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Toronto, October 28, 2008 –
New research from Angus Reid
Strategies reveals that 73 per
cent of vehicle buyers in
Ontario purchased their first
car used, as did 50 per cent of
Ontarians who had bought a car
in the last two years.
Price-related factors are the
overwhelming factors driving
purchases. In light of the
activity in used car sales and
the likelihood it will increase
with an economic downturn, OMVIC
(Ontario Motor Vehicle Industry
Council), Ontario’s vehicle
sales regulator, is reminding
Ontarians how to avoid potential
purchasing issues.
“Research shows that
price-related factors are by far
the most influential when
shopping for a vehicle. But an obsession with price can
make people vulnerable to a bad
deal, especially if they buy
privately,” says OMVIC’s Brenda
McIntyre. “It’s critical that
first-time buyers know how to
check a vehicle’s history and
how to recognize curbsiders. Curbsiders are unlicensed
dealers who pose as private
sellers. And, very often the
cars they sell are
misrepresented, damaged,
odometer-tampered, stolen or
have liens.”
“Most people are satisfied with
their vehicle-purchasing
experiences, but things can go
wrong,” says McIntyre.
“Sixty-one per cent of
Ontario consumers are unaware of curbsiders, which are unlicensed
dealers posing as private
sellers. As well, more than 40
per cent of Ontarians don’t know
that when they sign a contract,
it’s final. There’s no cooling
off period.”
Examples of vehicle problems to
look for and avoid are:
Ownership and History Issues
- Stolen vehicles sold
with false ownership
- Insurance write-offs
sold at auctions, rebuilt
and sold
- Former rental cars sold
without disclosing history
- Outstanding liens from
former owners
Misrepresented Conditions
- Missing parts, especially
airbags
- Odometer tampering
- Corrosion – badly corroded
vehicles repainted and resold
- Flood vehicles from Hurricane
Katrina and Hurricane Ike
“Consumers can avoid vehicle
sales issues by buying from an
OMVIC-registered dealer. As the
Ontario regulator, we’re
responsible for inspecting 8,600
dealers regularly,” says
McIntyre. “Dealers pay into a
compensation fund that is
available to resolve vehicle
sales issues under certain
circumstances, but you can only
access the fund if you buy from
an OMVIC-registered dealer.”
If you choose to buy privately:
- Get a Used Vehicle Information
Package (UVIP) from the Ministry
of Transportation
- Purchase a vehicle history
search (Carproof and CARFAX)
- Ask for ID and proof of
ownership from the seller
- Get an inspection from a
trusted mechanic
OMVIC has also launched Know
Your Ride, a program approved by
Curriculum Services Canada (CSC)
for the Grade 10 civics
curriculum in Ontario. “Know
Your Ride is designed to help
young adults with no car-buying
experience understand the
potential issues associated with
buying used vehicles,” says
McIntyre. “It’s also a way to
get into the homes of many new
Canadians who may not be
familiar with vehicle-buying
issues and the prevention and
regulation programs that exist.”
Teachers and schools can obtain
a free copy of the Know Your
Ride course, which includes a
DVD, teacher’s guide and student
handouts, by calling (416)
512-3167.
“OMVIC is preparing for the
launch of new legislation
offering more protection for
Ontario consumers in April 2009.
In the meantime, OMVIC is
able to answer any questions
consumers may have,” says
McIntyre.
About the Research
From September 17 to September
21, 2008, Angus Reid Strategies
conducted an online survey among
a randomly selected,
representative sample of 1,193
adult Ontarians on behalf of the
Ontario Motor Vehicle Industry
Council (OMVIC). The
margin of error for the total
sample is +/- 2.8%, 19 times out
of 20. The results have
been statistically weighted
according to Statistics Canada’s
most current education, age,
gender and region Census data to
ensure a representative sample
of the entire adult population
of Ontario.
About OMVIC
OMVIC administers the Motor
Vehicle Dealers Act (MVDA) on
behalf of the Ministry of Small
Business and Consumer Services
and will oversee the
implementation of MVDA 2002 in
April 2009. OMVIC maintains a
safe and informed vehicle-sales
marketplace by regulating
dealers and salespersons,
regularly inspecting Ontario’s
8,600 dealerships, 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.
About CSC
CSC is the Pan-Canadian
standards agency for quality
assurance in learning products
and programs. See
www.curriculum.org for the
full evaluation of “Know Your
Ride.”
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