSC
student creed gives insight into these dedicated
students: “Something special propels you…
you have gasoline flowing through your veins…
in your world, they’re not just cars, they’re life.”
North America’s Largest Outdoor Auto Show
The 27th annual Georgian College Auto Show takes place June 1 – 3, 2012
at the Barrie campus. This unique event is the largest student-run
outdoor auto show in North America! Featuring all major
manufacturers and an aftermarket area, the
Georgian College Auto Show offers a
sales-free environment, exciting new car
models, classic and exotic cars, a kids’
zone and an opportunity to go drifting in
a Porsche, making this auto show one
you don’t want to miss!
Courses at Georgian College
In Sales? Want to Advance? The Automotive Business School of Canada
Has Courses That May Help
The Automotive Studies Sales Leadership – Certificate of Achievement program consists of
six online courses designed to help graduates assume leadership roles in dealership sales!
Visit www.automotivebusinessschool.ca for more information.
OMVIC
Investigates
According to the UCDA’s recent
study, 29% of vehicles listed
on Kijiji and autoTRADER.ca were
actually placed by curbsiders
Curbsiders
OMVIC began investigations into 21 of
the most prolific sellers from the UCDA’s
report. The findings are as follows:
4
1
3
4
9
curbsiders were charged:
• Mathavara Supramaniyam (Brampton)
• Shripragas Sivasubramaniam (Toronto)
• Zubair Memon (Brampton)
• Leon Carlos Alberto Navarro (Toronto)
curbsider has charges pending
curbsiders were cautioned
cases were closed pending identification of
the suspect
dealers were found to be posing as private
sellers, which is a breach of the advertising
regulations
2
Page 2
dealers were charged:
• Ahmed Salmi o/a Lifetime General
• Buy Right Auto
4
dealers will be brought before a
Discipline Panel – see the Winter 2012
Dealer Standard for an explanation of the
discipline process
3
dealers were cautioned
“Each year, OMVIC devotes a huge amount of resources
to this issue through our investigations, legal and
communications departments,” stated Smith, who also
warned, “OMVIC remains committed to prosecuting
curbsiders whenever they are found.”
Not only does curbsiding harm consumers, it tarnishes
the entire industry, says Beattie. “When anyone buys a
used car, no matter from where, if they’re unhappy,
they’re unhappy with a ‘used car experience.’ If they tell
people they bought a ‘bad used car,’ people assume it
was from a dealer. It does nothing to improve the image
of our industry.”
As for the registered dealers found advertising as private
sellers, Smith reminds dealers “the Motor Vehicle
Dealers Act (MVDA) mandates all dealer ads must
include the dealer’s legal or business name and phone
number. If there is a space or time constraint, the ad
must, at a minimum, include the word ‘dealer.’
It’s important to realize no such time or space constraints
exist in online marketplaces like Kijiji, Craigslist or
autoTRADER.ca.” Dealers who fail to comply with these
regulations may face prosecution or a discipline hearing.
Beattie agrees this issue requires enforcement. “The way
to bring all into compliance is to make everyone aware
through deterrence.” As for dealers posing as private
sellers, Beattie thoughtfully expressed this sentiment:
“The dealer who hides the fact that they’re a dealer in an
ad has no pride of ownership of business. If they have no
confidence as a seller of vehicles, they’re not really a car
dealer and they shouldn’t be.”
Providing Curbsiders with Inventory is ILLEGAL!
Curbsiders are Your Competitors
All terms used to describe curbsiders, but a term
rarely heard is “competitors.” And yet, that is exactly
what curbsiders are – competitors. Trying to sell
vehicles to many of the same customers dealers are,
curbsiders have a number of advantages over dealers.
They ignore regulations, they have no overhead,
they avoid tax laws and they
advertise for free as “private
sellers.” Yet despite all
of this, many dealers assist
curbsiders on
a regular basis.
How? By providing
them with
inventory.
There are a number of steps dealers can
take to reduce the chances of supplying
vehicles to a curbsider:
•Transfer all vehicles into the buyer’s name.
