SET YOUR PRIORITIES
First, you need to decide
what kind of vehicle is right
for you. Set your priorities:
where do you drive, how much can
you afford, will you have
passengers or be hauling gear?
Is leasing right for you?
You'll want to do some homework: surf the
Internet, ask friends
and colleagues for their
opinion, read reviews, check the
library and magazine rack. Be
sure you've got reliable
information.
CHOOSE A REGISTERED DEALER
In Ontario, all motor vehicle
dealers must be registered with
OMVIC. You can verify dealer
registration
here.
Why buy through an
Ontario-registered dealer?
If you purchase a vehicle
from a registered dealer, your
transaction is protected by the
Motor Vehicle Dealers
Compensation Fund. Buying
privately means you lose out on
the protection of the Fund.
What is the Motor Vehicle
Dealers Compensation Fund?
The Comp Fund compensates
consumers who have run into
problems with their vehicle
transactions. Under certain circumstances,
you can apply for compensation
of up to $45,000 for
transactions that took place
after January 1, 2010 ($15,000
limit on transactions before
January 1, 2010). All motor
vehicle dealers contribute to
this fund when they register
with OMVIC, as a sign of their
commitment to delivering a good
purchase experience.
What is the Canadian Motor
Vehicle Arbitration Program
(CAMVAP)?
This free arbitration program
is available to you from
participating manufacturers. If
you qualify, the program will
help you deal with disputes that
might arise concerning
manufacturing defects.
BEWARE OF CURBSIDERS
You may consider purchasing a
vehicle privately, whether
through newspaper classifieds,
the Internet or other media.
You may be at risk
of falling victim to
"curbsiders" – who
are individuals who sell
vehicles illegally.
A curbsider may sell you a
rebuilt or defective vehicle,
with a tampered odometer or even
with outstanding liens. Studies
indicate that as many as 25% of
private sales ads are placed by
curbsiders.
If the private seller:
- refuses to provide you
with a
Used Vehicle
Information Package (UVIP);
- is not named on the
vehicle registration permit
- won't let an independent
mechanic inspect the vehicle
- indicates there may be
more than one vehicle for
sale
you may be dealing with a
curbsider! Walk away from the
deal and call OMVIC at 1-888-NO
CURBS (662-8727).
BUYING A USED VEHICLE
These days, a used car can
provide you with excellent value
and many years of dependable
service. It's always a good idea
to have an independent mechanic
inspect the vehicle before you
commit to the purchase. When you
purchase a used vehicle from a
dealer, you may choose to
purchase an extended warranty,
and you may be able to take
advantage of dealer financing.
They may also take your old
vehicle as a trade-in, allowing
you to take advantage of a 13%
tax savings so that you're only
charged tax on the difference
between your trade-in and the
value of the vehicle you're
purchasing.
Remember, it's only when you
purchase from a registered
dealer that you will have
recourse through OMVIC if
complications arise with your
transaction.
BEFORE YOU SIGN ON THE DOTTED
LINE
Before you sign anything,
take the time to read your
contract or bill of sale and
understand all the terms.
Remember, this is a legal and
binding contract and there is no
such thing as a "cooling off"
period under provincial law.
Don't sign the contract until
you're ready to commit to the
deal. Once you give your deposit
and/or sign the contract, you
have agreed to purchase or lease
that vehicle.
As a consumer, you are protected
by legislation and other
mechanisms. All registered
dealers are required to conduct
themselves by a strict
code of
ethics to treat consumers such
as yourself with honesty and
integrity.
DISCLOSURE AND CANCELLING A
CONTRACT (RESCISSION)
In Ontario, there is no
"cooling-off" period after you
have signed a contract; however,
there are certain conditions
that can trigger a consumer's
right to cancel a contract with
a dealer.
A contract can be cancelled,
by a consumer, if the following
was never disclosed:
- The total distance
travelled (for used
vehicles)
- If the vehicle was a
daily rental
- If the vehicle was
previously a police cruiser,
emergency services vehicle
or a taxi or limousine
- The make, model or model
year of the vehicle
- If the vehicle was
branded as: irreparable,
salvage or rebuilt
- The dealer stated they
could not determine the
total distance driven but
could have determined the
toal distance driven
- The dealer has stated a
false distance as the
distance driven after a
certain date
- The dealer stated they
could not determine the
total distance or the
distance travelled after a
certain date but could have
determined one of these
Note: The
consumer may not cancel a
contract more than 90 days after
receiving the vehicle.
KNOW BEFORE YOU BUY
Vehicle ads include a wealth
of important information about
vehicle characteristics and
costs, but can also be quite
confusing. Although we all
grumble about the “fine print”,
it’s there because the law
requires dealers and
manufacturers to disclose
everything you need to know
about vehicle offerings and
financing options. Visit OMVIC's
Know
Before You Buy page.
KNOW YOUR RIDE
Do you know what a curbsider
is? Do you know how to check the
history of a vehicle? Can you
pick out a stolen car? Ontario
high school students will be
able to answer these questions
thanks to a major educational
initiative launched by OMVIC.
The program, titled “Know Your
Ride,” was developed with input
from the education sector and is
designed to be an integral
component of the grade 10 Civics
curriculum. The objective of the
program is to educate students
when it comes to buying used
vehicles privately. Click here
to watch Know Your Ride.
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