Consumer Line Issue #56
Steer Clear of Flood-Damaged Vehicles
There’s a new danger riding in on a storm for used car buyers—flood-damaged vehicles. “Authorities in the U.S. have told us they expect about half a million vehicles to be flooded as a result of Hurricane Harvey alone,” said Tom Girling, Director of Investigations for OMVIC, Ontario’s vehicle sales regulator. “And they expect many of them will end up being exported—including to Canada.”
Trading-in a vehicle (versus selling privately) has both pros and cons. On the downside, dealers generally offer the wholesale value of a trade-in, which could be less than what a consumer might get selling privately. On the positive side, trading in a vehicle is easier, faster and more secure; it avoids the myriad of headaches (e.g. no-shows, ownership transfer, obtaining secure payment) associated with selling privately; and, there are tax savings to be had when trading in.
Buying a Rental Car? What You Need to Know
Rental vehicles are usually of the current or previous model year, with relatively low mileage and factory warranty. And because it’s used and there’s no freight or PDI charge they often come with a discounted price. But there are some consumers who forego these benefits and steer clear of daily rentals.
OMVIC administers and enforces the Motor Vehicle Dealers Act (MVDA) on behalf of the Ministry of Government and Consumer Services. OMVIC maintains a fair and informed vehicle sales marketplace by regulating dealers and salespersons, regularly inspecting Ontario's 8,000 dealerships and 27,000 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions of industry misconduct and illegal sales (curbsiding). OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund on behalf of its Board of Trustees.
Consumer Line is OMVIC’s consumer guide to Ontario’s motor vehicle dealer industry. It is published throughout the year, delivered free via e-mail and provides consumers with useful tips, industry news and important, up-to-date information.
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