Curbsiders often commit to do the transfer
themselves, but of course they don’t. The vehicle
stays in the selling dealer’s name until the
curbsider sells it; it’s then transferred into the
buyer’s name. Curbsiders don’t want their names
to show up on the ownership or the vehicle to go
through their RIN because that would make it
easier for them to be caught!
•If a buyer of multiple vehicles claims to be from
another dealer or wholesaler, ask to see their
OMVIC registration certificate. By law, they must
present it to anyone asking to see it. If there are
concerns or the registration certificate is expired
Curbsiders get their inventory from two common
sources: public salvage auctions and dealers.
Many dealers willingly, or with wilful blindness,
routinely sell vehicles they don’t want on their
used lot to curbsiders. This is illegal.
In the fall of 2011, London City Chrysler Jeep Dodge
was charged with selling vehicles to a curbsider.
Evidence presented at trial showed the dealer had
been warned about selling vehicles to Bruno Touma,
a known, prolific (more than 100 previous curbsiding
charges) and convicted curbsider; yet within three
weeks, the dealership again sold Touma vehicles.
London City was convicted of selling vehicles to a
curbsider and was fined $10,000 plus a 25 per cent
victim surcharge – totalling $12,500.
or not valid, dealers can check it here:
https://ewconsumers.omvic.on.ca/Index/Index.aspx
•C
onduct periodic checks of the garage register.
Does the same name appear numerous times?
Can it be explained? Be vigilant.
•E
stablish a zero-tolerance policy. Let your
management and staff know it is illegal to sell to
curbsiders and that your dealership will not be
part of their supply chain.
Curbsiders are scourges; they’re cockroaches,
bandits and creeps. They prey on gullible or
uneducated consumers and they are in business –
your business – the business of selling cars.
Why risk charges, possible discipline proceedings or
a proposal to revoke your registration to help them?
Page 3
.on.ca
OMVIC on Curbsiders
Why does OMVIC devote a substantial amount
of resources to investigating and prosecuting
curbsiders? Why is 65 per cent of OMVIC’s
investigative resources and 50 per cent of its legal
resources devoted to catching and prosecuting
curbsiders? Why is nearly 100 per cent of OMVIC’s
consumer education campaign directed to
informing car buyers about curbsiders? Because
curbsiders flout the law, damage the industry,
rip off car buyers and put all Ontarians at risk.
As a result of OMVIC prosecutions, the courts
have recognized the very real dangers posed by
curbsiders. Since 2010, the 59 offenders listed
below have been convicted of curbsiding.
The fines from these prosecutions totalled $477,750.
Conducting investigations and prosecutions is only
part of the equation – OMVIC has also diligently
worked to influence buyers. For the past three years,
OMVIC’s marketing campaign has featured the
“Avoid Curbsiders” message.
Curbsiders commonly misrepresent
Curbsiders flout the law, Utilizing online ads, newspapers,
themselves and the vehicles they
damage the industry, rip billboards, transit shelter ads, TV,
sell. They regularly buy insurance
radio, websites and more, the
off car buyers and put all
write-offs and “fix” them up. Often,
“Avoid Curbsiders” campaign has
Ontarians at risk.
those repairs are substandard and
attempted to educate consumers
the vehicles remain unroadworthy,
about the dangers curbsiders represent. While the
but a dubious repair certificate and safety can hide
2011 campaign generated potentially 167 million
that, and the vehicles are sold to unsuspecting
consumer viewings, much more remains to be done.
consumers. These vehicles may pose a danger to the
OMVIC has tackled the curbsider issue on
purchaser and anyone who shares the road with
three fronts: investigations/prosecutions,
them... but curbsiders don’t care. They have their
consumer education and limiting the supply
money so they’ll slither back into the shadows of the
of inventory curbsiders rely on. OMVIC remains
online marketplaces and classifieds and post their
committed to consumer protection and the
next ads.
elimination of the dangers curbsiders pose.
