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Protect yourself. Read these important car-buying tips before you sign!
Thursday, August 11, 2016
Many people want to sell their car but don’t want the hassle of posting a private ad or taking strangers for a test drive. It can be time-consuming and frustrating. For some, the answer is consignment: giving the vehicle to a dealer to sell but retaining ownership until the sale takes place. Consignment sales are especially common with unique vehicles such as motorhomes or classic cars.
Consumers who consign vehicles to an OMVIC-Registered Dealer are protected by OMVIC and the Motor Vehicle Dealers Act. This means the dealer must have a contract with the consigning consumer that lays out specific information including an estimate of the selling price and the lowest price the consumer is willing to accept. The agreement must also outline how much the dealership will make on the sale (often a percentage).
The dealer must ensure the consignment contract is in writing and is signed by both the dealer and the consignor.
If the consignor is “an individual exempt from registration” (for example, an individual consigning their personal or family car, a lawyer winding up an estate, etc.), the contract must show in a clear, comprehensible and prominent manner:
The dealer must advise the seller immediately when the vehicle is sold, and must provide the name and address of the final purchaser. Dealers are also required to hold all funds received on a consignment sale in a trust account.
Consignment sales may not be common, but many dealers do offer the service. Consumer who consign a vehicle through a registered dealer are also protected by the Motor Vehicle Dealers Compensation Fund.
To learn more, visit omvic.ca.
Ontario Motor Vehicle Industry Council @omvic_consumers @omvic_official Ontario Motor Vehicle Industry Council www.omvic.ca www.ontario.ca/page/consumer-protection-ontario