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Cancelling an Agreement

MVDA

In Ontario, there is no "cooling-off" period after you have signed a contract; however, there are certain conditions that can trigger a consumer's right to cancel a contract with a dealer.

General Regulation 50 of the MVDA allows a customer to cancel a contract within 90 days if the dealer and contract fails to disclose (or fails to disclose in a timely way):

  1. The previous use of the vehicle as a taxi or limo.
  2. The previous use of the vehicle as a police or emergency service vehicle.
  3. The previous use of the vehicle as a daily rental (unless the vehicle has subsequently been owned by someone other than a dealer).
  4. The make, model, and model year of the vehicle.
  5. That a vehicle has been branded (irreparable, salvage or rebuilt), and how last classified.
  6. The actual distance the vehicle has travelled. When that cannot be determined, a dealer must make the appropriate disclosure statement.

Note: A margin of error is allowed to the dealer where he or she determines the total distance driven, or, when he or she cannot determine the total distance driven, but can determine the distance driven as of some past date. The disclosure of distance made by the dealer is deemed to be accurate if it is within the LESSER of 5 per cent or 1,000 kilometres of the correct distance required to be disclosed.


Template Letter

You may send a letter to the dealership informing them of your intention to cancel the agreement if the dealer and contract failed to disclose any of the above-mentioned conditions.

This 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.

If you have purchased a vehicle from a registered dealership and have questions regarding cancellation rights, please contact OMVIC’s Complaints and Inquiries Department by phone at 1-800-943-6002 x 3942 or email at


Consumer Protection Act

The Consumer Protection Act (CPA) defines unfair practices as those involving false, misleading, deceptive or unconscionable representations.

Consumers may be entitled to request the cancellation of an agreement if they have been victims of unfair practices. Consumers have up to one year to request rescission (for misrepresentation) under the CPA.

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