Commonly, the vehicles curbsiders sell are in
In order to help accomplish this, dealers should
someone else’s name, making it difficult to catch
expect more enforcement in the area of curbsider
them and, frustratingly, dealers often provide
supply. Therefore, all dealers are cautioned:
curbsiders with vehicles, which is a serious breach
selling vehicles to curbsiders is illegal and
of the MVDA. Despite this, OMVIC conducted
dealers found doing so will face prosecution or
459 possible curbsider investigations in 2011;
a discipline hearing.
80 of these entities were charged.
Offenders Convicted of Curbsiding Since 2010
6286470 Canada Inc. o/a
Capital Remarketing
L.P. Europe Motor Sport
Inc. o/a L.P. Eurosport
Auto Sales
Olabanji, Kamar
Stiles, Eric
Muthuchchamy,
Balakumar
Empire Auto Sales Ltd.
Gathani, Alpa
Gathani, Amit
Gathani, Ankit
Gathani, Dinesh
Habtegiorgis, Daniel
El Barassi, Tareq
World Gate Trading Inc.
Clark, William
Monte Rey Nunez,
Amilcar
Monte Rey Rios, Anibal
Edge Performance
Centre Inc.
Grover, Singh
Ofori, Eric
Fejza, Fisnik
Fejza, Isa
Ponce, Clemente
Arnone, Joseph
Youssef, Ali
Rathor, Kawaljit
Hornea, Daniel
Hawrylak, Christopher
Al Najm Al Afriqi
Used Cars
Farokh, Aria
Hall, Joseph
Bryan, Bradley
Summit Auto Center Inc.
Troka, Dajlan
Kehoe, Renee
Perricelli, Vito
Hemphill, Robert
Autospeed Automotive Inc.
Kocyigit, Mete
Weenen, Matthew o/a
Auto Online
Willson, Jeffrey
Choudhury, Noushin
1715158 Ontario Inc. o/a
Royale Trading Company
& Auto Sales
2139280 Ontario Inc. o/a
Ur Auto
Afzal, Zakaria
Bedawi, Abdul
Kehoe, Brian
Morse, Erling
Kishunlal, Baidmati
Kishunlal, Bridge
White, Mark o/a
Reflection Glass And
Accessories
Namou, Thamir
Scurto, Ben
Signature Line Auto Inc.
Yuriy Beresnev o/a
W Auto
1698921 Ontario Inc. o/a
Alternative Auto Body
Service Inc.
Abassi, Javed
Arshi, Rita
Goberdhan, Davindra
Page 4
Goberdhan, Dushant
Gerry Kowalsky
Celebrates his 90th Birthday
(continued)
Gerry started selling cars at
a Kitchener Ford dealership
in 1957 and he’s been with a
Brewis family dealership since
1986. “This is why I get up every
morning,” Gerry good-humouredly stated.
“It gives me purpose. I can’t imagine what I’d do
if I retired.”
During his 55 years of working in the business,
Gerry has seen some major changes. “The safety
improvements to vehicles and inspections have
been great,” he said, “but the price changes…
horrible.” As for the business itself, “there used
to be so many shysters – it was horrible, but
things have really, really improved.”
One of Gerry’s most memorable transactions
occurred back in the ‘50s when a customer came
in to see an Edsel. “I really liked the Edsel,” Gerry
laughed, “they were ahead of their time. So when
this customer asked for a demonstration, I latched
onto him – I showed him absolutely everything
about that car.” That “customer” turned out to be
an undercover Ford mystery shopper. He must
have been pleased with Gerry’s knowledge and
customer service because two days later, he
returned to buy the car for himself – from Gerry,
of course.
“Gerry is very conscientious,” opined David when
asked about Gerry as a salesperson. “He’s solid
and down-to-earth and has many long-term
customers. His customers love him – the staff
thinks the world of him!”
With all those years in a showroom, Gerry has
seen some big changes. “Consumers today are far
more educated and more selective, which is a
good thing, and it means salespeople have to be
very knowledgeable.” When asked if he had a tip
for a salesperson or dealer starting out, he was
happy to share: “It’s not just a vehicle you’re
selling, you are selling yourself. Be friendly, but
most importantly, be a good listener. This will help
you meet your customers’ needs and that will
make you successful!”
Successful indeed.
Happy birthday Gerry!
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