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Contract for Sale of a Used Vehicle

In a clear and comprehensible manner, a contract for the sale of a used vehicle must include the following:

  1. Buyer’s name and address.
  2. Dealer’s registered name (and legal name if different from registered name), address and registration number.
  3. Salesperson’s name and registration number.
  4. Date of sale and date of delivery.
  5. Vehicle Identification Number (VIN).
  6. Make, model, model year and trim level of vehicle.
  7. Colour and body type of vehicle.
    1. The total distance the vehicle has been driven.
    2. If the vehicle is a used vehicle and the dealer cannot determine the total distance the vehicle has been driven, but can determine a distance the vehicle has been driven as of some past date, a statement of that distance and date, together with a statement that “the total distance the vehicle has been driven is believed to be higher.”
    3. If the dealer cannot determine the total distance the vehicle has been driven, or a past distance/date, a statement that “the total distance the vehicle has been driven is unknown and may be substantially higher than the reading shown on the odometer.”
  8. An itemized list of the charges the customer is required to pay (including any fees and levies).
  9. If the dealer has agreed to provide items or inducements at no extra charge, an itemized list with “fair and accurate” descriptions and retail value of each (e.g., DVD players, warranties, service plans, etc.).
  10. The total sale price, indicating the charges in 9 (above).
    1. Down payment or deposit paid by buyer.
    2. Balance to be paid.
  11. Itemized list of all other charges the buyer will pay at time of delivery (e.g., taxes, licensing).
  12. If the dealer helps a consumer obtain financing, a statement providing the consumer with the information required in the “Initial Disclosure Statement” (IDS) of Section 79 of the Consumer Protection Act. The IDS provides the consumer with full disclosure of payment terms including monthly payments, interest rate, term, total payments and other charges.
  13. If the dealer or salespeople will receive from any source other than the dealer any commission, remuneration or incentive for providing the application for financing, a statement to that effect that is initialled by the buyer (this includes a dealer reserve).
  14. If there is a trade-in, the “Additional Contract Requirements for Trade-Ins.”
  15. This “Sales Final” Statement on the same page as the buyer’s signature and adjacent to the signature:

    SALES FINAL (in 14 pt bold font)
    Please review the entire contract, including all attached statements, before signing. This contract is final and binding once you have signed it unless the motor vehicle dealer has failed to comply with certain legal obligations. (in 12 pt bold font)
  16. This OMVIC/Compensation Fund “Important Information” Statement:

    VEHICLE SALES (in 14 pt bold font)

    In case of any concerns with this sale, you should first contact your motor vehicle dealer. If concerns persist, you may contact the Ontario Motor Vehicle Industry Council as the administrative authority designated for administering the Motor Vehicle Dealers Act, 2002.

    You may be eligible for compensation from the Motor Vehicle Dealers Compensation Fund if you suffer a financial loss from this trade and if your dealer is unable or unwilling to make good on the loss.

    You may have additional rights at law.

    Contact OMVIC at 1-800-943-6002 or
  17. One of these two CAMVAP Statements in large bold print:
    1. If CAMVAP is available:

      The Canadian Motor Vehicle Arbitration Plan may be available to resolve disputes concerning alleged manufacturer’s defects or implementation of the manufacturer’s new motor vehicle warranty.
    2. If CAMVAP is NOT available:

      The manufacturer of this vehicle is not a participant in the Canadian Motor Vehicle Arbitration Plan. Therefore, the program under that Plan is not available to resolve disputes concerning alleged manufacturer’s defects or implementation of the manufacturer’s new motor vehicle warranty.

    3. Note: CAMVAP Statements are only required if the vehicle is the current model year or one of the previous four, or has been driven less than 160,000 km.
  18. All restrictions, limitations and conditions imposed on the buyer, stated in a clear, comprehensible and prominent manner.
  19. An itemized list of all repairs under the contract the dealer has made or will make, and the cost to be paid by the buyer.
  20. If a current Safety Standards Certificate under the Highway Traffic Act is provided for the vehicle, the following Safety Standards Certificate (SSC) Statement in bold print:

    A Safety Standards Certificate is only an indication that the motor vehicle met certain basic standards of vehicle safety on the date of inspection.
  21. If the dealer is selling the vehicle on an “as is” basis, the following
    Vehicle Sold “As Is” Statement in bold print:

    VEHICLE SOLD “AS IS” The motor vehicle sold under this contract is being sold “as is” and is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the buyer’s expense. It may not be possible to register the vehicle to be driven in its current condition.

    Note: Dealers cannot sell a vehicle “as is” if an SSC has been issued for the vehicle.
    Note: If a vehicle is sold “as is” the “as is” statement must be initialled by the purchaser.
  22. Any required disclosure statement related to a vehicle’s previous use, history and/or condition.
  23. A statement of any particular facts respecting the vehicle that the buyer considers material to the purchase. Example: if the purchaser requests a specific disclosure such as “has this car ever been used as a tow vehicle?” The dealer must provide the appropriate information. If the dealer can’t tell them with certainty, say so. In our example, if the dealer can assure the customer the vehicle has never had a hitch installed, put it in writing. The dealer is responsible for ensuring the contract is signed by the parties, by the salesperson and that the buyer receives a copy immediately after signing.

Note: There must be a separate contract for each vehicle sold.