You wouldn’t buy a house or condo without knowing its history. The homebuyer’s inspection informs you of any maintenance concerns, substandard prior repairs, or electrics that are not up to code. It’s the same when buying a used car. In fact, in Ontario, dealers are obliged under the Motor Vehicle Dealers Act (MVDA) to disclose in writing major events in the vehicle’s past

As the scent of freshly sharpened pencils and the promise of new beginnings fill the air, the back-to-school season is upon us once again. For many, this time of year marks more than just a return to classrooms; it's also a perfect moment to consider purchasing a vehicle, whether it's for a college-bound student or a family gearing up for another year of activities. However, before you dive headfirst into the exciting world of car shopping, it's essential to understand the critical role that Ontario's Motor Vehicle Dealers Act (MVDA) plays in ensuring your purchasing experience is both transparent and secure.

Car and truck buyers are at greater risk than ever from “curbsiders” – individuals who pose as private sellers but who are actually in the business of illegally buying and selling vehicles for profit without a professional licence or registration. 

In 2022, OMVIC – Ontario’s motor vehicle sales regulator – laid 1,020 charges against 86 alleged curbsiders. That’s more charges than ever before. OMVIC estimates that at least 30 percent of vehicles listed as for sale by owner on popular online platforms like Facebook Marketplace, Kijiji or Auto Trader are placed by curbsiders exploiting a shortage of vehicles in the used market. 

Individuals who pose as private sellers, offering personal vehicles for sale, when in reality, they’re illegal dealers who buy and sell vehicles without the proper licenses or registrations are called curbsiders. This practice is illegal in Ontario and these individuals deceive buyers by misrepresenting the vehicles they sell and passing off used wrecks as unsuspecting customers' dream cars. They often conceal the vehicle's accident history, hide previous repairs, or tamper with the odometer to roll back the mileage.

Curbsiding is on the rise due to disruptions in the vehicle supply chain and low inventory levels. Shockingly, OMVIC estimates that at least 25 percent of vehicles listed as "for sale by owner" online are actually posted by curbsiders. Which presents a great risk to consumers.

Buying a car can be an exciting experience, but it's crucial to be cautious and informed, especially when dealing with private sellers. Among the many risks associated with private sales, one notable threat is the presence of curbsiders. Curbsiders are individuals who illegally pose as private sellers but are, in fact, unregistered dealers.

From understanding your credit score to confirming dealer information: Your top tips to stay informed when it comes to financing.

Summer is finally here, which means it’s time to plan for fun getaways. Purchasing a vehicle opens the door for endless exploring opportunities. However, there are things you need to know when looking to finance a vehicle before your summer road trip.

OMVIC ensures consumers understand their rights, and that when buying either new or used motor vehicles from a dealer, there may be potential risks and pitfalls to watch out for.

Low credit scores often mean high-interest rates and fewer vehicle choices. Don’t sign until you’re sure.

Nothing in life is free — especially when you borrow money to finance a major purchase. Credit is a popular way to fund a new or used vehicle in Ontario but – as with a vehicle purchase contract – there is no statutory cooling-off period once you’ve signed a finance agreement. As such, it is an extremely difficult hole from which to escape if you discover problems with the deal after the fact or realize you cannot afford it.

OMVIC, Ontario’s motor vehicle sales regulator, advises buyers to check the fine print before they sign a finance agreement and to shop around for the best credit offers. But what if a poor credit score means you don’t have the luxury of competing finance options from mainstream lenders? What if there’s only one deal, or even only one car, on the table?

Summer is just around the corner, which means it’s a busy season for car-buying.

As eager as you may be to buy a new pair of wheels, you might want to consider taking a moment to understand some of the risks and pitfalls associated with financing a vehicle. Financing your new ride may come with issues such as negative equity, high financing rates, and different terms of agreements to understand. That’s why it’s important to know your rights and educate yourself, with the help of OMVIC’s resources, before you decide to make one of your biggest purchases.

OMVIC’s compensation fund can help when a failed dealer has not registered your third-party warranty or offers a warranty and then goes out of business.

It’s always exciting to purchase a new vehicle but, a few years and several thousand kilometers after that initial excitement has worn off, many find themselves facing eye-watering repair bills. Adding an extended warranty when you purchase a new vehicle may help to avoid nasty surprises. A planned, predictable outlay upfront is often more manageable than an unexpected bill that might be hard to pay in the future.

Consumers may be entitled to compensation for any financial loss during their car-buying journey.

There are instances where, unfortunately, many consumers find themselves in difficult situations after they have purchased a new or used vehicle. Specifically, financial loss and no one wants to incur this, not even if it’s a temporary one. Thankfully, OMVIC may be able to provide financial compensation from the Motor Vehicle Dealers Compensation Fund, which is a consumer protection program financed by Ontario's registered motor vehicle dealers.

Written by: Graham Heeps – Automotive, Technical, and Business Writer

If a motor vehicle dealer fails to pay off a lien on a trade-in vehicle, consumers may be compensated for any financial loss.

It’s always a relief to be finally rid of a debt – so imagine the shock of discovering that you’re still being held liable for a lien repayment despite having managed to sell or trade the car with that on it. This could be in addition to meeting the payments on another loan you’ve since taken out to finance a new car.

That’s a situation encountered by some of the car buyers who apply to the Compensation Fund administered by OMVIC, Ontario’s Motor Vehicle Sales Regulator.

You're protected by a compensation fund only if you buy from an OMVIC-registered dealer.

Would you like added financial security when buying or leasing a vehicle in Ontario? Then buy from an OMVIC-registered dealer. All consumers have rights under the Motor Vehicle Dealers Act (MVDA) and Consumer Protection Act (CPA) in Ontario, when purchasing a new or used vehicle from an OMVIC-registered dealer. This includes access to a compensation fund if something goes wrong with a vehicle purchase or lease.

To identify an OMVIC-registered dealer, keep an eye out for the blue and yellow decal on dealership doors and windows, ask to see their registration, or use the find a dealer/salesperson search on OMVIC.ca.

Primarily, it’s imperative to understand that all consumers have rights under the Motor Vehicle Dealers Act (MVDA) and Consumer Protection Act (CPA) in Ontario when purchasing a new or used vehicle from an OMVIC-registered dealer. That Facebook Marketplace or Kijiji ad might catch your eye as a better deal from a private seller, but unfortunately, there is no consumer law that covers private transactions, and it could put you at risk.

Always remember that if you’re looking for an OMVIC-registered dealer, keep an eye out for the blue and yellow decal on dealership doors and windows, ask to see their registration, or use the find a dealer/salesperson search on OMVIC.ca.

Financing is often the most convenient way to pay for a new or used vehicle — but borrowing money to buy a vehicle comes with risks attached. OMVIC, Ontario’s vehicle sales regulator, recommends that consumers do their homework so that they can make an informed decision on finance deals.

“My number one tip is to make sure you that you read and understand your vehicle purchase contract (bill of sale) and your finance agreement, before you sign,” says Tim Hines, Director of Consumer Support at OMVIC. “That begins with an initial disclosure statement for financing, which is often written up on the vehicle’s bill of sale. That initial disclosure statement is important, because it helps...”

There's nothing like ringing in the new year with a newly purchased vehicle. Getting that first whiff of the new car smell –it's exhilarating. If you've been dreaming about buying a new or used vehicle, you might want to re-visit your rights during this car-buying season.

Firstly, it’s important to understand that all consumers have rights under the Motor Vehicle Dealers Act and Consumer Protection Act in Ontario when purchasing a new or used vehicle from an OMVIC-registered dealer.