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Since there is no provision
for a "cooling off" period in
Ontario's law, if you want to
cancel a vehicle purchase
agreement the dealer is
entitled to claim "liquidated damages" and retain a part – or
all – of your deposit.
Liquidated damages arise from
the expenses the dealer might
have already incurred in when
selling the vehicle to you: e.g.
advertising, freight and
administrative costs, as well as
from the loss of profit
resulting from this
cancellation.
Provided that (a) your
contract was recently signed and
you have not taken possession of
the vehicle, and, (b) you wish
to cancel the agreement under
one of the conditions specified
in the back of the contract but
mutual consent has not been
given, then you may send a
letter to the dealership
requesting them to itemize their
liquidated damages.
Below is an example of how
your letter to the dealership
should be worded. Send your
letter by registered mail,
courier, or hand-deliver it, and
obtain a receipt.
[Your Name]
[Your Address]
[Your Phone Number]
[Date]
[Dealership’s Name]
[Dealership’s Address]
Re: Contract to purchase -
[Place type of vehicle &
VIN Number here]
Attention: [Obtain Name
of General Manager]
On [Insert date], I signed a
contract to purchase a vehicle
from your dealership. I am now
advising that I will not be
taking delivery of the vehicle
because [give reason].
I request your consent for
cancellation as stated in
condition #[see back of
contract].
If you do not consent to mutual
cancellation, this letter
confirms my intention to cancel
this agreement under condition #[see
back of contract]. It
will not be necessary to issue a
registered letter allowing me
seven days to take possession of
the vehicle. The liquidated
damages you claim should be
proven expenses arising from my
cancellation of this agreement
and not as a penalty. Please
provide a detailed listing of
your liquidated damages.
I paid $[Insert amount
paid] as a deposit and
I am requesting any refund that
I may be entitled to as a result
of this cancellation.
I would appreciate a response
within 5 days.
Yours truly,
[Insert your name and
signature] |
Click here for the text-only
version of this letter
You can save this file to
your hard drive, for later
editing and delivery.
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