OMVIC WARNS AUTO BUYERS TEMPTED BY
U.S. PRICING |
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Toronto, November 1, 2007
–
With the Canadian dollar
enjoying parity in the United
States, many consumers may be
tempted to purchase a vehicle
from an American dealer. While
it is true that some models sold
here are priced higher than
their American counterparts,
consumers should consider the
following factors before making
a decision:
- All vehicles imported
into Canada must pass
federal inspection from the
Registrar of Imported
Vehicles prior to being
registered. Some models may
require modification to meet
Canadian standards and some
models may not be admissible
at all.
- Some manufacturers may
not allow American dealers
to sell their vehicles to
Canadian consumers. Auto
manufacturers differ in
their policies regarding
selling new vehicles outside
of national limits.
- The manufacturer’s
warranty may be compromised
or voided if the U.S.
vehicle is imported into
Canada. Again, every
manufacturer differs
regarding warranty coverage.
In the event the warranty is
compromised, the dollars
saved during the initial
purchase could easily be
eroded by repairs required
down the road.
- Ontario’s extensive
consumer protection
legislation covers
transactions that occur in
Ontario only. Ontarians who
shop south of the border are
not protected.
- All Ontario motor
vehicle dealers are
registered with the Ontario
Motor Vehicle Industry
Council (OMVIC) and
consequently bound by the
law and strict Standards of
Business Practice, which
include disclosure
requirements in ads and
contracts. Depending on
where a consumer purchases
their vehicle in the U.S.,
the dealer may not have
similar obligations.
- Beware hidden charges
not disclosed in ads by U.S.
dealers placed in Ontario
newspapers. And if
considering a used vehicle,
beware of non-disclosure of
material facts. If you end
up with an accident-damaged
or odometer-tampered
vehicle, you will be forced
to deal with your problems
back in the jurisdiction
where you purchased the
vehicle.
- In the event of a
dispute with an Ontario
dealer, OMVIC offers a free
complaint handling service
to assist consumers resolve
their concerns possibly
saving the time and expense
of going to court. Disputes
concerning vehicles
purchased in the United
States will need to be
addressed in the State where
the transaction took place.
- Consumers who purchase
their vehicles from Ontario
dealers have further
protection from the Motor
Vehicle Dealers Compensation
Fund. All Ontario dealers
contribute to this fund,
which can compensate
consumers if they suffer a
financial loss arising from
a transaction with a
registered motor vehicle
dealer.
About OMVIC
OMVIC administers the Motor
Vehicle Dealers Act – a public
protection statute – on behalf
of the Minister of Government
and Consumer Services. OMVIC’s
mandate is to maintain a safe
and informed marketplace by
ensuring registration of dealers
and salespeople, maintaining a
complaint line for consumers and
conducting investigations. OMVIC
is also responsible for
administering the Motor Vehicle
Dealers Compensation Fund on
behalf of a Board of Trustees.
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For more information, please
contact:
Andrea Korth
Business Standards Coordinator
Tel: 416-512-3180
Email:
Web: www.omvic.on.ca
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