Understanding Contracts

Written contracts that are agreed upon constitute a legal agreement between a customer and a dealer and/or salesperson. In Ontario, there is no "cooling off" period when it comes to vehicle purchases. Once a contract has been signed by a consumer, that consumer has assumed the responsibility of the vehicle.

However, under the Motor Vehicle Dealers Act, if certain information is missing from a contract, that omission can trigger a consumer's right to cancel a contract.

Cancellation of contracts for non-disclosure

A consumer can cancel a contract if the dealer has not disclosed the following:

• Distance travelled (for used vehicles)
• If the vehicle was a daily rental, police cruiser, emergency services vehicle, taxi or limousine
• The make, model and model year of a vehicle
• If the vehicle was branded
• If the distance of a used vehicle is off by more than the lesser of 5% or 1,000 kilometres

The cancellation also includes any warranties, service plans, payment instruments (finance/lease contracts) and any other guarantees made by the dealer.

Note: All contracts must be signed and a copy immediately given to the purchaser. If there is no signed contract and a deposit is given to a dealer, the consumer can cancel a contract at any time and demand a deposit back.