Man says BC dealership suggested new car instead of offering loaner during repair
A BC man whose car broke down on a road trip found himself in a tricky situation when a dealership far from home couldn’t make timely repairs and didn’t offer an alternate vehicle — and the ensuing legal battle highlights the distinction between car companies and individual dealerships.
The BC Civil Resolution Tribunal ruled that Hyundai Canada doesn’t have to compensate Kim Grenville Hollett, whose 2013 Hyundai Santa Fe broke down eight hours from his home.
He took it to the nearest dealership in Castlegar, BC, but said it wouldn’t give him a loaner car and didn’t offer a rental.
According to the CRT decision posted online, it was undisputed that the engine of Hollett’s car needed replacing and that the repair was covered under the car’s warranty.
But the Castlegar dealership said the repair would take five weeks and couldn’t provide Hollett with a loaner car. The man was an entire day’s drive from his Lower Mainland home and told the tribunal he was left to fend for himself.
The dealership in Castlegar suggested a solution: Hollett would sell them his car and use the credit to purchase one off of its lot.
Hollett accepted the deal because the dealership couldn’t guarantee reimbursement for his travel expenses to get home and then return to retrieve his vehicle.
Hollett then sued Hyundai Canada for more than $4,500, claiming that not providing a rental or loaner car violated the terms of his warranty.
The case was made difficult because Hyundai Canada and the local dealership were considered separate corporate entities, and the national company washed its hands of responsibility for the dealership’s actions.
Hyundai Canada said it never received a request for a rental vehicle from Hollett. In addition, consequential damage such as inconvenience, travel, and lodging costs are not covered in the warranty.
Thus, the tribunal found Hyundai Canada wasn’t liable to pay the damages and travel expenses Hollett claimed.
“Overall, I find there is simply no evidence that Hyundai Canada breached its warranty or any other contractual obligation it had to Mr. Hollett. Rather, I find that Hyundai Canada honoured the extended warranty to repair Mr. Hollettās vehicle, but he chose to buy a new vehicle because it was more convenient,” tribunal member Kristin Gardner wrote in her decision.
Gardner acknowledged Hollett regrets buying the vehicle. He said he only did so because it was the only option the dealership provided him. Hollett argued the dealership was obligated to advise him he had the option of renting a vehicle at Hyundai Canada’s expense but failed to do so.
That claim was against the dealership, not Hyundai Canada, and Gardner said the tribunal couldn’t make Hyundai Canada pay for the dealership’s alleged mistake.
In the end, the tribunal dismissed Hollett’s claim.
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