A Greater Victoria vehicle dealership that lost a $5.5-million lawsuit is now under investigation by an automotive industry regulatory body over its practices, after the operator of one of its vehicles was involved in a collision that killed one woman and critically injured another.
The Vehicle Sales Authority of B.C. confirmed that it has launched an investigation into the actions of Harris Victoria, which sent a prospective purchaser home in the new vehicle in August 2018 for nine days while it attempted to arrange financing for the buyer.
While in the buyer’s care, the vehicle struck two women who were out for an after-dinner walk along Central Saanich Road.
The women’s mother successfully sued the dealership in civil court and was awarded $5.5 million last July towards the future care of her surviving daughter, who suffered a catastrophic brain injury.
After spending almost a year in hospital, she now lives in a long-term care facility that costs more than $12,000 a month.
The dealership appealed, but in December the appeal court upheld the earlier court decision. The dealership now has until Feb. 16 to appeal the decision.
While the Vehicle Sales Authority of B.C. would not reveal the details of its investigation, the court case centred around who owned the vehicle, a Jeep, when it struck the women.
Car dealers routinely lend their vehicles for test drives, a practice covered under insurance provided by the Insurance Corp. of B.C. in the form of demonstration plates temporarily affixed to vehicles.
When the car dealers’ salespeople accompany prospective clients, they are covered by insurance.
Dealers can also lend the vehicles without a salesperson present for 24 to 48 hours. A dealer will ask the driver for their licence and take down credit-card information, in case the driver returns the vehicle with damage.
Multiple car dealers contacted by the Times Colonist said that a loan of nine days is way out of the norm and they could not think of an instance when it would be warranted.
Information presented at the trial indicated the dealership did not place a demonstration plate on the loaned vehicle.
Instead, it removed the licence plate from the prospective purchaser’s vehicle and affixed it to the new vehicle.
The same car dealers said that while such a plate switch is customary after a vehicle has been purchased, it’s not common practice before there is an approved bill of sale.
In the case in question, there was no purchase agreement, as a financial institution could not be found to approve the loan.
The dealers said that the only time they would transfer the plates would be at the time of delivery, with a transfer of ownership and insurance to the next vehicle.
The Vehicle Sales Authority of B.C., which started out as the Motor Dealer Council in 2003 and changed its name in 2007, oversees retail sales of personal-use motor vehicle.
It administers the Motor Dealer Act and parts of the Business Practices and Consumer Protection Act through an agreement with the province, supervised by the Ministry of Public Safety and Solicitor General.
About 3,000 car dealers, wholesalers and brokers and 8,800 vehicle salespeople are licensed with the auto industry group in the province.
