Beware of Unregistered Car Dealers

Toronto, July 23, 2001 - $7500 in fines plus $2000 in restitution to two consumers who became the victims of an unregistered car dealer was the penalty recently handed out in Scarborough Court. Ranie Meganathan who owns Thurga Auto Ltd. on Golden Gate Court in Scarborough pled guilty to 2 counts of misrepresentation under the Business Practices Act. In addition, Thurga Auto Ltd., pled guilty to 2 counts of being an unregistered car dealer.

The Ontario Motor Vehicle Industry Council’s (OMVIC) Lead Investigator, Don MacAndrew says these curbsiders were selling salvage vehicles which they had purchased from an auction dealing with insurance write-offs doing some repairs, rolling back odometers and selling them to unsuspecting consumers without any disclosure.

Curbsiders pose as private sellers but are actually in the business of selling cars. They often prey on an unsuspecting buyer who thinks they are dealing with someone selling their own car privately, but in fact the seller is offering damaged goods. Consumers who purchase from a registered dealer, have a number of advantages, including the protection of the Motor Vehicle Dealer’s Compensation Fund. The Fund is there as a court of last resort for consumers who deal with registered car dealers and can award up to $15000 in certain situations. Private sales or curbsider deals are not covered.

If you are buying a car privately, OMVIC encourages consumers to ensure they buy the Used Vehicle Information Package from their local Ministry of Transportation issuing office. It gives information about previous owners and lien information in Ontario. In addition, OMVIC suggests consumers have the car inspected by their own mechanic prior to signing any contracts to determine if the car has been in a serious accident and to ensure the odometer reading appears consistent with the wear and tear on the vehicle.

If consumers are buying from a car dealer they should check OMVIC’s website (www.omvic.on.ca) to ensure they are registered and therefore protected by the Fund if something goes wrong.

For more information contact OMVIC at (416)226-4500 or 1-800-943-6002.

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