In our final Understanding Contract series, we’ll finish by reviewing two final sections.

Trade-In Description

This section should be filled out if you are trading in a vehicle. It will include your vehicle’s details (e.g. VIN, mileage), the amount the dealer is paying for your old vehicle, and information about any outstanding loan balances.

The Acceptance of Terms

This is the shortest section of a contract, but arguably, the most important. Both you and the dealer will sign here meaning you are legally agreeing to purchase the vehicle based on the contract’s terms.

 

The next section we’ll review is the Basic Vehicle and Options Section. Though short, this is where you will find Optional Extras such as trim packages or other upgrades that might include leather upholstery, heated seats or audio systems. Ensure when you read the contract all additional features you requested on your vehicle are listed.

In the Purchase Price and Payment section of a contract, you can expect to find itemized fees like freight and air conditioning (if you are purchasing a new vehicle), administration (if the dealer charges one) and the OMVIC fee. This is also where you should see your old vehicle's value if you are trading it in.  The terms below are meant to provide a general overview of car contract terminology – the corresponding prices are examples only.  Note: not all terms listed here may be on your contract. Contracts vary depending on whether you’re buying a used or new vehicle.

Vehicle purchase agreements or contracts can be confusing. To help you feel more confident, we will look at each contract section and explain the terms, so you can better understand the document you may agree to sign.

This week, we will focus on the Vehicle Description Section, typically found at the top of a car contract. In the graphic below, each term is numbered so it corresponds with the numbered definition below.

Some 38 per cent of used car-buyers and 46 per cent new-car consumers polled by Ontario’s Vehicle Sales Regulator (OMVIC) said they did not test drive the vehicle before purchase because they were unsure whether vehicle dealerships in the province would have necessary health and safety protocols in place. A salesperson was present in the vehicle for only 16 per cent of test drives.

In August, OMVIC asked the Automobile Protection Association (APA), an independent organization offering car-related resources for consumers, to survey consumers who purchased a vehicle during the pandemic. 

A car buyer contacted OMVIC’s Complaints and Inquiries team to ask about the OMVIC Fee. Can he opt out of the charge? 

Colin: "I bought a new car from an OMVIC-Registered Dealer last week. She charged me $10 for something called the OMVIC Fee. What is it? Could I have not paid it?" 

Recently a consumer named David wrote in to ask,  “I was planning to buy a used car, but my financing didn’t get approved, can I get my deposit back?"
There are two different financing situations that can affect whether or not David can get his money back.

A consumer contacted OMVIC's Complaints and Inquiries team to ask about all-in price advertising and dealer fees.

I recently purchased a used vehicle from an OMVIC-Registered Dealer and he charged me an administrative fee of $199. I questioned this and the dealer said it was a normal charge. I thought dealers couldn’t add fees. Doesn't this violate all-in-price advertising?

How has COVID-19 changed test drives? Is a deposit required?

This week, OMVIC’s Complaints and Enquiries team answer consumer questions about test drives.

Note: COVID-19 has changed test drives at many dealerships. If going to the dealership for a test drive makes you uncomfortable, research the alternatives.

COVID-19 has altered how many of us get from A to B. With fewer people taking public transit, more people are looking to buy cars, but the purchasing process has changed.

In early April, dealerships were closed due to the pandemic. In May they reopened, but with strict public health guidelines, which altered the car-buying experience not just for dealers, but also for consumers.

If you’ve bought a vehicle in the past five months, OMVIC and consumer watchdog group—the  Automobile Protection Association (APA) — wants  you to take a short survey about buying a car during the pandemic.

If you complete it, you could win a prize!

Thanks to technology, driver assistance has grown by leaps and bounds. It keeps us safe, helps us park, saves fuel and even lowers emissions. But what happens when smart technology backfires? Who do you call? Who can help?

The following question from a consumer illustrates what can go wrong when a car has a defect and the dealership can’t fix it and the consumer doesn’t know where to turn. 

Buying a vehicle, whether new or used, can be confusing—perhaps even intimidating. And while the thought of acquiring a new vehicle is exciting, the process can be stressful. So if potential car buyers feel unprepared,The OMVIC Academy will  ensure they become confident and informed.

OMVIC's Complaints and Inquiries team get a range of car-buying questions. Because they know consumer protection legislation inside and out, they can answer your queries or direct you to the correct department. 

Here are two questions the team received last week about the importance of getting what you want from a dealer in writing.

OMVIC makes information about dealers and salespeople who have been charged public in an effort to fulfill its mandate of consumer protection and industry professionalism.  We are sharing the Ontario Provincial Police's news release about an ongoing investigation of a former OMVIC registrant.

While data from Léger, Deloitte and Angus Reid shows 1 in 2 Canadians are worried making in-person purchases and nearly 1 in 3 unwilling to make a large purchase, Ontario’s Motor Vehicle Sales Regulator, OMVIC, wants consumers who are in the market for a vehicle to know that they can safely buy from registered dealers. These businesses have stringent health and safety protocols in place to protect staff and consumers.
Most of the province’s more than 8,000 registered dealerships are fully up and running, following workplace health guidelines mandated by the Ontario government.